REPORT on the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014 - 2020)

7.1.2013 - (COM(2011)0608 – C7‑0319/2011 – 2011/0269(COD)) - ***I

Committee on Employment and Social Affairs
Rapporteur: Marian Harkin

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014 - 2020)

(COM(2011)0608 – C7‑0319/2011 – 2011/0269(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to Parliament and the Council (COM(2011)0608),

–   having regard to Article 294(2) and Articles 175, 42 and 43 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0319/2011),

–   having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

–   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–   having regard to the reasoned opinion submitted, within the framework of the Protocol (No 2) on the application of the principles of subsidiarity and proportionality, by the the Riksdag of the Kingdom of Sweden, by the Senate and the House of Representatives of the Kingdom of the Netherlands and by the Senate of the Republic of Poland, asserting that the draft legislative act does not comply with the principle of subsidiarity,

–   having regard to the opinion of the European Economic and Social Committee of 23 February 2012[1],

–   having regard to the opinion of the Committee of the Regions of 3 May 2012[2],

–   having regard to Rules 55 and 37 of its Rules of Procedure,

–   having regard to the report of the Committee on Employment and Social Affairs and the opinions of the Committee on International Trade, the Committee on Budgets, the Committee on Budgetary Control, the Committee on Regional Development and the Committee on Women's Rights and Gender Equality (A7-0005/2013),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment  1 Proposal for a regulation Citation 1
Text proposed by the Commission	Amendment
Having regard to the Treaty on the Functioning of the European Union, and in particular the third paragraph of Article 175, as well as Articles 42 and 43 thereof,	Having regard to the Treaty on the Functioning of the European Union, and in particular the third paragraph of Article 175,
Justification
Articles 42 and 43 give a legal basis for the inclusion of farmers under delegated actsI propose to include farmers and all self employed workers under the same conditions in this Regulation.Therefore there is no need for a seperate legal basis.
Amendment  2 Proposal for a regulation Recital 1
Text proposed by the Commission	Amendment
(1) On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy, Europe 2020. One of the three priorities of the Europe 2020 strategy is inclusive growth by empowering people through high levels of employment, investing in skills, fighting poverty and modernising labour markets, training and social protection systems so as to help people anticipate and manage change, and build a cohesive society.	(1) On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy, Europe 2020. One of the three priorities of the Europe 2020 strategy is inclusive growth by empowering people through high levels of employment, investing in skills, fighting poverty and modernising labour markets, training and social protection systems so as to help people anticipate and manage change, and build an inclusive, cohesive society. .Overcoming the adverse effects of globalisation also calls for the creation of jobs through out the Union and a firm policy on supporting growth. Promoting social dialogue, improving the quality of consumer goods and information, increasing research and innovation, creating new public and private tools to finance the economy and developing small and medium-sized enterprises, these are the tools that will be effective in building up the Union's productive capabilities.
Amendment  3 Proposal for a regulation Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a) In its resolution of 8 June 2011 on Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe1, the European Parliament reiterated that without sufficient additional resources in the post-2013 MFF, the Union will not be able to fulfil its existing policy priorities, namely linked to the EU2020 strategy, and the new tasks provided for in the Treaty of Lisbon, as well as to respond to unforeseen events; it pointed out that, even with an increase in the level of resources for the next MFF of at least 5 % compared to the 2013 level, only a limited contribution can be made to the achievement of the Union's agreed objectives and commitments and the principle of Union solidarity; it challenged the Council, if it does not share this approach, to clearly identify which of its political priorities or projects could be dropped altogether, despite their proven European added value.
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	1 Texts adopted, P7_TA(2011)0266.
Amendment  4 Proposal for a regulation Recital 1 b (new)
Text proposed by the Commission	Amendment
	(1b) In its resolution of 8 June 2011 on Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe1, the European Parliament considered that the European Globalisation Adjustment Fund (EGF) had been successful in providing EU solidarity and support to workers made redundant because of the adverse effects of globalisation and the global financial and economic crisis and should, therefore, be maintained under the new MFF. The European Parliament expressed its belief, however, that the procedures for implementing the support from the EGF were too time consuming and cumbersome. The European Parliament called on the Commission to propose ways in which these procedures could be simplified and shortened for the future.
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	1 Texts adopted, P7_TA(2011)0266.
Amendment  5 Proposal for a regulation Recital 2
Text proposed by the Commission	Amendment
(2) The European Globalisation Adjustment Fund (EGF) was established by Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund for the duration of the Financial Framework from 1 January 2007 to 31 December 2013 to enable the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation and to provide support for their rapid reintegration into employment. This initial objective of the EGF remains valid.	(2) The European Globalisation Adjustment Fund (EGF) was established by Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund for the duration of the Financial Framework from 1 January 2007 to 31 December 2013. The Fund enables the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation but can also intervene in small labour markets even if the number of redundancies is below the threshold for mobilisation of the Fund. The EGF should as far as possible simplify its procedures to enable rapid intervention and, utilising the expertise of local and regional bodies, ensure synergies with other Union Funds. The initial objective of the EGF remains valid as it enables albeit on a modest scale individually tailored services to be provided to workers who have lost their jobs.
Amendment  6 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on 'A budget for Europe 2020' recognises the role of the EGF as a flexible fund to support workers who lose their jobs and help them to find another job as rapidly as possible. The Union should continue to provide, for the duration of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020, specific, one-off support to facilitate the re-integration into employment of redundant workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, the EGF should remain outside the Multiannual Financial Framework.	(3) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on 'A budget for Europe 2020' recognises the role of the EGF as a flexible fund to support workers who lose their jobs and help them to find another job as rapidly as possible. The Union should continue to provide, for the duration of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020, specific, one-off support to facilitate the re-integration into employment of redundant workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, the EGF should remain outside the Multiannual Financial Framework, thereby equipping the Union with a rapid response mechanism to provide support during unemployment crises.
Amendment  7 Proposal for a regulation Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a) In its resolution of 8 June 2011 entitled ‘Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe’1, the European Parliament considered it crucial to maintain special instruments (Flexibility Instrument, European Globalisation Adjustment Fund, European Union Solidarity Fund and Emergency Aid Reserve), which could be mobilised on an ad-hoc basis, by further simplifying their use and providing them with sufficient envelopes, as well as by possibly creating new instruments in the future, and stressed that the mobilisation of such additional sources of funding must abide by the Union method.
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	1 Texts adopted, P7_TA(2011)0266.
Amendment  8 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4) The scope of Regulation (EC) No 1927/2006 was broadened in 2009 by Regulation (EC) No 546/2009 of the European Parliament and of the Council21 as part of the European Economic Recovery plan to include workers made redundant as a result of the global financial and economic crisis. In order to enable the EGF to intervene in future crisis situations, its scope should cover redundancies resulting from a serious economic disruption when caused by an unexpected crisis comparable to the financial and economic crisis that hit the economy from 2008 onwards.	(4) The scope of Regulation (EC) No 1927/2006 was broadened in 2009 by Regulation (EC) No 546/2009 of the European Parliament and of the Council21 as part of the European Economic Recovery plan to include workers made redundant as a result of the global financial and economic crisis. Despite strong support from the European Commission and the European Parliament the continuation of the "crisis derogation" was blocked by the European Council. In light of the fact that 82% of all applications to the EGF in 2009/2010 were based on "crisis derogation" criteria, it is necessary to enable the EGF to intervene in future crisis situations. Its scope should cover redundancies resulting from a serious economic disruption when caused by an unexpected crisis.
Justification
It is important to emphasise the support within the European Parliament and the European Commission for an extension of the crisis derogation and to highlight the need for a continuing crisis intervention mechanism by using the available statistics to support this argument.
Amendment  9 Proposal for a regulation Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4a) Regardless of the existence of the EGF, the EU and Member States should set in place policies to promote growth, the creation of jobs.
Amendment  10 Proposal for a regulation Recital 4 b (new)
Text proposed by the Commission	Amendment
	(4b) The detrimental effect of job losses is exacerbated for certain groups who find reintegration into the labour market more difficult, particularly for low-skilled or unskilled female workers, single mothers and women with caring responsibilities. The financial and economic crisis and its impact on reduced public sector funding in turn has led to the further loss of jobs and to further insecurity for millions of women, notably those on temporary or part-time contracts and engaged in seasonal work. Equal access to EGF therefore should apply to all employment contracts.
Amendment  11 Proposal for a regulation Recital 4 c (new)
Text proposed by the Commission	Amendment
	(4c) The European Monitoring Centre on Change (EMCC), based in EU Agency Eurofound in Dublin, assists the European Commission and the Member State concerned with qualitative and quantitative analyses in order to help in the evaluation of trends of globalisation and utilisation of the EGF, and the Centre is also well placed to conduct impact evaluations of active labour market policy measures;
Amendment  12 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5) In compliance with the Communication on ‘A Budget for Europe 2020’, the scope of the EGF should be broadened to facilitate the adaptation of farmers to a new market situation resulting from international trade agreements in the agricultural sector and leading to a change or a significant adjustment in the agricultural activities of the affected farmers so as to assist them to become structurally more competitive or to facilitate their transition to non-agricultural activities.	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  13 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6) In order to maintain the European nature of the EGF, an application for support should be triggered when the number of redundancies reaches a minimum threshold. In small labour markets, such as small Member States or remote regions, and in exceptional circumstances, applications may be submitted for a lower number of redundancies. As regards farmers, the necessary criteria should be determined by the Commission in relation to the consequences of each trade agreement.	(6) In order to maintain the European nature of the EGF, an application for support should be triggered when the number of redundancies reaches a minimum threshold. In small labour markets, such as small Member States or remote regions, and in exceptional circumstances, applications may be submitted for a lower number of redundancies.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  14 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) In order to reduce the time required to assess the applications by the Commission, the Member States should submit the applications in their own language and one of the European institutions' working languages.
Amendment  15 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7) Redundant workers should have equal access to the EGF independently of their type of employment contract or employment relationship. Therefore, workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of micro, small and medium-sized enterprises and self-employed workers who cease their activities and farmers who change or adjust their activities to a new market situation following trade agreements, should be regarded as redundant workers for the purposes of this Regulation.	(7) Redundant workers, regardless of their formal status, should have equal access to the EGF independently of their type of employment contract or employment relationship. Therefore, workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of micro, small and medium-sized enterprises and self-employed workers who have to cease or change their current activities should be regarded as redundant workers for the purposes of this Regulation.
Amendment  16 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8) Regarding farmers, the scope of the EGF should include beneficiaries affected by bilateral agreements concluded by the Union in accordance with Article XXIV of the GATT or multilateral agreements concluded within the World Trade Organisation. This covers farmers changing or adjusting their previous agricultural activities within a period starting upon initialling of such trade agreements and ending three years after their full implementation.	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  17 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into employment, either within or outside their initial sector of activity, including the agricultural sector. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted.	(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into sustainable employment, either within or outside their initial sector of activity, or enabling them, in the event of an enterprise which employed them closing down, to take it over in the form of a cooperative. The financial contributions should be in addition to and not in replacement of any financial obligations that are the responsibility of Member States or companies by virtue of national or Union law or collective agreements. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted and companies should be allowed and encouraged to provide cofunding for the EGF-supported measures.
Amendment  18 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the date of application.	(10) When drawing up the co-ordinated package of active labour market policy measures, Member States should favour measures that will lead to reemployment of the redundant workers. The measures should also be designed taking full account of the objectives of the Europe 2020 Strategy and anticipate future labour market perspectives and required skills. Member States should strive towards the reintegration into quality and sustainable employment or new activities for all of the targeted workers within three months of the completion of the measures.
Justification
Part of the added value of the EGF is that it can complement and enhance other European initiatives. While the EGF should deliver tailor-made personalised packages to workers, these packages should also be oriented towards achieving the objectives of the European 2020 strategy and a balance needs to be found between the two demands.
Amendment  19 Proposal for a regulation Recital 10 a (new)
Text proposed by the Commission	Amendment
	(10a) Member States should pay particular attention to disadvantaged workers, including young workers, older workers and those at risk of poverty, when designing the coordinated package of active labour market policy measures, given that those groups experience particular problems in re-entering employment due to the crisis and globalisation.
Amendment  20 Proposal for a regulation Recital 10 b (new)
Text proposed by the Commission	Amendment
	(10b) Respect for gender equality is confirmed throughout the Europe 2020 strategy to be one of Union's core values. Therefore the principle of equal treatment between men and women, in addition to the European Pact for Gender Equality 2011 - 2020, should ensure that the implementation of the priorities financed by the EGF contributes to the provision of equality between men and women.
Amendment  21 Proposal for a regulation Recital 11
Text proposed by the Commission	Amendment
(11) In order to support redundant workers effectively and rapidly, Member States should do their utmost to submit complete applications. The provision of supplementary information should be exceptional and limited in time.	(11) As noted by the European Economic and Social Committee, one of the causes of underutilisation of the EGF is the slow procedure for its mobilisation. In order to support redundant workers effectively and rapidly, Member States, in collaboration with all levels of governance concerned, should do their utmost to submit complete and timely applications and the European institutions should do their utmost to assess them rapidly. This can be facilitated by bilateral proactive interaction and clear communication between the Commission and the national managing authorities. The Commission should decide quickly whether to accept or reject the applications in order to ensure the effectiveness of the Fund. The provision of supplementary information should be exceptional and limited in time.
Amendment  22 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace support measures which are available for redundant workers within the Union’s Structural Funds or other Union policies or programmes.	(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace and where possible should supplement support measures which are available for redundant workers within the Union's Structural Funds or other Union policies or programmes, notably the European Social Fund..
Amendment  23 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13) Special provisions should be included for information and communication activities on EGF cases and outcomes. In addition, to bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation should also contribute to covering the corporate communication of the political priorities of the Union provided that these are related to the general objectives of this Regulation.	(13) Bearing in mind the low level of awareness of the EGF in Member States, special provisions should be included for information and awareness raising concerning the activities of the Fund, promotion of examples of best practices and EGF outcomes. In addition, to ensure citizens are more fully informed and, most especially, that employers and owners of SMEs know of the Fund, the resources allocated to communication actions under this Regulation should apply to all relevant actors and also contribute to covering the corporate communication of the political priorities of the Union provided that these are related to the general objectives of this Regulation..
Amendment  24 Proposal for a regulation Recital 14
Text proposed by the Commission	Amendment
(14) In order to ensure that the Union's expression of solidarity with workers is not hampered by a lack of Member State co-funding resources, the co-funding rate should be modulated, with a maximum 50 % contribution to the cost of the package and its implementation as the norm, and the possibility to raise this rate to up to 65 % in the case of applications submitted by those Member States on the territory of which at least one region at NUTS II level is eligible under the ‘Convergence’ objective of the Structural Funds.	(14) In order to ensure that the Union's expression of solidarity with workers is not hampered by a lack of Member State co-funding resources, the co-funding rate should be modulated, with a maximum 60 % contribution to the cost of the package and its implementation as the norm, a maximum 70 % in the case of applications submitted by a Member State eligible for support under the Regulation XX/XXXX on the Cohesion Fund and a maximum 80 % in the case of applications submitted by a Member State receiving financial assistance under one of the conditions as laid down in Article 77 of Regulation (EC) No 1083/2006 1or from the European Financial Stability Facility.
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	1 OJ L 210, 31.7.2006, p. 25.
Justification
Co-financing is a major issue for many Member States and indeed some Member States do not apply for the EGF because of the low co-financing rate. For that reason an extra tier has been included where certain Member States can benefit from a higher co-financing rate. This will help to ensure a greater uptake of the fund and assist workers in Member States in financial distress.
Amendment  25 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15) To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State incurs administrative expenditure for implementing the EGF or from the date on which a Member State starts to provide personalised services or, in the case of farmers, from the date set in a Commission act in accordance with Article 4(3).	(15) To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State incurs administrative expenditure for implementing the EGF or from the date on which a Member State starts to provide personalised services.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  26 Proposal for a regulation Recital 16
Text proposed by the Commission	Amendment
(16) In order to cover the needs arising during the final months of each year, it is necessary to ensure that at least one quarter of the annual maximum amount of the EGF remains available on 1 September. Financial contributions made during the remainder of the year should be allocated taking into account the overall ceiling laid down for support to farmers in the Multiannual Financial Framework.	(16) In order to cover the needs arising during the final months of each year, it is necessary to ensure that at least one quarter of the annual maximum amount of the EGF remains available on 1 September.
Amendment  27 Proposal for a regulation Recital 16 a (new)
Text proposed by the Commission	Amendment
	(16a) In order to cover the needs arising especially during the first months of each year, where the possibilities for transfers from other budget lines are particularly difficult, an adequate amount of payment appropriations should be made available on the EGF budget line in the annual budgetary procedure.
Amendment  28 Proposal for a regulation Recital 18
Text proposed by the Commission	Amendment
(18) In the interest of the redundant workers, the Member States and the Union institutions involved in the EGF decision-making process should do their utmost to reduce processing time and simplify procedures.	(18) In the interest of the redundant workers, assistance should be dynamic and made available as quickly and efficiently as possible. Member States and the Union institutions involved in the EGF decision-making process should do their utmost to reduce processing time and simplify procedures so as to ensure a smooth and rapid adoption of the decisions on the mobilisation of the EGF.
Amendment  29 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19) In order to enable continuous monitoring by the Commission of results obtained with EGF assistance, Member States should submit interim and final reports on the implementation of the EGF.	(19) In order to enable political scrutiny by the European Parliament and continuous monitoring by the Commission of results obtained with EGF assistance, Member States should submit interim and final reports on the implementation of the EGF in a timely fashion.
Amendment  30 Proposal for a regulation Recital 21
Text proposed by the Commission	Amendment
(21) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States and can therefore, by reason of their scale and effects, be better achieved at the Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,	(21) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States and can therefore, by reason of their scale and effects, be better achieved at the Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives, and should therefore be included under the appropriate budget line.
Amendment  31 Proposal for a regulation Article 1 – paragraph 2
Text proposed by the Commission	Amendment
The aim of the EGF shall be to contribute to economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, trade agreements affecting agriculture, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment, or for changing or adjusting their agricultural activities.	The aim of the EGF shall be to contribute to smart, inclusive and sustainable economic growth and sustainable employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment or for changing their activities.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  32 Proposal for a regulation Article 1 – paragraph 3
Text proposed by the Commission	Amendment
Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions find stable employment within a year from the date of application.	Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that all workers participating in these actions find sustainable employment or become involved in a new activity within three months after the completion of the measures. This objective should be reassessed as part of the mid-term review of the Regulation.
Justification
One year from the date of application is too soon to measure the re-integration rate as first of all some Member States do not start some or all of the measures until approval is given. Secondly those workers who are attending courses of duration one year or longer will not be included. The end of the implementation period ie. two years from the date of application will give a more accurate figure particularly in regard to sustainable employment.
Amendment  33 Proposal for a regulation Article 2 - point a
Text proposed by the Commission	Amendment
(a) workers made redundant as a result of major structural changes in world trade patterns due to globalisation, demonstrated, in particular, by a substantial increase in imports into the Union, a rapid decline of the Union market share in a given sector or a delocalisation of activities to non-member countries, where these redundancies have a significant adverse impact on the local, regional or national economy;	(a) workers made redundant as a result of major changes in world trade patterns due to globalisation, demonstrated, in particular, by a serious shift in the export-import pattern of the Union’s trade in goods or services, a decline of the Union's market share in a given sector or a delocalisation of activities to non-member countries, where these redundancies have a significant adverse impact on the local, regional or national economy;
Justification
All the major changes induced by trade openness should be covered, even if the decline is slow.
Amendment  34 Proposal for a regulation Article 2 – point b
Text proposed by the Commission	Amendment
(b) workers made redundant as a result of a serious disruption of the local, regional or national economy caused by an unexpected crisis, provided that a direct and demonstrable link can be established between the redundancies and that crisis;	(b) workers made redundant as a result of a serious disruption of the local, regional or national economy caused by an unexpected crisis, including financial and economic crises, provided that a direct and demonstrable link can be established between the redundancies and that crisis;
Justification
It is important to include economic and financial crises within the scope of this Regulation. Obviously the word crisis means any type of crisis but given the blocking minority in Council to the extension of the current derogation for the financial crisis, it is putting down a marker to specifically include the words "economic" and "financial".
Amendment  35 Proposal for a regulation Article 2 – point c
Text proposed by the Commission	Amendment
(c) workers changing or adjusting their previous agricultural activities during a period starting upon initialling of the trade agreement by the Union containing trade liberalisation measures for the relevant agricultural sector and ending three years after the full implementation of these measures and provided that these trade measures lead to a substantial increase in Union imports of an agricultural product or products accompanied by a significant decrease in prices of such products at the Union or, where relevant, the national or regional level.	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  36 Proposal for a regulation Article 3 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a) ‘a worker’ means workers with contracts of employment of indefinite duration whose employment contract or relationship is in accordance with Article 4; or	(a) 'a worker' is defined as a person having a contract or employment relationship defined by the law in force in a Member State and/or governed by the law in force in a Member State or in a de facto employment relationship regardless of the contractual situation. This includes fixed-term workers and temporary agency workers.
Amendment  37 Proposal for a regulation Article 3 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b) ‘a worker’ means fixed-term workers as defined in Council Directive 1999/70/EC, whose employment contract or relationship is in accordance with Article 4(1)(a) or (b), and ends and is not renewed within the period set out in that point of Article 4; or	deleted
Amendment  38 Proposal for a regulation Article 3 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c) ‘a worker’ means temporary agency workers as defined in Article 3 of Directive 2008/104/EC of the European Parliament and of the Council, whose user undertaking is an enterprise in accordance with Article 4(1)(a) or (b), and whose assignment to the user undertaking ends and is not renewed within the period set out in that point of Article 4; or	deleted
Amendment  39 Proposal for a regulation Article 3 – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d) ‘a worker’ means owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers) and all members of the household active in the business, provided that, if farmers, they were already producing the output affected by the relevant trade agreement before the measures concerning the specific sector were implemented.	(d) ‘a worker’ means owner-managers of micro, small and medium-sized enterprises and self-employed workers and all the members of the household that are declared to be active in the business.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  40 Proposal for a regulation Article 4 - paragraph 2
Text proposed by the Commission	Amendment
2. In small labour markets or in exceptional circumstances, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article may be considered admissible even if the criteria laid down in points (a) or (b) of paragraph 1 are not entirely met, when redundancies have a serious impact on employment and the local economy. The Member State shall specify which of the intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met.	2. In small labour markets or in exceptional circumstances, in particular with regard to collective applications involving SMEs, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article may be considered admissible even if the criteria laid down in points (a) or (b) of paragraph 1 are not entirely met, when redundancies have a serious impact on employment and the local economy. The Member State shall specify which of the intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met.
Amendment  41 Proposal for a regulation Article 4 – paragraph 3
Text proposed by the Commission	Amendment
3. As regards farmers, when, after a trade agreement is initialled and on the basis of the information, data and analyses available to it, the Commission considers that the conditions for support in accordance with Article 2(c) are likely to be met for a significant number of farmers, it shall adopt delegated acts in accordance with Article 24 designating the eligible sectors or products, defining the affected geographical areas where appropriate, setting a maximum amount for potential support at Union level, setting reference periods and eligibility conditions for farmers and eligibility dates for expenditure as well as establishing the deadline by which applications must be submitted and, if necessary, the content of these applications in accordance with Article 8(2).	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  42 Proposal for a regulation Article 4 – paragraph 4
Text proposed by the Commission	Amendment
4. Where owner-managers of micro, small and medium-sized enterprises and self-employed workers change or, in the case of farmers, adjust their previous activities, such situations shall be considered as redundancies for the purposes of this Regulation.	4. Where owner-managers of micro, small and medium-sized enterprises and self-employed workers change or adjust their previous activities, such situations shall be considered as redundancies for the purpose of this Regulation.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  43 Proposal for a regulation Article 5 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c) For owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers), the redundancy shall be counted either from the date of cessation of the activities caused by any of the conditions set out in Article 2, and determined in accordance with national law or administrative provisions, or from the date specified by the Commission in the delegated act adopted in accordance with the Article 4(3).	(c) For owner managers of micro, small and medium-sized enterprises and self-employed workers the redundancy shall be counted from the date of cessation of or change in the activities caused by any of the conditions set out in Article 2, and determined in accordance with national law or administrative provisions.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  44 Proposal for a regulation Article 6 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a) all workers being made redundant in accordance with Article 5, within the period provided for in Article 4(1), (2) or (3),	(a) all workers being made redundant in accordance with Article 5, within the period provided for in Article 4(1) or (2),
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  45 Proposal for a regulation Article 6 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c) farmers changing or adjusting their previous agricultural activities following the initialling by the Union of a trade agreement referred to in the delegated act taken in accordance with Article 4(3).	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  46 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – introductory part
Text proposed by the Commission	Amendment
A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment or, in the case of farmers, to change or adjust their previous activities. The coordinated package of personalised services may include in particular:	A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment. The coordinated package of personalised services may include in particular:
Amendment  47 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point a
Text proposed by the Commission	Amendment
(a) job-search assistance, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion, aid for self-employment and business start-up or for changing or adjusting activity (including investments in physical assets), co-operation activities, tailor-made training and re-training, including information and communication technology skills and certification of acquired experience;	(a) tailor-made training and retraining, including information and communication technology skills and certification of acquired experience, job search assistance, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion, aid for self employment, business start-ups and employee take overs, aid for changing their previous activities (including investments in physical assets) and co-operation activities;
Amendment  48 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point b
Text proposed by the Commission	Amendment
(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;	(b) special time-limited measures, such as job-search allowances, mobility allowances, subsistence or training allowances (including allowances for carers), all of which limited to the duration of the documented active job search, life-long learning or training activities;
Amendment  49 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point c
Text proposed by the Commission	Amendment
(c) measures to stimulate in particular disadvantaged or older workers to remain in or return to the labour market.	(c) measures to stimulate disadvantaged workers, in particular young, older workers and workers at risk of poverty, to remain in or return to the labour market.
Compromise  50 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 2
Text proposed by the Commission	Amendment
The costs of the measures under (b) may not exceed 50 % of the total costs of the coordinated package of personalised services listed in this paragraph.	The costs of the measures under (b) may not exceed 25 % of the total costs of the coordinated package of personalised services listed in this paragraph.
Amendment  51 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 3
Text proposed by the Commission	Amendment
The cost of investments in physical assets for self-employment and business start-up or for changing or adjusting activity may not exceed EUR 35 000.	The cost of investments in physical assets for self-employment, business start-up and employee take-overs or for changing or adjusting activity may not exceed EUR 25 000.
