Brussels, 27 April, 2005

Reference: IP/05/490 Date: 27/04/2005 - IP/05/490

The European Commission keeps its promises. In January 2005 the President of the Commission Mr Barroso assured 473 million euro for 2005 and 2006 to help countries affected by the Tsunami. In order to deliver on this commitment the Commission today proposed 98 million euro in an amending budget and 180 million euro in the proposed budget for 2006. The 278 million euro is meant to help the reconstruction of Asian Tsunami affected regions.

After the adoption of the proposed amending budget 2005 Dalia Grybauskaité, Commissioner for Financial Programming and Budget, declared: “This shows that the Commission lives up to its earlier promises to the regions hit by the terrible disaster”.

In January 2005 the Commission, the European Parliament and the Council Presidency pledged 473 million euro for 2005 and 2006 to help regions affected by the Tsunami. The pledge was divided in into 123 million euro for humanitarian aid in 2005 and 350 million euro for reconstruction support in 2005 and 2006.

Only a few days after the disaster at the end of December last year the Commission provided an initial 23 million euro in humanitarian aid to meet urgent human needs in the area. This was followed by another 100 million around mid January.

The Commission estimated that 170 million euro was needed for the second phase of the support during 2005. To honour its promises the Commission today decided upon an amending budget, requesting for 98 million euro for 2005 in fresh funds. Technically this implies the mobilisation for the so called flexibility instrument. The remaining 72 million euro will be financed by the budget for Asia, 60 million euro, and by the Rapid Reaction Mechanism, 12 million euro.

An additional 180 million is needed to fulfil the last phase of reconstruction, mainly in Indonesia, Sri Lanka and the Maldives. The Commission has therefore proposed to allocate this amount in the budget for 2006. Again this requires a mobilisation of the flexibility instrument.

It is now for the European Parliament and the Council to decide on these proposals.