Press release
Globalisation fund: Budgets Committee backs aid to Sweden, Austria and the Netherlands
Budget - 02-12-2009 - 14:42
Committees
Committees
Unemployed car and construction workers in Sweden, Austria, and the Netherlands are to get €15.9 million in EU Globalisation Adjustment Fund aid for training, self-employment and professional orientation services under plans backed by the Budgets Committee on Wednesday. To mobilise the funds, Parliament must endorse the plans in a plenary vote scheduled for 15 December.
The Budgets Committee approved the report, drafted by Reimer Böge (EPP, DE) by a large majority on Wednesday morning.
Sweden
Between December 2008 and March 2009, 4,687 workers lost their jobs at Volvo Cars (2,258 persons) or at 23 of its suppliers and downstream producers.
The Swedish authorities argue that these redundancies are due to the rapid decline in worldwide demand for cars, caused by the global financial and economic crisis. Volvo Cars, owned by the Ford Motor Corporation, is exposed to the problems facing the US car market, which has been particularly seriously affected. Volvo's suppliers are heavily dependent on it, because in most cases it takes around 80% of their output.
The Västsverige region, where 73% of the above redundancies occurred, is also suffering job losses from Saab and Volvo AB and their suppliers. The number of unemployed workers in March 2009 was 60% higher than in March 2008.
The Budgets Committee voted to give EU support for additional unemployment measures to help 1,500 of the 3,126 workers registered with the Public Employment Service. These measures include guidance, preparatory training, training and retraining, generation change (coaching of younger workers by those about to reach retirement age), entrepreneurship promotion and aid for self-employment.
The total costs of this assistance will be €15,137,960, of which the EU aid would cover €9,839,674.
Austria
A total of 744 people lost their jobs at 9 automotive enterprises in the Austrian region of Styria (Steiermark in German) between August 2008 and May 2009. Of these, 400 are to receive assistance.
According to the Austrian authorities, these job losses are due to the rapid decline in worldwide demand for cars, caused by the financial and economic crisis.
The Land of Styria suffers from structural weaknesses, in particular a relatively small share of the services sector, an export-oriented economy and a high dependence on the demand in the automotive sector.
The support will cover costs for employment assistance, screening, short- and long-term professional orientation, individual coaching, individual qualifications and training and subsistence allowance. The total cost is expected to be €8,777,900, of which the globalisation adjustment fund would cover €5,705,635.
Netherlands
The Dutch application relates to 570 workers made redundant by the Heijmans N.V. construction company between January and May 2009. Of these, 435 are to receive assistance.
The Dutch authorities argue that the redundancies are due to the global financial and economic crisis and notably the increased prices of raw materials such as steel, fuel and raw materials for road construction. This affected construction firms' profit margins and eventually resulted in stricter rules for loans. At the same, demand for houses and offices was falling due to declining consumer confidence, low house prices and high mortgage costs.
Heijmans N.V. has subsidiaries throughout the Netherlands. Besides the 570 workers dismissed during the reference period, more than 400 additional jobs were lost, mostly by workers with fixed-term contracts.
The measures include information meetings, job markets, application training, assistance for finding a new job and retraining. These measures are expected to cost €594,021, of which the Netherlands has asked the fund to contribute €386,114.
Rules
The Swedish and Dutch applications are based on the Article 2(a) of the Fund's legal basis: at least 500 redundancies over 4 months in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers.
The Austrian application is based on the Article 2(b): at least 500 redundancies over 9 months, particularly in small or medium-sized enterprises, in the same industry sector in one region or two contiguous regions.
Parliament's endorsement is required for the mobilisation of the funds. The vote in plenary is scheduled for 15 December.
In the chair : Alain LAMASSOURE (EPP, FR)
02.12.2009
With the Lisbon Treaty, in force as of 1 December 2009, the European Parliament has important new lawmaking powers. Virtually all EU legislation is now decided by the European Parliament and the Council of Ministers together - including agriculture, immigration, energy and the EU budget. As the only directly-elected EU institution, Parliament's position in making sure the EU is accountable to its citizens is also strengthened, for example by MEPs having a bigger say in appointments to many of the EU's top jobs.
REF.: 20091130IPR65565
Further information :
- Reimer Böge's draft report
- Employment committee's opinion on the three cases
- Commission's answers to the questions of the employment committee
- COBUNews: Newsletter from the Budgets committee's secretariat, with basic information about the globalisation fund and all other items on the agenda (1-2 December
- Commission's proposal to mobilise the fund
- General information: European Globalisation Adjustment Fund
- Commission's information page about the Austrian case
- Commission's information page about the Dutch case
- Commission's information page about the Swedish case