How to ‘dupe’ the EU Solidarity Fund

Take Portugal’s example. The EU Commission establishes that Solidarity Funds will be attributed to disasters if direct damages are shown to have exceeded 0.6% of the country’s gross national income. An exception is made for regional disasters although it would be expected that similar criteria would be applied.

Following the storm-floods in Madeira on the 20^th of February 2010, the Portuguese and Regional Governments whipped up a ‘paper-napkin’ report (Relatório Final da Comissão Paritária Mista - Intermpérie de 20 de Fevereiro na RAM), where on page five, under seven headings, they chalked up an alleged €1080 Million in damages - No specific information provided.

In a letter, dated 25^th of March 2011, Commissioner Hahn’s office stated that the Commission’s assessment (presumably of the overall damages) was based on this report. The President of Madeira has since announced he will be building a new port and marina in the bay of Funchal, resorting to funding provided by the Portuguese Government as part of the €1080 Million reconstruction money the latter has approved for Madeira.

Regarding this, Commissioner Hahn’s office states ‘The building project on the site of the landfill on Funchal beach is not part of the Solidarity Fund Agreement nor would it qualify as an essential emergency operation’.

In other words, the EU Solidarity Fund accepts the ‘paper-napkin’ report figures even though it knows that part of the  €1080 Million is not to going to be spent on reconstruction, but on entirely new projects.

Conclusion: the Portuguese Government has deliberately pumped up the estimated damages to be able to qualify for a larger slice of Solidarity Funding while the Commission obligingly turns blind eye. Well, no surprise there: Mr Barroso, President of the Commission, is a long-term pall and supporter of President Jardim.

The Commissioner’s letter further states that the Portuguese authorities are responsible to decide if details of their application would be made public. Not entirely so. National MPs have requested the Portuguese Government release detailed information on the estimated damages, which they are entitled to obtain under the Portuguese opposition law. The Portuguese Government has allowed the stipulated deadlines to slip by without supplying any answers.