EUROPEAN COMMISSION

Brussels, 24.3.2021

COM(2021) 201 final

2021/0077(BUD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Union Solidarity Fund to provide assistance to Greece and France in relation to natural disasters and to Albania, Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia, Spain in relation to a public health emergency

EXPLANATORY MEMORANDUM

1.Context of the proposal

This decision covers the mobilisation of the European Union Solidarity Fund (hereinafter referred to as ‘the EUSF’) in accordance with Council Regulation (EC) No 2012/2002 1 (hereinafter referred to as ‘the Regulation’) for an amount of EUR 484 199 841 to provide assistance to Greece and France further to regional natural disasters that took place in these countries in the course of 2020, as well as to 20 Member States and accession countries (Albania, Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia, Spain) in response to the major public health emergency caused by the Covid-19 pandemic in early 2020.

This mobilisation is accompanied by Draft Amending Budget (DAB) No 2/2021 2 that proposes to carry over the amount of EUR 47 981 598 from the unused 2020 allocation directly to the EUSF operational budget line and DEC No 03/2021 that proposes to transfer the amount of EUR 427 543 750 from the Solidarity and Emergency Aid Reserve (hereinafter referred as ‘the SEAR’) reserve line to the EUSF operational budget line, both in commitments and payments. In accordance with Article 4a (4) of the EUSF Regulation, the amount of EUR 50 000 000 has been already insribed in the General Budget 2021 (in commitments and payments) for the payment of advances. These appropriations will be used for the payment of EUR 8 674 493 in relation to the advances for the regional natural disasters in Greece and France. The advances for the Covid-19 related cases amounting to EUR 132 736 830 were paid from the 2020 EUSF allocation.

2.Information and conditions

2.1Greece – floods in Sterea Ellada in August 2020

(1)On 29 October 2020, Greece applied for a financial contribution from the EUSF to finance emergency and recovery operations following the floods in the Region of Sterea Ellada in August 2020.

(2) The application was submitted within the deadline of 12 weeks after the first damage caused by the disaster was recorded on 9 August 2020 and contains all the information required under Article 4 of the Regulation.

(3)The disaster is of natural origin and therefore falls within the scope of the EUSF.

(4)The application presented the event as a ‘regional natural disaster’ as laid down in Article 2(3) of the Regulation, which is any natural disaster in a region at NUTS level 2 of an eligible State resulting in direct damage exceeding 1,5% of that region's gross domestic product (GDP). The Greek authorities estimate the total direct damage at EUR 132 004 000. The damage caused represents 1,54% of the GDP of the concerned NUTS 2 level region Sterea Ellada and thus exceeds the threshold of EUR 128 286 000 (1,5% of regional GDP). The application from Greece is therefore eligible for a contribution from the EUSF.

(5)The total direct damage is the basis for the calculation of the amount of the financial contribution from the EUSF. The financial contribution may only be used for essential emergency and recovery operations as defined in Article 3(2) of the Regulation, with the exception of small letter e).

(6)In its application of 29 October 2020, Greece requested the payment of an advance as laid down in Article 4a of the Regulation. On 2 March 2021, the Commission adopted Implementing Decision C(2021) 1507 awarding an advance amounting to EUR 330 010. The amount of the advance will be taken into account for calculating the balance of the contribution to the beneficiary State. The Commission will recover unduly paid advances.

(7)The application describes in detail the event and the entity of the damage. On 9 August 2020 the summer storm system “Thalia”, which 2 days earlier affected northern Greece, intensified towards the central and south-eastern mainland Greece causing the development of vertical meteorological activity and extreme weather phenomena. The extreme weather brought torrential rainfall (300 mm of rain in 8 hours), intense thunderstorms and strong winds. Torrential rains caused two rivers to burst their banks, blocked roads and led to flooding of 3 000 homes, trapping both tourists and residents. All six main bridges of Lilas River collapsed and river suffered eroded road embankments. The extreme weather has created extensive damage to the electricity grid, public infrastructure and private housing, large part of the regional road network become became temporarily or permanently unusable. Due to the sloping topographic landscape the rapid rainfall caused catastrophic flash floods and landslides (mainly in the catchment areas of the rivers). The floods and mudslides took the lives of 8 people. Businesses and agricultural sector also suffered considerable damages. Overall, physical damage to the network infrastructure (water/ wastewater, transport, bridges, energy and telecom network) constitute the biggest costs of the overall estimated total direct damage included in the application.

