PURPOSE: final adoption of amending budget 1/2009.

LEGISLATIVE ACT: 2009/318/EC, Euratom.

CONTENT: the European Parliament has definitively concluded the amending budget 1/2009 of the European Union in accordance with its resolution adopted on 11 March 2009 (please refer to the summary of the resolution).

This amending budget aims to mobilise the EU Solidarity Fund for an amount of EUR 11.8 million in commitment and payment appropriations relating to the effects of the floods that hit Romania in July 2008. It also provides for a corresponding reduction in payment appropriations of EUR 11.8 million from line 13 03 16 - European Regional Development Fund (ERDF)-Convergence.

This amending budget is therefore budgetary neutral .

The European Parliament adopted by 662 votes to 17 with 6 abstentions, a resolution approving unamended the draft amending budget No 1/2009 of the European Union for the financial year 2009.

Parliament recalls that the draft amending budget No 1/2009 covers the following items:

mobilisation of the EU Solidarity Fund for an amount of EUR 11.8 million in commitment and payment appropriations relating to the effects of the floods that hit Romania in July 2008; a corresponding reduction in payment appropriations of EUR 11.8 million from line 13 03 16 - European Regional Development Fund (ERDF)-Convergence.

On 26 January 2009, the Commission forwarded to the Council preliminary draft amending budget (PDAB) No 1 to the general budget for 2009, relating to the mobilisation of the EU Solidarity Fund for an amount of EUR 11 785 377 in commitment and payment appropriations for Romania, following the severe floods and landslides which affected a part of the country in July 2008.

This mobilisation is neutral in budgetary terms as the required payment appropriations are being redeployed by a transfer from Article 13 03 16 (European Regional Development Fund - Convergence) to Article 13 06 01 (EU Solidarity Fund - Member States).

At the simplified trilogue, an agreement was reached on the mobilisation of the Fund and on the amount proposed by the Commission. Therefore, on 26 February 2009, the Council established draft amending budget No 1 for the financial year 2009, as submitted by the Commission in its Preliminary Draft Amending Budget No 1 and as set out in the technical annex to the explanatory memorandum of the Council draft amending budget (see Council doc. 6952/09 ADD 1 ).

On 26 January 2009, the Commission forwarded to the Council preliminary draft amending budget (PDAB) No 1 to the general budget for 2009, relating to the mobilisation of the EU Solidarity Fund for an amount of EUR 11 785 377 in commitment and payment appropriations for Romania, following the severe floods and landslides which affected a part of the country in July 2008.

This mobilisation is neutral in budgetary terms as the required payment appropriations are being redeployed by a transfer from Article 13 03 16 (European Regional Development Fund - Convergence) to Article 13 06 01 (EU Solidarity Fund - Member States).

At the simplified trilogue, an agreement was reached on the mobilisation of the Fund and on the amount proposed by the Commission. Therefore, on 26 February 2009, the Council established draft amending budget No 1 for the financial year 2009, as submitted by the Commission in its Preliminary Draft Amending Budget No 1 and as set out in the technical annex to the explanatory memorandum of the Council draft amending budget (see Council doc. 6952/09 ADD 1 ).

The Committee on Budgets adopted the report drafted by Jutta HAUG (PES, DE) on draft amending budget No 1/2009 of the European Union for the financial year 2009.

The report recalls that the draft amending budget No 1/2009 covers the following items:

· mobilisation of the EU Solidarity Fund for an amount of EUR 11.8 million in commitment and payment appropriations relating to the effects of the floods that hit Romania in July 2008;

· a corresponding reduction in payment appropriations of EUR 11.8 million from line 13 03 16 - European Regional Development Fund (ERDF)-Convergence.

MEPs take note of preliminary draft amending budget No 1/2009, which is the third amending budget solely dedicated to the EU Solidarity Fund, as requested by the European Parliament and the Council in a joint declaration adopted during the Conciliation meeting of 17 July 2008.

PURPOSE: to present preliminary draft amending budget ( PDAB ) No 1/2009.

CONTENT: this p reliminary draft amending budget No 1 for the year 2009 covers the following elements:

mobilisation of the EU Solidarity Fund for an amount of EUR 11.8 million in commitment and payment appropriations relating to the effects of floods affecting Romania ; a corresponding reduction in payment appropriations of EUR 11.8 million from the line 13 03 16 (European Regional Development Fund (ERDF)-Convergence).

