BETA


2006/0033(COD) Establishing the European Globalisation Adjustment Fund (EGF)

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead EMPL BACHELOT-NARQUIN Roselyne (icon: PPE-DE PPE-DE)
Committee Opinion BUDG
Committee Opinion ITRE
Committee Opinion REGI MADEIRA Jamila (icon: PSE PSE)
Committee Opinion INTA CHIESA Giulietto (icon: ALDE ALDE)
Committee Opinion IMCO
Committee Opinion ECON
Lead committee dossier:
Legal Basis:
EC Treaty (after Amsterdam) EC 159-p3

Events

2012/09/04
   EC - Follow-up document
Details

In accordance with the requirements of Regulation (EC) No 1927/2006 the Commission presents a report on the activities of the European Globalisation Adjustment Fund (EGF) in 2011. The report states that the trends evident so far show that EGF applications have been presented in a growing number of sectors, and by an increasing number of Member States. Member States have furthermore gained experience in selecting the most suitable measures, programming their assistance to redundant workers in an efficient manner, and making use of the EGF to test new approaches. They are also increasingly using the possibility of re-allocating funds between measures during project implementation in order to make full use of the available funds.

Overview of activities in 2011 : the Commission received 26 applications for contributions from the EGF, which was slightly less than in 2010 (31 applications). The 26 applications were submitted by 10 Member States, targeted 16 870 redundant workers and requested a total of EUR77 546 044 from the EGF. Two Member States were first-time applicants in 2011: Greece and Romania. In 2011, the Budgetary Authority took 22 decisions to draw on the EGF to co-finance active labour market policy measures. Five of these concerned applications made in 2011, while 16 concerned applications received in 2010 and one was in response to an application received in 2009. Regulation (EC) No 546/2009, adopted on 18 June 2009, applies to all contributions granted (i.e. 65 % co-funding rate, 24-month implementation period from the date of application, etc.).

The 22 contributions granted targeted 21213 redundant workers in twelve Member States with a total of EUR 128 167 758 paid from the EGF (25.6 % of the annual maximum amount available to the EGF). This represents a 54.1% increase in terms of EGF co-financing compared to 2010 (EUR 83 171 941 for 30 contributions granted).

Actions funded : the measures approved for the 22 EGF contributions granted in 2011 aimed to reintegrate 21213 redundant workers into the labour market. They consisted mainly of intensive, personalised job search assistance and case management including placement research with potential employers, a variety of vocational training, upskilling and retraining measures, various temporary financial incentives/allowances for the duration of the active support measures up to the period of actual work reintegration, some mentoring during the initial phase in the new job and other types of activities such as entrepreneurship promotion/business creation, supported employment and one-time employment/hiring incentives.

Summary of the results : in 2011, the Commission received four final reports presented by the three Member States on the following applications FEM/2009/004 BE/Oost-West Vlaanderen, FEM/2009/005 BE/Limburg, FEM/2009/007 SE/Volvo et FEM 2009/008 IE/Dell. The four reports, presented by three Member States (BE, IE and SE) showed that, at the end of the EGF implementation period, 2 352 workers (45.0% of 5 228) had found new jobs or were self- employed. The others were either in education or training (approximately 10.9%), or unemployed or inactive for personal reasons (NEET: not in education, employment, or training): approximately 44.1%.

Temporary crisis derogation : applying for EGF support was made a lot easier by the temporary ‘crisis derogation’ (applicable for EGF applications submitted between 1.5.2009 and 30.12.2011, according to the amended EGF Regulation) allowing the EGF to support workers made redundant as a result of the global financial and economic crisis and increasing the EGF contribution from 50% to 65% of total costs. The permanent changes, i.e. the reduction of the threshold from 1 000 to 500 redundancies and the extension of the implementation period from 12 to 24 months from the date of application, also had a positive impact: Member States were able to request EGF support for workers made redundant by smaller enterprises and to programme longer support for the workers than was possible in the past. The impact of the longer duration of EGF support on the employment and employability of redundant workers will be apparent after completion of the projects.

In June 2011, the Commission proposed to extend the ‘crisis derogation’ until the end of 2013 , and this was fully endorsed by the European Parliament on 21 September 2011. However, despite extensive debates in Council, the Commission proposal did not receive a qualified majority in the Council. Since no political agreement on the extension of the ‘crisis derogation’ was reached, as from 31 December 2011 applications for EGF support can be justified only on the grounds of structural changes in world trade patterns, and the co-funding rate has been reduced to the original 50 % of total eligible costs.

The report states that the fact that the EGF’s temporary ‘crisis derogation’ has not been extended beyond the end of 2011 (failure to achieve a qualified majority in the Council as eight countries voted against) has limited the possibilities for EU assistance to workers who are still greatly affected by the economic and financial crisis.

From 2012 until the end of the current programming period (end of 2013), the permanent changes in the amended Regulation (threshold reduced to 500 redundancies, implementation period increased to 24 months from the date of application) will continue to apply, facilitating applications from Member States related to redundancies as a consequence of major structural changes in world trade patterns. If the full potential of the EGF is developed, in complementarity with other available instruments and in consultation with the major stakeholders, dismissed workers who are eligible for EGF support can be helped in a tailor- made and personalised manner, thereby improving their opportunities in the labour market in the medium and longer term as markets gradually recover from the crisis.

Post-2013: the EGF Regulation has to be reviewed by 31 December 2013, which coincides with the end of the programming period (see COD/2011/0269 ). The Commission is keen to maintain the EGF over the next programming period 2014 to 2020, and wants specific, one-off support to be provided over this period to workers made redundant as a result of major structural changes triggered by the increasing globalisation of production and trade patterns. The EU should also be able to provide support in the event of large-scale redundancies resulting from serious disruption of local, regional or national economies caused by an unexpected crisis. Furthermore, the scope of the EGF should be extended to provide compensation in certain cases for the consequences of trade agreements in certain agricultural sectors.

2011/08/22
   EC - Follow-up document
Details

In accordance with the requirements of Regulation (EC) No 1927/2006 the Commission presents a report on the activities of the European Globalisation Adjustment Fund in 2010. The trends available so far show that EGF applications are being presented in a growing number of sectors, and by an increasing number of Member States. Member States are furthermore gaining experience in selecting the most suitable measures, programming their assistance to redundant workers, and making use of the EGF to test new approaches.

Developing the full potential of the EGF, in complementarity with other available instruments and in consultation with the major stakeholders, will increasingly help redundant workers in a tailor-made and personalised manner, thereby improving their opportunities on the labour market.

Overview of EGF activities in 2010 : the Commission received 31 applications for contributions from the EGF, which was one application more than in 2009. The Budgetary Authority took 31 decisions to mobilise the EGF in 2010, which represents a 300% increase in terms of decisions and a 60% increase in terms of EGF co-financing compared to 2009. Six EGF contributions granted in previous years were wound up.

The applications received related to 16 sectors, and may be summarised as follows: Austria (two applications: basic metals, electronic equipment), Belgium (one application: automotive), Czech Republic (one application: retail trade), Denmark (four applications: machinery/equipment, shipbuilding), France (one application: automotive), Germany (one application: machinery/equipment), Ireland (three applications: construction), Netherlands (seven applications: electronic equipment, printing industry, financial services, wholesale trade), Poland (three applications: automotive, machinery/equipment), Portugal (one application: shoe manufacture), Spain (six applications: automotive, wearing apparel, stone/marble, retail trade), Slovenia (one application: wearing apparel).