(8)Greece estimated the cost of emergency and recovery operations eligible under Article 3(2) of the Regulation at EUR 106 124 000 and presented it broken down by type of operation. The largest share (over EUR 69 million) concerns the costs to restore the transport infrastructure (roads and bridges), followed by the cost of cleaning up operations of disaster stricken area (over EUR 27 million).

(9)The Greek authorities confirmed that there is no insurance coverage of eligible costs.

(10)As regards the implementation of Union legislation on disaster risk prevention and management, there is currently no infringement procedure on-going.

(11)In the context of the implementation of Directive 2007/60/EC on the assessment and management of flood risks, the following actions were completed: the Preliminary Flood Risk Assessment Report (March 2012), identification of the highrisk flood prone areas in the country's 14 River Basin Districts and an update of the Preliminary Flood Risk Assessment Report (November 2012). In March 2017 flood and risk hazards for the 14 River Basin Districts of the country were completed. The Flood Risk Management Plans of all River Basin Districts of the country were completed.

2.2Greece- cyclone Ianos in September 2020

(1)On 9 December 2020, Greece applied for a financial contribution from the EUSF to finance emergency and recovery operations following the damages caused by the Mediterranean Cyclone Ianos in September 2020.

(2)The application was submitted within the deadline of 12 weeks after the first damage caused by the disaster was recorded on 19 September 2020 and contains all the information required under Article 4 of the Regulation.

(3)The disaster is of natural origin and therefore falls within the scope of the EUSF.

(4)The application presented the event as a ‘regional natural disaster’ as laid down in Article 2(3) of the Regulation, which is any natural disaster in a region at NUTS level 2 of an eligible State resulting in direct damage exceeding 1,5% of that region's gross domestic product (GDP) or 1,5% of the weighted GDP in the case of a multi-regional disaster. The application relates to five NUTS level 2 Greek regions (Ionia Nisia (EL62), Sterea Ellada (EL64), Ditiki Ellada (EL63), Thessalia (EL61), Peloponnisos (EL65)). The Greek authorities estimate the total direct damage at EUR 863 540 756. The damage caused represents 11,08% of the weighted GDP of five concerned NUTS 2 level regions and thus exceeds the threshold. The application from Greece is therefore eligible for a contribution from the EUSF.

(5)The total direct damage is the basis for the calculation of the amount of the financial contribution from the EUSF. The financial contribution may only be used for essential emergency and recovery operations as defined in Article 3(2) of the Regulation, with the exception of small letter e).

(6)In its application of 9 December 2020, Greece requested the payment of an advance as laid down in Article 4a of the Regulation. On 2 March 2021, the Commission adopted Implementing Decision C(2021) 1511 awarding an advance amounting to EUR 2 158 852. The amount of the advance will be taken into account for calculating the balance of the contribution to the beneficiary State. The Commission will recover unduly paid advances.

(7)The application describes in detail the event and the entity of the damage. Cyclone Ianos, also known as Medicane Ianos, was a rare Mediterranean tropical-like cyclone that impacted Greece on 17-20 September 2020. This rare hurricane-like storm swept across Greece through central Thessaly, hitting affected regions with high winds reaching 120 km/h, torrential rain and flooding which caused the death of four people and huge damages to houses and infrastructures. Heavy rainfall hit several river basins characterized by steep morphology, determining severe flood waves. Cities Karditsa and Mouzaki received enormous quantities of water and were flooded for several days. A total of 5 000 properties were flooded in the city of Karditsa, 97% of the stores were damaged and 15 villages in the area were seriously destroyed. The electricity supply experienced extensive power cuts and water supply were interrupted in many villages. The railway infrastructure and road network suffered serious damage. 100 landslides and 40 cut-off bridges were recorded in the mountainous area. Tonnes of sludge and rubble, hundreds of uprooted trees and branches caused problems on the road network. A state of emergency was declared for the islands of Ithaca, Kefalonia, and Zakynthos due to widespread flooding and power cuts. Emergency services reported receiving over 2 500 calls for assistance from people trapped in flooded homes and cars and the Greek fire service rescued almost 1 000 people in the affected regions.

