REPORT 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
5.11.2009 - (COM(2009)0515 – C7‑0208/2009 – 2009/2135(BUD))
Committee on Budgets
Rapporteur: Reimer Böge
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(2009)0515 – C7‑0208/2009 – 2009/2135(BUD))
The European Parliament,
– having regard to the Commission proposal to the European Parliament and the Council (COM(2009)0515 – C7‑0208/2009),
– 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 and the opinion of the Committee on Employment and Social Affairs (A7-0044/2009),
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 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 Fund,
C. whereas Belgium and Ireland have requested assistance in respect of cases concerning redundancies in the textiles sector in the Belgian regions of East and West Flanders[3] and Limburg[4], and in the computer manufacturing industry in the Irish counties of Limerick, Clare and North Tipperary, as well as the city of Limerick[5],
D. whereas both applications have fulfilled the eligibility criteria set up by the EGF Regulation,
E. whereas in the case of the Irish application, supplementary information from the Commission has been requested by the Committee on Employment and Social Affairs,
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 Fund; providing one-off, time-limited individual support geared to helping workers who have suffered redundancies as a result of globalisation;
3. Stresses that the European Union should use all its means to face the consequences of the global economic and financial crisis; emphasises that in this respect the EGF can play a crucial role in the reintegration of the workers made redundant into the labour market;
4. 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;
5. Warns the Commission, in the context of mobilising the EGF, not to systematically transfer payment appropriations from the European Union Social Fund, 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 budget review;
7. Notes that the Committee on Employment and Social Affairs has assessed the Commission's proposal and has no objections to raise in the case of Belgian applications, whereas clarifications have been requested form the Commission on the Irish application regarding the Dell case; However draws attention to paragraphs 1-6 of the attached opinion by this committee;
8. Will evaluate the consequences of the Commission replies before taking its final decision both on the legal and budgetary instrument;
9. Expects the Commission to take stock of the current difficulties and to present from now on its proposals for decisions on the mobilisation of the EGF in separate documents: one proposal for a decision per Member State application;
10. Approves the decision annexed to this resolution;
11. 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;
12. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.
ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of xx October 2009
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 establishing the European Community,
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], 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 Commission,
Whereas:
(1) The European Globalisation Adjustment Fund (EGF) was established to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns 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 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) Belgium submitted two applications to mobilise the EGF, in respect of redundancies in the textiles sector, on 5 May 2009. These applications comply with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006, therefore the Commission proposes to deploy an amount of EUR 9 198 874.
(5) Ireland submitted an application to mobilise the EGF, in respect of redundancies in the computer manufacturing industry, on 29 June 2009. This application complies with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006, therefore the Commission proposes to deploy an amount of EUR 14 831 050.
(6) The EGF should, therefore, be mobilised in order to provide a financial contribution for the applications submitted by Belgium and Ireland.
HAVE DECIDED AS FOLLOWS:
Article 1
For the general budget of the European Union for the financial year 2009, the European Globalisation Adjustment Fund shall be mobilised to provide the sum of EUR 24 029 924 in commitment and payment appropriations.
Article 2
This Decision shall be published in the Official Journal of the European Union.
Done at Brussels,
For the European Parliament For the Council
The President The President
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
This proposal concerns the mobilisation of a global amount of EUR 24.029.924 from the European Globalisation Adjustment Fund (EGF) in favour of Belgium and Ireland in order to cover the assistance to workers made redundant in textiles sector in Belgium and in computer manufacturing industry in Ireland.
Since both applications have been submitted after the 1st may 2009, they have been assessed on the basis of the new rules laid down in the Regulation N° 546/2009 of 18 June 2009 amending the Regulation (EC) No 1927/2006 of 20.12.2006.
The Belgian application is based on the Article 2(b): at least 500 redundancies over period of 9 months, particularly in small or medium-sized enterprises, in a NACE 2 sector in one region or two contiguous regions at NUTS II level.
The Irish application is based on the Article 2(a): at least 500 redundancies over period of 4 months in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers.
The Belgian applications, EGF/2009/004/BE/Oost en West Vlaanderen textiles and EGF/2009/005/BE/Limbourg textiles, submitted to the Commission on 5 May 2009 and supplemented with additional information on 29 June March 2009, relates to 2.199 redundancies occurred in 46 enterprises operating in textiles sector, all located in two contiguous NUTS II regions of East and West Flanders and a single NUTS II region of Limburg. Belgian authorities applied for EUR 9.198.874 from the Fund.