Justification
The proposed amount has been decreased from €35,000 to €25,000 because of equity concerns. The EGF budget available for workers will be approximately €400 million per annum. If €400 million had been distributed in 2011 the average amount per worker would have worked out at €23,710. In 2010 it would have been €14,888. Therefore the figure of €35,000 could mean that some workers would not be treated equitably. It is reasonable to align this figure with the proposal on microfinance.
Amendment  52 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 3 a (new)
Text proposed by the Commission	Amendment
	The design of the coordinated package of personalised services shall take into account the underlying reasons for the redundancies and anticipate future labour market perspectives and required skills. The co-ordinated package should be compatible with the shift towards a resource efficient and environmentally sustainable economy;
Amendment  53 Proposal for a regulation Article 7 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a) special time-limited measures as listed in paragraph 1 (b) which are not conditional upon the active participation of the targeted workers in job-search or training activities;	(a) special time-limited measures as listed in paragraph 1 (b) which are not conditional upon the active participation of the targeted workers in job-search or training activities, measures that can be considered as substitute for unemployment benefits;
Amendment  54 Proposal for a regulation Article 7 – paragraph 2 - point a a (new)
Text proposed by the Commission	Amendment
	(aa) special time-limited measures, as listed in paragraph 1(b), which replace measures, even on a temporary basis, that are the responsibility of Member States by virtue of national law;
Justification
The EGF should deliver added value on a number of levels, including financial added value. If Member States have financial obligations to redundant workers in the form of pecuniary allowances, those obligations should be met by the Member State. Member States can of course top up the pecuniary allowances and this would provide extra incentives to workers. This amendment also helps to ensure that EGF money doesn't simply end up financing all of the Member States obligations.
Amendment  55 Proposal for a regulation Article 7 – paragraph 2 – point b
Text proposed by the Commission	Amendment
(b) actions which are the responsibility of enterprises by virtue of national law or collective agreements.	(b) actions which are the responsibility of enterprises or Member States by virtue of national, Union law or collective agreements or which would be replacing such responsibilities.
Amendment  56 Proposal for a regulation Article 7 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. The co-ordinated package of personalised services shall be drawn up in consultation with the social partners, the targeted workers or their representatives.
Justification
The Mid-Term Review of the EGF stressed that intense personalised support to redundant workers was a key factor in ensuring the best outcomes. In that context, workers or their representatives must be included in the consultation when the package of measures is being drawn-up. In cases where this has not happened expectations have been raised and then dashed and also outcomes have not been positive.
Amendment  57 Proposal for a regulation Article 7 – paragraph 3
Text proposed by the Commission	Amendment
3. At the initiative of the applicant Member State, a financial contribution may be made for the preparatory, management, information and publicity, control and reporting activities.	3. At the initiative of the applicant Member State, a financial contribution of a maximum of 5 % of the requested EGF support for the coordinated package of personalised services may be made available for the preparatory, management, information and publicity, control and reporting activities and for co-operation with all actors.
Justification
The success of the EGF depends to a significant extent on the package for workers and also on the timeliness of the Fund. Each application is different and with infrequent applications Member States may not necessarily have the expertise in place when needed. This can increase costs. Also for the initial applications there will have to be extra effort in ensuring full cooperation between all the partners. As Member States become more expert, lower financial contributions will be required.
Amendment  58 Proposal for a regulation Article 8 – paragraph 1
Text proposed by the Commission	Amendment
1. The Member State shall submit a complete application to the Commission within a period of 12 weeks from the date on which the criteria set in Article 4(1) or (2) are met or, where applicable, before the deadline set by the Commission in accordance with Article 4(3). In exceptional and duly justified circumstances the application may be supplemented with additional information by the applicant Member State within six months from the date of application, following which the Commission shall assess the application on the basis of the available information. The Commission shall complete its assessment of the application within twelve weeks of the date of receipt of a complete application or (in the case of an incomplete application) six months after the date of the initial application, whichever is the earlier.	1. The Member State shall submit a complete application to the Commission within a period of 12 weeks from the date on which the criteria set in Article 4(1) or (2) are met. In exceptional and duly justified circumstances the application may be supplemented with additional information by the applicant Member State within three months from the date of application, following which the Commission shall assess the application on the basis of the available information. The Commission shall complete its assessment of the application within 10 weeks of the date of receipt of a complete application or (in the case of an incomplete application) six months after the date of the initial application.
Justification
Given that timeliness is so important, Member States need to make every effort to ensure that their application is submitted in the shortest possible time. To assist in this higher level of financial contribution for the Member States has been suggested alongside the strong suggestion that proactive co-operation should be the norm between Member States and the Commission.
Amendment  59 Proposal for a regulation Article 8 – paragraph 2 – point a
Text proposed by the Commission	Amendment
(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis, or the new market situation in the agricultural sector in the Member State and resulting from the effects of a trade agreement initialled by the European Union in accordance with Article XXIV of the GATT or a multilateral agreement initialled within the World Trade Organisation as per Article 2(c). This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;	(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis. This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  60 Proposal for a regulation Article 8 – paragraph 2 – point a a (new)
Text proposed by the Commission	Amendment
	(aa) where the company continues its activities after lay-offs, a detailed explanation of the legal obligations it is under and of the measures that it has taken in order to take care of redundant workers;
Amendment  61 Proposal for a regulation Article 8 – paragraph 2 – point b a (new)
Text proposed by the Commission	Amendment
	(ba) a general skills profile and an initial assessment of the overall educational and training needs of workers;
Amendment  62 Proposal for a regulation Article 8 – paragraph 2 – point c
Text proposed by the Commission	Amendment
(c) the identification, where applicable, of the dismissing enterprises, suppliers or downstream producers, sectors, and the categories of targeted workers;	(c) the identification, where applicable, of the dismissing enterprises, suppliers or downstream producers, sectors, and the categories of targeted workers; broken down by gender and age groups;
Amendment  63 Proposal for a regulation Article 8 – paragraph 2 – point e
Text proposed by the Commission	Amendment
(e) the estimated budget for each of the components of the coordinated package of personalised services in support of the targeted workers;	(e) the estimated budget and description of the components of the coordinated package of personalised services in support of the targeted workers;
Justification
As well as the budget itself, the application should also contain a description of the components of the package of personalised services. This will give greater clarity both for the EU institutions and for the workers themselves. It will also facilitate a better final assessment in that the outcomes can be benchmarked against the application.
Amendment  64 Proposal for a regulation Article 8 – paragraph 2 – point e a (new)
Text proposed by the Commission	Amendment
	(ea) a description of how the measures in the co-ordinated package help to meet the objectives of the Europe 2020 Strategy at national or regional level;
Justification
The EGF should contribute to EU added value. A balance between the personalised package of measures for workers and the objectives of the EU 2020 Strategy would help to deliver that added value.
Amendment  65 Proposal for a regulation Article 8 – paragraph 2 – point g
Text proposed by the Commission	Amendment
(g) the procedures followed for consulting the social partners or other relevant organisations as applicable;	(g) the procedures followed for consulting the targeted workers or their representatives, the social partners, local and regional authorities or other relevant organisations as applicable;
Justification
The Mid-Term Review of the EGF stressed that intense personalised support to redundant workers was a key factor in ensuring the best outcomes. In that context, workers or their representatives must be included in the consultation when the package of measures is being drawn-up. In cases where this has not happened expectations have been raised and then dashed and outcomes have not been positive.
Amendment  66 Proposal for a regulation Article 8 - paragraph 2 - point g a (new)
Text proposed by the Commission	Amendment
	(ga) the names of the agencies delivering the package of measures in the Member State;
Amendment  67 Proposal for a regulation Article 8 – paragraph 2 – point h
Text proposed by the Commission	Amendment
(h) a statement of compliance of the requested EGF support with the procedural and material Union rules on state aid as well as a statement that the personalised services do not replace measures that are the responsibility of companies by virtue of national law or collective agreements;	(h) a statement of compliance of the requested EGF support with the procedural and material Union rules on state aid as well as a statement outlining why the personalised services do not replace measures that are the responsibility of companies or Member States by virtue of national or Union law or collective agreements;
Justification
The EGF should deliver added value on a number of levels, including financial added value. If Member States have financial obligations to redundant workers in the form of pecuniary allowances, those obligations should be met by the Member State. Member States can of course top up the pecuniary allowances and this would provide extra incentives to workers. This amendment also helps to ensure that EGF money doesn't simply end up financing all of the Member States obligations.
Amendment  68 Proposal for a regulation Article 8 – paragraph 2 – point i
Text proposed by the Commission	Amendment
(i) the sources of national co-funding;	(i) the sources of national pre-financing or co-funding and other co-funding if applicable;
Justification
If companies or enterprises are involved in co-funding any of the measures this should be clarified.
Amendment  69 Proposal for a regulation Article 8 – paragraph 2 – point i a (new)
Text proposed by the Commission	Amendment
	(ia) Information as to whether the undertaking, with the exception of micro enterprises and SMEs, has been a beneficiary of State aid or previous funding from Union Cohesion or Structural Funds in the preceding five years;
Amendment  70 Proposal for a regulation Article 8 – paragraph 2 – point j
Text proposed by the Commission	Amendment
(j) if applicable, any further requirements which may have been laid down in the delegated act taken in accordance with Article 4(3).	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  71 Proposal for a regulation Article 8 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. In order to improve the effectiveness of the EGF, the social partners should be involved from the start of the procedure for submitting applications for financial assistance under the Fund.
Amendment  72 Proposal for a regulation Article 9 – paragraph 1
Text proposed by the Commission	Amendment
1. Support for redundant workers shall complement actions of the Member States at national, regional and local level.	1. Support for redundant workers shall complement actions of the Member States at national, regional and local level including those financed by Union funds.
Justification
The EGF and the ESF are complementary policy measures and synergies between the two funds can help ensure European added value.
Amendment  73 Proposal for a regulation Article 9 – paragraph 2
Text proposed by the Commission	Amendment
2. The financial contribution shall be limited to what is necessary to provide solidarity and support for individual redundant workers. The activities supported by the EGF shall comply with Union and national law, including state aid rules.	2. The financial contribution shall be limited to what is necessary to provide solidarity and temporary, one-off support for individual redundant workers. The activities supported by the EGF shall comply with Union and national law, including state aid rules and shall not replace actions for which Member States or companies are responsible.
Amendment  74 Proposal for a regulation Article 9 – paragraph 3
Text proposed by the Commission	Amendment
3. In accordance with their respective responsibilities, the Commission and the applicant Member State shall ensure the coordination of the assistance from Union Funds.	3. In accordance with their respective responsibilities, the Commission and the applicant Member State shall ensure the coordination of the assistance from Union Funds. The Commission and the applicant Member State shall keep the actors involved in the application informed of the ongoing assessment of the application throughout the application process.
Amendment  75 Proposal for a regulation Article 9 – paragraph 4
Text proposed by the Commission	Amendment
4. The applicant Member State shall ensure that the specific actions receiving a financial contribution shall not also receive assistance from other Union financial instruments.	4. The applicant Member State shall ensure that the specific actions receiving a financial contribution shall not also receive assistance from other Union financial instruments, thereby avoiding undermining longer-term programmes such as structural funds and notably the European Social Fund (ESF).
Amendment  76 Proposal for a regulation Article 9 - paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a. The Commission shall ensure that the entitlement to benefit from the EGF will not influence the eligibility to benefit under any other Union fund for other purposes.
Amendment  77 Proposal for a regulation Article 10
Text proposed by the Commission	Amendment
The Commission and the Member States shall ensure that equality between men and women and the integration of the gender perspective are promoted during the various stages of the implementation of the financial contribution. The Commission and the Member State shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age, sexual orientation and type of contract of employment or employment relationship in access to and during the various stages of the implementation of the financial contribution.	The Commission and the Member States shall apply the principle of equal treatment between men and women and shall ensure that equality between men and women and the integration of the gender perspective are an integral part of and are fully promoted during the various stages of the implementation of the financial contribution. The Commission and the Member State shall take all appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age, sexual orientation and type of contract of employment or employment relationship in access to and during the various stages of the implementation of the financial contribution.
Justification
Equality between men and women should be an integral part of this Fund. It is not sufficient just to promote the gender perspective, it should be fully promoted. Furthermore there should be no question of discrimination in accessing the Fund.
Amendment  78 Proposal for a regulation Article 11 – paragraph 4
Text proposed by the Commission	Amendment
4. The Commission's technical assistance shall include the provision of information and guidance to the Member States for using, monitoring and evaluating the EGF. The Commission may also provide information on using the EGF to the European and national social partners.	4. The Commission's technical assistance shall include the provision of information and guidance to the Member States for using, monitoring and evaluating the EGF. The Commission shall provide detailed and timely information along with clear guidelines on using the EGF to the European and national social partners and relevant local and regional authorities.
Justification
Given that the Social Partners are part of the consultation process it is therefore necessary to ensure that information on using, monitoring and evaluating the Fund is also provided to the Social Partners.
Amendment  79 Proposal for a regulation Article 12 – paragraph 2
Text proposed by the Commission	Amendment
2. The Commission shall set up an Internet site, available in all Union languages, to provide information on the EGF, guidance on the submission of applications, and information on accepted and rejected applications, highlighting the role of the budgetary authority.	2. The Commission shall maintain and update regularly an Internet site, accessible in all Union languages, to provide information on the EGF, guidance on the submission of applications, and information on accepted and rejected applications and on the role of the budgetary authority.
Justification
There is already an EGF internet site but the Commission needs to maintain and regularly update this site.
Amendment  80 Proposal for a regulation Article 12 – paragraph 3
Text proposed by the Commission	Amendment
3. The Commission shall implement information and communication activities on EGF cases and outcomes.	3. The Commission shall implement information and communication activities on EGF cases and outcomes based on objective evaluations with the purpose of improving the effectiveness of the EGF and ensuring that EU citizens and workers know about the EGF. The Commission shall report on the use of the fund annually on a country and sector by sector basis.
Amendment  81 Proposal for a regulation Article 12 – paragraph 4
Text proposed by the Commission	Amendment
4. The resources allocated to communication actions under this Regulation shall also contribute to covering the corporate communication of the political priorities of the Union provided that these are related to the general objectives of this Regulation.	4. The resources allocated to communication actions under this Regulation shall also contribute to covering the corporate communication of the political priorities of the Union including the EU 2020 strategy and its headline targets as these are related to the general objectives of this Regulation.
Amendment  82 Proposal for a regulation Article 13 – paragraph 1
Text proposed by the Commission	Amendment
1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 50 % of the total of the estimated costs referred to in Article 8(2)(e) or 65 % of these costs in the case of applications submitted by a Member State on the territory of which at least one region at NUTS II level is eligible under the ‘Convergence’ objective of the Structural Funds. The Commission, in its assessment of such cases, will decide whether the 65 % co-funding rate is justified.	1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed:
	(a) 60 % of the total of the estimated costs referred to in Article 8(2)(e) or
	(b) 70 % of these costs in the case of applications submitted by a Member State eligible for support under the Regulation XX/XXXX on the Cohesion Fund;
	(c) 80 % of these costs in the case of applications submitted by a Member State receiving financial assistance under one of the conditions as laid down in Article 77 of Regulation (EC) No 1083/2006 as 1 or from the European Financial Stability Facility;
	___________
	1 OJ L 210, 31.7.2006, p. 25.
Justification
Co-financing is a major issue for many Member States and indeed some Member States do not apply for the EGF because of the low co-financing rate. For that reason an extra tier has been included where certain Member States can benefit from a higher co-financing rate. This, I believe, will help to ensure a greater uptake of the fund and assist workers in Member States in financial distress.
Amendment  83 Proposal for a regulation Article 13 - paragraph 3
Text proposed by the Commission	Amendment
3. Where on the basis of the assessment carried out in accordance with Article 8(3) the Commission has concluded that the conditions for a financial contribution are not met, it shall notify the applicant Member State as soon as possible.	3. Where on the basis of the assessment carried out in accordance with Article 8(3) the Commission has concluded that the conditions for a financial contribution are not met, it shall immediately notify the applicant Member State.
Amendment  84 Proposal for a regulation Article 14
Text proposed by the Commission	Amendment
Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(h) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively. In the case of farmers, expenditure shall be eligible for a contribution from the date set in the delegated act taken in accordance with Article 4(3).	Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(f) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  85 Proposal for a regulation Article 15 - paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. Recognising the urgency of taking decisions to ensure that workers are involved as quickly as possible in these programmes, the institutions will endeavour to minimise the time taken to process applications.
Amendment  86 Proposal for a regulation Article 15 – paragraph 3 – subparagraph 1
Text proposed by the Commission	Amendment
Where the Commission has concluded that the conditions for mobilising the EGF are met, it shall submit a proposal to deploy it. The Decision to deploy the EGF shall be taken jointly by the two arms of the budgetary authority. The Council shall act by a qualified majority and the European Parliament shall act by a majority of its component members and three fifths of the votes cast.	Where the Commission has concluded that the conditions for mobilising the EGF are met, it shall submit a proposal to deploy it. The Decision to deploy the EGF shall be taken jointly by the two arms of the budgetary authority within a deadline not exceeding one month of the referral to the budgetary authority. The Council shall act by a qualified majority and the European Parliament shall act by a majority of its component members and three fifths of the votes cast.
Amendment  87 Proposal for a regulation Article 15 – paragraph 3 – subparagraph 2
Text proposed by the Commission	Amendment
At the same time as it presents the proposal for a Decision to deploy the EGF, the Commission shall present to the two arms of the budgetary authority a proposal for a transfer to the relevant budgetary lines. In case of disagreement a trialogue procedure shall be initiated.	At the same time as it presents the proposal for a Decision to deploy the EGF, the Commission shall present to the two arms of the budgetary authority a proposal for a transfer to the relevant budgetary lines. These transfers shall be carried out in accordance the budgetary priorities, both annual and long-term. In case of disagreement a trialogue procedure shall be initiated.
Amendment  88 Proposal for a regulation Article 16 – paragraph 1
Text proposed by the Commission	Amendment
1. Following the entry into force of a Decision on a financial contribution in accordance with Article 15(4) the Commission shall pay the financial contribution to the Member State in form of a pre-financing of at least 50 % of the Union's financial contribution to the Member State, in principle within 15 days, followed where necessary in form of intermediate and final payments. The pre-financing shall be cleared when the financial contribution is wound up in accordance with Article 18(3).	1. Following the entry into force of a Decision on a financial contribution in accordance with Article 15(4) the Commission shall pay the financial contribution to the Member State in a single instalment, in principle within 15 days.
Justification
The current mechanism for disbursement of the financial contribution is working well and while some Member States have to return funds, others do not. The withholding of 50% of the Union's financial contribution could put Member States under severe financial pressure and might well contribute to a slower start in delivering the package of personalised services.
Amendment  89 Proposal for a regulation Article 16 – paragraph 3
Text proposed by the Commission	Amendment
3. Detailed terms of financing, in particular the rate of pre-financing and the modalities of intermediate and final payments shall be determined by the Commission in the Decision on a financial contribution referred to in Article 15(4).	deleted
Intermediate payments shall be made in order to reimburse the expenditure incurred by the Member States in carrying out the eligible actions, subject to presentation to the Commission of a declaration of expenditure signed by a representative of an accredited public body pursuant to Article 21.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  90 Proposal for a regulation Article 16 – paragraph 4
Text proposed by the Commission	Amendment
4. The Member State shall carry out the eligible actions set out in Article 6 as soon as possible, but not later than 24 months after the date of the application, pursuant to Article 8(1).	4. The Member State shall carry out the eligible actions set out in Article 7 as soon as possible, but not later than 24 months after the date of the application, pursuant to Article 8(1). However, where a redundant worker accesses an educational or training course whose duration is two years or longer, the fees/tuition costs for two years will be covered when the redundant worker accesses the course at the next available semester provided that is not later than one year after the date of the application.
Justification
Some workers who had accessed the EGF have been prohibited from using these funds to access further education or training where the course duration is longer than two years. Sometimes because some courses only start in September and because Member States do not always fund from the date of application, this means that only one year of the course can be funded. As redundant workers do not usually have access to funds or loans this restriction in effect prohibits their accessing such courses.
Amendment  91 Proposal for a regulation Article 16 – paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a. In exceptional circumstances which require the swift provision of financial assistance in order to save jobs, as in the case of a planned take-over of an enterprise which has closed down by the workers made redundant, the sum in question could be provided in the form of pre-financing or an advance by the Member State or the organisation recognised by the Member State as responsible for financial intervention of this kind, as the deadlines imposed by the courts which deal with take-overs are often shorter than the time required by the procedure laid down in this Regulation.
Amendment  92 Proposal for a regulation Article 16 – paragraph 6
Text proposed by the Commission	Amendment
6. Expenditure pursuant to Article 7(3) shall be eligible until the deadline for submission of the report.	6. Expenditure pursuant to Article 7(3) shall be eligible until the deadline for submission of the final report.
Justification
It is important to clarify that this is the final report as opposed to the interim report.
Amendment  93 Proposal for a regulation Article 18 – paragraph 1 – subparagraph 1
Text proposed by the Commission	Amendment
1. No later than 15 months after the date of the application pursuant to Article 8(1) or by the date laid down in the delegated act taken in accordance with Article 4(3) the Member State shall present an interim report to the Commission on the implementation of the financial contribution, including on the funding, timing and type of actions already carried out and on the rate of reintegration into employment or new activities achieved 12 months after the date of the application.	1. No later than 18 months after the date of the application pursuant to Article 8(1) the Member State shall present an interim report to the Commission on the implementation of the financial contribution, including on the funding, timing and type of actions already carried out and on the rate of reintegration into employment or new activities achieved 15 months after the date of the application.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers. Also the time period suggested is too short to give an accurate picture of the re-integration rate in particular. This is especially so where Member States do not start the implementation measures until approval for the Fund is given from the institutions.
Amendment  94 Proposal for a regulation Article 18 – paragraph 2
Text proposed by the Commission	Amendment
2. No later than six months after the expiry of the period specified in Article 16(4) the Member State shall present a final report to the Commission on the implementation of the financial contribution, including information on the type of actions and main outcomes, the characteristics of the targeted workers and their employment status, together with a statement justifying the expenditure and indicating whenever possible the complementarity of actions with those funded by the ESF.	2. No later than six months after the expiry of the period specified in Article 16(4) the Member State shall present a detailed report to the Commission on the implementation of the financial contribution, including information on the type of actions and main outcomes, the characteristics of the targeted workers and their employment status, together with a statement justifying the expenditure and indicating whenever possible the complementarity of actions with those funded by the ESF.
Amendment  95 Proposal for a regulation Article 18 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. Whenever possible, data shall be segregated (broken down) by sex.
Amendment  96 Proposal for a regulation Article 19 – title
Text proposed by the Commission	Amendment
Biennial report	Annual report
Justification
An annual report is more appropriate than a biennial report in that it allows genuine ongoing assessment of the workings of the Fund. It contributes to learning at all levels and to the implementation of best practice and in the case of the EGF this has been shown to be crucial.
Amendment  97 Proposal for a regulation Article 19 – paragraph 1
Text proposed by the Commission	Amendment
1. By 1 August of every second year , and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.	1. By June of every year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a comprehensive, quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including statistics on the reintegration rate for workers per Member State and their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and on the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility. All data in the report where possible shall be broken down by gender.
Justification
An annual report is more appropriate than a biennial report in that it allows genuine ongoing assessment of the workings of the Fund. It contributes to learning at all levels and to the implementation of best practice and in the case of the EGF this has been shown to be crucial. Also the report should indicate how actions taken contributed to reintegration rates.
Amendment  98 Proposal for a regulation Article 19 - paragraph 2
Text proposed by the Commission	Amendment
2. The report shall be transmitted for information to the European Economic and Social Committee, the Committee of the Regions and the social partners.	2. The report shall be transmitted for information to the Court of Auditors, the European Economic and Social Committee, the Committee of the Regions and the social partners.
Amendment  99 Proposal for a regulation Article 20 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a) by 30 June 2018, a mid-term evaluation of the effectiveness and sustainability of the results obtained;	(a) by 30 June 2017, a mid-term evaluation of the effectiveness and sustainability of the results obtained;
Amendment  100 Proposal for a regulation Article 20 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b) by 31 December 2022, an ex-post evaluation with the assistance of external experts, to measure the impact of the EGF and its added value.	(b) by 31 December 2021, an ex-post evaluation with the assistance of external experts, to measure the impact of the EGF and its added value.
Amendment  101 Proposal for a regulation Article 20 - paragraph 2
Text proposed by the Commission	Amendment
2. The results of the evaluation shall be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the social partners.	2. The results of the evaluation shall be transmitted, for information, to the European Parliament, the Council, the Court of Auditors, the European Economic and Social Committee, the Committee of the Regions and the social partners. The recommendations of the evaluation should be taken into account for the design of new programmes in the area of employment and social affairs.
Amendment  102 Proposal for a regulation Article 20 - paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. These evaluations shall include the figures showing the number of applications and shall cover the performance of programmes country-by-country and sector-by-sector, so as to assess whether the EGF is reaching its targeted recipients.
Amendment  103 Proposal for a regulation Article 21 - paragraph 1 - point c
Text proposed by the Commission	Amendment
(c) ensuring that expenditure funded is based on verifiable supporting documents, and is correct and regular;	(c) ensuring that expenditure funded is based on verifiable supporting documents, and is legal and regular;
Amendment  104 Proposal for a regulation Article 21 – paragraph 3
Text proposed by the Commission	Amendment
3. The Member State shall make the financial corrections required where an irregularity is ascertained. The corrections made by the Member State shall consist in cancelling all or part of the financial contribution. The Member State shall recover any amount lost as a result of an irregularity detected, repay it to the Commission and, where the amount is not repaid by the relevant Member State in the time allowed, default interest shall be due.	3. The Member State shall make the financial corrections required where an irregularity is ascertained. The corrections made by the Member State shall consist in cancelling all or part of the financial contribution. The Member State shall recover any amount lost as a result of an irregularity detected and repay it to the Commission.
Amendment  105 Proposal for a regulation Article 21 - paragraph 4 - subparagraph 1
Text proposed by the Commission	Amendment
4. The Commission, in its responsibility for the implementation of the general budget of the European Union, shall take every step necessary to verify that the actions financed are carried out in accordance with the principles of sound and efficient financial management. It is the responsibility of the applicant Member State to ensure that it has smoothly functioning management and control systems. The Commission shall satisfy itself that such systems are in place.	4. The Commission, in its responsibility for the implementation of the general budget of the European Union, shall take every step necessary to verify that the actions financed are carried out in accordance with the principles of sound and efficient financial management. It is the responsibility of the applicant Member State to ensure that it has smoothly functioning management and control systems. The Commission shall satisfy itself that such systems are in place. If irregularities are detected, amounts wrongly paid should be recovered primarily by offsetting. Where appropriate, the protection of the Union's financial interests in accordance with Article 325 of the Treaty may include effective, proportional and deterrent penalties.
Amendment  106 Proposal for a regulation Article 22 - paragraph 1
Text proposed by the Commission	Amendment
1. In cases where the amount of the actual cost of an action is less than the estimated amount quoted pursuant to Article 15, the Commission shall adopt a Decision, by means of an implementing act, requiring the Member State to reimburse the corresponding amount of the financial contribution received.	1. In cases where the amount of the actual cost of an action is less than the estimated amount quoted pursuant to Article 15 and recovering by offsetting is not feasible, the Commission shall adopt implementing acts requiring the Member State to reimburse the corresponding amount of the financial contribution received.
Amendment  107 Proposal for a regulation Article 23 – paragraph 1
Text proposed by the Commission	Amendment
By way of derogation from Articles 21 and 22, support for farmers shall be managed and controlled in accordance with Regulation (EC) No………… on the financing, management and monitoring of the common agricultural policy.	deleted
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.
Amendment  108 Proposal for a regulation Article 24
Text proposed by the Commission	Amendment
Article 24	deleted
Exercise of the delegation
1. The powers to adopt delegated acts are conferred on the Commission subject to the conditions laid down in this Article.
2. The delegations of power referred to in this Regulation shall be conferred for an indeterminate period of time from the date of entry into force of this Regulation.
3. The delegations of power referred to in Article 4 may be revoked at any time by the European Parliament or by the Council.
A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
5. A delegated act adopted pursuant to Article 4(3) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 2 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative of the European Parliament or the Council.
Justification
Farmers are included in this regulation under the same conditions as all other redundant workers.