(8)Greece estimated the cost of emergency and recovery operations eligible under Article 3(2) of the Regulation at EUR 507 660 619 and presented it broken down by type of operation. The largest share (over EUR 293 million) concerns the costs to restore the transport infrastructure, followed by the costs to restore the water and wastewater infrastructure (over EUR 13 million).

(9)The Greek authorities confirmed that there is no insurance coverage of eligible costs.

(10)As regards the implementation of Union legislation on disaster risk prevention and management, there is currently no infringement procedure on-going.

(11)In the context of the implementation of Directive 2007/60/EC on the assessment and management of flood risks, the following actions were completed: the Preliminary Flood Risk Assessment Report (March 2012), identification of the high risk flood prone areas in the country's 14 River Basin Districts and an update of the Preliminary Flood Risk Assessment Report (November 2012). In March 2017 flood and risk hazards for the 14 River Basin Districts of the Country were completed. The Flood Risk Management Plans of all River Basin Districts of the country were completed.

2.3Greece- the earthquake in the islands of Samos, Ikaria and Chios in October 2020

(1)On 22 January 2021, Greece applied for a financial contribution from the EUSF to finance emergency and recovery operations following the damages caused by the earthquake in the islands of Samos, Ikaria and Chios, in October 2020.

(2)The application was submitted within the deadline of 12 weeks after the first damage caused by the disaster was recorded on 30 October 2020 and contains all the information required under Article 4 of the Regulation.

(3)The disaster is of natural origin and therefore falls within the scope of the EUSF.

(4)The application presented the event as a ‘regional natural disaster’ as laid down in Article 2(3) of the Regulation, which is any natural disaster in a region at NUTS level 2 of an eligible State resulting in direct damage exceeding 1,5% of that region's gross domestic product (GDP). The Greek authorities estimate the total direct damage at EUR 101 252 020. The damage caused represents 39,72% of the GDP of the concerned NUTS 2 level region Voreio Aigaio and thus exceeds the threshold of EUR 38 239 500 (1,5% of regional GDP). The application from Greece is therefore eligible for a contribution from the EUSF.

(5)The total direct damage is the basis for the calculation of the amount of the financial contribution from the EUSF. The financial contribution may only be used for essential emergency and recovery operations as defined in Article 3(2) of the Regulation, with the exception of small letter e).

(6)In its application of 22 January 2021, Greece requested the payment of an advance as laid down in Article 4a of the Regulation. On 8 March 2021, the Commission adopted Implementing Decision C (2021) 1623 awarding an advance amounting to EUR 253 131. The amount of the advance will be taken into account for calculating the balance of the contribution to the beneficiary State. The Commission will recover unduly paid advances.

(7)The application describes in detail the event and the entity of the damage. On 30 October 2020, an earthquake with magnitude of 7,0 struck about 14 km northeast of the Greek island of Samos. Three days after the main earthquake, about 150 aftershocks were recorded, of varying intensity. The rupture during the initial earthquake caused a sharp change in the seabed and a submarine landslide. Consequently, the initial earthquake was followed by the occurrence of three gravitational waves (tsunami) up to 1,5 meters high which swept various areas in the northern part of Samos. The earthquake and tsunami have caused damages on the North Aegean islands of Samos, Ikaria and Chios. The disaster killed two people and injured 19 people due to collapse of buildings and falling of fragments. Large damages were caused to churches, schools, museum exhibitions and private houses. In Vathi of Samos the disasters and damages are significant and 2 000-3 000 people were facing housing problems. Every old stone building that existed suffered from minor damage to total destruction. A total of 300 houses have a problem in Samos after the earthquake. The earthquake destroyed an important part of the road network.