The Irish application EGF/2009/008/IE/Dell has been submitted to the Commission on 29 June 2009, and supplemented by additional information submitted to the Commission by end of July. It concerns 2.840 redundancies occurred on enterprise-Dell Ireland (NUTS 3 region of the Mid-West, comprising countries of Limerick, Clare and North Tipperary, as well as the city of Limerick), of which 2.400 are targeted for assistance.
Ireland has applied for EUR 14.831.050 from the EGF.
In order to mobilise the Fund, the Commission has submitted to the Budget Authority a transfer request (DEC32/2009) for a global amount of EUR 24.029.924 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) for commitments and payments.
The IIA allows the mobilisation of the Fund within the annual ceiling of EUR 500 million. This is the fourth proposal for the mobilisation of the Fund in 2009. So far, three applications have been accepted for funding in 2009 for a global amount of EUR 13.077.700 in favour of Spain, Portugal, Germany and Commission's technical assistance.
In accordance with the article 12(6) of the legal base, on 1st September of each year, at least EUR 125 million (25%) should remain available in order to cover the needs arising until the end of the year. After deduction of the amount already committed in 2009, EUR 486.922.300 remain available.
Overview of applications - 2009 budget
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The European Globalisation Adjustment Fund (EGF): |
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Reference
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Member State |
Case
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EGF contribution (€) |
Redundancies
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EGF/2008/004 |
Spain |
Automobile industry /Castilla y Leon and Aragon |
2 694 300 |
1 082 |
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SEC(2008)2986 |
Commission |
Technical assistance |
690 000 |
--- |
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EGF/2008/005 |
Spain |
Textiles / Cataluña |
3 306 750 |
1 720 |
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EGF/2009/001 |
Portugal |
Textiles / Norte - Centro |
832 800 |
1 588 |
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EGF/2009/002 |
Germany |
Mobile phone sector (Nokia) |
5 553 850 |
1 316 |
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EGF/2009/004 EGF/2009/005 |
Belgium
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Textiles / Oot en West Vlaanderen and Limburg regions |
9 198 874 |
2 199 |
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EGF/2009/008
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Ireland
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Computer manufacturing industry / Region of Mid-West (countries of Limerick, Clare, North Tipperary and the city of Limerick) |
14 831 050 |
2 400 |
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TOTAL Margins |
37 107 624 462 892 376 |
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N.B. The Fund may not exceed a maximum amount of EUR 500 million per year |
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III. Procedure
The Commission has presented a transfer request[3] in order to enter specific commitment and payment appropriations in the 2009 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 with the Employment and Social Affairs Committee (EMPL), this committee should be associated to the process, in order to provide constructive support and contribution to the implementation of the European Globalisation Adjustment Fund.
Following the assessment of the requests, 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.
OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS
ES/sg
D(2009)56200
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 cases EGF/2009004 BE/Oost en West Vlaanderen textiles, EGF/2009/005 BE/Limburg textiles and EGF/2009/008 IE/Dell (COM(2009)515 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 cases EGF/2009/004 BE/Oost en West Vlaanderen textiles, EGF/2009/005 BE/Limburg textiles and EGF/2009/008 IE/Dell on 14 and 29 September, on 20 October as well as on 3 and 4 November 2009.
Following this thorough examination, EMPL adopted the following opinion:
General remark
First of all, the EMPL committee would like to stress that the possibility to group proposals for decision on the mobilisation of the fund together into badges (Art. 12§3) puts into jeopardy the right of the budgetary authority to examine each application on the basis of its own merits.
- Therefore, EMPL asks the Commission to submit from now on the proposals to authorise appropriations and the requests for the transfer of the amount to the EGF budget line separately for every single application.
EGF/2009004 BE/Oost en West Vlaanderen textiles, EGF/2009/005 BE/Limburg textiles
EMPL and its Working Group on the EGF are in favour of the mobilisation of the Fund concerning the Belgian request. Nevertheless, 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:
- Whereas these requests are the first ones presented under the new Regulation 546/2009 amending Regulation 1927/2006;
- Whereas the skills scenarios presented in the study of the textiles, wearing apparel and leather products sector in the European Union predict a considerable loss of jobs in this sector until 2020;
- Whereas no detailed information is available on the participation of other European Funds in the cases at hand.
Therefore, EMPL calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions in its motion for a resolution concerning the Belgian cases:
1. Welcomes the good example of co-operation between the Belgian government and the Social Partners in order to obtain a contribution of the EGF and encourages other Member States to set up tripartite delegations that will elaborate and submit the applications together.
2. Is particularly worried about the impact of the financial and economic crisis on the European textile sector which is already deteriorated through the effects of globalisation; takes the view that other or new instruments on the European level should be found to handle the reduction of jobs predicted for this sector.