The EGF contributions requested per case in 2010 ranged from EUR 114 250 to EUR 38 052 069 (average EUR 5 483 695).

The 31 contributions granted targeted 23 688 redundant workers in nine Member States with a total of EUR 83 554 141 paid from the EGF (16.7% of the annual maximum amount available to the EGF). The amounts proposed per worker in 2010 varied from slightly above EUR 600 to over EUR 23 000.

Actions funded with EGF assistance : the measures approved for the 31 EGF contributions granted in 2010 aimed to reintegrate 23 688 redundant workers into the labour market. They consisted mainly of intensive, personalised job search assistance and case management, a variety of vocational training, up-skilling and retraining measures, various temporary financial incentives/allowances for the duration of the job search, training and other active labour market measures up to the period of actual work reintegration, and other types of activities such as entrepreneurship promotion and supported employment.

Complementarity with actions funded by the Structural Funds, notably the European Social Fund (ESF) : the EGF is designed to increase employability and ensure the rapid reintegration of redundant workers within the labour market through active labour market measures, thus complementing the ESF, which is the major EU instrument for promoting employment in the EU. The report gives specific examples of good complementarity between the ESF and the EGF.

Results achieved by the EGF : the main sources of information on the results achieved by the EGF are the final reports presented by Member States. The four final reports presented by the three Member States in 2010 (Spain, Portugal and Germany) showed that at the end or shortly after the end of the EGF implementation period, 629 workers (20% of 3 146) had found new jobs or were self-employed. The others were either in education or training (approximately 5%), or unemployed or inactive for personal reasons. The results in terms of reintegration into work were hampered by the significantly reduced absorption capacities of local and regional labour markets as a direct consequence of the global financial and economic crisis. The importance of the reintegration rate should not be overestimated since it merely provides a snapshot of the workers’ employment situation at the moment the data are collected. It does not give any information on the type of employment and the quality of the work that the person has found, and can change significantly a short time later. According to information received from several Member States, the reintegration rates already tend to be higher a few months after submission of the final reports, especially in cases where workers continue to receive the tailor-made assistance beyond the EGF period, at the Member States’ own expense or with the help of the ESF.

The Member States reported a series of interesting facts and encouraging information indicating that the personal situation, self-confidence and employability of the workers concerned visibly improved thanks to the EGF assistance and services, even if they did not always find new work quickly. The EGF gave Member States the opportunity to act more intensively in the regions affected by redundancies, in terms of the number of people assisted and the duration and quality of support, than would have been possible without EGF funding. The EU funds enabled them to respond more flexibly and to include in their packages highly personalised, sometimes innovative, actions and more attention for the least skilled. The assistance co-funded by the EGF therefore represents an enhanced investment in skills, which can have a positive impact in the medium and longer term when markets gradually recover from the crisis. In addition, the EGF was felt to be a useful instrument at a time of budget deficits and public sector cuts, when national resources have become scarce and when Member States and companies are struggling to recover from the global crisis. The mid-term evaluation of the EGF, due in 2011 as required by Regulation (EC) No 1927/2006, will assess the impact of the EGF in more detail.

2008/07/02
   EC - Follow-up document
Details

This Communication reviews the European Globalisation Adjustment Fund (EGF) in 2007, after one year in operation and makes suggestions as to immediate and longer term ways to improve its performance.

The EGF was designed as one way to show solidarity – to help workers made redundant by globalisation to find a new job quickly. Following the adoption of Regulation (EC) No. 1927/2006, the EGF became operational from 1 January 2007. It received ten applications in 2007 targeting 11,339 workers. Four applications were approved by the Commission before the end of 2007, following mobilisation of the necessary funds by the EU Budgetary Authority; five remained under consideration, and one was withdrawn (to be re-submitted at the beginning of 2008 after some technical modifications). The EGF granted assistance amounting to EUR 18.6 million or 3.7% of the maximum amount of EUR 500 million allowed under the Interinstitutional Agreement on budgetary discipline and sound financial management. The funds were used for active labour market measures for the 5,113 workers concerned.

The Commission notes that take-up is limited, partly due to the favourable economic climate in 2007. The limited take-up could also reflect, however, Member States’ uncertainty about eligibility for funding. Although the EGF can intervene immediately once workers are made redundant, Member States have been hesitant to apply for EGF funding right from the first day of the redundancy crises because of uncertainty over whether or not their application would be approved.

Immediate steps to improve the operation of the EGF:

- Simplify procedures: the Commission will simplify its procedures to respond quickly to Member States on the eligibility of their applications. It will also disseminate detailed information on the previous cases, successful or unsuccessful, in order to help Member States assess the criteria used by the EU Institutions in coming to their decisions. The Commission will examine ways to accelerate the processing of applications, streamlining its internal procedures while maintaining a high quality of analysis.

- Promoting exchange of experience and good practice , including the methodologies extensively tested through the ESF, and in particular the EQUAL Community Initiative: this can reduce delays arising in the Member States while they devise adequate measures for a large-scale redundancy crisis. A commendable example is the approach used by Portugal, where a Ministerial Decision adopted a set of measures which can be drawn on at short notice in typical EGF cases.

- Intensify awareness-raising activities in order to achieve greater visibility of the Fund.

Adjusting the EGF Regulation : with a view to reinforcing the impact of the EGF on the creation of jobs, training and opportunities for Europe's workers, the Commission is examining ways in which the Fund could be modified, within the present budgetary limits, so as to improve its performance.

- Covering redundancies not directly attributable to changes in trade patterns: the EGF focuses on redundancies caused by major structural changes in global trade patterns. Globalisation may also work through other types of structural change. Such changes include major progress in production and product technology; changes in the organisation of production (such as company outsourcing); and the access to, and price of, raw materials and other inputs. This is particularly illustrated by recent increases in oil prices and their impact on sectors where fuel inputs represent a high cost factor. Such major and abrupt changes may lead to redundancies which cannot be covered by the existing Regulation. The Commission will examine these drivers of globalisation to see if they could be considered triggers for EGF support.

- Expanding the scope of the EGF to smaller redundancy events: the general requirement of at least 1,000 redundancies could be reduced in order to give more flexibility to Member States to present applications, including for SMEs and isolated labour markets. The Commission is analysing the implications of reducing this threshold on numbers of eligible persons and the budget. A possible alternative to reducing the existing threshold could be to include not just the redundancies in the suppliers or downstream producers of the main company in question but also other redundancies in other companies in the concerned geographical area.

- Expanding the duration of EGF assistance: as not all workers who lose jobs find employment during the period of EGF support, there is a need for longer term support. Consideration could be given to extending the maximum period for the use of EGF funding beyond the 12 months specified in the current regulation. Other possibilities such as using the EGF to foster mobility of workers between Member States are also being examined. Consideration might also be given to devoting a limited amount of funds to analysis and anticipation of the changes due to globalisation.

The Commission concludes that it will simplify procedures, promote exchange of good practice and intensify awareness-raising about the EGF. It will assess the feasibility of modifying the Regulation and will make appropriate proposals in this regard before issuing the next annual report.

2007/01/24
   EC - Commission response to text adopted in plenary
Documents
2006/12/30
   Final act published in Official Journal
Details

PURPOSE: Corrigendum to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund (Regulation initially published in Official Journal of the European Union L 406 of 30 December 2006).

