4 EU Solidarity Fund
| Committee's assessment
| Politically important |
| Committee's decision | (a) Cleared from scrutiny
(b) Not cleared from scrutiny; further information requested
|
| Document details | (a) Draft Decision on use of the EU Solidarity Fund
(b) Draft Amending Budget to the General Budget of 2014
|
| Legal base | (a) Articles 175 and 352 TFEU; co-decision; QMV
(b) Article 314 TFEU and Article 106a EURATOM; co-decision; QMV
|
| Department | HM Treasury
|
| Document numbers | (a) (36428), 14443/14, COM(14) 648
(b) (36429), 14444/14, COM(14) 650
|
Summary and Committee's conclusions
4.1 The Commission proposes a Decision, document
(a), to approve three applications for financial aid from the
EU Solidarity Fund from Serbia, Croatia and Bulgaria. The draft
Decision is accompanied by a Draft Amending Budget, document (b)
to increase the agreed 2014 General Budget by €79.7 million
(£61.9 million) to finance use of the Fund in relation to
the three applications for assistance.
4.2 The Government says that it supports the principle
and objectives of the EU Solidarity Fund and therefore supports
this use of the Fund. But it reminds us of its general policy
objective of real budgetary restraint in the EU, stressing particularly
its view is that the Commission should always look first to reallocate
funds from within existing agreed budgets to meet emerging inyear
pressures.
4.3 We are content to clear the draft Decision
on use of the EU Solidarity Fund from scrutiny. However, while
the Government reminds us of its overall approach to EU budgetary
restraint, particularly in relation to proposals for in-year increases,
it does not actually say whether it accepts the Commission's position
in the case of this Draft Amending Budget or whether it will be
opposing the proposal. So before considering this document further
we wish to be advised on that point — meanwhile it remains
under scrutiny.
Full details of the documents:
(a) Draft Decision on the mobilisation of the EU Solidarity Fund:
(36428), 14443/14, COM(14) 648; (b) Draft Amending Budget No.
7 to the General Budget 2014: General statement of revenue, Statement
of expenditure by section, Section III, Commission: (36429), 14444/14,
COM(14) 650.
Background
4.4 The Interinstitutional Agreement on budgetary
matters provides the possibility of finance for ("mobilisation
of") the EU Solidarity Fund (EUSF), which releases emergency
financial aid following a major disaster in a Member State or
candidate country.
4.5 During the course of a financial year the Commission
presents to the Council and European Parliament DABs proposing
increases or reductions for revenue and expenditure in the current
EU General Budget — there are normally about ten DABs each
year.
The documents
4.6 The Commission proposes a Decision, document
(a), to approve three applications for financial aid from the
EUSF outlined as follows:
· following severe flooding in major parts
of Serbia during May, Serbia submitted a bid for a 'major natural
disaster' citing direct damage of €1.1 billion (£0.86
billion) — the Commission proposes Serbia be awarded €60.2
million (£46.8 million) in EUSF grants;
· following flooding in Croatia at the same
time, albeit less severe, Croatia submitted a bid for a 'major
natural disaster' citing direct damage of €297.6 million
(£231.3 million) — the Commission proposes Croatia
be awarded €8.9 million (£6.9 million) in EUSF grants;
and
· following intense and heavy rainfall leading
to serious flooding in Bulgaria in June, Bulgaria submitted a
bid for a 'major natural disaster' citing direct damage of €311.3
million (£241.9 million) — the Commission proposes
Bulgaria be awarded €10.5 million (£8.2 million) in
EUSF grants.
4.7 The draft Decision is accompanied by Draft Amending
Budget No. 7 for the 2014 General Budget (DAB 7/2014), document
(b), which seeks €79.7 million (£61.9 million) beyond
the agreed budget for 2014 to finance the mobilisation of the
EUSF in relation to the three applications for assistance. The
Commission states that, based on its examination of the applications
and considering the maximum possible grant from the EUSF as well
as the scope for reallocating existing budget funds, it proposes
an increase to the 2014 General Budget to accommodate these grant
payments.
The Government's view
4.8 In his Explanatory Memorandum of 3 November the
Financial Secretary to the Treasury (Mr David Gauke) says that:
· the Government supports the principle
and objectives of the EUSF which provides essential assistance
to eligible countries affected by natural disasters;
· for this reason, it supports the mobilisation
of the EUSF in these three cases which appear to meet the eligibility
requirements;
· the Government has, however, been consistently
clear that it wants to see real budgetary restraint in the EU
in order to avoid unaffordably high costs to the UK;
· to deliver this goal, the Government is
committed to continuing to work hard to limit EU spending, reduce
waste and inefficiency, and ensure that where EU funds are spent
they deliver the best possible value for money for taxpayers;
and
· the Government's position on the DAB is,
therefore, that the Commission should always look first to reallocate
funds from within existing agreed budgets to meet emerging inyear
pressures, rather than coming to Member States to request additional
money.
4.9 The Minister tells us that timetabling for Ministerial
discussion is currently undetermined, but that he expects it to
run alongside the timetable for the 2015 Budget — we understand
that Council adoption of its position on that budget will be on
14 November.
Previous Committee Reports
None.
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