Budgetary discipline: mobilisation of the flexibility instrument for the rehabilitation and the reconstruction following the tsunami disaster

PURPOSE : to mobile the flexibility instrument in favour of the rehabilitation and reconstruction assistance to Tsunami affected countries in 2004.

PROPOSED ACT : Decision of the European Parliament and of the Council (Interinstitutional Agreement).

CONTENT : the Commission proposes to support the rehabilitation and reconstruction needs in the

earthquake/Tsunami affected countries (mainly Indonesia, Sri Lanka and the Maldives,)

during 2005 and 2006.

For that purpose, a total amount of EUR 350 million is proposed, of which EUR 170 million in 2005 and EUR 180 million in 2006.

For 2005, after thorough examination, the Commission considers that the part of the required response which can be delivered by redefining indicative and not yet committed programmes for the region in

agreement with the governments concerned amounts to EUR 60 million. In addition, the Commission intends to mobilize the Rapid Reaction Mechanism for EUR 12 million. Since the ceiling for Heading 4: "External actions" in 2005 is already exceeded by EUR 100 million, the remaining part (EUR 98 million), can only be financed by an additional deployment of the flexibility instrument, in accordance with the provisions of the I.I.A. of 6 May 1999.

It is therefore requested that the European Parliament and the Council adopt this proposal for

a decision.