Procedure : 2010/2066(BUD)
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Document selected : A7-0180/2010

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A7-0180/2010

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PV 15/06/2010 - 7.2
CRE 15/06/2010 - 7.2
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Texts adopted :

P7_TA(2010)0197

REPORT     
PDF 169kDOC 95k
3 June 2010
PE 441.293v02-00 A7-0180/2010

on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

(COM(2010)0216 – C7-0115/2010 – 2010/2066(BUD))

Committee on Budgets

Rapporteur: Barbara Matera

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
 ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
 EXPLANATORY STATEMENT
 ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS
 RESULT OF FINAL VOTE IN COMMITTEE

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

(COM(2010)0216 – C7-0115/2010 – 2010/2066(BUD))

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2010)0216 – C7-0115/2010),

–   having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (1) (IIA of 17 May 2006), and in particular point 28 thereof,

–   having regard to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund(2) (EGF Regulation),

–   having regard to the report of the Committee on Budgets (A7-0180/2010),

A. whereas the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who suffer from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market,

B.  whereas the scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis,

C. whereas the Union's financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard for the IIA of 17 May 2006 in respect of the adoption of decisions to mobilise the EGF,

D. whereas Spain has requested assistance in respect of cases concerning 2 425 redundancies in 181 enterprises operating in the NACE Revision 2 division 23 ('Manufacture of other non-metallic mineral products') sector in the NUTS II region of Comunidad Valenciana(3),

E.  whereas the application fulfils the eligibility criteria set up by the EGF Regulation,

1.  Requests the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF;

2.  Recalls the institutions' commitment to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have suffered redundancies as a result of globalisation and the financial and economic crisis; emphasises the role that the EGF can play in the reintegration of the workers made redundant into the labour market;

3.  Stresses that, in accordance with Article 6 of the EGF Regulation, it should be ensured that the EGF supports the reintegration of the individual redundant workers into employment; reiterates that assistance from the EGF shall not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;

4.  Notes that the information provided on the co-ordinated package of personalised services to be funded from the EGF includes a detailed information on the complementarity with actions funded by the Structural Funds; reiterates its call to present a comparative evaluation of these data in its annual reports as well;

5.  Reminds the Commission, in the context of mobilising the EGF, not to systematically transfer payment appropriations from the ESF, since the EGF was created as a separate specific instrument with its own objectives and deadlines;

6.  Recalls that the functioning and the added value of the EGF should be evaluated in the context of the general assessment of the programmes and other various instruments created by the IIA of 17 May 2006, within the process of the 2007-2013 multiannual financial framework mid-term review;

7.  Welcomes the new format of the Commission's proposal, presenting in its explanatory memorandum clear and detailed information on the application, analysing the eligibility criteria and explaining the reasons which led to its approval, which is in line with Parliament's requests;

8.  Approves the decision annexed to this resolution;

9.  Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

10. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

(1)

OJ C 139, 14.6.2006, p. 1.

(2)

OJ L 406, 30.12.2006, p. 1.

(3)

EGF/2009/014 ES/Comunidad Valenciana.


ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of xx May 2010

on mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

having regard to the Treaty on the Functioning of the European Union,

having regard to the Inter-institutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(1), and in particular point 28 thereof,

having regard to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 establishing the European Globalisation Adjustment Fund(2), and in particular Article 12(3) thereof,

having regard to the proposal from the European Commission(3),

Whereas:

(1)      The European Globalisation Adjustment Fund (EGF) was established to provide additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation and to assist them with their reintegration into the labour market.

(2)      The scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis.

(3)      The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual ceiling of EUR 500 million.

(4)      Spain submitted an application to mobilise the EGF, in respect of redundancies in 181 enterprises operating in NACE Revision 2 division 23 ('Manufacture of other non-metallic mineral products') in a single NUTS II region, Comunidad Valenciana (ES52), on 2 September 2009 and supplemented it by additional information up to 22 February 2010. This application complies with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006. The Commission therefore proposes to mobilise an amount of EUR 6 598 735.

(5)      The EGF should, therefore, be mobilised in order to provide a financial contribution for the application submitted by Spain.

HAVE DECIDED AS FOLLOWS:

Article 1

For the general budget of the European Union for the financial year 2010, the European Globalisation Adjustment Fund (EGF) shall be mobilised to provide the sum of EUR 6 598 735 in commitment and payment appropriations.

Article 2

This Decision shall be published in the Official Journal of the European Union.

Done at Brussels/Strasbourg,

For the European Parliament                      For the Council

The President                                             The President

(1)

              OJ C 139, 14.6.2006, p. 1.