The purpose of this Regulation is to establish a “European Globalisation Adjustment Fund” or EGF, the purpose of which is to provide support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation and where these redundancies have a significantly adverse impact on the regional or local economy. The EGF will cover the period 1 January 2007 – 31 December 2013.

The corrigendum concerns the entire text of the Regulation.

2006/12/20
   EU - Follow-up document
2006/12/20
   CSL - Draft final act
Documents
2006/12/20
   CSL - Final act signed
2006/12/20
   EP - End of procedure in Parliament
2006/12/19
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2006/12/19
   CSL - Council Meeting
2006/12/13
   EP - Results of vote in Parliament
2006/12/13
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted a resolution based on the report drafted by Roselyne BACHELOT-NARQUIN (EPP-ED, FR) and reached an informal compromise agreement with Council. The main amendments to the Commission’s text are as follows:

- With the aim of stimulating economic growth and creating more jobs in the EU, the Regulation is intended to enable the Community to provide support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation where these redundancies have a significant adverse impact on the regional or local economy. Assistance from the EGF shall provide solidarity and support for individual workers made redundant as a result of structural changes in world trade patterns. The EGF shall not finance the restructuring of companies or sectors. Its period of application shall be linked to the Financial Framework, from January 2007 to December 2013.

- The intervention criteria are as follows: at least 1 000 redundancies over a period of 4 months in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers, or at least 1 000 redundancies, over a period of 9 months, particularly in small or medium-sized enterprises, in a NACE 2 sector in one region or two contiguous regions at NUTS II level. In small labour markets or in exceptional circumstances, duly substantiated by the Member State(s) concerned, an application for a contribution from the EGF may be considered admissible even if the conditions laid down above are not entirely met, when redundancies have a serious impact on employment and the local economy. The aggregated amount of contributions for exceptional circumstances may not exceed 15% of the EGF each year.

- A financial contribution may be made for active labour market measures that form part of a coordinated package, including job-search assistance, special time-limited measures, and measures to stimulate in particular disadvantaged or older workers, to remain in or return to the labour market. The EGF shall not finance passive social protection measures. On the initiative of the Member State , the EGF may finance the preparatory, management, information and publicity, and control activities for its implementation.

- The Commission and the Member States must ensure that equality between men and women and the integration of the gender perspective is promoted during the various stages of implementation of the EGF. The Commission and the Member States shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during the various stages of the implementation of and, in particular, in access to, the EGF.

- The Commission shall set up an Internet site , available in all Community languages, to provide information on the EGF, guidance on the submission of applications, as well as updated information on accepted and refused applications, highlighting the role of the budgetary authority.

- Parliament made some amendments to the budgetary procedures to be followed.

- A mid-term evaluation will be made by 31 December 2011 , and the ex-post evaluation should be carried out by 31 December 2014 with the assistance of external experts and should measure the impact of the EGF and its added value.

Documents
2006/12/12
   EP - Debate in Parliament
2006/10/31
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2006/10/31
   EP - Committee report tabled for plenary, 1st reading
Documents
2006/10/26
   EP - Vote in committee, 1st reading
Details

The committee adopted the report by Roselyne BACHELOT-NARQUIN (EPP-ED, FR) approving the proposed regulation establishing the European Globalisation adjustment Fund. MEPs nevertheless tabled a number of amendments under the 1st reading of the codecision procedure, mainly to widen the scope and beneficiaries of the fund and to define eligible action in a more precise way:

- whereas, in Article 1(2), the Commission had stipulated that assistance from the EGF should be used to help workers affected by "trade-related" redundancies, the committee preferred the term "globalisation-related" redundancies. Other amendments specified that the EGF should therefore provide "solidarity and support for individual workers made redundant as a result of structural changes in world trade patterns", that it should not finance the restructuring of companies or sectors, and that it should not finance passive social protection measures, only active labour market measures;

- the active labour market measures eligible for funding should include aid for setting up cooperative projects and for resuming business, and micro-credits;

- MEPs amended the intervention criteria in Article 2: a financial contribution from the EGF may be provided if a "substantial" increase of imports into the EU or a "sharp and rapid" decline of the EU market share in a given sector results in at least 1000 redundancies, over a period of 12 months in one or more enterprises (particularly SMEs), or, in small labour markets or in exceptional circumstances, when at least 500 workers are made redundant and this has a serious impact on employment and the local economy;

- the EGF may complement assistance from other Community financial instruments, in particular the European Social Fund;

- a "European one-stop Internet shop" should be set up providing wide access to information about the EGF and guidance on the submission of applications;

- a new Article 11a and other amendments set out details of the budgetary procedure to be followed;

- the ex-post evaluation should be carried out by 31 December 2014 with the assistance of external experts and should measure the impact of the EGF and its added value.

2006/10/12
   EP - Amendments tabled in committee
Documents
2006/10/04
   EP - Committee opinion
Documents
2006/09/20
   EP - Committee opinion
Documents
2006/09/18
   EP - Committee opinion
Documents
2006/09/13
   ESC - Economic and Social Committee: opinion, report
Documents
2006/09/12
   EP - Committee opinion
Documents
2006/07/19
   EP - Amendments tabled in committee
Documents
2006/07/06
   EP - Referral to associated committees announced in Parliament
2006/06/30
   EP - Committee draft report
Documents
2006/06/20
   EC - Document attached to the procedure
Details

Following the Interinstitutional Agreement of 17 May 2006 on the financial framework 2007-2013, the Commission drafted a revised legislative and financial statement which it set out in a working document.

The procedure for entering the European Globalisation Fund appropriations in the budget is aligned to the provisions in Point 28 of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management. This document highlights how the commitment appropriations shall be entered into the budget.

The amounts set out in the initial proposal remain the same.

For further information concerning the financial implications of this measure, please refer to the financial statement.

2006/06/01
   CSL - Debate in Council
Documents
2006/06/01
   CSL - Council Meeting
2006/05/02
   EP - MADEIRA Jamila (PSE) appointed as rapporteur in REGI
2006/03/21
   EP - CHIESA Giulietto (ALDE) appointed as rapporteur in INTA
2006/03/16
   EP - Committee referral announced in Parliament, 1st reading
2006/03/15
   EP - BACHELOT-NARQUIN Roselyne (PPE-DE) appointed as rapporteur in EMPL
2006/03/01
   EC - Legislative proposal
Details

PURPOSE : to establish a European Globalisation adjustment Fund (EGF).

PROPOSED ACT : Regulation of the European Parliament and of the Council.

CONTEXT : increased market openness and international competition bring new opportunities in terms of economic dynamism, competitiveness and the creation of high-quality jobs. However, job losses in less competitive sectors are an inevitable impact of trade opening and globalisation: these adjustment costs of trade opening should be acknowledged and addressed through appropriate policy and financial instruments. The Commission report from October 20th 2005 on 'European Values in a Globalised world' highlighted the benefits of more open trade but also underlined the need to help those who experience the negative consequences of globalisation through job losses. In this context before the Hampton Court Summit, in a letter to the Presidents of the EU and the Parliament on 20/10/05, President Barroso proposed a Globalisation Fund.

CONTENT : this proposal aims to establish a European Globalisation adjustment Fund to enable the Community to provide support for workers made redundant as a result of major structural changes in world trade patterns where these redundancies have a significant adverse impact on the regional or local economy. It lays down rules regarding the operation of the EGF in order to facilitate re-integration into employment of workers affected by trade-related redundancies.