(8)Greece estimated the cost of emergency and recovery operations eligible under Article 3(2) of the Regulation at EUR 23 785 020 and presented it broken down by type of operation. The largest share (over EUR 10 million) concerns the costs to restore the transport infrastructure, followed by the costs to restore the education infrastructure (over EUR 6,6 million) and the costs of cleaning up operations of disaster stricken area (over EUR 4,5 million).

(9)The Greek authorities confirmed that there is no insurance coverage of eligible costs.

(10)As regards the implementation of Union legislation on disaster risk prevention and management, there is currently no infringement procedure on-going.

(11)The Greek application provides a description of the implementation of Union legislation on disaster risk prevention and management related to the nature of the disaster. Based on the strong earthquakes that hit Greece between 1978-1981, the Greek government set up a natural disaster risk prevention and management policy with the aim of improving resilience in local communities via a framework for implementing policies to reduce known risks, managing the impact of earthquakes, and procedures/action to prevent new risks. The Greek Antiseismic Building Code contains the updated Seismic Hazard Map.

2.4 France- the storm Alex in Provence-Alpes-Côtes d’Azur region in October 2020

(1)On 21 December 2020, France applied for a financial contribution from the EUSF to finance emergency and recovery operations following the damages caused by the storm Alex in Provence-Alpes-Côtes d’Azur region in October 2020.

(2)The application was submitted within the deadline of 12 weeks after the first damage caused by the disaster was recorded on 2 October 2020 and contains all the information required under Article 4 of the Regulation.

(3)The disaster is of natural origin and therefore falls within the scope of the EUSF.

(4)The application presented the event as a ‘regional natural disaster’ as laid down in Article 2(3) of the Regulation, which is any natural disaster in a region at NUTS level 2 of an eligible State resulting in direct damage exceeding 1,5% of that region's gross domestic product (GDP). The French authorities estimate the total direct damage at EUR 2 373 000 000. The damage caused represents 1,5% of the GDP of the concerned NUTS 2 level region Provence-Alpes-Côtes d’Azur and thus exceeds the threshold of EUR 2 372 040 600 (1,5% of regional GDP). The application from France is therefore eligible for a contribution from the EUSF.

(5)The total direct damage is the basis for the calculation of the amount of the financial contribution from the EUSF. The financial contribution may only be used for essential emergency and recovery operations as defined in Article 3(2) of the Regulation, with the exception of small letter e).

(6)In its application of 21 December 2020, France requested the payment of an advance as laid down in Article 4a of the Regulation. On 22 February 2021, the Commission adopted Implementing Decision C(2021) 1340 awarding an advance amounting to EUR 5 932 500. The amount of the advance will be taken into account for calculating the balance of the contribution to the beneficiary State. The Commission will recover unduly paid advances.

(7)The application describes in detail the event and the entity of the damage. Storm Alex swept France from 1 to 4 October 2020. The storm caused particularly severe damage in Provence-Alpes-Côtes d’Azur region - exceptional rainfall affected different alpine valleys located north of the city of Nice, with an intensity exceeding the once in 100 years magnitude at several locations. The combination of heavy rainfall and local morphology (characterized by narrow valleys with steep slopes) triggered multiple hazardous processes such as landslides, debris flows, flash flood waves and severe erosion processes along the water courses. Cumulative amounts of the rainfall reached volumes that have never been recorded before. As a result, all infrastructure networks suffered severe damages and destructions, and several towns were isolated by the collapse of bridges and main roads. Hundreds of houses were impacted, 9 people died. Intensity and amounts of the rain correspond to occurrence only once a century or less, and was accompanied by strong winds (recorded up to 161 km/h). The particularly affected municipalities are located in the Roya, Tiné and Vésubia valleys. The Estéron and Var valleys were also affected, to a lesser extent. In the early days of the storm, all networks (water, electricity and roads) were cut off in the Roya, Tiné and Vésubia valleys isolating the people from the outside world. Overall, the storm has made a devastating damages to the public and private property, and significant damage to the road and railway infrastructure, electricity grids. The disaster has seriously impacted business and tourisms.

