PURPOSE: to adopt amending budget No 1/2017 to mobilise the European Union Solidarity Fund to provide assistance to the United Kingdom, Cyprus and Portugal hit by natural disasters.

LEGISLATIVE ACT: Definitive adoption (EU, Euratom) 2017/851 of amending budget No 1 of the European Union for the financial year 2017.

CONTENT: this amending budget 1/2017 concerns the intervention of the EU Solidarity Fund for a total amount of EUR 71 524 810 to assist the United Kingdom faced with flooding in December 2015 and January 2016, and Cyprus and Madeira faced with fires between October 2015 and August 2016.

The corresponding appropriations are allocated to Article 13 06 01 (EU Solidarity Fund - Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy.

The European Parliament adopted by 671 votes to 16, with 4 abstentions, a resolution on the Council position on Draft amending budget No 1/2017 to the general budget for 2017 accompanying the proposal to mobilise the European Union Solidarity Fund to provide assistance to the United Kingdom, Cyprus and Portugal.

Parliament recalled that this draft amending budget relates to the mobilisation of the European Union Solidarity Fund (EUSF) for an amount of EUR 71 524 810 in relation to the floods that occurred in the United Kingdom during December 2015 to January 2016, drought and fires in Cyprus between October 2015 and June 2016 and fires on the Portuguese island of Madeira in August 2016.

This draft amending budget No 1/2017 aims to formally enter this budgetary adjustment into the 2017 Union budget. Therefore, the Commission consequently proposed to amend the 2017 Union budget and increase Article 13 06 01 'Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy', while stressing the urgent need to release this assistance.

Parliament approved, without amendment, the Council position on Draft amending budget No 1/2017 and recalled that the EUSF is a special instrument and the corresponding commitment and payments appropriations are to be budgeted over and above the MFF ceilings.

On 26 January 2017, the Commission submitted to the Council draft amending budget (DAB) No 1 to the general budget for 2017 regarding the mobilisation of the EU Solidarity Fund for a total amount of EUR 71 524 810 in commitment and payment appropriations.

The aim of this proposal is to provide financial assistance to the United Kingdom, Cyprus and Portugal in response to natural disasters that hit those countries in 2015 and 2016.

The corresponding appropriations are to be recorded under Article 13 06 01 (EU Solidarity Fund - Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy).

The Commission proposes to finance the necessary payment appropriations by making use of the negative reserve , as provided for in Article 47 of the Financial Regulation.

On 3 April 2017, the Council adopted its position on DAB No 1 to the general budget for 2017 as set out in the annex to the explanatory memorandum of the DAB 1/2017 .

The Committee on Budgets adopted the report by Jens GEIER (S&D, DE) on the Council position on Draft amending budget No 1/2017 to the general budget for 2017 accompanying the proposal to mobilise the European Union Solidarity Fund to provide assistance to the United Kingdom, Cyprus and Portugal.

Members recalled that this draft amending budget relates to the mobilisation of the European Union Solidarity Fund (EUSF) for an amount of EUR 71 524 810 in relation to the floods that occurred in the United Kingdom during December 2015 to January 2016, drought and fires in Cyprus between October 2015 and June 2016 and fires on the Portuguese island of Madeira in August 2016.

The purpose of draft amending budget No 1/2017 is to formally enter this budgetary adjustment into the 2017 Union budget. Therefore, the Commission consequently proposed to amend the 2017 Union budget and increase Article 13 06 01 'Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy', while stressing the urgent need to release this assistance.

Members called on the European Parliament to approve, without amendment, the Council position on Draft amending budget No 1/2017.

On 26 January 2017, the Commission submitted to the Council draft amending budget (DAB) No 1 to the general budget for 2017 regarding the mobilisation of the EU Solidarity Fund for a total amount of EUR 71 524 810 in commitment and payment appropriations.

The aim of this proposal is to provide financial assistance to the United Kingdom, Cyprus and Portugal in response to natural disasters that hit those countries in 2015 and 2016.

The corresponding appropriations are to be recorded under Article 13 06 01 (EU Solidarity Fund - Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy).

The Commission proposes to finance the necessary payment appropriations by making use of the negative reserve , as provided for in Article 47 of the Financial Regulation.

On 3 April 2017, the Council adopted its position on DAB No 1 to the general budget for 2017 as set out in the annex to the explanatory memorandum of the DAB 1/2017 .

PURPOSE: presentation of draft amending budget No 1/2017 accompanying the proposal to mobilise the European Union Solidarity Fund to provide assistance to the United Kingdom, Cyprus and Portugal.

CONTENT: draft amending budget (DAB) No 1 for the year 2017 covers the mobilisation of the European Union Solidarity Fund (EUSF) for an amount of EUR 71 524 810 in commitment and payment appropriations .

The mobilisation relates to:

floods in the United Kingdom, drought and fires in Cyprus, fires in Portugal.

The Commission services carried out a thorough examination of the applications in accordance with Council Regulation (EC) No 2012/2002 establishing the EUSF.

The Solidarity Fund aid amounts may not exceed the estimated total costs of eligible operations for the United Kingdom, Cyprus and Portugal.

In calculating the total amount of the aid under the EUSF, the 2.5% was applied in the cases of the United Kingdom and Portugal as the total direct damage is below their respective major disaster thresholds.

In the case of Cyprus, the 2.5% was applied up to the level of its major disaster threshold while the 6% was applied to the part of the total direct damage above this threshold.

The Commission proposes to mobilise the European Union Solidarity Fund for the three cases and to amend the budget 2017 by increasing budget article 13 06 01 “Assistance to Member States in the event of a major natural disaster with serious repercussions on living conditions, the natural environment or the economy” by EUR 71 524 810 both in commitment and in payment appropriations.

As the European Union Solidarity Fund is a special instrument as defined in the MFF regulation, the corresponding appropriations should be budgeted outside the corresponding MFF ceilings .

The Commission is confident that the amount of EUR 71 524 810 of payment appropriations can be redeployed within the 2017 budget. However, at this early stage of the implementation, the Commission is not yet in the position to identify any precise source. Therefore, the Commission proposes to book in this DAB a negative reserve of payment appropriations on the budget article 40 03 01 for an amount of EUR 71 524 810.

The Commission will reduce the negative reserve as soon as possible by means of transfer of appropriations from other budget items.