A financial contribution from the EGF shall be provided where major structural changes in world trade patterns lead to a serious economic disruption, notably a massive increase of imports into the EU, or a progressive decline of the EU market share in a given sector or a delocalisation to third countries, which results in:

a) at least 1000 redundancies in an enterprise, including workers made redundant in its suppliers or downstream producers, in a region where unemployment, measured at NUTS III level, is higher than the EU or national average, or

b) at least 1000 redundancies, over a period of 6 months, in one or more enterprises in a sector, measured at NACE 2 level, which represents at least 1% of regional employment measured at NUTS II level.

A financial contribution under this Regulation shall be made for actions, as part of a coordinated package of personalised services designed to re-integrate redundant workers into the labour market, including:

a) active labour market measures, such as job-search assistance, occupational guidance, tailor-made training and re-training including ICT skills, outplacement assistance and entrepreneurship promotion or aid for self-employment;

b) special in-work time-limited income supplements, such as job search allowances, mobility allowances, income support allowances to individuals participating in training activities; and temporary wage supplements for workers of at least 50 years of age who accept to re-enter the labour market at a lower wage.

For further information concerning the financial implications of this measure, please refer to the financial statement.

2006/03/01
   EC - Document attached to the procedure
2006/03/01
   EC - Document attached to the procedure
2006/03/01
   EC - Document attached to the procedure
2006/02/28
   EC - Legislative proposal published
Details

PURPOSE : to establish a European Globalisation adjustment Fund (EGF).

PROPOSED ACT : Regulation of the European Parliament and of the Council.

CONTEXT : increased market openness and international competition bring new opportunities in terms of economic dynamism, competitiveness and the creation of high-quality jobs. However, job losses in less competitive sectors are an inevitable impact of trade opening and globalisation: these adjustment costs of trade opening should be acknowledged and addressed through appropriate policy and financial instruments. The Commission report from October 20th 2005 on 'European Values in a Globalised world' highlighted the benefits of more open trade but also underlined the need to help those who experience the negative consequences of globalisation through job losses. In this context before the Hampton Court Summit, in a letter to the Presidents of the EU and the Parliament on 20/10/05, President Barroso proposed a Globalisation Fund.

CONTENT : this proposal aims to establish a European Globalisation adjustment Fund to enable the Community to provide support for workers made redundant as a result of major structural changes in world trade patterns where these redundancies have a significant adverse impact on the regional or local economy. It lays down rules regarding the operation of the EGF in order to facilitate re-integration into employment of workers affected by trade-related redundancies.

A financial contribution from the EGF shall be provided where major structural changes in world trade patterns lead to a serious economic disruption, notably a massive increase of imports into the EU, or a progressive decline of the EU market share in a given sector or a delocalisation to third countries, which results in:

a) at least 1000 redundancies in an enterprise, including workers made redundant in its suppliers or downstream producers, in a region where unemployment, measured at NUTS III level, is higher than the EU or national average, or

b) at least 1000 redundancies, over a period of 6 months, in one or more enterprises in a sector, measured at NACE 2 level, which represents at least 1% of regional employment measured at NUTS II level.

A financial contribution under this Regulation shall be made for actions, as part of a coordinated package of personalised services designed to re-integrate redundant workers into the labour market, including:

a) active labour market measures, such as job-search assistance, occupational guidance, tailor-made training and re-training including ICT skills, outplacement assistance and entrepreneurship promotion or aid for self-employment;

b) special in-work time-limited income supplements, such as job search allowances, mobility allowances, income support allowances to individuals participating in training activities; and temporary wage supplements for workers of at least 50 years of age who accept to re-enter the labour market at a lower wage.

For further information concerning the financial implications of this measure, please refer to the financial statement.

Documents

Activities

History

(these mark the time of scraping, not the official date of the change)