• [1]  OJ C 143, 22.5.2012, p. 42.
• [2]  Not yet published in the Official Journal.

EXPLANATORY STATEMENT

The EGF was established to provide the EU with an instrument to demonstrate solidarity with, and give support to, workers made redundant as a result of major structural changes in world trade patterns caused by globalisation. It was subsequently extended to include workers made redundant as a direct result of the global financial and economic crisis. In this context it is very regrettable that the "crisis derogation" was not renewed due to a blocking minority in Council, despite strong support for its continuation from the Commission and the European Parliament. During the period 2009-2010, 82% of applications to the EGF were based on the "crisis derogation" criteria, and in that same period 10% of redundant workers in the EU accessed the Fund. Therefore, the Commission's proposal to include an unexpected crisis within the scope of the Regulation is to be welcomed as it allows the Fund to respond to the real needs of redundant workers.

Some of the Commission proposals respond to the concerns and recommendations highlighted in the mid-term evaluation of the EGF and should therefore bring added value to its functioning. There are however some gaps, and also an inappropriate attempt to make the EGF respond to trade agreements which could have a significant negative impact on agricultural output.

Further Proposals

The EGF needs to be made more attractive and user friendly to Member States. In this context every effort must be made to improve communication and co-operation between:

(a) The Commission and the National/Regional/Local bodies responsible for managing the Fund, and

(b) at a national level, between the responsible national authorities, the social partners, the individual workers and the different agencies involved. The Commission should ensure that Member States have the opportunity to learn from best practice and be offered the necessary advice and guidance where needed.

Given the utmost importance of the well planned and efficient management of the Fund, Member States and the Commission need an adequate budget. Higher-than-expected costs can occur when applying for a Fund on a one-off or occasional basis and especially with initial applications. The mid-term evaluation recommends that "the smooth functioning of the process requires a significant amount of well organised communication, co-ordination and joined working". This can prove costly but it is a worthwhile investment as it has been shown to deliver better outcomes.

Flexibility in amending the list of personalised services will enhance the Fund’s effectiveness by making it more responsive to the needs of workers, to the prevailing economic situation and to any skills gap in the economy.

The issue of co-financing is paramount for Member States and the 50% level proved to be a deterrent to greater usage of the Fund. I support the current proposal to extend the co-financing rate to 65% for certain Member States but I would also propose an automatic 75% co-financing rate for Member States receiving financial assistance under one of the conditions as laid down in article 77 of Regulation (EC) No. 1083/2006 as amended by Regulation (EU) No. 1311/2011 or from the European Financial Stability Facility.

One of the most frequent criticisms of the EGF is that it responds too slowly. Despite the design of the Fund, I think it is still possible to improve its time-efficiency by further limiting the timelines. Member States should make every effort to ensure they respond to planned or announced redundancies as soon as possible and start the implementation of the measures as soon as they apply for the Fund. If there is an issue in regard to resources an appropriate course of action for Member States might be to commence the less costly measures first.

I would encourage Member States to make greater use of the derogation in Article 4(2), which allows all Member States - but, crucially and especially, smaller Member States or Regions - to access the EGF where all of the intervention criteria are not met. Given that, up to now, there has been a poor uptake under these criteria I suggest that the Commission would provide specific guidance documents and relevant information on the criteria that will be applied in such circumstances. Uncertainty puts Member States off as they do not wish to raise the hopes of redundant workers or waste time on inadmissible applications.

If the EGF is to provide real added value, then it should go well beyond what is already required by national law, collective agreements etc. This will ensure added benefits for workers and additional visibility and legitimacy for the Fund. Member States where possible should use the EGF as an opportunity to develop new, innovative and dynamic approaches to assisting workers re-enter the workplace.

The mid-term evaluation of the EGF emphasised that a key success factor in maximising its impact and added value was the delivery of a personalised and more intensive package of measures. This necessitates mandatory and ongoing consultation with workers or their mandated representatives from the very start. Furthermore some flexibility is needed if workers wish to access courses whose duration is two or more years. The EGF should guarantee that two full years of tuition costs are paid where workers start the course at the beginning of the next available semester, which cannot be later than one year after the date of initial application by the Member State.

The maximum amount proposed for the 7 year period (2014-2020) is €3 billion with an annual maximum drawdown of €429 million. In the explanatory memorandum a ceiling of €2.5 billion has been suggested for Agriculture but this is just a ceiling, not a fixed amount. Amounts paid to all beneficiaries will depend entirely on the number of applications in a given year. This will also be subject to the annual maximum drawdown and the requirement that at least one quarter of the annual maximum of the EGF shall remain available until September 1st of each year in order to cover needs arising until the end of the year. Further clarification is needed from the Commission as to how monies will be allocated in the event of applications for the Fund exceeding the annual maximum drawdown, and where an application for assistance from the Fund before September 1st in any given year proposes to use up all or most of the allocation up to that date.

The proposal includes fixed term workers, temporary agency workers, owner-managers of micro, small and medium sized enterprises and self-employed workers (including farmers) and all members of the household active in the business/enterprise. It is important that all workers be treated equitably and have access to the EGF under the same conditions, and therefore the proposal to introduce delegated acts on the inclusion of farmers is not a suitable way to proceed.

From an agricultural perspective the proposed amounts would be totally inadequate to compensate for any significant trade agreement. According to a detailed impact assessment carried out by DG AGRI, the most ambitious multilateral liberalisation negotiations with all WTO members would involve a €7.75 billion loss to farmers. Even if this figure was cut by 50%, the amount of money that might be available under EGF would still be inadequate. Given that the proposed period during which farmers could access the Fund starts from the initialling of the agreement and ends three years after its full implementation, this limits the amount for any single trade deal. Along with the annual drawdown being capped at €429 million and with no certainty as to the amounts that may be available, this further highlights the fact that the EGF is inadequate to compensate for the real projected losses in the Agriculture sector. I believe that farmers were included under delegated acts simply to provide cover for the Commission and to make it easier to conclude a trade deal that was unacceptable for Agriculture. If such an agreement were signed, the EU would need to put in place a separate tailor-made instrument with an adequate budget. Anything less would significantly damage the Agriculture sector.

The EU needs a return to growth with a programme for dynamic job creation, otherwise we may experience a jobless recovery. The EGF can help attain those objectives by supporting redundant workers when they are seeking employment, upskilling/retraining or pursuing self-employment in line with the 2020 Strategy. The evaluation of the Fund reported a re-employment rate of 48.1% and in the majority of cases this rate increased in the medium term. It also reported that EGF assisted some of the hardest-to-help groups of workers. Furthermore, it indicated that many beneficiaries significantly increased their self-confidence, renewed and improved job search skills as well as other skills and capacities, and while not all beneficiaries were successful in gaining employment, it increased their employability. The evaluation also indicated that EGF co-financed measures appear to contribute to avoiding a worsening of the unemployment situation.

opinion of the committee on legal affairs on the legal basis

Ms Pervenche Berès

Chair

Committee on Employment and Social Affairs

BRUSSELS

Subject:           Opinion on the legal basis for the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020) (COM(2011)0608 – C7-0319/2011 – 2011/0269(COD))

Dear Ms Chair,

By letter of 30 August 2012, you asked the Committee on Legal Affairs, pursuant to Rule 37 of the Rules of Procedure, to give its opinion on the appropriateness of deleting Article 42 and 43 TFEU from the legal basis of the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020), on the ground that an amendment to this effect is contained in the EMPL draft report.

The proposal for a regulation on the European Globalisation Adjustment Fund (2014-2020) (COM(2011)0608) was presented by the Commission on the basis of Article 175 TFEU as well as Articles 42 and 43 and was accordingly submitted to Parliament under the ordinary legislative procedure.

Parliament's Legal Service, in a note dated 13 September 2012 came to the conclusion that, should the amendments tabled by the draft report be adopted, the proposal should be based on Article 175 TFEU.

The Legal Affairs Committee, when examining your request in its meeting of 18 September 2012, decided to postpone the consideration of the legal basis until after the EMPL vote in order to be able better to assess whether a change in legal basis matches the content of the report. As EMPL voted on the proposal at its meeting on 6 November 2012, changing the legal basis as proposed by the rapporteur, I am now in a position to convey to you the Legal Affairs Committee's opinion, following the committee meeting of 27 November 2012.

Background

1. The proposal

The European Globalisation Adjustment Fund (EGF) was initially established for the period 2007 - 2013[1] to provide the Union with an instrument to provide specific, one-off support to workers made redundant as a result of major structural changes triggered by the increasing globalisation of production and trade patterns. In the light of the financial and economic crisis in 2008, the EGF was revised – for the period from 1 May 2009 until 30 December 2011 – in order to provide support for workers made redundant as a direct consequence of the crisis[2]. The Commission proposed[3] to extend this crisis derogation until 31 December 2013, i.e. the end of the implementation period of Regulation (EC) No 1927/2006.

