PURPOSE: to mobilise the European Union Solidarity Fund to help Latvia following the floods in 2017.

NON-LEGISLATIVE ACT: Decision (EU) 2018/1859 of the European Parliament and of the Council on the mobilisation of the European Union Solidarity Fund to provide assistance to Latvia.

CONTENT: the European Parliament has decided to mobilise EUR 17 730 519 in commitment and payment appropriations for Latvia from the European Union Solidarity Fund under the general budget of the European Union for the financial year 2018.

The decision follows Latvia's application for assistance from the Fund submitted on 14 November 2017 following a long-lasting period of intense rainfalls during summer and autumn 2017 leading to the saturation of soils and subsequent flooding. Latvia’s application fulfils the conditions for a financial contribution from the Fund.

The European Union Solidarity 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 natural disasters. The maximum annual amount allocated to the Fund may not exceed EUR 500 million (at 2011 prices).

The amount of the mobilisation shall be financed from the appropriations mobilised for the payment of advances in the Union budget for the financial year 2018. The appropriations available for the payment of advances shall be reduced accordingly.

ENTRY INTO FORCE: 28.11.2018.

APPLICATION: from 14.11.2018.

The European Parliament adopted by 402 votes to 25 with 7 abstentions a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Union Solidarity Fund to assist Latvia following the 2017 floods throughout the country, and in particular in the Latgale region and neighbouring territories.

Parliament approved the proposal to mobilise EUR 17 730 519 in commitment appropriations for Latvia from the European Union Solidarity Fund as part of the general budget of the Union for the financial year 2018.

The European Union Solidarity Fund aims to enable the Union to respond in a rapid, efficient and flexibly to emergency situations in order to express its solidarity with the population of regions struck by natural disasters. The maximum annual amount allocated to the Fund may not exceed EUR 500 million.

Parliament called on the Member States to use the financial assistance provided by the Fund in a transparent way, ensuring a fair distribution throughout in the affected regions. In order to minimise the time taken to mobilise the Fund, this Decision shall apply from the date of its adoption.

The Committee on Budgets adopted the report by Inese VAIDERE (EPP, LV) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Union Solidarity Fund to assist Latvia.

The committee approved the proposal to mobilise EUR 17 730 519 in commitment appropriations for Latvia from the European Union Solidarity Fund (EUSF) under the general budget of the Union for the financial year 2018.

As a reminder, on 14 November 2017, Latvia submitted an application for a contribution following a long-lasting period of intense rainfalls leading to the saturation of soils and subsequent flooding throughout the country. The natural disaster that struck the Union in 2017 caused widespread destruction in the regions concerned, which are described as ‘less developed regions’.

In their application, received by the Commission on 14 November 2017 and completed on 27 April 2018, the Latvian authorities estimated total direct damage caused by the disaster at EUR 380.5 million . As this amount exceeds the 'major disaster threshold' for mobilising the EUSF applicable to Latvia in 2017 of EUR 145 740 000 (i.e. 0.6% of Latvia’s Gross National Income based on 2015 data), the disaster qualifies as a ‘major natural disaster’ as defined by the EUSF Regulation.

The cost of eligible essential emergency operations has been estimated by the Latvian authorities at EUR 36.2 million.

The proposed mobilisation will be financed in full through the partial use of the remaining EUR 47 479 154 in commitment and payment appropriations already entered into the 2018 budget for covering advances. An amending budget is therefore not required.

Members recommended the rapid approval of the Commission's proposal for a decision as a sign of solidarity with the affected regions. They invited Member States to use the financial assistance provided by the Fund in a transparent manner, guaranteeing a fair distribution throughout the affected regions.

PURPOSE: to mobilise the European Union solidarity fund to help Latvia following the floods in 2017.

PROPOSED ACT: Decision of the European Parliament and the Council.

CONTENT: Council Regulation (EU, EURATOM) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020, and in particular Article 10 thereof allows for the mobilisation of the EUSF, within an annual ceiling of EUR 500 million (2011 prices), above the ceilings of the relevant headings of the financial framework.

This proposal for a decision concerns the mobilisation of the European Union solidarity fund (EUSF) for an amount of EUR 17 730 519 to assist Latvia following the floods in 2017 throughout the country, and in particular in the Latgale region and surrounding territories.

Direct damage : Latvia estimated the total direct damage caused by the flood at EUR 380.5 million . This amount exceeds the 'major disaster threshold' for mobilising the EUSF applicable to Latvia in 2017 of EUR 145 740 000 (i.e. 0.6% of Latvia’s Gross National Income based on 2015 data). As the estimated total direct damage exceeds that threshold, the disaster qualifies as a ‘major natural disaster’ as defined by the Regulation.

Damage caused : the continuous rainfall and floods during August, September and October 2017 caused considerable damage in agriculture resulting in the loss of crops and the widespread clogging of the agricultural drainage system. State and local public infrastructure was also damaged, including water and transport infrastructure.

A total of 184 public roads were damaged, and rail traffic had to be temporarily suspended. A state of emergency was declared on 29 August 2017. Schools and other buildings in local communities had to be closed, rivers burst their banks and the flooding of wastewater treatment facilities resulted in water pollution that poses a threat to the environment.

The affected region is a ‘less developed region’ under the European structural and investment funds (2014-2020).

Costs : Latvia estimated the cost of emergency and recovery operations at EUR 36.2 million and presented it broken down by type of operation. By far the largest share of eligible costs (almost EUR 32 million) concerns the public drainage system and related infrastructure .

Financing : the Commission considers that Latvia's application fulfils the conditions for a financial contribution from the Fund and therefore proposes to grant a financial contribution to Latvia of EUR 17 730 519 in commitment and payment appropriations as part of the general budget of the Union for the financial year 2018.

As this intervention will be fully financed by part of the remaining EUR 47 479 154 of commitment and payment appropriations already entered into the 2018 budget to cover advances, no amending budget is required .

The amount that may be mobilised at this stage of the year 2018 is EUR 139 397 191. This corresponds to the total amount available for the mobilisation of the EUSF at the beginning of 2018 (EUR 421 142 057), minus the retained amount of EUR 143 585 709 in order to respect the obligation of keeping aside 25 % of the 2018 annual allocation until 1 October 2018 as stipulated by the MFF regulation, minus EUR 104 166 951 mobilised for Greece, Spain, France and Portugal and minus EUR 33 992 206 mobilised for Bulgaria, Greece, Lithuania and Poland earlier this year.