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council
  • body: CSL type: Council Meeting council: Agriculture and Fisheries meeting_id: 2774 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2774*&MEET_DATE=19/12/2006 date: 2006-12-19T00:00:00
  • body: CSL type: Council Meeting council: Employment, Social Policy, Health and Consumer Affairs meeting_id: 2733 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2733*&MEET_DATE=01/06/2006 date: 2006-06-01T00:00:00
docs
  • date: 2006-03-01T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/sec/2006/0274/COM_SEC(2006)0274_EN.pdf title: SEC(2006)0274 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=SECfinal&an_doc=2006&nu_doc=274 title: EUR-Lex type: Document attached to the procedure body: EC
  • date: 2006-03-01T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/sec/2006/0314/COM_SEC(2006)0314_FR.pdf title: SEC(2006)0314 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=SECfinal&an_doc=2006&nu_doc=314 title: EUR-Lex type: Document attached to the procedure body: EC
  • date: 2006-03-01T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/sec/2006/0315/COM_SEC(2006)0315_EN.pdf title: SEC(2006)0315 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=SECfinal&an_doc=2006&nu_doc=315 title: EUR-Lex type: Document attached to the procedure body: EC
  • date: 2006-06-20T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/sec/2006/0834/COM_SEC(2006)0834_EN.pdf title: SEC(2006)0834 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=SECfinal&an_doc=2006&nu_doc=834 title: EUR-Lex summary: Following the Interinstitutional Agreement of 17 May 2006 on the financial framework 2007-2013, the Commission drafted a revised legislative and financial statement which it set out in a working document. The procedure for entering the European Globalisation Fund appropriations in the budget is aligned to the provisions in Point 28 of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management. This document highlights how the commitment appropriations shall be entered into the budget. The amounts set out in the initial proposal remain the same. For further information concerning the financial implications of this measure, please refer to the financial statement. type: Document attached to the procedure body: EC
  • date: 2006-06-30T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE376.402 title: PE376.402 type: Committee draft report body: EP
  • date: 2006-07-19T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE376.641 title: PE376.641 type: Amendments tabled in committee body: EP
  • date: 2006-09-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE374.408&secondRef=02 title: PE374.408 committee: INTA type: Committee opinion body: EP
  • date: 2006-09-13T00:00:00 docs: url: https://dm.eesc.europa.eu/EESCDocumentSearch/Pages/redresults.aspx?k=(documenttype:AC)(documentnumber:1147)(documentyear:2006)(documentlanguage:EN) title: CES1147/2006 type: Economic and Social Committee: opinion, report body: ESC
  • date: 2006-09-18T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE374.432&secondRef=03 title: PE374.432 committee: BUDG type: Committee opinion body: EP
  • date: 2006-09-20T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE374.423&secondRef=03 title: PE374.423 committee: REGI type: Committee opinion body: EP
  • date: 2006-10-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE376.439&secondRef=02 title: PE376.439 committee: ITRE type: Committee opinion body: EP
  • date: 2006-10-12T00:00:00 docs: title: PE380.636 type: Amendments tabled in committee body: EP
  • date: 2006-10-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE380.677 title: PE380.677 type: Amendments tabled in committee body: EP
  • date: 2006-10-31T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-385&language=EN title: A6-0385/2006 type: Committee report tabled for plenary, 1st reading/single reading body: EP
  • date: 2006-12-20T00:00:00 docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&model=guicheti&numdoc=32006R1927R(02) title: 32006R1927R(02) url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2008:202:TOC title: OJ L 202 31.07.2008, p. 0074 type: Follow-up document body: EU
  • date: 2006-12-20T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=[%n4]%2F06&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 03678/1/2006 type: Draft final act body: CSL
  • date: 2007-01-24T00:00:00 docs: url: /oeil/spdoc.do?i=12857&j=0&l=en title: SP(2007)0303 type: Commission response to text adopted in plenary
  • date: 2008-07-02T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2008/0421/COM_COM(2008)0421_EN.pdf title: COM(2008)0421 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2008&nu_doc=421 title: EUR-Lex summary: This Communication reviews the European Globalisation Adjustment Fund (EGF) in 2007, after one year in operation and makes suggestions as to immediate and longer term ways to improve its performance. The EGF was designed as one way to show solidarity – to help workers made redundant by globalisation to find a new job quickly. Following the adoption of Regulation (EC) No. 1927/2006, the EGF became operational from 1 January 2007. It received ten applications in 2007 targeting 11,339 workers. Four applications were approved by the Commission before the end of 2007, following mobilisation of the necessary funds by the EU Budgetary Authority; five remained under consideration, and one was withdrawn (to be re-submitted at the beginning of 2008 after some technical modifications). The EGF granted assistance amounting to EUR 18.6 million or 3.7% of the maximum amount of EUR 500 million allowed under the Interinstitutional Agreement on budgetary discipline and sound financial management. The funds were used for active labour market measures for the 5,113 workers concerned. The Commission notes that take-up is limited, partly due to the favourable economic climate in 2007. The limited take-up could also reflect, however, Member States’ uncertainty about eligibility for funding. Although the EGF can intervene immediately once workers are made redundant, Member States have been hesitant to apply for EGF funding right from the first day of the redundancy crises because of uncertainty over whether or not their application would be approved. Immediate steps to improve the operation of the EGF: - Simplify procedures: the Commission will simplify its procedures to respond quickly to Member States on the eligibility of their applications. It will also disseminate detailed information on the previous cases, successful or unsuccessful, in order to help Member States assess the criteria used by the EU Institutions in coming to their decisions. The Commission will examine ways to accelerate the processing of applications, streamlining its internal procedures while maintaining a high quality of analysis. - Promoting exchange of experience and good practice , including the methodologies extensively tested through the ESF, and in particular the EQUAL Community Initiative: this can reduce delays arising in the Member States while they devise adequate measures for a large-scale redundancy crisis. A commendable example is the approach used by Portugal, where a Ministerial Decision adopted a set of measures which can be drawn on at short notice in typical EGF cases. - Intensify awareness-raising activities in order to achieve greater visibility of the Fund. Adjusting the EGF Regulation : with a view to reinforcing the impact of the EGF on the creation of jobs, training and opportunities for Europe's workers, the Commission is examining ways in which the Fund could be modified, within the present budgetary limits, so as to improve its performance. - Covering redundancies not directly attributable to changes in trade patterns: the EGF focuses on redundancies caused by major structural changes in global trade patterns. Globalisation may also work through other types of structural change. Such changes include major progress in production and product technology; changes in the organisation of production (such as company outsourcing); and the access to, and price of, raw materials and other inputs. This is particularly illustrated by recent increases in oil prices and their impact on sectors where fuel inputs represent a high cost factor. Such major and abrupt changes may lead to redundancies which cannot be covered by the existing Regulation. The Commission will examine these drivers of globalisation to see if they could be considered triggers for EGF support. - Expanding the scope of the EGF to smaller redundancy events: the general requirement of at least 1,000 redundancies could be reduced in order to give more flexibility to Member States to present applications, including for SMEs and isolated labour markets. The Commission is analysing the implications of reducing this threshold on numbers of eligible persons and the budget. A possible alternative to reducing the existing threshold could be to include not just the redundancies in the suppliers or downstream producers of the main company in question but also other redundancies in other companies in the concerned geographical area. - Expanding the duration of EGF assistance: as not all workers who lose jobs find employment during the period of EGF support, there is a need for longer term support. Consideration could be given to extending the maximum period for the use of EGF funding beyond the 12 months specified in the current regulation. Other possibilities such as using the EGF to foster mobility of workers between Member States are also being examined. Consideration might also be given to devoting a limited amount of funds to analysis and anticipation of the changes due to globalisation. The Commission concludes that it will simplify procedures, promote exchange of good practice and intensify awareness-raising about the EGF. It will assess the feasibility of modifying the Regulation and will make appropriate proposals in this regard before issuing the next annual report. type: Follow-up document body: EC