The Commission has now submitted the proposal in question with the objective of ensuring that the EGF continues to operate as an emergency intervention instrument during the period 2014-2020 in line with the basic principles laid down for the 2014-2020 MFF. The main features of the EGF Regulation now being proposed are: inclusion of additional categories of workers; coverage of globalisation effects and unexpected crises, as well as of negative impacts of new trade agreements in the case of farmers; more emphasis on active measures by introducing a limitation on the allowances eligible for support; reducing administrative burdens by simplifying and shortening procedures.

As regards farmers, the proposed regulation contains specific provisions allowing Member States to apply for financial contributions for farmers in order to help them adjust to a new market situation resulting from a trade agreement concluded by the EU, for the period from the initialling of the relevant agreement until three years after the implementation of the liberalisation measures, provided that the measures in question lead to a substantial increase in EU imports accompanied by a significant decrease of prices at EU, national or regional level. To this end, the proposal contains a number of provisions specifically relating to farmers (e.g. as regards the scope (Article 2(c)), the intervention criteria (Article 4(3)), the eligibility of workers (Article 6(c)), eligible actions (Article 7(1)), applications (Article 8(2)(a)) and the eligibility of expenditure (Article 14). Details of the intervention criteria are to be defined by the Commission by delegated acts (Article 4(3), Article 24). Financial management of support to farmers is stipulated to follow the future regulation on the financing, management and monitoring of the common agricultural policy (Article 23).

2. Report adopted in EMPL on 6 November 2012

In her draft report, the EMPL rapporteur, Marian Harkin, had proposed to amend the Commission proposal so as to delete the specific measures for farmers. Farmers were however to be left within the scope of the proposed regulation, but subject to the same provisions as other workers. She had also suggested deleting Articles 42 and 43 TFEU from the legal basis.

The report adopted in EMPL follows this line by deleting Articles 42 and 43 TFEU from the legal basis. It removes any reference to farmers in the text, including all specific provisions relating to them (cf. AMs 12, 13, 15, 16, 25, 26, 31, 35, 39, 41, 42, 43, 44, 45, 46, 59, 70, 84, 89, 93, 106, 107). The justification recurring throughout the report is that "Farmers are included in this regulation under the same conditions as all other redundant workers."

3. The legal bases in question

a) Legal basis of the proposal

The proposal is based on Article 175 TFEU as well as Articles 42 and 43 TFEU.

Article 175 TFEU reads as follows:

"Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 174. The formulation and implementation of the Union's policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 174 and shall contribute to their achievement. The Union shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing Financial Instruments.

[...]

If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Union policies, such actions may be adopted by the Council acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions."

Article 174 TFEU which is referred to in Article 175 TFEU reads as follows:

"In order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion.

In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions.

Among the regions concerned, particular attention shall be paid to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island, cross-border and mountain regions."

Articles 42 and 43 which form also part of the legal basis put forward by the Commission read as follows:

"Article 42 TFEU

The provisions of the Chapter relating to rules on competition shall apply to production of and trade in agricultural products only to the extent determined by the European Parliament and the Council within the framework of Article 43(2) and in accordance with the procedure laid down therein, account being taken of the objectives set out in Article 39.

The Council, on a proposal from the Commission, may authorise the granting of aid:

(a) for the protection of enterprises handicapped by structural or natural conditions;

(b) within the framework of economic development programmes.

Article 43 TFEU

1. The Commission shall submit proposals for working out and implementing the common agricultural policy, including the replacement of the national organisations by one of the forms of common organisation provided for in Article 40(1), and for implementing the measures specified in this Title.

These proposals shall take account of the interdependence of the agricultural matters mentioned in this title.

2. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee, shall establish the common organisation of agricultural markets provided for in Article 40(1) and the other provisions necessary for the pursuit of the objectives of the common agricultural policy and the common fisheries policy.

3. The Council, on a proposal from the Commission, shall adopt measures on fixing prices, levies, aid and quantitative limitations and on the fixing and allocation of fishing opportunities. [...]"

b) Proposed change of the legal basis

EMPL has requested the opinion of the Legal Affairs Committee on the appropriateness of deleting Article 42 and 43 TFEU from the legal basis, so that only Article 175 TFEU remains.

Analysis

1. Principles established by the Court

Certain principles emerge from the case law of the Court as regards the choice of legal basis. First, in view of the consequences of the legal basis in terms of substantive competence and procedure, the choice of the correct legal basis is of constitutional importance[4]. Secondly, under Article 13(2) TEU, each institution is to act within the limits of the powers conferred upon it by the Treaty[5]. Thirdly, according to the case-law of the Court of Justice, "the choice of legal basis for a Community measure must rest on objective factors amenable to judicial review, including in particular the aim and the content of the measure"[6]. Finally, as regards multiple legal bases, if examination of a EU measure reveals that it pursues a twofold purpose or that it has a twofold component and if one of those is identifiable as the main or predominant purpose or component, whereas the other is merely incidental, the act must be based on a single legal basis, namely that required by the main or predominant purpose or component[7]. On the other hand, where a measure has several contemporaneous objectives or components which are indissolubly linked with each other without one being secondary and indirect in respect of the others, the measure must be based on the various relevant Treaty provisions[8].

2. Objectives and content of the regulation as proposed by the Commission

The objective of the proposed regulation is "to establish the European Globalisation Adjustment Fund (EGF) for the period of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020" (Article 1(1)) the aim of which is described as contributing "to economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, trade agreements affecting agriculture, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment, or for changing or adjusting their agricultural activities" (Article 1(2)).

As regards the measures relating to farmers, recital 5 of the proposal explains that "the scope of the EGF should be broadened to facilitate the adaptation of farmers to a new market situation resulting from international trade agreements in the agricultural sector and leading to a change or a significant adjustment in the agricultural activities of the affected farmers so as to assist them to become structurally more competitive or to facilitate their transition to non-agricultural activities". Recital 8 provides further background for the inclusion of farmers into the instrument.

The measures proposed in order to achieve these objectives, and in particular the specific measures relating to farmers are outlined in detail above ("Background" under 1).

3. Legal basis of the Commission proposal

The Commission explains its choice of a dual legal basis (Article 175 and Articles 42 and 43 TFEU) as follows: "Article 175(3) allows the European Parliament and the Council to take action in accordance with the ordinary legislative procedure [...], if specific actions prove necessary outside the Structural Funds and the Common Agricultural Policy [...]". It further states, that, as regards the measures proposed concerning farmers "EGF assistance can be considered as aid to agricultural activities and as action taken in pursuance of an express objective of the Union's Agricultural Policy" and therefore Article 42 and 43 would constitute the appropriate legal basis for these measures[9].

Indeed, the measures proposed by way of support for workers are clearly measures aimed at strengthening economic, social and territorial cohesion, in particular at remedying specific problems that may have occurred to disrupt this cohesion. They are thus measures for which Article 175 TFEU is the appropriate legal basis.

In the measures in the agricultural sector, however, no element of reducing disparities between regions or reducing backwardness of the least favoured regions (cf. Article 174(2) TFEU) can be identified. In contrast, as to farmers, the EGF is designed as a solidarity and crisis instrument to mitigate the negative impact of new trade agreements on specific agricultural activities. Article 39(1) TFEU, which defines the objectives of the common agricultural policy, mentions in point (c) "to stabilise markets"[10], and Article 39(2) TFEU, mentioning aspects of which account shall be taken in working out the common agricultural policy, refers to "the particular nature of agricultural activity, which results from the social structure of agriculture and from structural and natural disparities between the various agricultural regions"[11].

Article 43(2) TFEU provides the general legal basis for the common agricultural policy. Article 42 TFEU relates to the application of competition rules and the authorisation of the granting of State aid.

It thus appears that the proposal for a regulation as put forward by the Commission should indeed be based on Article 175(3) TFEU and Articles 42 and 43(2) TFEU.

4. Changes to the Commission proposal put forward in the EMPL report

The EMPL report, as adopted on 6 November 2012, removes any specific objective of agricultural policy from the proposal. The criteria and measures proposed in the regulation for workers other than farmers are, as outlined above, clearly within cohesion policy. If they were also to be applied in the agricultural sector, they would also in this sector – as in the others – be aimed at mitigating the consequences of the change in global trade patterns and of an unexpected crisis. Under these circumstances, the regulation could be based on Article 175 TFEU alone, it would not be necessary to add Articles 42 and 43(2) TFEU.

Legal Affairs Committee recommendation

The Legal Affairs Committee considered the above question at its meeting of 27 November 2012. At this meeting, it accordingly decided, by 16 votes in favour, 0 against and one abstention[12], to recommend that the appropriate legal basis for the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020) should be Article 175 TFEU.

Yours sincerely,

Klaus-Heiner Lehne

• [1]  Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund (OJ L 406, 30.12.2006, p. 1).
• [2]  Regulation (EC) No 546/2009 of the European Parliament and of the Council of 18 June 2009 amending Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund (OJ L 167, 29.6.2009, p. 26).
• [3]  Commission proposal of 10.6.2011 for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1927/2006 establishing the European Globalisation Adjustment Fund (COM(2011)0336).
• [4]  Opinion 2/00 Carthagna Protocol [2001] E.C.R. I-9713, para. 5; Case C-370/07 Commission v. Council [2009] E.C.R. I-8917, paras 46-49; Opinion 1/08, General Agreement on Trade in Services [2009] ECR I-11129, para. 110.
• [5]  Case C-403/05 Parliament v. Commission [2007] E.C.R. I-9045, para. 49, and the case-law cited therein.
• [6]  See most recently Case C-411/06 Commission v Parliament and Council [2009] E.C.R. I-7585.
• [7]  Case C-42/97 Parliament v Council [1999] E.C.R. I-868, paras. 39-40; Case-C 36/98 Spain v Council [2001] E.C.R. I-779, para. 59; Case C-211/01 Commission v Council [2003] E.C.R. I-8913, para. 39.
• [8]  Case C-165/87 Commission v. Council [1988] E.C.R. 5545, para. 11; Case C-178/03 Commission v. European Parliament and Council [2006] E.C.R. I-107, paras. 43-56.
• [9]  COM(2011)0608, Explanatory memorandum, p.8.
• [10] Article 39(1) TFEU:
  "(1) The objectives of the common agricultural policy shall be:
  (a) to increase agricultural productivity by promoting technical progress and by ensuring the rational development of agricultural production and the optimum utilisation of the factors of production, in particular labour;
  (b) thus to ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of persons engaged in agriculture;
  (c) to stabilise markets;
  (d) to assure the availability of supplies;
  (e) to ensure that supplies reach consumers at reasonable prices."
• [11]  Article 39(2) TFEU:
  "(2) In working out the common agricultural policy and the special methods for its application, account shall be taken of:
  (a) the particular nature of agricultural activity, which results from the social structure of agriculture and from structural and natural disparities between the various agricultural regions;
  (b) the need to effect the appropriate adjustments by degrees;
  (c) the fact that in the Member States agriculture constitutes a sector closely linked with the economy as a whole"-
• [12]  The following were present for the final vote: Raffaele Baldassarre (Vice-Chair), Sebastian Valentin Bodu (Vice-Chair), Françoise Castex (Vice-Chair), Sergio Gaetano Cofferati, Christian Engström, Marielle Gallo, Giuseppe Gargani, Klaus-Heiner Lehne (Chair), Eva Lichtenberger, Antonio Masip Hidalgo, Alajos Mészáros, Angelika Niebler, Evelyn Regner (Vice-Chair), Rebecca Taylor, Alexandra Thein, Axel Voss, Cecilia Wikström.

OPINION of the Committee on International Trade (31.5.2012)

for the Committee on Employment, Social Affairs and Inclusion

on the proposal for a regulation of the European Parliament and of the Council on European Globalisation Adjustment Fund (EGF) 2014 - 2020
(COM(2011)0608 – C7‑0319/2011 – 2011/0269(COD))

Rapporteur: Iuliu Winkler

SHORT JUSTIFICATION

General remarks

This legislative proposal aims at renewing the existence of the European Globalization Adjustment Fund (EGF) and makes a number of changes to the EGF to try to improve its efficiency.

The rapporteur supports the existence of the EGF and encourages its development for the period of the MFF 2014-2020 as a fund complementary to national and regional employment policies and to other EU funds.

Enhancing the EGF is all the more important that the EU is a very open economic area, thereby sensitive to external shocks. The EU recognizes also through the EGF that the investment and trade liberalisation has globalized the labour market and that such an openness, while generating overall gains for the EU economy can generate social costs in some regions and sectors.

First, the EGF should be developed for reasons of efficiency and equity. These "trade-displaced workers" have above-average re-employment difficulties and larger earnings losses following re-employment. Trade-displaced workers are also more likely to have vocational skills specific to declining occupations and industries.

Second, the tradable sector affected by trade openness has widened as innovation and technologies have made the supply chain of goods and services more and more international. Thus the EGF should be developed without excluding any activity from its scope of eligibility.

Third, the EU needs to have an adjustment tool to cope with the effects of its trade agreements on the EU labour market in symmetry with its exclusive competency for concluding international trade agreements. This is a matter not only of equality of chances but also of political economy. The citizens of the EU cannot be expected to support the trade openness if the EU cannot act to support the workers who have been made redundant because of increased openness to third countries' competitors in goods and services.

This proposal makes an explicit tie between the EGF and the effect of international trade agreements by recognizing that farmers could be affected by the upcoming EU bilateral trade agreements or in a multilateral deal at the World Trade Organization. But it should not exclude workers in non-agricultural activities from the scope of the recipients which can claim to have been displaced to another labour activity by the effects of an international trade agreement.

Besides, the rapporteur proposes that the European Parliament gives its consent to international trade agreements (such as the possible EU-Mercosur or the EU-India FTAs) after ensuring that the EGF, particularly in terms of budgetary allocation, will be able to cope with their impact on the labour force of Europe.

Detailed analysis of the proposal

The rapporteur agrees with the changes aiming at preserving crisis-induced amendments of 2009, especially lowering the threshold of redundancies for eligibility and increasing the maximum EGF co-funding rate.

Keeping the separation between the EGF and the European Social Fund (ESF) is also necessary as they serve very different purposes.

Enlarging the eligibility of the EGF to Small and Medium Enterprises (SMEs), self-entrepreneurs and farmers represents a welcome step. They were so far de facto excluded from the scope of potential recipients of the fund. The extension of the eligibility to workers with non standard employment contracts shows that the EGF under its current format had too stringent conditions to be efficient.

Yet, the proposal does not really address the main issue of the EGF: it takes 11 months on average between the application and the payment date. The Commission targets a benchmark of 8 months by speeding up administrative process of files, payments and interinstitutional arrangements. But the budgetary procedure (which demands that the two budgetary decision-making bodies, Council and Parliament, approve each application to the EGF) will remain an obstacle to a faster process.

The rapporteur supports that the EGF co-funds targeted programmes. Whenever possible, these programmes should ensure that the training helps the transition to jobs in new sectors which actually benefit from the EU's openness.

Finally, in terms of budget, the Commission's proposal of the sets the current threshold annual commitment appropriations at € 429 Million which represents € 3 Billion over 7 years. It sets the maximum spending for farmers at € 2.5 Bn over that period. Even if the current annual funding has been largely under-used, the enlargement of the eligibility base for the EGF is likely to increase the application pool and therefore the ceiling might have to be reviewed, especially if the trade policy of the EU generates a number of trade agreements affecting the EU workforce's employment.

