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EU aid worth €7.8 million for redundant Danish shipbuilders and Spanish builders

BUDG Press release - Budget12-07-2012 - 11:38

Over €7.8 million in EU aid to help unemployed workers in Denmark and Spain to retrain and find new work was approved by the Budgets Committee on Thursday. The money would come from the European Globalisation Adjustment Fund (EGF).

Denmark applied in October 2011 for EGF aid to fund training for 550 shipbuilders redundant shipbuilders made redundant by the Odense Steel Shipyard to work in other industries, including energy technology, landscaping and robotics.

The EGF aid would total €6,455,104 and the Odense and Kerteminde municipalities would contribute a further €3,475,826.

EU shipbuilders have been losing market share to Asian competitors for decades, in a world market which recession shrank by 20% between 2008 and 2009.

Spain applied in December 2011 for EGF aid to help 320 workers made redundant by small building firms in the Aragón region to find new jobs.

The EGF aid would total €1,300,000, and Aragón would contribute a further €700,000.

In Aragón, building industry job losses due to recession accounted for 15% of an overall increase in the jobless total from 40,000 in 2008 to 100,000 in 2011. Aragón has already made another two EGF aid applications, for redundant automotive and retail workers.

Denmark's application was approved with 28 votes in favour, 4 against and no abstentions. Spain's was approved with 29 votes in favour, 4 against and no abstentions.

Parliament will put the aid applications will be put to a plenary vote in September.

In the chair: Alain LAMASSOURE (EPP, FR)

REF. : 20120709IPR48506
Updated: ( 10-09-2012 - 14:51)