Floods May Cost Europe $20 Billion

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Last updated at: (Beijing Time) Monday, August 19, 2002

Floods May Cost Europe $20 Billion

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As Germans fought to keep rivers of putrid water out of their homes and the Hungarian capital of Budapest braced for flooding, European leaders on Sunday promised a common effort to fund rebuilding and cleanup expected to take years and cost about $20 billion.

The violent storms that swept across the continent two weeks ago have passed, but the ensuing floods continue to claim lives. German police confirmed another death Sunday, bringing the Europe-wide toll to at least 106.

Meeting in Berlin, European Commission President Romano Prodi and the leaders of Germany, Austria, Czech Republic and Slovakia agreed a plan to free ``substantial sums'' from European Union development funds and cheap loans.

While they gave few specific figures, the leaders also proposed the creation of a European disaster relief fund that could start by helping flood areas.

Estimates from authorities and insurers suggest the total cost may exceed $20 billion. More than half of that falls on Germany, which faces its biggest relief effort since World War II. There is some concern it will break EU limits on government borrowing that protect the value of the euro currency.

The waters have receded in Austria, but authorities say that it will be weeks before the full extent of the damage is known. However, the government has already delayed a package of tax cuts and scaled back a purchase of Eurofighter jets to save money.

Austria Chancellor Wolfgang Schuessel said his government would make $970 million immediately available to help flood victims.

In the Czech capital Prague, city leaders sealed off parts of the historic capital after an apartment building collapsed early Sunday in the low-lying Karlin district �� the third building to collapse in four days.

Source: Agencies

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