Multi‐risk instruments for emergency response: a multi‐hazard and multi‐risk assessment of the European Union's Solidarity and Emergency Aid Reserve

Abstract

AbstractNatural hazard‐related disasters are on the rise and have significant impacts on the public and private sector. Different mechanisms and instruments exist on the pan‐European level to deal with them, including the European Union Solidarity Fund (EUSF). Recently, the EUSF expanded its scope to incorporate public health emergencies and merged with the Emergency Aid Reserve to become the Solidarity and Emergency Aid Reserve. It therefore became a multi‐hazard and multi‐risk instrument to assist countries during the emergency phase of disasters. As different types of hazards and risks are drawing from the same fund there is concern about what capitalisation levels have to be assumed to make it sustainable. Hence, it is important to understand to which hazards and risks the fund is most exposed and whether there are regional differences within Europe. To address these issues, this paper takes a risk‐based approach and estimates the capitalisation levels needed for major hazards and risks, noting regional differences across Europe.