AMENDMENTS

The Committee on International Trade calls on the Committee on Foreign Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital 1
Text proposed by the Commission	Amendment
(1) On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy, Europe 2020. One of the three priorities of the Europe 2020 strategy is inclusive growth by empowering people through high levels of employment, investing in skills, fighting poverty and modernising labour markets, training and social protection systems so as to help people anticipate and manage change, and build a cohesive society.	(1) On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy, Europe 2020. One of the three priorities of the Europe 2020 strategy is inclusive growth by empowering people through high levels of employment, investing in skills, fighting poverty and modernising labour markets, training and social protection systems so as to help people anticipate and manage change, and build a cohesive society excluding none.
Amendment  2 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5) In compliance with the Communication on 'A Budget for Europe 2020', the scope of the EGF should be broadened to facilitate the adaptation of farmers to a new market situation resulting from international trade agreements in the agricultural sector and leading to a change or a significant adjustment in the agricultural activities of the affected farmers so as to assist them to become structurally more competitive or to facilitate their transition to non-agricultural activities.	(5) In compliance with the Communication on 'A Budget for Europe 2020', the scope of the EGF should be broadened to facilitate the adaptation of farmers to a new market situation resulting from international trade agreements in the agricultural sector and leading to a change or a significant adjustment in the agricultural activities of the affected farmers so as to assist them to become structurally more competitive or to facilitate their transition to non-agricultural activities. This Regulation should recognise that this principle can be extended to all the workers displaced by international trade agreements, including farmers.
Amendment  3 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8) Regarding farmers, the scope of the EGF should include beneficiaries affected by bilateral agreements concluded by the Union in accordance with Article XXIV of the GATT or multilateral agreements concluded within the World Trade Organisation. This covers farmers changing or adjusting their previous agricultural activities within a period starting upon initialling of such trade agreements and ending three years after their full implementation.	(8) Regarding workers affected by international trade agreements, the scope of the EGF should include beneficiaries affected by bilateral agreements concluded by the Union in accordance with Article XXIV of the GATT or multilateral agreements concluded within the World Trade Organisation. This covers farmers and other trade-displaced workers changing or adjusting their previous agricultural activities within a period starting upon initialling of such trade agreements and ending three years after their full implementation.
Justification
The EGF should become the EU symmetric employment tool to adjust to trade agreements’ impact in general. Industry and services companies are as affected by trade agreements as the agricultural sector.
Amendment  4 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the date of application.	(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will lead to the reemployment of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the date of application.
Amendment  5 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace support measures which are available for redundant workers within the Union’s Structural Funds or other Union policies or programmes.	(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace support measures which are available for redundant workers within the Union's Structural Funds or other Union policies or programmes, notably the ESF or the CAP.
Amendment  6 Proposal for a regulation Article 1 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a. Overcoming the adverse effects of globalisation also calls for the creation of permanent jobs throughout the Union through a genuine production recovery strategy for the Union that is combined with fair competition with the major emerging countries and a firm policy of supporting growth. Promoting social dialogue, improving the quality of consumer goods and information, increasing research and innovation, creating new public and private tools to finance the economy and developing small and medium-sized enterprises, these are the tools that will be effective in building up the Union’s productive capabilities.
Amendment                7 Proposal for a regulation Article 1 - subparagraph 2
Text proposed by the Commission	Amendment
The aim of the EGF shall be to contribute to economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, trade agreements affecting agriculture, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment, or for changing or adjusting their agricultural activities.	2. The aim of the EGF shall be to contribute to economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, trade agreements seriously affecting Union economic sectors, in particular agriculture, or a financial and economic crisis, and to provide financial support for their rapid reintegration into employment, or for changing or adjusting their activities.
Amendment  8 Proposal for a regulation Article 1 - subparagraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. The EGF shall aim to ensure that the Union, which has the common commercial policy within its exclusive competence, also has its own adequate adjustment tool that is capable of balancing the potential losses induced by the international trade agreements that it negotiates.
Amendment  9 Proposal for a regulation Article 1 – paragraph 3
Text proposed by the Commission	Amendment
Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions find stable employment within a year from the date of application.	3. Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions enter the employment market within a year from the date of application. This objective should be reassessed as part of the mid-term review of this Regulation.
Amendment  10 Proposal for a regulation Article 2 - point a
Text proposed by the Commission	Amendment
(a) workers made redundant as a result of major structural changes in world trade patterns due to globalisation, demonstrated, in particular, by a substantial increase in imports into the Union, a rapid decline of the Union market share in a given sector or a delocalisation of activities to non-member countries, where these redundancies have a significant adverse impact on the local, regional or national economy;	(a) workers made redundant as a result of major changes in world trade patterns due to globalisation, demonstrated, in particular, by a serious shift in the export-import pattern of the Union’s trade in goods or services, a decline of the Union market share in a given sector or a delocalisation of activities to non-member countries, where these redundancies have a significant adverse impact on the local, regional or national economy;
Justification
All the major changes induced by trade openness should be covered, even if the decline is slow.
Amendment  11 Proposal for a regulation Article 2 - point c
Text proposed by the Commission	Amendment
(c) workers changing or adjusting their previous agricultural activities during a period starting upon initialling of the trade agreement by the Union containing trade liberalisation measures for the relevant agricultural sector and ending three years after the full implementation of these measures and provided that these trade measures lead to a substantial increase in Union imports of an agricultural product or products accompanied by a significant decrease in prices of such products at the Union or, where relevant, the national or regional level.	(c) workers, including farmers, changing or adjusting their previous activities or moving to another labour sector during a period starting upon initialling of the trade agreement by the Union containing trade liberalisation measures for the relevant agricultural sector and ending three years after the full implementation of these measures and provided that these trade measures lead to a substantial increase in Union imports of an agricultural product or products accompanied by a significant decrease in prices of such products at the Union or, where relevant, the national or regional level.
Justification
The article should cover other types of activities affected by international trade agreements. The article should foresee that many displaced workers must radically change their activities when made redundant by trade openness.
Amendment  12 Proposal for a regulation Article 3 - point d
Text proposed by the Commission	Amendment
(d) 'a worker' means owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers) and all members of the household active in the business, provided that, if farmers, they were already producing the output affected by the relevant trade agreement before the measures concerning the specific sector were implemented.	(d) 'a worker' means owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers) and all the members of the household that are declared to be active in the business, provided that they were already producing the output affected by the relevant trade agreement before the measures concerning the specific sector were implemented.
Amendment  13 Proposal for a regulation Article 4 - paragraph 2
Text proposed by the Commission	Amendment
2. In small labour markets or in exceptional circumstances, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article may be considered admissible even if the criteria laid down in points (a) or (b) of paragraph 1 are not entirely met, when redundancies have a serious impact on employment and the local economy. The Member State shall specify which of the intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met.	2. In small labour markets or in exceptional circumstances, in particular with regard to collective applications involving SMEs, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article may be considered admissible even if the criteria laid down in points (a) or (b) of paragraph 1 are not entirely met, when redundancies have a serious impact on employment and the local economy. The Member State shall specify which of the intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met.
Justification
These changes are necessary to keep in coherence with article 2, point c.
Amendment  14 Proposal for a regulation Article 4 - paragraph 3
Text proposed by the Commission	Amendment
3. As regards farmers, when, after a trade agreement is initialled and on the basis of the information, data and analyses available to it, the Commission considers that the conditions for support in accordance with Article 2(c) are likely to be met for a significant number of farmers, it shall adopt delegated acts in accordance with Article 24 designating the eligible sectors or products, defining the affected geographical areas where appropriate, setting a maximum amount for potential support at Union level, setting reference periods and eligibility conditions for farmers and eligibility dates for expenditure as well as establishing the deadline by which applications must be submitted and, if necessary, the content of these applications in accordance with Article 8(2).	3. As regards trade-displaced workers, including, where appropriate, farmers , when, after a trade agreement is initialled and on the basis of the information, data and analyses available to it, the Commission considers that the conditions for support in accordance with Article 2(c) are likely to be met for a significant number of trade-displaced workers, including, where appropriate, farmers , it shall adopt delegated acts in accordance with Article 24 designating the eligible sectors or products, defining the affected geographical areas where appropriate, setting a maximum amount for potential support at Union level, setting reference periods and eligibility conditions for trade-displaced workers, including, where appropriate, farmers and eligibility dates for expenditure as well as establishing the deadline by which applications must be submitted and, if necessary, the content of these applications in accordance with Article 8(2).
Justification
These changes are necessary to keep in coherence with article 2, point c.
Amendment  15 Proposal for a regulation Article 6 - point c
Text proposed by the Commission	Amendment
(c) farmers changing or adjusting their previous agricultural activities following the initialling by the Union of a trade agreement referred to in the delegated act taken in accordance with Article 4(3).	(c) trade-displaced workers, including, where appropriate, farmers changing or adjusting their previous agricultural activities following the initialling by the Union of a trade agreement referred to in the delegated act taken in accordance with Article 4(3).
Justification
These changes are necessary to keep in coherence with article 2, point c.
Amendment  16 Proposal for a regulation Article 7 - paragraph 1
Text proposed by the Commission	Amendment
1. A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment or, in the case of farmers, to change or adjust their previous activities. The coordinated package of personalised services may include in particular:	1. A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment or, in the case of trade-displaced workers, including, where appropriate, farmers, to change or adjust their previous activities, preferably helping the transition to growing activities benefitting from trade liberalisation. The coordinated package of personalised services may include in particular:
Justification
The EGF should take into account that the most effective targeted programmes are those which help and train the labour workforce transitioning from a sector in decline to growing economic activities.
Amendment  17 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point a
Text proposed by the Commission	Amendment
(a) job-search assistance, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion, aid for self-employment and business start-up or for changing or adjusting activity (including investments in physical assets), co-operation activities, tailor-made training and re-training, including information and communication technology skills and certification of acquired experience;	(a) tailor-made training and re-training, including information and communication technology skills and certification of acquired experience job-search assistance, job creation measures, occupational guidance, advisory services, mentoring, entrepreneurship promotion, aid for self-employment and business start-up or for changing or adjusting activity (including investments in physical assets), co-operation activities,
Amendment  18 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point b
Text proposed by the Commission	Amendment
(b) special time-limited measures, such as job-search allowances, employers’ recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;	(b) special time-limited measures, employers’ recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;
Amendment  19 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point c
Text proposed by the Commission	Amendment
(c) measures to stimulate in particular disadvantaged or older workers to remain in or return to the labour market.	(c) measures to stimulate in particular disadvantaged or older workers to return to the labour market.
Amendment  20 Proposal for a regulation Article 8 - paragraph 1
Text proposed by the Commission	Amendment
1. The Member State shall submit a complete application to the Commission within a period of 12 weeks from the date on which the criteria set in Article 4(1) or (2) are met or, where applicable, before the deadline set by the Commission in accordance with Article 4(3). In exceptional and duly justified circumstances the application may be supplemented with additional information by the applicant Member State within six months from the date of application, following which the Commission shall assess the application on the basis of the available information. The Commission shall complete its assessment of the application within twelve weeks of the date of receipt of a complete application or (in the case of an incomplete application) six months after the date of the initial application, whichever is the earlier.	1. The Member State shall submit a complete application to the Commission within a period of 12 weeks from the date on which the criteria set in Article 4(1) or (2) are met or, where applicable, before the deadline set by the Commission in accordance with Article 4(3). In exceptional and duly justified circumstances the application may be supplemented with additional information by the applicant Member State within six months from the date of application, following which the Commission shall assess the application on the basis of the available information. The Commission shall complete its assessment of the application within eight weeks of the date of receipt of a complete application or (in the case of an incomplete application) within six months after the date of the initial application, whichever is the earlier. In considering applications, the Commission shall ensure that the EGF funds are disbursed to the benefit of the sectors, regions and Member States that are most in need.
Amendment  21 Proposal for a regulation Article 8 - paragraph 2 - point a
Text proposed by the Commission	Amendment
(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis, or the new market situation in the agricultural sector in the Member State and resulting from the effects of a trade agreement initialled by the European Union in accordance with Article XXIV of the GATT or a multilateral agreement initialled within the World Trade Organisation as per Article 2(c). This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;	(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis, or the new market situation in any sector in the Member State and resulting from the effects of a trade agreement initialled by the European Union in accordance with Article XXIV of the GATT or a multilateral agreement initialled within the World Trade Organisation as per Article 2(c). This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;
Amendment  22 Proposal for a regulation Article 9 - paragraph 5 a (new)
Text proposed by the Commission	Amendment
	5a. The Commission shall ensure that the entitlement to benefit from the EGF will not influence eligibility for any other Union fund, such as the ESF or the CAP for farmers.
Amendment  23 Proposal for a regulation Article 12 - paragraph 3
Text proposed by the Commission	Amendment
3. The Commission shall implement information and communication activities on EGF cases and outcomes.	3. The Commission shall implement information and communication activities in order to ensure that all the countries, regions and sectors of employment of the Union are aware of these possibilities and shall report on the use of the fund annually on a country-by-country and sector-by-sector basis.
Justification
Some Member States do not currently make sufficient use of the ESF. Besides, the ESF will now benefit potentially to more sectors and recipients that before.
Amendment  24 Proposal for a regulation Article 15 - paragraph 2 - subparagraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. Recognising the urgency of taking decisions to ensure that workers are involved as quickly as possible in these programmes, the institutions will endeavour to minimize the period of processing applications.
Justification
The coherence between the EU trade policy and its EGF implies that this budgetary allocation for the EGF should be reviewed before each FTA. By symmetry, no international trade agreement should be implemented without adapting EGF's provisions to meet its goal
Amendment  25 Proposal for a regulation Article 15 - paragraph 6 a (new)
Text proposed by the Commission	Amendment
	6a. The EGF’s budget management will anticipate future FTAs that are likely to provoke redundancies or displacement of workers as defined in Article 1 and, when necessary, propose a review of this Regulation to ensure that the budget of the EGF continuously meets its needs. The consent to an international agreement may be made conditional upon the availability of EGF resources to enable the Union labour force to adjust to the effect of this agreement.
Justification
The coherence between the EU trade policy and its EGF implies that this budgetary allocation for the EGF should be reviewed before each FTA. By symmetry, no international trade agreement should be implemented without adapting EGF's provisions to meet its goal.
Amendment  26 Proposal for a regulation Article 20 - paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. These evaluations shall include the figures showing the number of applications and shall cover the performance of programmes country-by-country and sector-by-sector, so as to assess whether the EGF is reaching its targeted recipients.

PROCEDURE

Title	European Globalisation Adjustment Fund (2014 - 2020)
References	COM(2011)0608 – C7-0319/2011 – 2011/0269(COD)
Committee responsible        Date announced in plenary	EMPL 25.10.2011
Opinion by        Date announced in plenary	INTA 25.10.2011
Rapporteur        Date appointed	Iuliu Winkler 8.12.2011
Discussed in committee	26.3.2012
Date adopted	30.5.2012
Result of final vote	+: –: 0:	17 8 1
Members present for the final vote	William (The Earl of) Dartmouth, Laima Liucija Andrikienė, Maria Badia i Cutchet, Daniel Caspary, María Auxiliadora Correa Zamora, Christofer Fjellner, Yannick Jadot, Metin Kazak, Franziska Keller, Vital Moreira, Niccolò Rinaldi, Helmut Scholz, Robert Sturdy, Gianluca Susta, Iuliu Winkler, Jan Zahradil, Paweł Zalewski
Substitute(s) present for the final vote	Josefa Andrés Barea, George Sabin Cutaş, Silvana Koch-Mehrin, Elisabeth Köstinger, Emma McClarkin, Miloslav Ransdorf, Tokia Saïfi, Jarosław Leszek Wałęsa, Pablo Zalba Bidegain
Substitute(s) under Rule 187(2) present for the final vote	Zuzana Roithová

OPINION of the Committee on Budgets (22.10.2012)

for the Committee on Employment and Social Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020)
(COM(2011)0608 – C7‑0319/2011 – 2011/0269(COD))

Rapporteur: Alda Sousa

SHORT JUSTIFICATION

The Commission proposal for a new Regulation on the European Globalization Adjustment Fund (hereafter - EGF) (2014-2020) contains a few welcome changes, compared with the Regulation (EC) No 1927/2006[1], currently in force, especially, extension of the scope of the Regulation to include workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of micro, small and medium-sized enterprises and self-employed workers. At the same time, the proposal also makes the administration of the EGF more complicated and does not go far enough in ensuring effectiveness and stability in the operation of the EGF. This opinion adopts the "value for money" approach - it attempts to improve the administration of the EGF, so that the limited EU budgetary resources are more effectively targeted and bring more "European added value". The motivating factors behind the amendments in this legislative opinion are, first, simplification of the EGF, second, making the EGF more attractive as the instrument of choice in Member States, third, improving the results of reemployment of redundant workers, and, fourth, ensuring the availability of sufficient resources for training measures of redundant workers, considering the consequences of the continuing financial crisis and pressures of globalization.

Scope

Regulation (EC) No 1927/2006 is focused on "workers" as the primary category of employment affected by globalization, major structural changes and unexpected crises. The Commission proposal expands the remit of the EGF to include not only workers on unlimited and fixed-term contracts, self-employed persons, and owner-managers of small and medium-sized enterprises (quite justifiably), but also farmers affected by international trade agreements. In terms of budgetary implication, the inclusion of farmers is expected to morph the EGF from an industry adjustment instrument into agriculture adjustment instrument, since up to 5/6ths of the total funding will be devoted to agriculture. According to Explanatory Memorandum, the EGF will continue to operate outside the multiannual financial framework (MFF) with a maximum amount of EUR 3 billion (in 2011 prices), while the support of agriculture can be up to EUR 2.5 billion of this amount. The inclusion of agriculture will complicate the administration of the fund (DG AGRI will become involved alongside DG EMPL, new delegated acts will need be adopted for every new international trade agreement, etc.), channel resources from industry to agriculture adjustment (which is the primary goal of CAP), change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances (international agricultural trade agreements have predictable consequences which are not, per se, related to the effects of globalization).

Union co-financing rate

Under the current legal basis, the EGF is under shared management and, according to the principle of additionality, both the EU and Member States each contribute 50% of the necessary funding. In 2009, a temporary "crisis derogation" was included in the EGF Regulation which allowed Member States to increase the share of EU co-financing up to 65% for applications submitted by December 31, 2011. Due to inability to reach a consensus on a permanent increase of EU co-financing to 65%, a "modulation" is proposed, where 50% co-financing is the norm, but a possibility to increase the co-financing to 65% is foreseen for those Member States in which at least one NUTS II level region is a "convergence" region (regional GDP is less than 75% of EU average). Member States, especially those hardest hit by the debt crisis, in various forums have repeatedly argued for a permanent increase of EU co-financing rate. In fact, the increase in co-financing in 2009 from 50% to 65% was the most important factor contributing to a sharp increase in the number of applications and EGF funding becoming more attractive for Member States vis-à-vis the European Social Fund (ESF) and various national active labour market measures.

Member States with serious financial instability

Regulation 1311/2011, amending Regulation 1083/2006 as regards certain provisions relating to financial management for certain Member States experiencing or threatened with serious difficulties with respect to their financial stability, foresees the possibility to increase the amount of Union co-financing by ten percentage points, in order to facilitate the management of Union funding, help accelerate investments in Member States and make maximal and optimal use of Union funding. Even though the Regulation relates primarily to the European Social Fund, European Regional Development Fund and the Cohesion Fund, the Rapporteur believes that it should be extended to cover the EGF as well.

Opinion of the Rapporteur

The Rapporteur welcomes the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50.000.000 on the EGF budget line 04 05 01. She recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and, therefore, it deserves a dedicated allocation, which will avoid transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF.

The Rapporteur also regrets the decision of the Council to block the extension of the "crisis derogation", allowing the increase in the rate of Union co-financing to 65 % of the programme costs, for applications submitted after the 31 December 2011 deadline, and asks the Council to reintroduce this measure without delay.

This opinion focuses on the following issues:

· exclusion of the agricultural sector from the scope of the draft Regulation, since it does not correspond to the objectives of the Regulation, and eventual deletion of the proposed budget line for DG AGRI;

· increasing of the Union co-financing rate to 65% to all Member States without a modulation and up to additional 10% for Member States which are facing serious difficulties with respect to financial stability, in accordance with the rules established in Regulation 1311/2011;

· increasing of the proportion of pre-financing of the Union's financial contribution to the Member States from 50% to 65%, following the entry into force of a decision on a Union financial contribution;

· lowering the application threshold from 500 to 200 redundancies;

· extending up to 2 years (24 months) the ex-post monitoring period to allow for better overall evaluation of supported projects and for better assessment of re-employment rate in particular.

