EXPLANATORY MEMORANDUM FOR EUROPEAN UNION DOCUMENTS

9804/17

COM(2017) 270 final

PROPOSAL FOR A DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON THE MOBILISATION OF THE EUROPEAN UNION SOLIDARITY FUND TO PROVIDE FOR THE PAYMENT OF ADVANCES IN THE GENERAL BUDGET OF THE UNION FOR 2018

Submitted by HM Treasury on 12 June 2017

SUBJECT MATTER

  1. This is a proposal to mobilise €50m (£43.6m) from the EU Solidarity Fund (EUSF), to be made available for the payment of advances in the EU Annual Budget for 2018. It is intended to ensure that budgetary resources are available in good time, rather than to finance a specific allocation.
  1. The EUSF was established in 2002 to provide financial assistance to eligible states affected by major natural disasters or extraordinary regional disasters.

SCRUTINY HISTORY

  1. Not applicable.

MINISTERIAL RESPONSIBILITY

  1. The Chancellor of the Exchequer has responsibility for United Kingdom policy on European Union monetary and economic issues. The Foreign and Commonwealth Secretary and Secretary of State for Exiting the EU are responsible for overall United Kingdom policy towards the European Union.

INTEREST OF THE DEVOLVED ADMINISTRATIONS

  1. The EU budget is a reserved matter under the UK's devolution settlements.However, the devolved administrations have an interest in the EU budget and have been consulted in the preparation of this EM.

LEGAL AND PROCEDURAL ISSUES

  1. Legal basis
  1. Article 4a(4) of Council Regulation (EC) 2012/2002 of 11 November 2002 establishing the EUSF enables the EUSF to be mobilised for the payment of advances, to ensure the timely availability of budgetary resources, up to a limit of €50m.
  1. Legislative procedure
  1. The decision to mobilise the Solidarity Fund shall be taken jointly by the European Parliament and the Council. (Point 11 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management.)
  1. Voting procedure
  1. The Council shall act by a qualified majority and the European Parliament shall act by a majority of its component members and three fifths of the votes cast. (Point 11 of the same Interinstitutional Agreement.)
  1. Impact on United Kingdom Law
  1. None
  1. Application to Gibraltar
  1. Not applicable
  1. Fundamental rights analysis
  1. Not applicable

APPLICATION TO THE EUROPEAN ECONOMIC AREA

  1. Not applicable

SUBSIDIARITY

  1. The EU budget and the application of the EUSF are matters of exclusive EU competence. This proposal is consistent with the principle of subsidiarity.

CONSULTATION

  1. None.

IMPACT ASSESSMENT

  1. Not applicable.

FINANCIAL IMPLICATIONS

  1. If adopted, this proposal would create €50m in commitment and payment appropriations for the 2018 EU Annual Budget.

TIMETABLE

  1. The proposal was issued by the Commission on 30 May 2017. It is on the provisional agenda for discussion at Budget Committee on Tuesday 13 June. The timing of subsequent Council and European Parliament consideration of the proposal is not known.