1. Will Slovenia receive a grant from the EU Solidarity Fund to help deal with the consequences of the 2023 floods? If yes, how much and when?
Slovenia will receive a total of around 428 million euros of financial assistance from the EU Solidarity Fund, which is more than promised by European Commission President Ursula von der Leyen when she visited Slovenia in the first days after the floods.
After the floods that hit Slovenia in August 2023, the Ministry of Cohesion and Regional Development, together with all line ministries, prepared and submitted the application for financial assistance from the EU Solidarity Fund to the European Commission in October 2023. In June 2024, the European Commission informed Slovenia that it concluded the technical consultations and would shortly forward a proposal to the EU Council and the European Parliament on the final amount of the EU Solidarity Fund assistance to Slovenia.
At the end of 2023, Slovenia has already received an advance of 100 million euros, which is the maximum possible advance from the EU Solidarity Fund. The remaining 328 million euros of the financial assistance is expected to be received at the end of 2024.
2. What is the EU Solidarity Fund financial assistance used for?
Only costs that fall within the main categories of eligible actions under the EUSF Regulation are eligible. The actions that can be financed by the EU Solidarity Fund under the Regulation are:
3. Who holds the funds and who was, or will the grant be allocated to?
mThe EU Solidarity Fund grant has already been partly transferred to a special sub-account at the Bank of Slovenia. The Ministry of Finance manages the account in the same way as other EU grants: the eligible ministries advance payments for the implementation of flood recovery projects from the state budget, and later, the Ministry of Finance reimburses these funds from the Bank of Slovenia sub-account back to the state budget.
4. Why is there such a difference between the direct damage assessment (in the Ajda system) and the damage assessment provided in the EU Solidarity Fund application for financial assistance?
The data on the estimated damage varies according to the purpose and methodology on the basis of which the data is collected. It is essential to differentiate between the international PDNA (Post-Disaster Needs Assessment) methodology, which was used for damage assessment in the EU Solidarity Fund application for financial assistance, and the national direct damage assessment methodology, which is used to identify and define final state budget beneficiaries under the Natural Disaster Recovery Act. In terms of their purpose and content, the two methodologies are not comparable.
The purpose of the established PDNA methodology is to assess in the shortest possible time the immediate damage and the consequences for the population, the economy and the environment caused. The PDNA method considers the estimated replacement value of the damaged structures and the costs of reconstruction to prevent a recurrence of the damage in the same event. It is, therefore, not based on individual damage claims.
The aim of damage assessment based on the methodology set out in the Decree on Damage Evaluation Methodology (Ajda) is to identify and define final state budget beneficiaries under the Natural Disaster Recovery Act. The calculation is based on the individual damage claim and only considers direct material damage, taking into account the remaining value of the damaged item (depreciation deducted), and does not include VAT. It does not take into account the cost of restoration or the cost of taking the necessary measures to prevent a recurrence of damage arising from the same cause. It also does not take into account indirect costs incurred as a result of the damage, which relate to the costs of intervention.
5. Is the system for implementing the EU Solidarity Fund the same as the European Cohesion Policy implementation system?
The system for implementing the EU Solidarity Fund in the Republic of Slovenia is based on the European Cohesion Policy implementation system. However, the EU Solidarity Fund is subject to significant simplifications due to the specific purpose of the EUSF funds. The Government of the Republic of Slovenia has already taken note of the management and control system for using the EU Solidarity Fund grants. By September 2024 at the latest, the Ministry of Cohesion and Regional Development will draft Guidelines on the procedures for mobilising the EU Solidarity Fund, which will provide more detailed guidance for the ministries that will implement eligible flood recovery measures. The legal framework governing the implementation of the EU Solidarity Fund in the Republic of Slovenia will be published under a separate tab on the Ministry’s website.
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