Overview : in July 2008, a fairly extensive part of Romania was affected by heavy rain, leading to severe flooding and landslides. Within the 10-week deadline set by Article 4 of Council Regulation (EC) No 2012/2002, the Romanian authorities applied for financial assistance from the EU Solidarity Fund. The application relates to five counties (Maramures, Suceava, Botosani, Iasi, Neamt) in the north-eastern part of Romania. The Romanian authorities indicated that the major part of the population living in this area has been affected. 241 municipalities with a total population of 1.6 million inhabitants suffered directly from the disaster, with a partial or total destruction of private homes and agricultural crops.

The cost of essential emergency operations eligible under Article 3(2) of Regulation (EC) No 2012/2002 has been estimated by the Romanian authorities at EUR 390.8 million and has been broken down by type of operation. The main bulk of the operation concerns the immediate restoration to working order of transport and water infrastructures and the immediate securing of preventive infrastructure for floods protection.

Therefore, it is proposed that the application made by Romania relating to the flooding in July 2008 be accepted as a “extraordinary regional disaster” and that the Solidarity Fund should be used.

Financing : the total annual budget available for the Solidarity Fund is EUR 1 billion. The rate applied in the past for defining the allocations for major disasters is 2.5% of total direct damage. It is proposed to apply the same percentages in this case and to grant the following aid amounts:

Direct damage: EUR 471 415 101; Threshold: EUR 566 845 000; Total amount proposed: EUR 11 785 377 .

At this early stage in the budget year it is difficult to accurately predict where redeployment might be possible. However, to avoid the need for fresh payment appropriations, it is proposed that an amount of EUR 11.8 million would be allocated from budget line 13 03 16 European Regional Development Fund (ERDF)-Convergence to budget line 13 06 01 to cover the corresponding needs related to the mobilisation of the EU Solidarity Fund.

Conclusion : the Commission proposes to finance EUR 11.8 million from the European Regional Development Fund (ERDF)-Convergence to cover the corresponding needs related to the mobilisation of the EU Solidarity Fund with a view to assisting Romania. The operation will have no impact on the budget.

PURPOSE: to present preliminary draft amending budget ( PDAB ) No 1/2009.

CONTENT: this p reliminary draft amending budget No 1 for the year 2009 covers the following elements:

mobilisation of the EU Solidarity Fund for an amount of EUR 11.8 million in commitment and payment appropriations relating to the effects of floods affecting Romania ; a corresponding reduction in payment appropriations of EUR 11.8 million from the line 13 03 16 (European Regional Development Fund (ERDF)-Convergence).

Overview : in July 2008, a fairly extensive part of Romania was affected by heavy rain, leading to severe flooding and landslides. Within the 10-week deadline set by Article 4 of Council Regulation (EC) No 2012/2002, the Romanian authorities applied for financial assistance from the EU Solidarity Fund. The application relates to five counties (Maramures, Suceava, Botosani, Iasi, Neamt) in the north-eastern part of Romania. The Romanian authorities indicated that the major part of the population living in this area has been affected. 241 municipalities with a total population of 1.6 million inhabitants suffered directly from the disaster, with a partial or total destruction of private homes and agricultural crops.

The cost of essential emergency operations eligible under Article 3(2) of Regulation (EC) No 2012/2002 has been estimated by the Romanian authorities at EUR 390.8 million and has been broken down by type of operation. The main bulk of the operation concerns the immediate restoration to working order of transport and water infrastructures and the immediate securing of preventive infrastructure for floods protection.

Therefore, it is proposed that the application made by Romania relating to the flooding in July 2008 be accepted as a “extraordinary regional disaster” and that the Solidarity Fund should be used.

Financing : the total annual budget available for the Solidarity Fund is EUR 1 billion. The rate applied in the past for defining the allocations for major disasters is 2.5% of total direct damage. It is proposed to apply the same percentages in this case and to grant the following aid amounts:

Direct damage: EUR 471 415 101; Threshold: EUR 566 845 000; Total amount proposed: EUR 11 785 377 .

At this early stage in the budget year it is difficult to accurately predict where redeployment might be possible. However, to avoid the need for fresh payment appropriations, it is proposed that an amount of EUR 11.8 million would be allocated from budget line 13 03 16 European Regional Development Fund (ERDF)-Convergence to budget line 13 06 01 to cover the corresponding needs related to the mobilisation of the EU Solidarity Fund.

Conclusion : the Commission proposes to finance EUR 11.8 million from the European Regional Development Fund (ERDF)-Convergence to cover the corresponding needs related to the mobilisation of the EU Solidarity Fund with a view to assisting Romania. The operation will have no impact on the budget.