3. Notes that to complete the overall picture, Belgium should provide additional information on the measures put in place for those workers made redundant in the transport, maintenance and catering sectors following the job losses in the textile industry.
EGF/2009/008 IE/Dell
EMPL and its Working Group on the EGF are in favour of the mobilisation of the EGF concerning the Irish 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:
- Having regard to the reply by Commissioners Neelie Kroes and Vladimir Špidla to the letter concerning the Irish request addressed to them by the Chairwoman of the EMPL Committee.
- Whereas the application does not include any information about a possible contribution of the company Dell or of the Structural Funds to the measures in favour of the redundant workers.
- Whereas a 54.5 million investment aid for Dell was approved by the Commission for the establishment of a new manufacturing plant in Poland while the factory in Ireland had just been closed down. Until today, the Commission could not prove that there is no connection between the two events.
- Whereas, consequently, there is a lack of clarity concerning the establishment of Dell in Poland, the redundancies in Ireland and the link thereof with the financial and economic crisis.
- Whereas Dell is presently buying a competitor for 3.9 billion dollars.
- Whereas it has not been clarified whether Dell received state aid from Ireland when settling in Limerick.
- Whereas it is not clear whether the Commission verified that Poland, in order to avoid a repetition of this corporate strategy, asked for guarantees proving that a sustainable investment in Poland was made.
Therefore, EMPL calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions in its motion for a resolution concerning the Irish case:
1. Agrees that the Irish request responds generally to the intervention criteria of the EGF regulation 1927/2006 as amended by regulation 546/2009, but underlines that the establishment of a new manufacturing plant in Poland while the factory in Ireland has just been closed down cannot be considered as the result of the financial crisis.
2. Deplores that important questions related to this application have not been clarified by the European Commission in due time. However, does not intend to block the application due to the lack of cooperation from the European Commission, as it aims to urgently help workers.
3. Underlines that this application provokes serious doubts about the consistency of the framework for industrial policy in the European Union which affects in many ways the implementation of the European Globalisation Adjustment Fund.
4. Regrets that, due to this framework, it is legally possible to mobilise funds of the European budget - unused appropriations of the European Social Fund, in this case - to mitigate the consequences of the strategy of an international enterprise for its redundant workers while, at the same time, this enterprise receives state aid from a Member State for opening a new factory with the consent of the European Commission.
5. Highlights that this provokes more general questions about the very conception of the EGF as a tool for providing “one-off-measures” to workers negatively affected by globalisation; points out that several cases in the past seem to indicate that the employers may rely on the EGF to take full responsibility for the companies’ social responsibility for their workers, exempting them from the social costs of plant closures and de-localisation and burdening these on the European taxpayers instead.
6. Points out that Parliament will address these more general issues when examining the overall situation of the mobilisation of the EGF.
Remarks on all applications:
1. Reminds the Commission that Art. 12§4 of the Regulation asks for "evidence that the criteria laid down in Art. 2 and 6 are met". In this respect, Members are not satisfied with the simple confirmation of Belgium that the proposed measures complement other actions co-financed by the Structural Funds.
2. Recalls its request for more detailed information in the applications on the implementation of equality between men and women and non-discrimination in the framework of the EGF.
Yours sincerely,
Pervenche Berès
RESULT OF FINAL VOTE IN COMMITTEE
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Date adopted |
5.11.2009 |
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Result of final vote |
+: –: 0: |
354 0 |
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Members present for the final vote |
Alexander Alvaro, Marta Andreasen, Francesca Balzani, Reimer Böge, Lajos Bokros, Andrea Cozzolino, Göran Färm, Salvador Garriga Polledo, Jens Geier, Ivars Godmanis, Ingeborg Gräßle, Estelle Grelier, Carl Haglund, Jutta Haug, Jiří Havel, Monika Hohlmeier, Anne E. Jensen, Ivailo Kalfin, Sergej Kozlík, Alain Lamassoure, Janusz Lewandowski, Vladimír Maňka, Barbara Matera, Nadezhda Mihaylova, Claudio Morganti, Miguel Portas, Dominique Riquet, Sergio Paolo Francesco Silvestris, Helga Trüpel, Daniël van der Stoep, Angelika Werthmann |
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Substitute(s) present for the final vote |
François Alfonsi, Frédéric Daerden, Gerben-Jan Gerbrandy, Lidia Joanna Geringer de Oedenberg, Giovanni La Via, Paul Rübig, Georgios Stavrakakis, Theodor Dumitru Stolojan |
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Substitute(s) under Rule 187(2) present for the final vote
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