AMENDMENTS

The Committee on Budgets calls on the Committee on Employment and Social Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a) In its resolution of 8 June 2011 on Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe1, the European Parliament reiterated that without sufficient additional resources in the post-2013 MFF, the Union will not be able to fulfil its existing policy priorities, namely linked to the EU2020 strategy, and the new tasks provided for in the Treaty of Lisbon, as well as to respond to unforeseen events; it pointed out that, even with an increase in the level of resources for the next MFF of at least 5 % compared to the 2013 level, only a limited contribution can be made to the achievement of the Union's agreed objectives and commitments and the principle of Union solidarity; it challenged the Council, if it does not share this approach, to clearly identify which of its political priorities or projects could be dropped altogether, despite their proven European added value.
	_______________
	1 Texts adopted, P7_TA(2011)0266.
Amendment  2 Proposal for a regulation Recital 1 b (new)
Text proposed by the Commission	Amendment
	(1b) In its resolution of 8 June 2011 on Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe1, the European Parliament considered that the European Globalisation Adjustment Fund (EGF) had been successful in providing EU solidarity and support to workers made redundant because of the adverse effects of globalisation and the global financial and economic crisis and should, therefore, be maintained under the new MFF. The European Parliament expressed its belief, however, that the procedures for implementing the support from the EGF were too time consuming and cumbersome. The European Parliament called on the Commission to propose ways in which these procedures could be simplified and shortened for the future.
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	1 Texts adopted, P7_TA(2011)0266.
Amendment  3 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on 'A budget for Europe 2020' recognises the role of the EGF as a flexible fund to support workers who lose their jobs and help them to find another job as rapidly as possible. The Union should continue to provide, for the duration of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020, specific, one-off support to facilitate the re-integration into employment of redundant workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, the EGF should remain outside the Multiannual Financial Framework.	(3) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on 'A budget for Europe 2020' recognises the role of the EGF as a flexible fund to support workers who lose their jobs and help them to find another job as rapidly as possible. The Union should continue to provide, for the duration of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020, specific, one-off support to facilitate the re-integration into employment of redundant workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption. In view of the experience gained over 2007-2013, the scope of the EGF and certain arrangements for its mobilisation should, however, be partially modified. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, the financial envelope allocated to the EGF should remain outside and be supplementary to the ceilings for commitments established by the 2014-2020 Multiannual Financial Framework.
Amendment  4 Proposal for a regulation Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a) In its resolution of 8 June 2011 entitled ‘Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe’1, the European Parliament considered it crucial to maintain special instruments (Flexibility Instrument, European Globalisation Adjustment Fund, European Union Solidarity Fund and Emergency Aid Reserve), which could be mobilised on an ad-hoc basis, by further simplifying their use and providing them with sufficient envelopes, as well as by possibly creating new instruments in the future, and stressed that the mobilisation of such additional sources of funding must abide by the Union method.
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	1 Texts adopted, P7_TA(2011)0266.
Amendment  5 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5) In compliance with the Communication on 'A Budget for Europe 2020', the scope of the EGF should be broadened to facilitate the adaptation of farmers to a new market situation resulting from international trade agreements in the agricultural sector and leading to a change or a significant adjustment in the agricultural activities of the affected farmers so as to assist them to become structurally more competitive or to facilitate their transition to non-agricultural activities.	delete
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances
Amendment  6 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6) In order to maintain the European nature of the EGF, an application for support should be triggered when the number of redundancies reaches a minimum threshold. In small labour markets, such as small Member States or remote regions, and in exceptional circumstances, applications may be submitted for a lower number of redundancies. As regards farmers, the necessary criteria should be determined by the Commission in relation to the consequences of each trade agreement.	(6) In order to maintain the European nature of the EGF, an application for support should be triggered when the number of redundancies reaches a minimum threshold. In small labour markets, such as small Member States or remote regions, and in exceptional circumstances, applications may be submitted for a lower number of redundancies.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  7 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) In order to reduce the time required to assess the applications by the Commission, the Member States should submit the applications in their own language and one of the European institutions' working language.
Amendment  8 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7) Redundant workers should have equal access to the EGF independently of their type of employment contract or employment relationship. Therefore, workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of micro, small and medium-sized enterprises and self-employed workers who cease their activities and farmers who change or adjust their activities to a new market situation following trade agreements, should be regarded as redundant workers for the purposes of this Regulation.	(7) Redundant workers should have equal access to the EGF independently of their type of employment contract or employment relationship. Therefore, workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of micro, small and medium-sized enterprises and self-employed workers who are forced to cease their activities, should be regarded as redundant workers for the purposes of this Regulation.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  9 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8) Regarding farmers, the scope of the EGF should include beneficiaries affected by bilateral agreements concluded by the Union in accordance with Article XXIV of the GATT or multilateral agreements concluded within the World Trade Organisation. This covers farmers changing or adjusting their previous agricultural activities within a period starting upon initialling of such trade agreements and ending three years after their full implementation	deleted
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  10 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into employment, either within or outside their initial sector of activity, including the agricultural sector. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted.	(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into employment, either within or outside their initial sector of activity. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  11 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into employment, either within or outside their initial sector of activity, including the agricultural sector, including the agricultural sector. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted.	(9) Financial contributions from the EGF should be primarily directed at active labour market measures facilitating long-term employment, which aim to rapidly reintegrate redundant workers either within or outside their initial sector of activity. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted, in addition to other measures that are the responsibility of Member States or companies by virtue of national law or collective agreements.
Amendment  12 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the date of application.	(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into long-term and permanent employment, if possible, or new activities of at least 50 % of the targeted workers within 12 months of the date of application.
Amendment  13 Proposal for a regulation Recital 11
Text proposed by the Commission	Amendment
(11) In order to support redundant workers effectively and rapidly, Member States should do their utmost to submit complete applications. The provision of supplementary information should be exceptional and limited in time.	(11) In order to support redundant workers effectively and rapidly, Member States should do their utmost to submit complete applications. The provision of supplementary information should be exceptional and limited in time. The Member States and the Commission are invited to work closely together to keep to the deadlines for examining applications for mobilisation as defined in Article 8.
Amendment  14 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace support measures which are available for redundant workers within the Union's Structural Funds or other Union policies or programmes.	(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace or duplicate support measures which are available for redundant workers within the Union's Structural Funds or other Union policies or programmes. The EGF should only provide limited, one-off support, whereas other Union policies and programmes should provide long-term support.
Amendment  15 Proposal for a regulation Recital 14
Text proposed by the Commission	Amendment
(14) In order to ensure that the Union’s expression of solidarity with workers is not hampered by a lack of Member State co-funding resources, the co-funding rate should be modulated, with a maximum 50 % contribution to the cost of the package and its implementation as the norm, and the possibility to raise this rate to up to 65 % in the case of applications submitted by those Member States on the territory of which at least one region at NUTS II level is eligible under the "Convergence" objective of the Structural Funds.	(14) In order to ensure that the Union’s expression of solidarity with workers is not hampered by a lack of Member State co-funding resources, the co-funding rate should be up to 65 %.
Justification
Member States, especially those severely impacted by the debt crisis, have repeatedly argued for a permanent increase of EU co-financing rate. In fact, the increase in co-financing in 2009 from 50% to 65% was the most important factor contributing to a sharp increase in the number of applications and EGF funding becoming more attractive for Member States vis-à-vis the European Social Fund (ESF) and various national active labour market measures.
Amendment  16 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15) To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State incurs administrative expenditure for implementing the EGF or from the date on which a Member State starts to provide personalised services or, in the case of farmers, from the date set in a Commission act in accordance with Article 4(3).	(15) To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State incurs administrative expenditure for implementing the EGF or from the date on which a Member State starts to provide personalised services.
Amendment  17 Proposal for a regulation Recital 16
Text proposed by the Commission	Amendment
(16) In order to cover the needs arising during the final months of each year, it is necessary to ensure that at least one quarter of the annual maximum amount of the EGF remains available on 1 September. Financial contributions made during the remainder of the year should be allocated taking into account the overall ceiling laid down for support to farmers in the Multiannual Financial Framework.	(16) In order to cover the needs arising during the final months of each year, it is necessary to ensure that at least one quarter of the annual maximum amount of the EGF remains available on 1 September.
Amendment  18 Proposal for a regulation Recital 16 a (new)
Text proposed by the Commission	Amendment
	(16a) In order to cover the needs arising especially during the first months of each year, where the possibilities for transfers from other budget lines are particularly difficult, an adequate amount of payment appropriations should be made available on the EGF budget line in the annual budgetary procedure.
Amendment  19 Proposal for a regulation Recital 18
Text proposed by the Commission	Amendment
(18) In the interest of the redundant workers, the Member States and the Union institutions involved in the EGF decision-making process should do their utmost to reduce processing time and simplify procedures.	(18) In the interest of the redundant workers, assistance should be dynamic and made available as quickly and efficiently as possible. Member States and the Union institutions involved in the EGF decision-making process should do their utmost to reduce processing time and simplify procedures so as to ensure a smooth and rapid adoption of the decisions on the mobilisation of the EGF.
Amendment  20 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19) In order to enable continuous monitoring by the Commission of results obtained with EGF assistance, Member States should submit interim and final reports on the implementation of the EGF.	(19) In order to enable political scrutiny by the European Parliament and continuous monitoring by the Commission of results obtained with EGF assistance, Member States should submit interim and final reports on the implementation of the EGF in a timely fashion.
Amendment  21 Proposal for a regulation Recital 21
Text proposed by the Commission	Amendment
(21) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States and can therefore, by reason of their scale and effects, be better achieved at the Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,	(21) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States and can therefore, by reason of their scale and effects, be better achieved at the Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives, and should therefore be included under the appropriate budget line,
Amendment  22 Proposal for a regulation Article 1 – paragraph 2
Text proposed by the Commission	Amendment
The aim of the EGF shall be to contribute to economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, trade agreements affecting agriculture, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment, or for changing or adjusting their agricultural activities.	The aim of the EGF shall be to contribute to economic growth and development, employment and social inclusion in the Union by enabling the Union to show solidarity towards workers made redundant, or people considered to have been made redundant for the purposes of this Regulation, as a result of major structural changes in world trade patterns due to globalisation or an unexpected crisis, and to provide financial support for their rapid reintegration into stable, sustainable and quality employment, or for changing or adjusting their activities.
Amendment  23 Proposal for a regulation Article 1 – paragraph 3
Text proposed by the Commission	Amendment
Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions find stable employment within a year from the date of application.	Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions find long-term, stable employment within a year from the date of application.
Amendment  24 Proposal for a regulation Article 2 – point c
Text proposed by the Commission	Amendment
(c) workers changing or adjusting their previous agricultural activities during a period starting upon initialling of the trade agreement by the Union containing trade liberalisation measures for the relevant agricultural sector and ending three years after the full implementation of these measures and provided that these trade measures lead to a substantial increase in Union imports of an agricultural product or products accompanied by a significant decrease in prices of such products at the Union or, where relevant, the national or regional level.	deleted
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  25 Proposal for a regulation Article 3 – point d
Text proposed by the Commission	Amendment
(d) 'a worker' means owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers) and all members of the household active in the business, provided that, if farmers, they were already producing the output affected by the relevant trade agreement before the measures concerning the specific sector were implemented.	(d) 'a worker' means owner-managers of micro, small and medium-sized enterprises and self-employed workers and all members of the household active in the business, provided that they were already engaged in the activity directly affected by the deterioration of the local, regional or national economic climate.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  26 Proposal for a regulation Article 4 - paragraph 3
Text proposed by the Commission	Amendment
3. As regards farmers, when, after a trade agreement is initialled and on the basis of the information, data and analyses available to it, the Commission considers that the conditions for support in accordance with Article 2(c) are likely to be met for a significant number of farmers, it shall adopt delegated acts in accordance with Article 24 designating the eligible sectors or products, defining the affected geographical areas where appropriate, setting a maximum amount for potential support at Union level, setting reference periods and eligibility conditions for farmers and eligibility dates for expenditure as well as establishing the deadline by which applications must be submitted and, if necessary, the content of these applications in accordance with Article 8(2).	deleted
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  27 Proposal for a regulation Article 4 – paragraph 4
Text proposed by the Commission	Amendment
4. Where owner-managers of micro, small and medium-sized enterprises and self-employed workers change or, in the case of farmers, adjust their previous activities, such situations shall be considered as redundancies for the purposes of this Regulation.	4. Where owner-managers of micro, small and medium-sized enterprises and self-employed workers change or adjust their previous activities such situations shall be considered as redundancies for the purposes of this Regulation.
Amendment  28 Proposal for a regulation Article 5 - point c
Text proposed by the Commission	Amendment
(c) For owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers), the redundancy shall be counted either from the date of cessation of the activities caused by any of the conditions set out in Article 2, and determined in accordance with national law or administrative provisions, or from the date specified by the Commission in the delegated act adopted in accordance with the Article 4(3).	(c) For owner-managers of micro, small and medium-sized enterprises and self-employed workers, the redundancy shall be counted either from the date of cessation of the activities caused by any of the conditions set out in Article 2, and determined in accordance with national law or administrative provisions.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  29 Proposal for a regulation Article 6 - paragraph 1
Text proposed by the Commission	Amendment
The applicant Member State may provide personalised services co-financed by the EGF to affected workers, who may include:	The applicant Member State may provide personalised services co-financed by the EGF to affected workers, who may include:
(a) all workers being made redundant in accordance with Article 5, within the period provided for in Article 4(1), (2) or (3),	(a) all workers being made redundant in accordance with Article 5, within the period provided for in Article 4(1) or (2),
(b) workers being made redundant before or after the period provided for in Article 4(1)(a) or (2), in cases where an application under Article 4(2) derogates from the criteria set out in Article 4(1)(a),	(b) workers being made redundant before or after the period provided for in Article 4(1)(a) or (2), in cases where an application under Article 4(2) derogates from the criteria set out in Article 4(1)(a).
(c) farmers changing or adjusting their previous agricultural activities following the initialling by the Union of a trade agreement referred to in the delegated act taken in accordance with Article 4(3).
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  30 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – introductory part
Text proposed by the Commission	Amendment
A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment or, in the case of farmers, to change or adjust their previous activities. The coordinated package of personalised services may include in particular:	A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment or to change or adjust their previous activities. The coordinated package of personalised services may include in particular:
Amendment  31 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point b
Text proposed by the Commission	Amendment
(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;	(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers), all of which limited to the duration of the documented active job search or life-long learning or training activities;
Amendment  32 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point c a (new)
Text proposed by the Commission	Amendment
	(ca) time-limited allowances to stimulate in particular young workers to obtain higher education.
Amendment  33 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 3
Text proposed by the Commission	Amendment
The cost of investments in physical assets for self-employment and business start-up or for changing or adjusting activity may not exceed EUR 35 000.	The cost of investments in physical assets for self-employment and business start-up or for changing or adjusting activity may not, in general terms, exceed EUR 35 000.
Justification
En el caso que un productor agrario europeo de sectores ganaderos intensivos o de cultivos permanentes afectados que deba cambiar de actividad o adaptar sus actividades agrarias afectadas por la rúbrica, por parte de la Unión Europea, de tratados comerciales por los que se introducen medidas de liberalización comercial, el límite de 35.000 euros en el coste de la inversión en activos fijos para un empleo por cuenta propia o para crear una empresa, cambiar de actividad o adaptarse a otra nueva, no va a permitir en la mayoría de los casos auxiliar íntegramente el coste real de las inversiones en activos fijos para redimensionar su explotación agraria, cambiar de actividad o adaptar sus actividades agrarias.
Amendment  34 Proposal for a regulation Article 8 - paragraph 1
Text proposed by the Commission	Amendment
1. The Member State shall submit a complete application to the Commission within a period of 12 weeks from the date on which the criteria set in Article 4(1) or (2) are met or, where applicable, before the deadline set by the Commission in accordance with Article 4(3). In exceptional and duly justified circumstances the application may be supplemented with additional information by the applicant Member State within six months from the date of application, following which the Commission shall assess the application on the basis of the available information. The Commission shall complete its assessment of the application within twelve weeks of the date of receipt of a complete application or (in the case of an incomplete application) six months after the date of the initial application, whichever is the earlier.	1. The Member State shall submit a complete application in their own language and one of the European institutions' working languages to the Commission within a period of 10 weeks from the date on which the criteria set in Article 4(1) or (2) are met. In exceptional and duly justified circumstances the application may be supplemented with additional information by the applicant Member State within four months from the date of application, following which the Commission shall assess the application on the basis of the available information. The Commission shall complete its assessment of the application within nine weeks of the date of receipt of a complete application or (in the case of an incomplete application) five months after the date of the initial application, whichever is the earlier. The Commission and the Member States shall do their utmost to keep these deadlines.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  35 Proposal for a regulation Article 8 - paragraph 2 - point a
Text proposed by the Commission	Amendment
(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis, or the new market situation in the agricultural sector in the Member State and resulting from the effects of a trade agreement initialled by the European Union in accordance with Article XXIV of the GATT or a multilateral agreement initialled within the World Trade Organisation as per Article 2(c). This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;	(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis. This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  36 Proposal for a regulation Article 8 - paragraph 2 - point j
Text proposed by the Commission	Amendment
(j) if applicable, any further requirements which may have been laid down in the delegated act taken in accordance with Article 4(3).	deleted
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  37 Proposal for a regulation Article 9 – paragraph 2
Text proposed by the Commission	Amendment
2. The financial contribution shall be limited to what is necessary to provide solidarity and support for individual redundant workers. The activities supported by the EGF shall comply with Union and national law, including state aid rules.	2. The financial contribution shall be limited to what is necessary to provide solidarity and temporary, one-off support for individual redundant workers. The activities supported by the EGF shall comply with Union and national law, including state aid rules.
Amendment  38 Proposal for a regulation Article 9 – paragraph 4
Text proposed by the Commission	Amendment
4. The applicant Member State shall ensure that the specific actions receiving a financial contribution shall not also receive assistance from other Union financial instruments.	4. The applicant Member State shall ensure that the specific actions receiving a financial contribution shall not also receive assistance from other Union financial instruments, thereby avoiding undermining longer-term programmes such as structural funds and notably the European Social Fund (ESF).
Amendment  39 Proposal for a regulation Article 11 – paragraph 1
Text proposed by the Commission	Amendment
1. At the initiative of the Commission, subject to a ceiling of 0,5 % of the annual maximum amount of the EGF, the EGF may be used to finance the preparation, monitoring, data gathering and creation of a knowledge base relevant to the implementation of the EGF. It may also be used to finance administrative and technical support, information and communication activities, as well as audit, control and evaluation activities necessary to implement this Regulation.	1. At the initiative of the Commission, subject to a ceiling of 0,5 % of the annual maximum amount of the EGF, the EGF may be used to finance the preparation, monitoring, data gathering and creation of a knowledge base relevant to the implementation of the EGF, as well as the dissemination of best practices between Member States. It may also be used to finance administrative and technical support, information and communication activities, as well as audit, control and evaluation activities necessary to implement this Regulation.
Amendment  40 Proposal for a regulation Article 11 – paragraph 4
Text proposed by the Commission	Amendment
4. The Commission's technical assistance shall include the provision of information and guidance to the Member States for using, monitoring and evaluating the EGF. The Commission may also provide information on using the EGF to the European and national social partners.	4. The Commission's technical assistance shall include the provision of information and guidance to the Member States for using, monitoring and evaluating the EGF. The Commission must also provide information on using the EGF to the European and national social partners.
Amendment  41 Proposal for a regulation Article 12 – paragraph 1
Text proposed by the Commission	Amendment
1. The applicant Member State shall provide information on and publicise the funded actions. The information shall be addressed to the targeted workers, local and regional authorities, social partners, the media and the general public. It shall highlight the role of the Union and ensure that the contribution from the EGF is visible.	1. The applicant Member State shall provide information on and publicise the funded actions in a timely fashion. The information shall be addressed to the targeted workers, local and regional authorities, social partners, the media and the general public. It shall highlight the role of the Union and ensure that the contribution from the EGF is visible, thereby showing the Union added value and aiding the data gathering efforts of the Commission in order to enhance budgetary transparency.
Amendment  42 Proposal for a regulation Article 12 – paragraph 2
Text proposed by the Commission	Amendment
2. The Commission shall set up an Internet site, available in all Union languages, to provide information on the EGF, guidance on the submission of applications, and information on accepted and rejected applications, highlighting the role of the budgetary authority.	2. The Commission shall update the dedicated Internet site in a user friendly manner, available in all Union languages, to provide up- to-date information and implementation data on the EGF since its inception, guidance on the submission of applications, and information on accepted and rejected applications, highlighting the role of the budgetary authority.
Amendment  43 Proposal for a regulation Article 13 – paragraph 1
Text proposed by the Commission	Amendment
1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 50 % of the total of the estimated costs referred to in Article 8(2)(e) or 65 % of these costs in the case of applications submitted by a Member State on the territory of which at least one region at NUTS II level is eligible under the ‘Convergence’ objective of the Structural Funds. The Commission, in its assessment of such cases, will decide whether the 65 % co-funding rate is justified.	1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 65 % of the total of the estimated costs referred to in Article 8(2)(e).
Amendment  44 Proposal for a regulation Article 14
Text proposed by the Commission	Amendment
Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(h) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively. In the case of farmers, expenditure shall be eligible for a contribution from the date set in the delegated act taken in accordance with Article 4(3).	Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(h) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively.
Amendment  45 Proposal for a regulation Article 15 – paragraph 3 – subparagraph 1
Text proposed by the Commission	Amendment
Where the Commission has concluded that the conditions for mobilising the EGF are met, it shall submit a proposal to deploy it. The Decision to deploy the EGF shall be taken jointly by the two arms of the budgetary authority. The Council shall act by a qualified majority and the European Parliament shall act by a majority of its component members and three fifths of the votes cast.	Where the Commission has concluded that the conditions for mobilising the EGF are met, it shall submit a proposal to deploy it. The Decision to deploy the EGF shall be taken jointly by the two arms of the budgetary authority within a deadline not exceeding one month of the referral to the budgetary authority. The Council shall act by a qualified majority and the European Parliament shall act by a majority of its component members and three fifths of the votes cast.
Amendment  46 Proposal for a regulation Article 15 – paragraph 3 – subparagraph 2
Text proposed by the Commission	Amendment
At the same time as it presents the proposal for a Decision to deploy the EGF, the Commission shall present to the two arms of the budgetary authority a proposal for a transfer to the relevant budgetary lines. In case of disagreement a trialogue procedure shall be initiated.	At the same time as it presents the proposal for a Decision to deploy the EGF, the Commission shall present to the two arms of the budgetary authority a proposal for a transfer to the relevant budgetary lines. These transfers shall be carried out in accordance the budgetary priorities, both annual and long-term. In case of disagreement a trialogue procedure shall be initiated.
Amendment  47 Proposal for a regulation Article 16 – paragraph 1
Text proposed by the Commission	Amendment
1. Following the entry into force of a Decision on a financial contribution in accordance with Article 15(4) the Commission shall pay the financial contribution to the Member State in form of a pre-financing of at least 50 % of the Union's financial contribution to the Member State, in principle within 15 days, followed where necessary in form of intermediate and final payments. The pre-financing shall be cleared when the financial contribution is wound up in accordance with Article 18(3).	1. Following the entry into force of a Decision on a financial contribution in accordance with Article 15(4) the Commission shall pay the financial contribution to the Member State in form of a pre-financing of at least 60 % of the Union's financial contribution to the Member State, in principle within 15 days, followed where necessary in form of intermediate and final payments. The pre-financing shall be cleared when the financial contribution is wound up in accordance with Article 18(3).
Amendment  48 Proposal for a regulation Article 18 – paragraph 1 – subparagraph 1
Text proposed by the Commission	Amendment
1. No later than 15 months after the date of the application pursuant to Article 8(1) or by the date laid down in the delegated act taken in accordance with Article 4(3) the Member State shall present an interim report to the Commission on the implementation of the financial contribution, including on the funding, timing and type of actions already carried out and on the rate of reintegration into employment or new activities achieved 12 months after the date of the application.	1. No later than 12 months after the date of the application pursuant to Article 8(1) the Member State shall present an interim report to the Commission on the implementation of the financial contribution, including on the funding, timing and type of actions already carried out and on the rate of reintegration into employment or new activities achieved 12 months after the date of the application.
Amendment  49 Proposal for a regulation Article 19 – paragraph 1
Text proposed by the Commission	Amendment
1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.	1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years and compare to data from the EGF's inception. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.
Amendment  50 Proposal for a regulation Article 20 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a) by 30 June 2018, a mid-term evaluation of the effectiveness and sustainability of the results obtained;	(a) by 30 June 2017, a mid-term evaluation of the effectiveness and sustainability of the results obtained;
Amendment  51 Proposal for a regulation Article 20 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b) by 31 December 2022, an ex-post evaluation with the assistance of external experts, to measure the impact of the EGF and its added value.	(b) by 31 December 2021, an ex-post evaluation with the assistance of external experts, to measure the impact of the EGF and its added value.
Amendment  52 Proposal for a regulation Article 23
Text proposed by the Commission	Amendment
Article 23	deleted
Financial management of support to farmers
By way of derogation from Articles 21 and 22, support for farmers shall be managed and controlled in accordance with Regulation (EC) No………… on the financing, management and monitoring of the common agricultural policy.
Justification
The inclusion of agriculture sector in the scope of the regulation will complicate the administration of the EGF, channel resources from industry to agriculture adjustment, and change the original orientation of the EGF from responding to unpredictable consequences of globalization and crises to responding to highly predictable circumstances.
Amendment  53 Proposal for a regulation Article 24
Text proposed by the Commission	Amendment
Article 24	deleted
Exercise of the delegation
1. The powers to adopt delegated acts are conferred on the Commission subject to the conditions laid down in this Article.
2. The delegations of power referred to in this Regulation shall be conferred for an indeterminate period of time from the date of entry into force of this Regulation.
3. The delegations of power referred to in Article 4 may be revoked at any time by the European Parliament or by the Council.
4. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council
6. A delegated act adopted pursuant to Article 4(3) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 2 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative of the European Parliament or the Council.
Justification
The power to adopt delegated acts is foreseen in Article 4(3), which is deleted.

PROCEDURE

Title	European Globalisation Adjustment Fund (2014 - 2020)
References	COM(2011)0608 – C7-0319/2011 – 2011/0269(COD)
Committee responsible        Date announced in plenary	EMPL 25.10.2011
Opinion by        Date announced in plenary	BUDG 25.10.2011
Rapporteur        Date appointed	Alda Sousa 6.2.2012
Discussed in committee	20.6.2012
Date adopted	18.10.2012
Result of final vote	+: –: 0:	15 11 0
Members present for the final vote	Marta Andreasen, Richard Ashworth, Francesca Balzani, Zuzana Brzobohatá, Jean Louis Cottigny, Jean-Luc Dehaene, James Elles, Göran Färm, Eider Gardiazábal Rubial, Jens Geier, Ivars Godmanis, Ingeborg Gräßle, Jutta Haug, Sidonia Elżbieta Jędrzejewska, Ivailo Kalfin, Sergej Kozlík, Alain Lamassoure, George Lyon, Juan Andrés Naranjo Escobar, Alda Sousa, Derek Vaughan, Angelika Werthmann
Substitute(s) present for the final vote	Alexander Alvaro, Frédéric Daerden, Georgios Stavrakakis
Substitute(s) under Rule 187(2) present for the final vote	Jaroslav Paška

• [1]  OJ L 406, 30.12.2006, p. 1.