(2)

              OJ L 406, 30.12.2006, p. 1.

(3)

              OJ C […], […], p. […].


EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund has been created in order to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

According to the provisions of point 28 of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management(1) and of the Article 12 of Regulation (EC) No 1927/2006(2), the Fund may not exceed a maximum amount of EUR 500 million, drawn from any the margin under the global expenditure ceiling from the previous year, and / or from the cancelled commitment appropriations from the previous two years, excluding those related to Heading 1b. The appropriate amounts are entered into the budget as a provision as soon as the sufficient margins and / or cancelled commitments have been identified.

As concerns the procedure, in order to activate the Fund the Commission, in case of a positive assessment of an application, presents to the budgetary authority a proposal for mobilisation of the Fund and, at the same time, a corresponding request for transfer. In parallel, a trialogue could be organised in order to find an agreement on the use of the Fund and the amounts required. The trialogue can take a simplified form.

II. State of play: Commission's proposal

On 6 May 2010 the Commission has adopted three new proposals for a decision on the mobilisation of the EGF in favour of Ireland and Spain in order to support the reintegration in the labour market of workers made redundant due to the global financial and economic crisis.

This is the eighth application to be examined under the budget 2010 and concerns the mobilisation of a global amount of EUR 6.598.735 from the EGF for Spain (Valencia).

The new case concern 2.425 redundancies in 181 enterprises classified in the same NACE revision 2 division during the 9 month reference period from 25 September 2008 to 24 June 2009, all located in a single region at NUTS II level, the Comunidad Valenciana, of which 1.600 have been targeted for assistance.

This application, case EGF/2009/014 ES/Comunidad Valenciana, was submitted to the Commission on 2 September 2009 and supplemented by additional information up to 22 February 2010. The application was based on the intervention criterion of Art. 2 (b) of the EGF Regulation which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE revision 2 division in one region or two contiguous regions at NUTS II level in a Member State and was submitted within the deadline of 10 weeks (Art. 5 of the Regulation).

Commission's assessment was based on the evaluation of the link between the redundancies and major structural changes in world trade patterns or the financial crisis, the unforeseen nature of the concerned redundancies, demonstration of number of redundancies and compliance with the criteria of Article 2 (b), explanation of the unforeseen nature of those redundancies, identification of dismissing enterprises and workers targeted for assistance, the territory concerned and its authorities and stakeholders, the impact for the redundancies as regards the local, regional or national employment, co-ordinated package of personalised services to be funded, including its compatibility with actions funded by the Structural Funds, dates on which the personalised services to affected workers were started or planned to start, procedures for consulting the social partners, management and control systems.

In accordance with Commission's assessment, the application fulfils the eligibility criteria set up by the EGF Regulation and recommends to the Budget Authority to approve the applications.

In order to mobilise the Fund, the Commission has submitted to the Budget Authority a transfer request (DEC 11/2010) for a global amount of EUR 6.598.735 from the EGF reserve (40 02 43) in commitments and from ESF budget lines (04 02 17 - ESF convergence) in payments to the EGF budget lines (04 05 01).

Concerning the alternative sourcing of payment appropriations, Commission explained that the practice followed until now has been of sourcing the necessary payment appropriations from the ESF budget because of the policy "proximity", and given that the annual requirement for the EGF in payment appropriations thus far have been in the range of 1% of the ESF payment endowment. However, at this early stage of the budget year, such alternative sources are difficult to identify. Nevertheless, with a view to meet this request for future EGF cases, the Commission is willing to look into the possibility of finding alternative sourcing of payment appropriations whenever this is possible and reasonable and where there is no risk of delay to the processing of the request for transfer.

The IIA allows the mobilisation of the Fund within the annual ceiling of EUR 500 million.

Art. 12 (6) of the EGF Regulation requests that on 1st September at least 25% of the annual maximum amount of the EGF shall remain available in order to cover needs arising until the end of the year.

In 2010, the Budget Authority has already approved five proposals for the mobilisation of the Fund, for a total amount of EUR 16.338.363, in favour of Germany (Karmann) and Lithuania (Snaige, Buildings construction, manufacture of furniture and wearing apparel sectors), leaving an amount of EUR 483.661.637 available.

III. Procedure

The Commission has presented a transfer request(3) in order to enter specific commitment and payment appropriations in the 2010 budget, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006.

The trialogue on the Commission's proposal for a Decision on the mobilisation of the EGF could take a simplified form (an exchange of letters), as provided for in Article 12(5) of the legal base, unless there is no agreement between the Parliament and the Council.

According to an internal agreement, the Employment and Social Affairs Committee (EMPL) should be associated to the process, in order to provide constructive support and contribution to the assessment of the applications from the Fund.