  • date: 2011-08-22T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2011/0466/COM_COM(2011)0466_EN.pdf title: COM(2011)0466 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2011&nu_doc=466 title: EUR-Lex summary: In accordance with the requirements of Regulation (EC) No 1927/2006 the Commission presents a report on the activities of the European Globalisation Adjustment Fund in 2010. The trends available so far show that EGF applications are being presented in a growing number of sectors, and by an increasing number of Member States. Member States are furthermore gaining experience in selecting the most suitable measures, programming their assistance to redundant workers, and making use of the EGF to test new approaches. Developing the full potential of the EGF, in complementarity with other available instruments and in consultation with the major stakeholders, will increasingly help redundant workers in a tailor-made and personalised manner, thereby improving their opportunities on the labour market. Overview of EGF activities in 2010 : the Commission received 31 applications for contributions from the EGF, which was one application more than in 2009. The Budgetary Authority took 31 decisions to mobilise the EGF in 2010, which represents a 300% increase in terms of decisions and a 60% increase in terms of EGF co-financing compared to 2009. Six EGF contributions granted in previous years were wound up. The applications received related to 16 sectors, and may be summarised as follows: Austria (two applications: basic metals, electronic equipment), Belgium (one application: automotive), Czech Republic (one application: retail trade), Denmark (four applications: machinery/equipment, shipbuilding), France (one application: automotive), Germany (one application: machinery/equipment), Ireland (three applications: construction), Netherlands (seven applications: electronic equipment, printing industry, financial services, wholesale trade), Poland (three applications: automotive, machinery/equipment), Portugal (one application: shoe manufacture), Spain (six applications: automotive, wearing apparel, stone/marble, retail trade), Slovenia (one application: wearing apparel). The EGF contributions requested per case in 2010 ranged from EUR 114 250 to EUR 38 052 069 (average EUR 5 483 695). The 31 contributions granted targeted 23 688 redundant workers in nine Member States with a total of EUR 83 554 141 paid from the EGF (16.7% of the annual maximum amount available to the EGF). The amounts proposed per worker in 2010 varied from slightly above EUR 600 to over EUR 23 000. Actions funded with EGF assistance : the measures approved for the 31 EGF contributions granted in 2010 aimed to reintegrate 23 688 redundant workers into the labour market. They consisted mainly of intensive, personalised job search assistance and case management, a variety of vocational training, up-skilling and retraining measures, various temporary financial incentives/allowances for the duration of the job search, training and other active labour market measures up to the period of actual work reintegration, and other types of activities such as entrepreneurship promotion and supported employment. Complementarity with actions funded by the Structural Funds, notably the European Social Fund (ESF) : the EGF is designed to increase employability and ensure the rapid reintegration of redundant workers within the labour market through active labour market measures, thus complementing the ESF, which is the major EU instrument for promoting employment in the EU. The report gives specific examples of good complementarity between the ESF and the EGF. Results achieved by the EGF : the main sources of information on the results achieved by the EGF are the final reports presented by Member States. The four final reports presented by the three Member States in 2010 (Spain, Portugal and Germany) showed that at the end or shortly after the end of the EGF implementation period, 629 workers (20% of 3 146) had found new jobs or were self-employed. The others were either in education or training (approximately 5%), or unemployed or inactive for personal reasons. The results in terms of reintegration into work were hampered by the significantly reduced absorption capacities of local and regional labour markets as a direct consequence of the global financial and economic crisis. The importance of the reintegration rate should not be overestimated since it merely provides a snapshot of the workers’ employment situation at the moment the data are collected. It does not give any information on the type of employment and the quality of the work that the person has found, and can change significantly a short time later. According to information received from several Member States, the reintegration rates already tend to be higher a few months after submission of the final reports, especially in cases where workers continue to receive the tailor-made assistance beyond the EGF period, at the Member States’ own expense or with the help of the ESF. The Member States reported a series of interesting facts and encouraging information indicating that the personal situation, self-confidence and employability of the workers concerned visibly improved thanks to the EGF assistance and services, even if they did not always find new work quickly. The EGF gave Member States the opportunity to act more intensively in the regions affected by redundancies, in terms of the number of people assisted and the duration and quality of support, than would have been possible without EGF funding. The EU funds enabled them to respond more flexibly and to include in their packages highly personalised, sometimes innovative, actions and more attention for the least skilled. The assistance co-funded by the EGF therefore represents an enhanced investment in skills, which can have a positive impact in the medium and longer term when markets gradually recover from the crisis. In addition, the EGF was felt to be a useful instrument at a time of budget deficits and public sector cuts, when national resources have become scarce and when Member States and companies are struggling to recover from the global crisis. The mid-term evaluation of the EGF, due in 2011 as required by Regulation (EC) No 1927/2006, will assess the impact of the EGF in more detail. type: Follow-up document body: EC
  • date: 2012-09-04T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2012/0462/COM_COM(2012)0462_EN.pdf title: COM(2012)0462 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2012&nu_doc=462 title: EUR-Lex summary: In accordance with the requirements of Regulation (EC) No 1927/2006 the Commission presents a report on the activities of the European Globalisation Adjustment Fund (EGF) in 2011. The report states that the trends evident so far show that EGF applications have been presented in a growing number of sectors, and by an increasing number of Member States. Member States have furthermore gained experience in selecting the most suitable measures, programming their assistance to redundant workers in an efficient manner, and making use of the EGF to test new approaches. They are also increasingly using the possibility of re-allocating funds between measures during project implementation in order to make full use of the available funds. Overview of activities in 2011 : the Commission received 26 applications for contributions from the EGF, which was slightly less than in 2010 (31 applications). The 26 applications were submitted by 10 Member States, targeted 16 870 redundant workers and requested a total of EUR77 546 044 from the EGF. Two Member States were first-time applicants in 2011: Greece and Romania. In 2011, the Budgetary Authority took 22 decisions to draw on the EGF to co-finance active labour market policy measures. Five of these concerned applications made in 2011, while 16 concerned applications received in 2010 and one was in response to an application received in 2009. Regulation (EC) No 546/2009, adopted on 18 June 2009, applies to all contributions granted (i.e. 65 % co-funding rate, 24-month implementation period from the date of application, etc.). The 22 contributions granted targeted 21213 redundant workers in twelve Member States with a total of EUR 128 167 758 paid from the EGF (25.6 % of the annual maximum amount available to the EGF). This represents a 54.1% increase in terms of EGF co-financing compared to 2010 (EUR 83 171 941 for 30 contributions granted). Actions funded : the measures approved for the 22 EGF contributions granted in 2011 aimed to reintegrate 21213 redundant workers into the labour market. They consisted mainly of intensive, personalised job search assistance and case management including placement research with potential employers, a variety of vocational training, upskilling and retraining measures, various temporary financial incentives/allowances for the duration of the active support measures up to the period of actual work reintegration, some mentoring during the initial phase in the new job and other types of activities such as entrepreneurship promotion/business creation, supported employment and one-time employment/hiring incentives. Summary of the results : in 2011, the Commission received four final reports presented by the three Member States on the following applications FEM/2009/004 BE/Oost-West Vlaanderen, FEM/2009/005 BE/Limburg, FEM/2009/007 SE/Volvo et FEM 2009/008 IE/Dell. The four reports, presented by three Member States (BE, IE and SE) showed that, at the end of the EGF implementation period, 2 352 workers (45.0% of 5 228) had found new jobs or were self- employed. The others were either in education or training (approximately 10.9%), or unemployed or inactive for personal reasons (NEET: not in education, employment, or training): approximately 44.1%. Temporary crisis derogation : applying for EGF support was made a lot easier by the temporary ‘crisis derogation’ (applicable for EGF applications submitted between 1.5.2009 and 30.12.2011, according to the amended EGF Regulation) allowing the EGF to support workers made redundant as a result of the global financial and economic crisis and increasing the EGF contribution from 50% to 65% of total costs. The permanent changes, i.e. the reduction of the threshold from 1 000 to 500 redundancies and the extension of the implementation period from 12 to 24 months from the date of application, also had a positive impact: Member States were able to request EGF support for workers made redundant by smaller enterprises and to programme longer support for the workers than was possible in the past. The impact of the longer duration of EGF support on the employment and employability of redundant workers will be apparent after completion of the projects. In June 2011, the Commission proposed to extend the ‘crisis derogation’ until the end of 2013 , and