OPINION of the Committee on Budgetary Control (1.6.2012)

for the Committee on Employment and Social Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014 - 2020)
(COM(2011)0608 – C7-0319/2011 – 2011/0269(COD))

Rapporteur: Jorgo Chatzimarkakis

AMENDMENTS

The Committee on Budgetary Control calls on the Committee on Employment and Social Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital 2
Text proposed by the Commission	Amendment
(2) The European Globalisation Adjustment Fund (EGF) was established by Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund for the duration of the Financial Framework from 1 January 2007 to 31 December 2013 to enable the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation and to provide support for their rapid reintegration into employment. This initial objective of the EGF remains valid.	(2) The European Globalisation Adjustment Fund (EGF) was established by Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund for the duration of the Financial Framework from 1 January 2007 to 31 December 2013 to enable the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation and to provide support for their rapid reintegration into employment. Given the current state of uncertainty in which many Member States still find themselves, this initial objective of the EGF remains valid, as it enables, albeit on a modest scale, individually tailored services to be provided to workers who have lost their jobs as a result of collective redundancies caused by economic globalisation, which have a major impact at business, sectoral and regional levels.
Amendment  2 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on 'A budget for Europe 2020' recognises the role of the EGF as a flexible fund to support workers who lose their jobs and help them to find another job as rapidly as possible. The Union should continue to provide, for the duration of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020, specific, one-off support to facilitate the re-integration into employment of redundant workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, the EGF should remain outside the Multiannual Financial Framework.	(3) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on 'A budget for Europe 2020' recognises the role of the EGF as a flexible fund to support workers who lose their jobs and help them to find another job as rapidly as possible. The Union should continue to provide, for the duration of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020, specific, one-off support to facilitate the re-integration into employment of redundant workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, the EGF should remain outside the Multiannual Financial Framework, thereby equipping the Union with a rapid response mechanism to provide support during unemployment crises.
Amendment  3 Proposal for a regulation Article 7 – paragraph 3
Text proposed by the Commission	Amendment
3. At the initiative of the applicant Member State, a financial contribution may be made for the preparatory, management, information and publicity, control and reporting activities.	3. At the initiative of the applicant Member State, a financial contribution may be made, not exceeding 5% of the total costs, for the preparatory, management, information and publicity, control and reporting activities.
Amendment  4 Proposal for a regulation Article 13 - paragraph 1
Text proposed by the Commission	Amendment
1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 50 % of the total of the estimated costs referred to in Article 8(2)(e) or 65 % of these costs in the case of applications submitted by a Member State on the territory of which at least one region at NUTS II level is eligible under the "Convergence" objective of the Structural Funds. The Commission, in its assessment of such cases, will decide whether the 65 % co-funding rate is justified.	1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 50 % of the total of the estimated costs referred to in Article 8(2)(e) or 65 % of these costs in the case of applications submitted by a Member State on the territory of which at least one region at NUTS II level is eligible under the "Convergence" objective of the Structural Funds. The Commission, in its assessment of such cases, will decide, in accordance with pre-determined criteria, whether the 65 % co-funding rate is justified.
Amendment  5 Proposal for a regulation Article 16 - paragraph 1
Text proposed by the Commission	Amendment
1. Following the entry into force of a Decision on a financial contribution in accordance with Article 15(4) the Commission shall pay the financial contribution to the Member State in form of a pre-financing of at least 50 % of the Union's financial contribution to the Member State, in principle within 15 days, followed where necessary in form of intermediate and final payments. The pre-financing shall be cleared when the financial contribution is wound up in accordance with Article 18(3).	1. Following the entry into force of a Decision on a financial contribution in accordance with Article 15(4) the Commission shall pay the financial contribution to the Member State in form of a pre-financing of up to 50 % of the Union's financial contribution to the Member State, in principle within 15 days, followed by intermediate and/or final payments. The pre-financing shall be cleared when the financial contribution is wound up in accordance with Article 18(3).
Amendment  6 Proposal for a regulation Article 19 - paragraph 1
Text proposed by the Commission	Amendment
1. By 1 August of every second year year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.	1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a comprehensive, quantitative and qualitative report on the activities under this Regulation and Regulation (EC) No 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, the number of workers who are supported and who find stable employment within one year from the date of application, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.
Amendment  7 Proposal for a regulation Article 19 - paragraph 2
Text proposed by the Commission	Amendment
2. The report shall be transmitted for information to the European Economic and Social Committee, the Committee of the Regions and the social partners.	2. The report shall be transmitted for information to the Court of Auditors, the European Economic and Social Committee, the Committee of the Regions and the social partners.
Amendment  8 Proposal for a regulation Article 20 - paragraph 2
Text proposed by the Commission	Amendment
2. The results of the evaluation shall be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the social partners.	2. The results of the evaluation shall be transmitted, for information, to the European Parliament, the Council, the Court of Auditors, the European Economic and Social Committee, the Committee of the Regions and the social partners. The recommendations of the evaluation should be taken into account for the design of new programmes in the area of employment and social affairs.
Amendment  9 Proposal for a regulation Article 21 - paragraph 1 - point (c)
Text proposed by the Commission	Amendment
(c) ensuring that expenditure funded is based on verifiable supporting documents, and is correct and regular;	(c) ensuring that expenditure funded is based on verifiable supporting documents, and is legal and regular;
Amendment  10 Proposal for a regulation Article 21 - paragraph 4 - subparagraph 1
Text proposed by the Commission	Amendment
4. The Commission, in its responsibility for the implementation of the general budget of the European Union, shall take every step necessary to verify that the actions financed are carried out in accordance with the principles of sound and efficient financial management. It is the responsibility of the applicant Member State to ensure that it has smoothly functioning management and control systems. The Commission shall satisfy itself that such systems are in place.	4. The Commission, in its responsibility for the implementation of the general budget of the European Union, shall take every step necessary to verify that the actions financed are carried out in accordance with the principles of sound and efficient financial management. It is the responsibility of the applicant Member State to ensure that it has smoothly functioning management and control systems. The Commission shall satisfy itself that such systems are in place. If irregularities are detected, amounts wrongly paid should be recovered primarily by offsetting. Where appropriate, the protection of the Union's financial interests in accordance with Article 325 of the Treaty may include effective, proportional and deterrent penalties.
Amendment  11 Proposal for a regulation Article 22 - paragraph 1
Text proposed by the Commission	Amendment
1. In cases where the amount of the actual cost of an action is less than the estimated amount quoted pursuant to Article 15, the Commission shall adopt a Decision, by means of an implementing act, requiring the Member State to reimburse the corresponding amount of the financial contribution received.	1. In cases where the amount of the actual cost of an action is less than the estimated amount quoted pursuant to Article 15 and recovering by offsetting is not feasible, the Commission shall adopt implementing acts requiring the Member State to reimburse the corresponding amount of the financial contribution received.
Amendment  12 Proposal for a regulation Article 24 - paragraph 2
Text proposed by the Commission	Amendment
2. The delegations of power referred to in this Regulation shall be conferred for an indeterminate period of time from the date of entry into force of this Regulation.	2. The delegations of power referred to in this Regulation shall be conferred for the period that this Regulation is in force.

PROCEDURE

Title	European Globalisation Adjustment Fund (2014 - 2020)
References	COM(2011)0608 – C7-0319/2011 – 2011/0269(COD)
Committee responsible        Date announced in plenary	EMPL 25.10.2011
Opinion by        Date announced in plenary	CONT 25.10.2011
Rapporteur        Date appointed	Jorgo Chatzimarkakis 24.11.2011
Date adopted	30.5.2012
Result of final vote	+: –: 0:	24 1 0
Members present for the final vote	Marta Andreasen, Jean-Pierre Audy, Inés Ayala Sender, Zigmantas Balčytis, Andrea Češková, Tamás Deutsch, Martin Ehrenhauser, Jens Geier, Ingeborg Gräßle, Cătălin Sorin Ivan, Iliana Ivanova, Jan Mulder, Eva Ortiz Vilella, Crescenzio Rivellini, Paul Rübig, Petri Sarvamaa, Theodoros Skylakakis, Bart Staes, Michael Theurer
Substitute(s) present for the final vote	Zuzana Brzobohatá, Jorgo Chatzimarkakis, Derk Jan Eppink, Véronique Mathieu, Markus Pieper
Substitute(s) under Rule 187(2) present for the final vote	Joachim Zeller

OPINION of the Committee on Regional Development (10.7.2012)

for the Committee on Employment and Social Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020)
(COM(2011)0608 – C7‑0319/2011 – 2011/0269(COD))

Rapporteur: Jens Geier

SHORT JUSTIFICATION

The European Globalisation Adjustment Fund (EGF) was initially established for the duration of the programming period 2007 – 2013 by Regulation (EC) No 1927/2006[1] to provide the Union with an instrument to demonstrate solidarity with, and give support to, workers made redundant as a result of major structural changes in world trade patterns caused by globalisation where these redundancies have a significant adverse impact on the regional or local economy. By co-funding active labour market policy measures, the EGF aims to facilitate the re-integration of workers in areas, sectors, territories or labour markets suffering the shock of serious economic disruption.

The European Globalisation Adjustment Funds' added value as an EU social policy instrument lies in the fact that it provides a visible, specific, targeted financial support for personalised programmes for the re-skilling and re-integration into employment of workers affected by collective redundancies.

Your Rapporteur supports the Commission proposal to continue the European Globalisation Adjustment Fund measures after 2013, because it shows a political will to develop a European social pillar that is complementary to member states policies and revitalises the European approach to professional training.

Your Rapporteur disagrees, however, with the Commission's proposal in expanding the scope of the EGF to the agricultural sector, because he believes that the outcome of free trade agreements between the EU and third countries should not be balanced by the European Globalisation Adjustment Fund. Your Rapporteur feels that the 2.5 billion intended to support European farmers through the European Globalisation Adjustment Fund are not appropriate in its aim, nor in the size of the proposed amount for the agricultural sector. On the contrary, when negotiating free trade agreements, the EU needs to ensure policy coherence with the Common Agricultural Policy as a whole.

While supporting the proposed inclusion of self-employed workers, as they are substantial players on the local labour markets and are therefore as exposed to structural changes in world pattern caused by globalisation as employed workers, your Rapporteur opposes the idea to include owner-managers of micro, small and medium-sized enterprises to the EGF, because the EGF is intended to focus on the social sectors more severely affected by globalisation.

In order to increase the possibility for smaller groups of redundant workers to benefit from the European Globalisation Adjustment Fund, your Rapporteur suggests lowering the threshold for applications to 200 redundancies instead of the proposed 500. This change could have a positive effect for the potential beneficiary and could increase the re-employment possibilities in all regions of the European Union.

Due to the above mentioned reasons, your Rapporteur supports the continuation of the European Globalisation Adjustment Fund, but highlights the need for amending the scope of the fund.

AMENDMENTS

The Committee on Regional Development calls on the Committee on Employment and Social Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5) In compliance with the Communication on 'A Budget for Europe 2020', the scope of the EGF should be broadened to facilitate the adaptation of farmers to a new market situation resulting from international trade agreements in the agricultural sector and leading to a change or a significant adjustment in the agricultural activities of the affected farmers so as to assist them to become structurally more competitive or to facilitate their transition to non-agricultural activities.	deleted
Amendment  2 Proposal for a regulation Recital 6
Text proposed by the Commission	Amendment
(6) In order to maintain the European nature of the EGF, an application for support should be triggered when the number of redundancies reaches a minimum threshold. In small labour markets, such as small Member States or remote regions, and in exceptional circumstances, applications may be submitted for a lower number of redundancies. As regards farmers, the necessary criteria should be determined by the Commission in relation to the consequences of each trade agreement.	(6) In order to maintain the European nature of the EGF, an application for support should be triggered when the number of redundancies reaches a minimum threshold. In small labour markets, such as small Member States or remote regions, and in exceptional circumstances, applications may be submitted for a lower number of redundancies.
Amendment  3 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7) Redundant workers should have equal access to the EGF independently of their type of employment contract or employment relationship. Therefore, workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of micro, small and medium-sized enterprises and self-employed workers who cease their activities and farmers who change or adjust their activities to a new market situation following trade agreements, should be regarded as redundant workers for the purposes of this Regulation.	(7) Redundant workers should have equal access to the EGF independently of their type of employment contract or employment relationship. Therefore, workers with fixed term contracts and temporary agency workers made redundant as well as owner-managers of small-sized enterprises of a size of up to five employees and self-employed workers and workers who would like to establish a new undertaking or take over an existing one in order to generate a new source of income or those who cease their activities should be regarded as redundant workers for the purposes of this Regulation.
Amendment  4 Proposal for a regulation Recital 8
Text proposed by the Commission	Amendment
(8) Regarding farmers, the scope of the EGF should include beneficiaries affected by bilateral agreements concluded by the Union in accordance with Article XXIV of the GATT or multilateral agreements concluded within the World Trade Organisation. This covers farmers changing or adjusting their previous agricultural activities within a period starting upon initialling of such trade agreements and ending three years after their full implementation.	deleted
Amendment  5 Proposal for a regulation Recital 9
Text proposed by the Commission	Amendment
(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into employment, either within or outside their initial sector of activity, including the agricultural sector. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted.	(9) Financial contributions from the EGF should be primarily directed at active labour market measures aimed at reintegrating redundant workers rapidly into employment, either within or outside their initial sector of activity. The inclusion of pecuniary allowances in a coordinated package of personalised services should therefore be restricted.
Amendment  6 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the date of application.	(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the resources being allocated.
Amendment  7 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12) In compliance with the principle of sound financial management, financial contributions from the EGF should not replace support measures which are available for redundant workers within the Union's Structural Funds or other Union policies or programmes.	(12) In compliance with the principle of sound financial management, financial contributions from the EGF should supplement support measures which are available for redundant workers within the Union's Structural Funds or other Union policies or programmes.
Amendment  8 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13) Special provisions should be included for information and communication activities on EGF cases and outcomes. In addition, to bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation should also contribute to covering the corporate communication of the political priorities of the Union provided that these are related to the general objectives of this Regulation.	(13) Bearing in mind the low level of awareness of the EGF in the Member States, special provisions should be included for information and promotion activities on the programme, examples of best practices and EGF outcomes. In addition, to bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation should also contribute to covering the corporate communication of the political priorities of the Union provided that these are related to the general objectives of this Regulation.
Amendment  9 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15) To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State incurs administrative expenditure for implementing the EGF or from the date on which a Member State starts to provide personalised services or, in the case of farmers, from the date set in a Commission act in accordance with Article 4(3).	(15) To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State incurs administrative expenditure for implementing the EGF or from the date on which a Member State starts to provide personalised services.
Amendment  10 Proposal for a regulation Recital 16
Text proposed by the Commission	Amendment
(16) In order to cover the needs arising during the final months of each year, it is necessary to ensure that at least one quarter of the annual maximum amount of the EGF remains available on 1 September. Financial contributions made during the remainder of the year should be allocated taking into account the overall ceiling laid down for support to farmers in the Multiannual Financial Framework.	(16) In order to cover the needs arising during the final months of each year, it is necessary to ensure that at least one quarter of the annual maximum amount of the EGF remains available on 1 September.
Amendment  11 Proposal for a regulation Article 1 – paragraph 2
Text proposed by the Commission	Amendment
2. The aim of the EGF shall be to contribute to economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, trade agreements affecting agriculture, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment, or for changing or adjusting their agricultural activities.	2. The aim of the EGF shall be to contribute to social and territorial cohesion, economic growth and employment in the Union by enabling the Union to show solidarity towards workers made redundant as a result of major structural changes in world trade patterns due to globalisation, or an unexpected crisis, and to provide financial support for their rapid reintegration into employment.
Amendment  12 Proposal for a regulation Article 2 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a) workers made redundant as a result of major structural changes in world trade patterns due to globalisation, demonstrated, in particular, by a substantial increase in imports into the Union, a rapid decline of the Union market share in a given sector or a delocalisation of activities to non-member countries, where these redundancies have a significant adverse impact on the local, regional or national economy;	(a) workers made redundant as a result of major structural changes in world trade patterns due to globalisation, demonstrated, in particular by a rapid decline of the Union market share in a given sector or a delocalisation of activities to non-member countries, where these redundancies have a significant adverse impact on the local, regional or national economy;
Amendment  13 Proposal for a regulation Article 2 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b) workers made redundant as a result of a serious disruption of the local, regional or national economy caused by an unexpected crisis, provided that a direct and demonstrable link can be established between the redundancies and that crisis;	(b) workers made redundant as a result of a serious disruption of the local, regional or national economy caused by a crisis, provided that a direct and demonstrable link can be established between the redundancies and that crisis;
Amendment  14 Proposal for a regulation Article 2 - point c
Text proposed by the Commission	Amendment
(c) workers changing or adjusting their previous agricultural activities during a period starting upon initialling of the trade agreement by the Union containing trade liberalisation measures for the relevant agricultural sector and ending three years after the full implementation of these measures and provided that these trade measures lead to a substantial increase in Union imports of an agricultural product or products accompanied by a significant decrease in prices of such products at the Union or, where relevant, the national or regional level.	deleted
Amendment  15 Proposal for a regulation Article 3 – paragraph 1 – point d
Text proposed by the Commission	Amendment
(d) ‘a worker’ means owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers) and all members of the household active in the business, provided that, if farmers, they were already producing the output affected by the relevant trade agreement before the measures concerning the specific sector were implemented.	(d) ‘a worker’ means owner-managers of small-sized enterprises of a size of up to five employees and self-employed workers and workers who would like to establish a new undertaking or take over an existing one in order to generate a new source of income and all members of the household active in the business.
Amendment  16 Proposal for a regulation Article 4 - paragraph 1 - point a
Text proposed by the Commission	Amendment
(a) at least 500 workers being made redundant over a period of four months in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers;	(a) at least 200 workers being made redundant over a period of four months in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers;
Amendment  17 Proposal for a regulation Article 4 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b) at least 500 workers being made redundant over a period of nine months, particularly in small or medium-sized enterprises, operating in one economic sector defined at NACE Revision 2 division level and located in one region or two contiguous regions defined at NUTS II level, or in more than two contiguous regions defined at NUTS II level provided that more than 500 workers are made redundant in two of the regions combined.	(b) at least 200 workers being made redundant over a period of nine months, particularly in small or medium-sized enterprises, operating in one economic sector defined at NACE Revision 2 division level and located in one region or two contiguous regions in the same Member State or cross-border region defined at NUTS II level, or in more than two contiguous regions defined at NUTS II level provided that more than 200 workers are made redundant in two of the regions combined.
Amendment  18 Proposal for a regulation Article 4 - paragraph 2
Text proposed by the Commission	Amendment
2. In small labour markets or in exceptional circumstances, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article may be considered admissible even if the criteria laid down in points (a) or (b) of paragraph 1 are not entirely met, when redundancies have a serious impact on employment and the local economy. The Member State shall specify which of the intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met.	2. In small labour markets or in exceptional circumstances, in particular with regard to collective applications involving SMEs, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article may be considered admissible even if the criteria laid down in points (a) or (b) of paragraph 1 are not entirely met, when redundancies have a serious impact on employment and the local economy. The Member State shall specify which of the intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met.
Amendment  19 Proposal for a regulation Article 4 - paragraph 3
Text proposed by the Commission	Amendment
3. As regards farmers, when, after a trade agreement is initialled and on the basis of the information, data and analyses available to it, the Commission considers that the conditions for support in accordance with Article 2(c) are likely to be met for a significant number of farmers, it shall adopt delegated acts in accordance with Article 24 designating the eligible sectors or products, defining the affected geographical areas where appropriate, setting a maximum amount for potential support at Union level, setting reference periods and eligibility conditions for farmers and eligibility dates for expenditure as well as establishing the deadline by which applications must be submitted and, if necessary, the content of these applications in accordance with Article 8(2).	deleted
Amendment  20 Proposal for a regulation Article 4 – paragraph 4
Text proposed by the Commission	Amendment
4. Where owner-managers of micro, small and medium-sized enterprises and self-employed workers change or, in the case of farmers, adjust their previous activities, such situations shall be considered as redundancies for the purposes of this Regulation.	4. Where owner-managers of small-sized enterprises of a size of up to five employees and self-employed workers and workers who would like to establish a new undertaking or take over an existing one in order to change or readjust their activities, such situations shall be considered as redundancies for the purposes of this Regulation.
Amendment  21 Proposal for a regulation Article 5 – paragraph 1 – point c
Text proposed by the Commission	Amendment
(c) For owner-managers of micro, small and medium-sized enterprises and self-employed workers (including farmers), the redundancy shall be counted either from the date of cessation of the activities caused by any of the conditions set out in Article 2, and determined in accordance with national law or administrative provisions, or from the date specified by the Commission in the delegated act adopted in accordance with the Article 4(3).	(c) For owner-managers of small-sized enterprises of a size of up to five employees and self-employed workers and workers who would like to establish a new undertaking or take over an existing one in order to generate a new source of income, the redundancy shall be counted either from the date of cessation of the activities caused by any of the conditions set out in Article 2, and determined in accordance with national law or administrative provisions, or from the date specified by the Commission in the delegated act adopted in accordance with the Article 4(3).
Amendment  22 Proposal for a regulation Article 6 - point c
Text proposed by the Commission	Amendment
(c) farmers changing or adjusting their previous agricultural activities following the initialling by the Union of a trade agreement referred to in the delegated act taken in accordance with Article 4(3).	deleted
Amendment  23 Proposal for a regulation Article 7 - paragraph 1 - subparagraph 1
Text proposed by the Commission	Amendment
A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment or, in the case of farmers, to change or adjust their previous activities. The coordinated package of personalised services may include in particular:	A financial contribution may be made for active labour market measures that form part of a coordinated package of personalised services, designed to facilitate the re-integration of the targeted redundant workers into employment or self-employment. The coordinated package of personalised services may include in particular:
Amendment  24 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point a
Text proposed by the Commission	Amendment
(a) job-search assistance, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion, aid for self-employment and business start-up or for changing or adjusting activity (including investments in physical assets), co-operation activities, tailor-made training and re-training, including information and communication technology skills and certification of acquired experience;	(a) job-search assistance, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion, aid for self-employment and business start-up or for changing or adjusting activity (including investments in physical assets), aid with a view to the creation of micro-enterprises, co-operation activities, tailor-made training and re-training, including information and communication technology skills and certification of acquired experience;
Amendment  25 Proposal for a regulation Article 7 - paragraph 1 - point b
Text proposed by the Commission	Amendment
(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;	(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers), all of which limited to the duration of the documented active job search or life-long learning or training activities;
Amendment  26 Proposal for a regulation Article 8 - paragraph 2 - point a
Text proposed by the Commission	Amendment
(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis, or the new market situation in the agricultural sector in the Member State and resulting from the effects of a trade agreement initialled by the European Union in accordance with Article XXIV of the GATT or a multilateral agreement initialled within the World Trade Organisation as per Article 2(c). This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;	(a) a reasoned analysis of the link between the redundancies and the major structural changes in world trade patterns, or the serious disruption of the local, regional or national economy caused by an unexpected crisis. This analysis shall be based on statistical and other information at the most appropriate level to demonstrate the fulfilment of the intervention criteria set out in Article 4;
Amendment  27 Proposal for a regulation Article 8 – paragraph 2 – point a a (new)
Text proposed by the Commission	Amendment
	(aa) where the company continues its activities after lay-offs, a detailed explanation of the legal obligations it is under and of the measures that it has taken in order to take care of redundant workers;
Amendment  28 Proposal for a regulation Article 8 – paragraph 2 – point g
Text proposed by the Commission	Amendment
(g) the procedures followed for consulting the social partners or other relevant organisations as applicable;	(g) the procedures followed for consulting the workers concerned or their representatives, the social partners, local and regional authorities or other relevant organisations as applicable;
Amendment  29 Proposal for a regulation Article 8 - paragraph 2 - point g a (new)
Text proposed by the Commission	Amendment
	(ga) the names of the agencies delivering the package of measures in the Member State;
Amendment  30 Proposal for a regulation Article 8 – paragraph 2 – point i a (new)
Text proposed by the Commission	Amendment
	(ia) information as to whether the undertaking has been a beneficiary of previous funding from Union Cohesion or Structural Funds or obtained indirectly from Union Support Programmes via funding for infrastructure and projects related to the company's or its workers' activities in the preceding 10 years;
Amendment  31 Proposal for a regulation Article 9 – paragraph 1
Text proposed by the Commission	Amendment
1. Support for redundant workers shall complement actions of the Member States at national, regional and local level.	1. Support for redundant workers shall complement and shall not replace actions of the Member States at national, regional and local level.
Amendment  32 Proposal for a regulation Article 9 – paragraph 2
Text proposed by the Commission	Amendment
2. The financial contribution shall be limited to what is necessary to provide solidarity and support for individual redundant workers. The activities supported by the EGF shall comply with Union and national law, including state aid rules.	2. The financial contribution shall be limited to what is necessary to provide solidarity and support for individual redundant workers. The activities supported by the EGF shall comply with Union and national law, including state aid rules and shall not replace actions for which Member States or companies are responsible.
Amendment  33 Proposal for a regulation Article 9 - paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a. The Commission shall ensure that the entitlement to benefit from the EGF shall not influence the eligibility to benefit under any other Union fund.
Amendment  34 Proposal for a regulation Article 11 – paragraph 4
Text proposed by the Commission	Amendment
4. The Commission's technical assistance shall include the provision of information and guidance to the Member States for using, monitoring and evaluating the EGF. The Commission may also provide information on using the EGF to the European and national social partners.	4. The Commission's technical assistance shall include the provision of information and guidance to the Member States for using, monitoring and evaluating the EGF. The Commission shall also provide clear guidelines on using the EGF to the European and national social partners and local and regional authorities.
Amendment  35 Proposal for a regulation Article 12 - paragraph 3
Text proposed by the Commission	Amendment
3. The Commission shall implement information and communication activities on EGF cases and outcomes.	3. The Commission shall implement information and communication activities in order to ensure that all the countries, regions and employment sectors of the Union are aware of these possibilities and shall report on the use of the fund annually on a country-by-country and sector-by-sector basis.
Amendment  36 Proposal for a regulation Article 13 – paragraph 1
Text proposed by the Commission	Amendment
1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 50 % of the total of the estimated costs referred to in Article 8(2)(e) or 65 % of these costs in the case of applications submitted by a Member State on the territory of which at least one region at NUTS II level is eligible under the ‘Convergence’ objective of the Structural Funds. The Commission, in its assessment of such cases, will decide whether the 65 % co-funding rate is justified.	1. The Commission shall, on the basis of the assessment carried out in accordance with Article 8(3), particularly taking into account the number of targeted workers, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of a financial contribution, if any, that may be made within the limits of the resources available. The amount may not exceed 50 % of the total of the estimated costs referred to in Article 8(2)(e) or 65 % of these costs in the case of applications submitted by a Member State on the territory of which at least one region at NUTS II level is eligible under the ‘Convergence’ objective of the Structural Funds. The Commission, in its assessment of such cases, will decide whether the 65 % co-funding rate is justified, by taking into account indicators of the social and employment situation, such as adjusted disposable income after social transfers.
Amendment  37 Proposal for a regulation Article 13 - paragraph 3
Text proposed by the Commission	Amendment
3. Where on the basis of the assessment carried out in accordance with Article 8(3) the Commission has concluded that the conditions for a financial contribution are not met, it shall notify the applicant Member State as soon as possible.	3. Where on the basis of the assessment carried out in accordance with Article 8(3) the Commission has concluded that the conditions for a financial contribution are not met, it shall immediately notify the applicant Member State.
Amendment  38 Proposal for a regulation Article 14 – paragraph 1
Text proposed by the Commission	Amendment
1. Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(h) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively. In the case of farmers, expenditure shall be eligible for a contribution from the date set in the delegated act taken in accordance with Article 4(3).	1. Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(h) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively.
Amendment  39 Proposal for a regulation Article 19 – paragraph 1
Text proposed by the Commission	Amendment
1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.	1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.
Amendment  40 Proposal for a regulation Article 20 - paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. These evaluations shall include the figures showing the number of applications and shall cover the performance of programmes country-by-country and sector-by-sector, so as to assess whether the EGF is reaching its targeted recipients.
Amendment  41 Proposal for a regulation Article 23
Text proposed by the Commission	Amendment
Article 23	deleted
Financial management of support to farmers
By way of derogation from Articles 21 and 22, support for farmers shall be managed and controlled in accordance with Regulation (EC) No………… on the financing, management and monitoring of the common agricultural policy.