Following its evaluation, the EMPL committee of the European Parliament gave its view on the mobilisation of the Fund, as expressed in the opinion attached to the present report.

The Joint Declaration of the European Parliament, the Council and the Commission, adopted during the conciliation meeting on 17 July 2008, has confirmed the importance of ensuring a rapid procedure with due respect of the Interinstitutional Agreement for the adoption of decisions on the mobilisation of the Fund.

(1)

OJ C 139, 14.6.2006, p. 1.

(2)

OJ L 406, 30.12.2006, p. 1.

(3)

DEC 11/2010 of 6 May 2010


ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

ES/sg

D(2010)27785

M. Alain Lamassoure

President of the Committee on budgets

ASP 13E158

Subject: Opinion on the mobilisation of the European Globalisation Adjustment Fund (EGF) for the case EGF/2009/014 ES/Comunidad Valenciana (COM(2010)216 final)

Dear Mr Lamassoure,

The Committee on Employment and Social Affairs (EMPL) as well as its Working Group on the EGF examined the mobilisation of the EGF for the case EGF/2009/014 ES/Comunidad Valenciana and adopted the following opinion.

The EMPL committee and the Working Group on the EGF are in favour of the mobilisation of the Fund concerning this request. In this respect, the EMPL committee presents some remarks without, however, putting into question the transfer of the payments.

The deliberations of the EMPL committee are based on the following considerations:

a)  Whereas the 2425 dismissals in the 9 month reference period are the result of the financial and economic crisis causing a steep decline of construction activities in Spain hitting all ancillary industries including building materials like ceramic products.

b)  Whereas, the redundancies had considerable local impact as they occurred in a region with a strong share of ceramics production with regard to the number of enterprises (2.2 %) and the number of jobs (8.7%).

c)  Whereas unemployment among workers in the ceramic industry increased by 500% since January 2007.

d)  Whereas more or less ¾ of the dismissed workers have no or only basic education and are not used to look for work outside of their home region.

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions in its motion for a resolution concerning the Spanish application:

1.  Welcomes the package of personalized services that intends to provide the low skilled workers with professional qualifications and skills upgrading as well as with the opportunity to reorient their profession towards self-employment in the future oriented social economy.

2.  Supports strongly the idea of enhancing the mobility of workers; regrets therefore, that the training for mobility will only target a reduced number of workers that is already predisposed to changing residence in order to find a job in a different economic sector; reminds that mobility is generally an important tool for a fast reintegration into the labour market.

3.  Welcomes the measures including mentoring of the individual workers and is interested to be kept informed about the success of these measures.

4.  Welcomes the new paragraph about the connection of the Spanish ESF operational programme with the measures supported by the EGF; encourages the Member States and the Commission to further elaborate on this basic information as comprehensive information about the complementarity of the EGF with the measures supported by other Structural Funds in compliance with Article 6 of the EGF regulation is of great importance for the full evaluation of the added value of the EGF.

5.  Reiterates the necessity of complementarity and coordination of all measures targeting the redundant workers to deploy fully the synergies of these measures.

6.  Welcomes the new and concise presentation of the application in form of a table; regrets, however, that, despite the fact that the Commission announced greater flexibility concerning the presentation of the applications under the new format, there is a continuing lack of important information on the backdrop of the application which would be relevant for a complete evaluation of the case: for example, information about the fate of the enterprises in terms of closure or a continuation on a lower activity level to overcome the crisis.

7.  Would be interested to hear more about the relation between the study mentioned in paragraph 29 on the economic situation and employment opportunities and the measures supported by the EGF.

Yours sincerely,

Pervenche Berès


RESULT OF FINAL VOTE IN COMMITTEE

Date adopted

2.6.2010

 

 

 

Result of final vote

+:

–:

0:

26

0

0

Members present for the final vote

Marta Andreasen, Francesca Balzani, Lajos Bokros, Jean-Luc Dehaene, José Manuel Fernandes, Eider Gardiazábal Rubial, Salvador Garriga Polledo, Jens Geier, Ivars Godmanis, Estelle Grelier, Carl Haglund, Jutta Haug, Sidonia Elżbieta Jędrzejewska, Jan Kozłowski, Alain Lamassoure, Vladimír Maňka, Miguel Portas, Dominique Riquet, László Surján, Derek Vaughan, Angelika Werthmann, Jacek Włosowicz

Substitute(s) present for the final vote

Paul Rübig

Substitute(s) under Rule 187(2) present for the final vote

Peter Jahr, Andres Perello Rodriguez, Britta Reimers

Last updated: 7 June 2010Legal notice