this was fully endorsed by the European Parliament on 21 September 2011. However, despite extensive debates in Council, the Commission proposal did not receive a qualified majority in the Council. Since no political agreement on the extension of the ‘crisis derogation’ was reached, as from 31 December 2011 applications for EGF support can be justified only on the grounds of structural changes in world trade patterns, and the co-funding rate has been reduced to the original 50 % of total eligible costs. The report states that the fact that the EGF’s temporary ‘crisis derogation’ has not been extended beyond the end of 2011 (failure to achieve a qualified majority in the Council as eight countries voted against) has limited the possibilities for EU assistance to workers who are still greatly affected by the economic and financial crisis. From 2012 until the end of the current programming period (end of 2013), the permanent changes in the amended Regulation (threshold reduced to 500 redundancies, implementation period increased to 24 months from the date of application) will continue to apply, facilitating applications from Member States related to redundancies as a consequence of major structural changes in world trade patterns. If the full potential of the EGF is developed, in complementarity with other available instruments and in consultation with the major stakeholders, dismissed workers who are eligible for EGF support can be helped in a tailor- made and personalised manner, thereby improving their opportunities in the labour market in the medium and longer term as markets gradually recover from the crisis. Post-2013: the EGF Regulation has to be reviewed by 31 December 2013, which coincides with the end of the programming period (see COD/2011/0269 ). The Commission is keen to maintain the EGF over the next programming period 2014 to 2020, and wants specific, one-off support to be provided over this period to workers made redundant as a result of major structural changes triggered by the increasing globalisation of production and trade patterns. The EU should also be able to provide support in the event of large-scale redundancies resulting from serious disruption of local, regional or national economies caused by an unexpected crisis. Furthermore, the scope of the EGF should be extended to provide compensation in certain cases for the consequences of trade agreements in certain agricultural sectors. type: Follow-up document body: EC
events
  • date: 2006-03-01T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2006/0091/COM_COM(2006)0091_EN.pdf title: COM(2006)0091 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2006&nu_doc=91 title: EUR-Lex summary: PURPOSE : to establish a European Globalisation adjustment Fund (EGF). PROPOSED ACT : Regulation of the European Parliament and of the Council. CONTEXT : increased market openness and international competition bring new opportunities in terms of economic dynamism, competitiveness and the creation of high-quality jobs. However, job losses in less competitive sectors are an inevitable impact of trade opening and globalisation: these adjustment costs of trade opening should be acknowledged and addressed through appropriate policy and financial instruments. The Commission report from October 20th 2005 on 'European Values in a Globalised world' highlighted the benefits of more open trade but also underlined the need to help those who experience the negative consequences of globalisation through job losses. In this context before the Hampton Court Summit, in a letter to the Presidents of the EU and the Parliament on 20/10/05, President Barroso proposed a Globalisation Fund. CONTENT : this proposal aims to establish a European Globalisation adjustment Fund to enable the Community to provide support for workers made redundant as a result of major structural changes in world trade patterns where these redundancies have a significant adverse impact on the regional or local economy. It lays down rules regarding the operation of the EGF in order to facilitate re-integration into employment of workers affected by trade-related redundancies. A financial contribution from the EGF shall be provided where major structural changes in world trade patterns lead to a serious economic disruption, notably a massive increase of imports into the EU, or a progressive decline of the EU market share in a given sector or a delocalisation to third countries, which results in: a) at least 1000 redundancies in an enterprise, including workers made redundant in its suppliers or downstream producers, in a region where unemployment, measured at NUTS III level, is higher than the EU or national average, or b) at least 1000 redundancies, over a period of 6 months, in one or more enterprises in a sector, measured at NACE 2 level, which represents at least 1% of regional employment measured at NUTS II level. A financial contribution under this Regulation shall be made for actions, as part of a coordinated package of personalised services designed to re-integrate redundant workers into the labour market, including: a) active labour market measures, such as job-search assistance, occupational guidance, tailor-made training and re-training including ICT skills, outplacement assistance and entrepreneurship promotion or aid for self-employment; b) special in-work time-limited income supplements, such as job search allowances, mobility allowances, income support allowances to individuals participating in training activities; and temporary wage supplements for workers of at least 50 years of age who accept to re-enter the labour market at a lower wage. For further information concerning the financial implications of this measure, please refer to the financial statement.
  • date: 2006-03-16T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2006-06-01T00:00:00 type: Debate in Council body: CSL docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2733*&MEET_DATE=01/06/2006 title: 2733
  • date: 2006-07-06T00:00:00 type: Referral to associated committees announced in Parliament body: EP
  • date: 2006-10-26T00:00:00 type: Vote in committee, 1st reading/single reading body: EP summary: The committee adopted the report by Roselyne BACHELOT-NARQUIN (EPP-ED, FR) approving the proposed regulation establishing the European Globalisation adjustment Fund. MEPs nevertheless tabled a number of amendments under the 1st reading of the codecision procedure, mainly to widen the scope and beneficiaries of the fund and to define eligible action in a more precise way: - whereas, in Article 1(2), the Commission had stipulated that assistance from the EGF should be used to help workers affected by "trade-related" redundancies, the committee preferred the term "globalisation-related" redundancies. Other amendments specified that the EGF should therefore provide "solidarity and support for individual workers made redundant as a result of structural changes in world trade patterns", that it should not finance the restructuring of companies or sectors, and that it should not finance passive social protection measures, only active labour market measures; - the active labour market measures eligible for funding should include aid for setting up cooperative projects and for resuming business, and micro-credits; - MEPs amended the intervention criteria in Article 2: a financial contribution from the EGF may be provided if a "substantial" increase of imports into the EU or a "sharp and rapid" decline of the EU market share in a given sector results in at least 1000 redundancies, over a period of 12 months in one or more enterprises (particularly SMEs), or, in small labour markets or in exceptional circumstances, when at least 500 workers are made redundant and this has a serious impact on employment and the local economy; - the EGF may complement assistance from other Community financial instruments, in particular the European Social Fund; - a "European one-stop Internet shop" should be set up providing wide access to information about the EGF and guidance on the submission of applications; - a new Article 11a and other amendments set out details of the budgetary procedure to be followed; - the ex-post evaluation should be carried out by 31 December 2014 with the assistance of external experts and should measure the impact of the EGF and its added value.
  • date: 2006-10-31T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-385&language=EN title: A6-0385/2006
  • date: 2006-12-12T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20061212&type=CRE title: Debate in Parliament
  • date: 2006-12-13T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=12857&l=en title: Results of vote in Parliament
  • date: 2006-12-13T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2006-560 title: T6-0560/2006 summary: The European Parliament adopted a resolution based on the report drafted by Roselyne BACHELOT-NARQUIN (EPP-ED, FR) and reached an informal compromise agreement with Council. The main amendments to the Commission’s text are as follows: - With the aim of stimulating economic growth and creating more jobs in the EU, the Regulation is intended to enable the Community to provide support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation where these redundancies have a significant adverse impact on the regional or local economy. Assistance from the EGF shall provide solidarity and support for individual workers made redundant as a result of structural changes in world trade patterns. The EGF shall not finance the restructuring of companies or sectors. Its period of application shall be linked to the Financial Framework, from January 2007 to December 2013. - The intervention criteria are as follows: at least 1 000 redundancies over a period of 4 months in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers, or at least 1 000 redundancies, over a period of 9 months, particularly in small or medium-sized enterprises, in a NACE 2 sector in one region or two contiguous regions at NUTS II level. In small labour markets or in exceptional circumstances, duly substantiated by the Member State(s) concerned, an application for a contribution from the EGF may be considered admissible even if the conditions laid down above are not entirely met, when redundancies have a serious impact on employment and the local economy. The aggregated amount of contributions for exceptional circumstances may not exceed 15% of the EGF each year. - A financial contribution may be made for active labour market measures that form part of a coordinated package, including job-search assistance, special time-limited measures, and measures to stimulate in particular disadvantaged or older workers, to remain in or return to the labour market. The EGF shall not finance passive social protection measures. On the initiative of the Member State , the EGF may finance the preparatory, management, information and publicity, and control activities for its implementation. - The Commission and the Member States must ensure that equality between men and women and the integration of the gender perspective is promoted during the various stages of implementation of the EGF. The Commission and the Member States shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during the various stages of the implementation of and, in particular, in access to, the EGF. - The Commission shall set up an Internet site , available in all Community languages, to provide information on the EGF, guidance on the submission of applications, as well as updated information on accepted and refused applications, highlighting the role of the budgetary authority. - Parliament made some amendments to the budgetary procedures to be followed. - A mid-term evaluation will be made by 31 December 2011 , and the ex-post evaluation should be carried out by 31 December 2014 with the assistance of external experts and should measure the impact of the EGF and its added value.