PROCEDURE

Title	European Globalisation Adjustment Fund (2014 - 2020)
References	COM(2011)0608 – C7-0319/2011 – 2011/0269(COD)
Committee responsible        Date announced in plenary	EMPL 25.10.2011
Opinion by        Date announced in plenary	REGI 25.10.2011
Rapporteur        Date appointed	Jens Geier 23.11.2011
Discussed in committee	26.4.2012
Date adopted	21.6.2012
Result of final vote	+: –: 0:	38 6 1
Members present for the final vote	François Alfonsi, Catherine Bearder, Jean-Paul Besset, Victor Boştinaru, John Bufton, Alain Cadec, Salvatore Caronna, Nikos Chrysogelos, Ryszard Czarnecki, Francesco De Angelis, Rosa Estaràs Ferragut, Brice Hortefeux, Danuta Maria Hübner, Filiz Hakaeva Hyusmenova, María Irigoyen Pérez, Seán Kelly, Constanze Angela Krehl, Petru Constantin Luhan, Elżbieta Katarzyna Łukacijewska, Ramona Nicole Mănescu, Vladimír Maňka, Riikka Manner, Iosif Matula, Erminia Mazzoni, Miroslav Mikolášik, Lambert van Nistelrooij, Jan Olbrycht, Younous Omarjee, Markus Pieper, Monika Smolková, Ewald Stadler, Oldřich Vlasák, Kerstin Westphal, Joachim Zeller
Substitute(s) present for the final vote	Antonello Antinoro, Cornelia Ernst, Pat the Cope Gallagher, Jens Geier, Lena Kolarska-Bobińska, James Nicholson, Ivari Padar, Vilja Savisaar-Toomast, Elisabeth Schroedter, Czesław Adam Siekierski, Patrice Tirolien

• [1]             OJ L 406, 30.12.2006, p. 1.

OPINION of the Committee on Women's Rights and Gender Equality (7.6.2012)

for the Committee on Employment and Social Affairs

on the proposal for a regulation of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020)
(COM(2011)0608 – C7‑0319/2011 – 2011/0269(COD))

Rapporteur: Vilija Blinkevičiūtė

AMENDMENTS

The Committee on Women's Rights and Gender Equality calls on the Committee on Employment and Social Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a) Respect for gender equality is confirmed throughout the Europe 2020 strategy to be one of Union's core values, stressing the need to promote gender equality policies in order to increase labour force participation and to contribute to growth and social cohesion. Its flagship initiative ´An Agenda for new skills and jobs´ notes that Member States are to promote new forms of work-life balance and gender equality. Additionally, the Commission, in 2010, adopted a strategy for promoting equality between women and men in Europe aiming, in particular, to make better use of women's potential, thereby contributing to the Union's overall economic and social goals.
Amendment  2 Proposal for a regulation Recital 4 a (new)
Text proposed by the Commission	Amendment
	(4a) The detrimental effect of job losses is exacerbated for certain groups who find reintegration into the labour market more difficult, particularly for low-skilled or unskilled female workers, single mothers and women with caring responsibilities. The financial and economic crisis and its impact on reduced public sector funding in turn has led to the further loss of jobs and to further insecurity for millions of women, notably those on temporary or part-time contracts and engaged in seasonal work. Equal access to EGF therefore should apply to all employment contracts.
Amendment  3 Proposal for a regulation Recital 5 a (new)
Text proposed by the Commission	Amendment
	(5a) In accordance with Articles 8 and 10 of the Treaty on the Functioning of the European Union, the Commission and the Member States should ensure that the implementation of the priorities, financed by the EGF contribute to the promotion of equality between men and women, taking into account, in addition, theEuropean Pact for Gender Equality 2011-2020.
	Effective implementation of the principle of equality between men and women should include data and indicators broken down by sex, gender equality objectives and criteria, involving gender equality bodies in various stages of implementation, in particular in planning, monitoring and evaluation.
Amendment  4 Proposal for a regulation Recital 7 a (new)
Text proposed by the Commission	Amendment
	(7a) In order to protect the gender dimension of the EGF, special attention should be paid to women who are forced to accept casual, part-time and temporary jobs due to the numerous breaks they have to take for maternity reasons and to look after children and elderly members of the family.
Amendment  5 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of the date of application.	(10) When drawing up the coordinated package of active labour market policy measures, Member States should favour measures that will significantly contribute to the employability of the redundant workers. Member States should strive towards the reintegration into employment or new activities of at least 50 % of the targeted workers within 12 months of receiving assistance.
Amendment  6 Proposal for a regulation Article 1 – paragraph 3
Text proposed by the Commission	Amendment
Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions find stable employment within a year from the date of application.	Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure that a minimum of 50 % of workers participating in these actions find stable employment within a year of receiving assistance.
Amendment  7 Proposal for a regulation Article 3 – point -a (new)
Text proposed by the Commission	Amendment
	(- a) 'the principle of equal treatment between men and women' means that there shall be no discrimination whatsoever on grounds of sex in various stages of the implementation of the financial contribution, in particular  in selecting target groups, establishing criteria, indicators and beneficiaries;
Amendment  8 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point b
Text proposed by the Commission	Amendment
(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;	(b) special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for child care and care for other dependents, or farm relief services), all of which limited to the duration of the documented active job search or life-long learning or training activities;
Amendment  9 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point c
Text proposed by the Commission	Amendment
(c) measures to stimulate in particular disadvantaged or older workers to remain in or return to the labour market.	(c) measures to stimulate in particular disadvantaged workers and those who are at higher risk of poverty, such as women – especially single mothers – or older workers to remain in or return to the labour market.
Amendment  10 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 1 – point c a (new)
Text proposed by the Commission	Amendment
	(ca) financial measures, for example instruments such as micro-credit, to support workers who are in a particularly vulnerable condition, such as people with disabilities, single mothers and the elderly.
Amendment  11 Proposal for a regulation Article 7 – paragraph 1 – subparagraph 2
Text proposed by the Commission	Amendment
The costs of the measures under (b) may not exceed 50 % of the total costs of the coordinated package of personalised services listed in this paragraph.	deleted
Amendment  12 Proposal for a regulation Article 8 – paragraph 2 – point c
Text proposed by the Commission	Amendment
(c) the identification, where applicable, of the dismissing enterprises, suppliers or downstream producers, sectors, and the categories of targeted workers;	(c) the identification, where applicable, of the dismissing enterprises, suppliers or downstream producers, sectors, and the categories of targeted workers using gender segregated data;
Amendment  13 Proposal for a regulation Article 10
Text proposed by the Commission	Amendment
The Commission and the Member States shall ensure that equality between men and women and the integration of the gender perspective are promoted during the various stages of the implementation of the financial contribution. The Commission and the Member State shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age, sexual orientation and type of contract of employment or employment relationship in access to and during the various stages of the implementation of the financial contribution.	The Commission and the Member States shall apply the principle of equal treatment between men and women, which means that they shall not tolerate any discrimination whatsoever on grounds of sex, and that they shall ensure that equality between men and women and the integration of the gender perspective are promoted during the various stages of the implementation of the financial contribution, in particular when selecting target groups and establishing criteria and indicators and beneficiaries.
	The Commission and the Member State shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age, sexual orientation and type of contract of employment or employment relationship in access to and during the various stages of the implementation of the financial contribution.
	In applying for and using resources from the European Globalisation Fund, Member States shall particularly support the more vulnerable groups in society, including women, in whose case the significant gender pay gap also affects the amount of employment insurance benefits, while long-term unemployment further reduces pensions.
Amendment  14 Proposal for a regulation Article 14
Text proposed by the Commission	Amendment
Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(h) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively. In the case of farmers, expenditure shall be eligible for a contribution from the date set in the delegated act taken in accordance with Article 4(3).	Expenditure shall be eligible for a financial contribution from the dates set out in Article 8(2)(f) on which the Member State starts the personalised services to the targeted workers or the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) respectively. In the case of farmers, expenditure shall be eligible for a contribution from the date set in the delegated act taken in accordance with Article 4(3).
Amendment  15 Proposal for a regulation Article 18 – paragraph 1 – subparagraph 1
Text proposed by the Commission	Amendment
No later than 15 months after the date of the application pursuant to Article 8(1) or by the date laid down in the delegated act taken in accordance with Article 4(3) the Member State shall present an interim report to the Commission on the implementation of the financial contribution, including on the funding, timing and type of actions already carried out and on the rate of reintegration into employment or new activities achieved 12 months after the date of the application.	No later than 15 months after the date of the application pursuant to Article 8(1) or by the date laid down in the delegated act taken in accordance with Article 4(3) the Member State shall present an interim report to the Commission on the implementation of the financial contribution, including on the funding, timing and type of actions already carried out and on the rate of reintegration into employment, with particular reference to the gender dimension, or new activities achieved 12 months after the date of the application.
Amendment  16 Proposal for a regulation Article 18 – paragraph 1 – subparagraph 2 – point b
Text proposed by the Commission	Amendment
(b) a description of the actions taken and planned by the national, regional or local authorities, Union Funds, social partners and enterprises, including an estimate of how these contribute to the reintegration of the workers into employment or new activities.	(b) a description of the actions taken and planned by the national, regional or local authorities, Union Funds, social partners and enterprises, including an estimate of how these contribute to the reintegration of the workers into employment or new activities and to the principle of equal treatment between men and women.
Amendment  17 Proposal for a regulation Article 18 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. Whenever possible, data shall be segregated (broken down) by sex.
Amendment  18 Proposal for a regulation Article 19 – paragraph 1
Text proposed by the Commission	Amendment
1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), and the winding-up of financial contributions made. It should also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility.	1. By 1 August of every second year, and for the first time in 2015, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation and Regulation 1927/2006 in the previous two years. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted and actions funded, as well as information relating to activities that pursue the objective of equality between men and women, information and statistics on the reintegration rate for workers, with particular reference to the more vulnerable categories such as women and the elderly, and the winding-up of financial contributions made. In that regard, the report shall include an assessment of the complementarity of such actions and activities with actions funded by other Union Funds, notably the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD), . It shall also document those applications that have been rejected or reduced owing to a lack of sufficient appropriations or to non-eligibility. All data in the report where possible shall be segregated (broken) down by sex.
Amendment  19 Proposal for a regulation Article 20 – paragraph 1 – point b
Text proposed by the Commission	Amendment
(b) by 31 December 2022, an ex-post evaluation with the assistance of external experts, to measure the impact of the EGF and its added value.	(b) by 31 December 2022, an ex-post evaluation with the assistance of external experts, including gender equality experts, to measure the impact of the EGF and its added value.
Amendment  20 Proposal for a regulation Article 21 – paragraph 1 – point a
Text proposed by the Commission	Amendment
(a) verifying that management and control arrangements have been set up and are being implemented in such a way as to ensure that Union funds are being used efficiently and correctly, in accordance with the principles of sound financial management;	(a) verifying that management and control arrangements have been set up and are being implemented in such a way as to ensure that Union funds are being used efficiently and correctly, in accordance with the principles of sound financial management and of equal treatment between men and women;
Amendment  21 Proposal for a regulation Article 21 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a. While carrying out management and financial control, Member States shall ensure that monitoring bodies include gender equality experts.

PROCEDURE

Title	European Globalisation Adjustment Fund (2014 - 2020)
References	COM(2011)0608 – C7-0319/2011 – 2011/0269(COD)
Committee responsible        Date announced in plenary	EMPL 25.10.2011
Opinion by        Date announced in plenary	FEMM 25.10.2011
Rapporteur        Date appointed	Vilija Blinkevičiūtė 22.11.2011
Discussed in committee	27.3.2012	30.5.2012
Date adopted	30.5.2012
Result of final vote	+: –: 0:	24 0 0
Members present for the final vote	Regina Bastos, Andrea Češková, Iratxe García Pérez, Mikael Gustafsson, Mary Honeyball, Lívia Járóka, Teresa Jiménez-Becerril Barrio, Nicole Kiil-Nielsen, Rodi Kratsa-Tsagaropoulou, Astrid Lulling, Elisabeth Morin-Chartier, Siiri Oviir, Antonyia Parvanova, Joanna Senyszyn, Joanna Katarzyna Skrzydlewska, Britta Thomsen, Angelika Werthmann, Inês Cristina Zuber
Substitute(s) present for the final vote	Izaskun Bilbao Barandica, Vilija Blinkevičiūtė, Franziska Katharina Brantner, Minodora Cliveti, Mojca Kleva, Ana Miranda, Norica Nicolai, Antigoni Papadopoulou

PROCEDURE ()

Title	European Globalisation Adjustment Fund (2014 - 2020)
References	COM(2011)0608 – C7-0319/2011 – 2011/0269(COD)
Date submitted to Parliament	6.10.2011
Committee responsible        Date announced in plenary	EMPL 25.10.2011
Committee(s) asked for opinion(s)        Date announced in plenary	INTA 25.10.2011	BUDG 25.10.2011	CONT 25.10.2011	ITRE 25.10.2011
	REGI 25.10.2011	AGRI 25.10.2011	FEMM 25.10.2011
Not delivering opinions        Date of decision	ITRE 10.11.2011
Associated committee(s)        Date announced in plenary	AGRI 13.9.2012
Rapporteur(s)        Date appointed	Marian Harkin 27.10.2011
Legal basis disputed        Date of JURI opinion	JURI 27.11.2012
Discussed in committee	1.3.2012	26.3.2012	20.6.2012	6.9.2012
	8.10.2012
Date adopted	6.11.2012
Result of final vote	+: –: 0:	35 2 3
Members present for the final vote	Regina Bastos, Edit Bauer, Jean-Luc Bennahmias, Pervenche Berès, Mara Bizzotto, Vilija Blinkevičiūtė, Philippe Boulland, Milan Cabrnoch, Alejandro Cercas, Ole Christensen, Derek Roland Clark, Minodora Cliveti, Marije Cornelissen, Emer Costello, Frédéric Daerden, Karima Delli, Sari Essayah, Richard Falbr, Thomas Händel, Marian Harkin, Nadja Hirsch, Stephen Hughes, Martin Kastler, Ádám Kósa, Jean Lambert, Patrick Le Hyaric, Veronica Lope Fontagné, Olle Ludvigsson, Thomas Mann, Csaba Őry, Siiri Oviir, Konstantinos Poupakis, Sylvana Rapti, Elisabeth Schroedter, Joanna Katarzyna Skrzydlewska, Jutta Steinruck, Andrea Zanoni, Inês Cristina Zuber
Substitute(s) present for the final vote	Sergio Gaetano Cofferati, Riikka Manner, Csaba Sógor
Date tabled	7.1.2013