(8)France estimated the cost of emergency and recovery operations eligible under Article 3(2) of the Regulation at EUR 1 805 243 000 and presented it broken down by type of operation. The largest share (over EUR 663 million) concerns the costs to restore the road infrastructure, followed by the costs to repair public buildings/ objects (over EUR 340 million).

(9)The French authorities confirmed that there is no insurance coverage of eligible costs.

(10)As regards the implementation of Union legislation on disaster risk prevention and management, there is currently no infringement procedure on-going.

(11)Directive 2007/60/EC was transposed into French law by Article 221 of Law No 2010-788 of 12 July 2010 establishing a national commitment for the environment and Decree No 2011-227 of 2 March 2011 on the assessment and management of flood risks. For the purpose of transposing this Directive, the French State has chosen to rely on national actions by drawing up a national flood risk management strategy and on territorial actions with flood risk management plans (FRMPs) drawn up at river basin district level. The FRMP is the tool for implementing the Floods Directive at local level.

2.5 Albania, Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia, Spain- major public health emergency caused by the COVID-19 pandemic in early 2020

In December 2019, a pneumonia epidemic of unknown origin was reported to the WHO from Wuhan, China. This was later identified as a new strain of coronavirus that had not been previously known in humans - Coronavirus disease 2019 (COVID‑19). On 30 January 2020, the WHO declared an epidemic emergency of international scale due to the new coronavirus epidemic.

In 2020 as part of the Coronavirus Response Investment Initiative (CRII), the EUSF Regulation was amended 3 by including major public health emergencies within the scope of the EU solidarity principle.

Subsequently, by the deadline of 24 June 2020 the Commission received 22 applications for a financial contribution from the EUSF. Overall, 19 EU Member States (Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovenia and Spain) and three accession countries (Albania, Montenegro and Serbia) requested assistance.

The Commission services have carried out a thorough examination of all received applications in accordance with the EUSF Regulation, in particular with Articles 2, 3 and 4 thereof. The most important elements of the assessments are set out below.

(1)All 22 applications were submitted by the official final deadline of 24 June 2020 for the major public health emergency caused by the COVID-19 pandemic (i.e. within the twelve weeks of the entry into force of amending Regulation (EU) 2020/461).

(2)The COVID-19 pandemic is a major public health emergency and therefore falls within the field of application of the EUSF.

(3)The received 22 applications contain all the information required under Article 4 of the Regulation.

(4)Seven EU Member States requested in their applications the payment of an advance on the anticipated contribution from the EUSF (Croatia, Germany, Greece, Hungary, Ireland, Portugal and Spain). Article 4a of the Regulation envisages the possibility to ask for advance payments under the Fund only for Member States. The Commission services conducted a preliminary assessment of the applications received from these seven Member States and concluded that the conditions for paying an advance from the EUSF were met for all seven applications.

(5)In 2020, based on the preliminary assessment, the Commission services established the total expenditure provisionally accepted for Croatia, Germany, Greece, Hungary, Ireland, Portugal and Spain for the sole purpose of determining the advance payment. The latest amendment to the EUSF raised the maximum level of advance payment to 25% of the amount of financial contribution and no more than EUR 100 million.

(6)On 27 November 2020, the Commission adopted Implementing Decision C(2020) 8574 awarding an advance from the EUSF amounting to EUR 23 279 441 and subsequently paid it out to Ireland.

(7)On 2 December 2020, the Commission adopted:

–Implementing Decision C(2020) 8686 awarding an advance from the EUSF amounting to EUR 8 462 280 and subsequently paid it out to Croatia;

–Implementing Decision C(2020) 8667 awarding an advance from the EUSF amounting to EUR 15 499 409 and subsequently paid it out to Germany;

–Implementing Decision C(2020) 8687 awarding an advance from the EUSF amounting to EUR 4 535 700 and subsequently paid it out to Greece;

–Implementing Decision C(2020) 8683 awarding an advance from the EUSF amounting to EUR 26 587 069 and subsequently paid it out to Hungary;

–Implementing Decision C(2020) 8688 awarding an advance from the EUSF amounting to EUR 37 528 511 and subsequently paid it out to Portugal;

–Implementing Decision C(2020) 8696 awarding an advance from the EUSF amounting to EUR 16 844 420 and subsequently paid it out to Spain.

