BRUSSELS: The European Commission wants to create a €1 billion disaster fund to deal with situations such as the floods that have devastated parts of central Europe.
The Commission President, Mr Romano Prodi, said the fund, which needs the approval of the European Parliament and EU member-states, would be a practical expression of European solidarity.
"Today, when some of our citizens are enduring such difficult conditions, it is more important than ever that the European message of solidarity is clearly heard, not only within the European Union but also in the countries that are soon to join us. More than ever, we need to find swift, practical and effective remedies."
The Commission hopes to set up the fund as quickly as possible, so that more than €500 million can be allocated to flood relief before the end of this year. Mr Prodi stressed that creating the fund would not require the EU to breach the strict budget limit imposed by member-states in 1999.
Dozens of people have died in the worst flooding to hit Europe for centuries and early estimates suggest that economic damage has been extensive also. Germany has suffered the worst such damage, estimated at €15 billion. The flooding has cost Austria about a billion euro, the Czech Republic between €2 and €3 billion and Slovakia about €35 million.
The Commission is preparing to reallocate structural funds already earmarked for Germany and Austria and to bring forward planned aid to the Czech Republic and Austria. The European Investment Bank is expected to offer loans to repair the flood damage.
The Commission's proposed disaster fund could be drawn on in the event of natural, technological or environmental disasters. Endowed with between €500 million and €1 billion, it would have its own budget and be available for the 15 member-states and the applicant countries, which are in accession negotiations.
The fund will be discussed at a meeting of EU foreign ministers in Denmark this weekend.
The Commission said the floods should cause EU leaders to reflect on how such disasters happen and the extent to which human intervention is responsible.
It said the Earth summit on sustainable development, taking place in Johannesburg, should lead to steps to promote the better use of land and water and to cut greenhouse gases, believed by many scientists to affect the weather by creating global warming.