(8)In line with the Regulation, the amount of the advance has been taken into account for calculating the balance of the contribution to the beneficiary State. The Commission will recover unduly paid advances.

(9)All applications received were assessed in a single package to ensure consistent and equal treatment. The Commission thoroughly looked into several aspects, such as the eligibility of the expenditure (including, analysing whether the presented expenditure covered eligible operations and if the expenditure fell within the eligibility period), the emergency nature of expenditure and direct link to the COVID-19 pandemic, the consistency of the overall assessment. Where required, the Commission requested the applicant countries to provide additional information, explanations and justification.

(10)A number of exchanges with the responsible national authorities allowed the Commission to clarify issues regarding the eligibility of certain types of expenditure declared and to finalise its assessment. Consequently, the Commission services established the total public expenditure for emergency response measures accepted for each application.

(11)During the assessment and following the exchanges with the Polish authorities, the Commission services established that the total public direct expenditure as reported by the Polish authorities in their EUSF application submitted on 22 June 2020 was overestimated and therefore had to be reduced, with the agreement of said authorities. As the major public health emergency threshold for Poland in 2020 is EUR 1 430,574 million and the revised total public expenditure remains considerably below the respective threshold, the application from Poland is not eligible for support from the EUSF.

(12)During the assessment and following the exchanges with the Slovenian authorities, the Commission services established that the total public expenditure as reported by the Slovenian authorities in their EUSF application submitted on 17 June 2020 was overestimated and therefore had to be reduced. As the major public health emergency threshold for Slovenia in 2020 is EUR 135,102 million and the revised total public expenditure remains below the respective threshold, the application from Slovenia is not eligible for support from the EUSF.

2.6Conclusion

For the reasons set out above, the disasters referred to in the applications submitted by Greece and France, as well as the 20 applications in relation to the Covid-19 pandemic meet the conditions set out in the Regulation.

3.Financing from the EUSF allocations 2021

Council Regulation (EU, EURATOM) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 4 (hereafter "the MFF regulation"), and in particular Article 9 thereof allows for the mobilisation of the EUSF in the context of the SEAR. Point 10 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation on budgetary matters and on sound financial management 5 (IIA) as well as on new own resources, including a roadmap towards the introduction of new own resources, lays down the modalities for the mobilisation of the EUSF in the context of the SEAR.

As solidarity was the main justification for the creation of the EUSF, the Commission takes the view that aid should be progressive. That means that, according to previous practice, the portion of the damage exceeding the “major natural disaster” threshold for mobilising the EUSF (i.e. 0,6 % of GNI or EUR 3 billion in 2011 prices, whichever is the lower amount) should give rise to higher aid intensity than damage up to the threshold. The rate applied in the past for defining the allocations for major disasters is 2,5 % of total direct damage under the threshold and 6 % for the part of the damage above. For regional disasters and disasters accepted under the “neighbouring country” provision the rate is 2,5 %.

The contribution may not exceed the estimated total cost of eligible operations. The methodology for calculating the aid was set out in the 2002-2003 Annual Report on the EUSF and accepted by the Council and the European Parliament.

On the basis of the applications from Greece and France, the calculation of the financial contribution from the EUSF, based on the estimate of total direct damages caused is as follows:

In the case of major public health emergencies, the Commission applies a similar method for determining aid amounts as for natural disasters: a country receives 2,5% of the total amount of eligible public expenditure up to the country specific threshold for major health emergencies, plus 6% of the part of the public expenditure exceeding the threshold. This was also communicated through the Commission’s website 7 . As this calculation led to a total amount for all countries exceeding the available budget resources, the amounts per country were reduced on a pro rata basis.

As regards the EUSF applications submitted by Albania, Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia and Spain related to the major public health emergency caused by the COVID-19 pandemic, the Commission services therefore propose to the budget authority to mobilise the following amounts:

In accordance with Article 9(2) of the MFF Regulation, the overall annual ceiling of the SEAR is EUR 1 200 000 000 in 2018 prices or EUR 1 273 450 000 in current prices. Article 9(4) of the MFF Regulation stipulates that 25% of the overall 2021 SEAR allocation (EUR 318 362 500 in current prices) needs to be retained until 1 October 2021, but becomes available for all the components of SEAR as of that date. Also, in accordance with Article 9 (4) of the MFF Regulation, the maximum amount that can be mobilised by the EUSF until 1 September is the 50% of the overall SEAR allocation after the decuction of the above mentioned 25%. Therefore, the maximum amount that can be mobilised by the EUSF from the 2021 allocation until 1 September 2021 is EUR 477 543 750. In accordance with Article 4a (4) of the EUSF Regulation, the amount of EUR 50 000 000 has been already insribed in the General Budget 2021 (in commitments and payments) for the payment of advances. This amount will be used for the payment of the advances of the 4 natural disasters and the remaining amount (i.e. EUR 41 325 507) will be available for any future needs for advances later in the year.

In addition, an amount of EUR 47 981 598 of the 2020 allocation was not used until the end of that year and is carried over to 2021.

Therefore, the maximum amount available under the EUSF at this point in 2021 is EUR 525 525 348, which is enough to cover the needs under this Mobilisation Decision as outlined above (EUR 484 199 841, of which EUR 86 744 920 related to the natural disasters in Greece and France and EUR 397 454 921 related to COVID-19 applications).

2021/0077 (BUD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Union Solidarity Fund to provide assistance to Greece and France in relation to natural disasters and to Albania, Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia, Spain in relation to a public health emergency

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund 9 , and in particular Article 4(3) thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation on budgetary matters and on sound financial management as well as on new own resources, including a roadmap towards the introduction of new own resources 10 , and in particular point 10 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The European Union Solidarity Fund ('the Fund') aims to enable the Union to respond in a rapid, efficient and flexible manner to emergency situations in order to show solidarity with the population of regions struck by major or regional natural disasters or major public health emergency.

(2)The Fund is not to exceed the ceilings as laid down in Article 9 of Council Regulation (EU, Euratom) No 2020/2093 11 . In accordance with Article 9(2) and 9(4) of the MFF Regulation, the maximum amount that can be mobilised by the EUSF from the 2021 allocation until 1 September 2021 is EUR 477 543 750. In accordance with Article 4a (4) of the EUSF Regulation, the amount of EUR 50 000 000 has been already insribed in the General Budget 2021 (in commitments and payments) for the payment of advances. In addition, an amount of EUR 47 981 598 of the 2020 allocation was not used until the end of that year and is carried over to 2021. Therefore, the maximum amount available under the EUSF at this point in 2021 is EUR 525 525 348, which is enough to cover the needs under this Mobilisation Decision.

(3)On 29 October 2020, Greece submitted an application to mobilise the Fund, following the floods in August 2020 in Sterea Ellada.

(4)On 9 December 2020, Greece submitted an application to mobilise the Fund, following the damages caused by the cyclone Ianos in September 2020 that affected the Regions of Ionia Nisia, Sterea Ellada, Ditiki Ellada, Thessalia and Peloponnisos.

(5)On 22 January 2021, Greece submitted an application to mobilise the Fund, following the earthquake in October 2020 that affected the islands of Samos, Ikaria and Chios.

(6)On 21 December 2020, France submitted an application to mobilise the Fund, following the damages caused by Storm Alex in Provence-Alpes-Côtes d’Azur region in October 2020.

(5)By 24 June 2020, Albania, Austria, Belgium, Croatia, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia and Spain submitted applications to mobilise the Fund in relation to the major public health emergency caused by the COVID-19 pandemic in early 2020.

(6)The applications by those Member States meet the conditions for providing a financial contribution from the Fund, as laid down in Article 4 of Regulation (EC) No 2012/2002.

(7)The Fund should therefore be mobilised in order to provide a financial contribution to Greece and France in relation to the natural disasters and to Albania, Austria, Belgium, Czechia, Estonia, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Montenegro, Portugal, Romania, Serbia, Spain in relation to the major public health emergency.

(8) In the case of Croatia, since the final aid amount exceeds the advance already paid, no further amount needs to be mobilised and the unduly paid advance will be recovered in accordance with Article 4a of Regulation (EC) No 2012/2002.

(9)In order to minimise the time taken to mobilise the Fund, this Decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2021, the European Union Solidarity Fund shall be mobilised as follows in commitment and payment appropriations in relation to natural disasters:

(a)the amount of EUR 3 300 100 shall be provided to Greece in relation to the floods in Sterea Ellada, including the amount of EUR 330 010 as advance payment;

(b)the amount of EUR 21 588 519 shall be provided to Greece in relation to cyclone Ianos, including the amount of EUR 2 158 852 as advance payment;

(c)the amount of EUR 2 531 301 shall be provided to Greece in relation to the earthquake in the islands of Samos, Chios and Ikaria, including the amount of EUR 253 131 as advance payment;

(d)the amount of EUR 59 325 000 shall be provided to France in relation to the storm Alex, including the amount of EUR 5 932 500 as advance payment.

Article 2

For the general budget of the Union for the financial year 2021, the European Union Solidarity Fund shall be mobilised as follows in commitment and payment appropriations in relation to a major public health emergency:

(a) the amount of EUR 905 271 shall be provided to Albania;

(b) the amount of EUR 31 755 580 shall be provided to Austria;

(c) the amount of EUR 37 298 777 shall be provided to Belgium;

(d) the amount of EUR 17 373 205 shall be provided to Czechia ;

(e) the amount of EUR 3 588 755 shall be provided to Estonia;

(f) the amount of EUR 91 365 053 shall be provided to France;

(g) the amount of EUR 13 648 386 shall be provided to Germany;

(h) the amount of EUR 3 994 022 shall be provided to Greece;

(i) the amount of EUR 13 136 857 shall be provided to Hungary;

(j) the amount of EUR 20 480 330 shall be provided to Ireland;

(k) the amount of EUR 76 271 930 shall be provided to Italy;

(l) the amount of EUR 1 177 677 shall be provided to Latvia;

(m) the amount of EUR 2 828 291 shall be provided to Lithuania;

(n) the amount of EUR 2 857 025 shall be provided to Luxembourg;

(o) the amount of EUR 199 505 shall be provided to Montenegro;

(p) the amount of EUR 18 039 670 shall be provided to Portugal;

(q) the amount of EUR 13 926 870 shall be provided to Romania;

(r) the amount of EUR 11 968 276 shall be provided to Serbia;

(s) the amount of EUR 36 639 441 shall be provided to Spain.

Article 3

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union.

It shall apply from … [the date of its adoption] 12**.

Done at Brussels,

(1)    Council Regulation (EC) No 2012/2002 of 11 November 2002 establishing the European Union Solidarity Fund (OJ L 311, 14.11.2002, p. 3) as amended by Regulation (EU) No 661/2014 of the European Parliament and the Council of 15 May 2014 (OJ L 189, 27.6.2014, p. 143) and by Regulation (EU) No 461/2020 of the European Parliament and the Council of 30 March 2020 (OJ L 99, 31.3.2020, p. 9).

(2)    COM(2021) 200.

(3)    Regulation (EU) 2020/461 of the European Parliament and of the Council of 30 March 2020.

(4)    OJ L 433I, 22.12.2020, p. 11.

(5)    OJ C 433I, 22.12.2020, p. 28.

(6)    In the case of the cyclone Ianos, having the disaster affected multiple regions, the basis to calculate The threshold is the average GDP of those regions, weighted according to the share of total damage in each of them, as established by EUSF Regulation, Art.2(3).

(7)    https://ec.europa.eu/regional_policy/en/funding/solidarity-fund/covid-19

(8)    An amount of EUR 844 010 will be recovered from Croatia.

(9)    OJ L 311, 14.11.2002, p. 3.

(10)    OJ L 433I , 22.12.2020, p. 28.

(11)    Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 (OJ L 433I , 22.12.2020, p. 11).

(12) ** Date to be inserted by the Parliament before the publication in OJ.