  • date: 2006-12-19T00:00:00 type: Act adopted by Council after Parliament's 1st reading body: EP/CSL
  • date: 2006-12-20T00:00:00 type: Final act signed body: CSL
  • date: 2006-12-20T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2006-12-30T00:00:00 type: Final act published in Official Journal summary: PURPOSE: Corrigendum to Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund (Regulation initially published in Official Journal of the European Union L 406 of 30 December 2006). The purpose of this Regulation is to establish a “European Globalisation Adjustment Fund” or EGF, the purpose of which is to provide support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation and where these redundancies have a significantly adverse impact on the regional or local economy. The EGF will cover the period 1 January 2007 – 31 December 2013. The corrigendum concerns the entire text of the Regulation. docs: title: Regulation 2006/1927 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32006R1927 title: OJ L 406 30.12.2006, p. 0001 url: https://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2006:406:SOM:EN:HTML title: Corrigendum to final act 32006R1927R(01) url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&model=guicheti&numdoc=32006R1927R(01) title: OJ L 048 22.02.2008, p. 0082 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2008:048:TOC
other
  • body: CSL type: Council Meeting council: Former Council configuration
  • body: EC dg: url: http://ec.europa.eu/social/ title: Employment, Social Affairs and Inclusion commissioner: ŠPIDLA Vladimír
procedure/dossier_of_the_committee
Old
EMPL/6/34875
New
  • EMPL/6/34875
procedure/final/url
Old
http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32006R1927
New
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32006R1927
procedure/instrument
Old
Regulation
New
  • Regulation
  • Amended by 2008/0267(COD) Repealed by 2011/0269(COD)
procedure/subject
Old
  • 4.15.05 Industrial restructuring, job losses, redundancies, relocations, Globalisation Adjustment Fund (EGF)
  • 4.15.12 Workers protection and rights, labour law
  • 5.03 World economy and globalisation
New
4.15.05
Industrial restructuring, job losses, redundancies, relocations, Globalisation Adjustment Fund (EGF)
4.15.12
Workers protection and rights, labour law
5.03
Global economy and globalisation
procedure/summary
  • Amended by
  • Repealed by
activities/0/docs/0/url
Old
http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2006/0091/COM_COM(2006)0091_EN.pdf
New
http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2006/0091/COM_COM(2006)0091_EN.pdf
links/European Commission/title
Old
PreLex
New
EUR-Lex
procedure/subject/0
Old
4.15.05 Industrial restructuring, job losses, redundancies, relocations
New
4.15.05 Industrial restructuring, job losses, redundancies, relocations, Globalisation Adjustment Fund (EGF)
activities
  • date: 2006-03-01T00:00:00 docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2006/0091/COM_COM(2006)0091_EN.pdf celexid: CELEX:52006PC0091:EN type: Legislative proposal published title: COM(2006)0091 type: Legislative proposal published body: EC commission: DG: url: http://ec.europa.eu/social/ title: Employment, Social Affairs and Inclusion Commissioner: ŠPIDLA Vladimír
  • date: 2006-03-16T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: False committee: BUDG date: 2006-04-25T00:00:00 committee_full: Budgets (Associated committee) rapporteur: group: GUE/NGL name: SEPPÄNEN Esko body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON body: EP responsible: True committee: EMPL date: 2006-03-15T00:00:00 committee_full: Employment and Social Affairs (Associated committee) rapporteur: group: PPE-DE name: BACHELOT-NARQUIN Roselyne body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO body: EP responsible: False committee: INTA date: 2006-03-21T00:00:00 committee_full: International Trade rapporteur: group: ALDE name: CHIESA Giulietto body: EP responsible: False committee: ITRE date: 2006-04-25T00:00:00 committee_full: Industry, Research and Energy rapporteur: group: GUE/NGL name: REMEK Vladimír body: EP responsible: False committee: REGI date: 2006-05-02T00:00:00 committee_full: Regional Development rapporteur: group: PSE name: MADEIRA Jamila
  • body: CSL meeting_id: 2733 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=2733*&MEET_DATE=01/06/2006 type: Debate in Council title: 2733 council: Employment, Social Policy, Health and Consumer Affairs date: 2006-06-01T00:00:00 type: Council Meeting
  • date: 2006-07-06T00:00:00 body: EP type: Referral to associated committees announced in Parliament
  • date: 2006-10-26T00:00:00 body: EP committees: body: EP responsible: False committee: BUDG date: 2006-04-25T00:00:00 committee_full: Budgets (Associated committee) rapporteur: group: GUE/NGL name: SEPPÄNEN Esko body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON body: EP responsible: True committee: EMPL date: 2006-03-15T00:00:00 committee_full: Employment and Social Affairs (Associated committee) rapporteur: group: PPE-DE name: BACHELOT-NARQUIN Roselyne body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO body: EP responsible: False committee: INTA date: 2006-03-21T00:00:00 committee_full: International Trade rapporteur: group: ALDE name: CHIESA Giulietto body: EP responsible: False committee: ITRE date: 2006-04-25T00:00:00 committee_full: Industry, Research and Energy rapporteur: group: GUE/NGL name: REMEK Vladimír body: EP responsible: False committee: REGI date: 2006-05-02T00:00:00 committee_full: Regional Development rapporteur: group: PSE name: MADEIRA Jamila type: Vote in committee, 1st reading/single reading
  • date: 2006-10-31T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A6-2006-385&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A6-0385/2006 body: EP committees: body: EP responsible: False committee: BUDG date: 2006-04-25T00:00:00 committee_full: Budgets (Associated committee) rapporteur: group: GUE/NGL name: SEPPÄNEN Esko body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON body: EP responsible: True committee: EMPL date: 2006-03-15T00:00:00 committee_full: Employment and Social Affairs (Associated committee) rapporteur: group: PPE-DE name: BACHELOT-NARQUIN Roselyne body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO body: EP responsible: False committee: INTA date: 2006-03-21T00:00:00 committee_full: International Trade rapporteur: group: ALDE name: CHIESA Giulietto body: EP responsible: False committee: ITRE date: 2006-04-25T00:00:00 committee_full: Industry, Research and Energy rapporteur: group: GUE/NGL name: REMEK Vladimír body: EP responsible: False committee: REGI date: 2006-05-02T00:00:00 committee_full: Regional Development rapporteur: group: PSE name: MADEIRA Jamila type: Committee report tabled for plenary, 1st reading/single reading
  • date: 2006-12-12T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20061212&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2006-12-13T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=12857&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2006-560 type: Decision by Parliament, 1st reading/single reading title: T6-0560/2006 body: EP type: Results of vote in Parliament
  • date: 2006-12-19T00:00:00 body: CSL type: Council Meeting council: Agriculture and Fisheries meeting_id: 2774
  • date: 2006-12-19T00:00:00 body: EP/CSL type: Act adopted by Council after Parliament's 1st reading
  • date: 2006-12-20T00:00:00 body: CSL type: Final act signed
  • date: 2006-12-20T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2006-12-30T00:00:00 type: Final act published in Official Journal docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32006R1927 title: Regulation 2006/1927 url: http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2006:406:SOM:EN:HTML title: OJ L 406 30.12.2006, p. 0001 url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&model=guicheti&numdoc=32006R1927R(01) title: Corrigendum to final act 32006R1927R(01) url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2008:048:TOC title: OJ L 048 22.02.2008, p. 0082
committees
  • body: EP responsible: False committee: BUDG date: 2006-04-25T00:00:00 committee_full: Budgets (Associated committee) rapporteur: group: GUE/NGL name: SEPPÄNEN Esko
  • body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
  • body: EP responsible: True committee: EMPL date: 2006-03-15T00:00:00 committee_full: Employment and Social Affairs (Associated committee) rapporteur: group: PPE-DE name: BACHELOT-NARQUIN Roselyne
  • body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO
  • body: EP responsible: False committee: INTA date: 2006-03-21T00:00:00 committee_full: International Trade rapporteur: group: ALDE name: CHIESA Giulietto
  • body: EP responsible: False committee: ITRE date: 2006-04-25T00:00:00 committee_full: Industry, Research and Energy rapporteur: group: GUE/NGL name: REMEK Vladimír
  • body: EP responsible: False committee: REGI date: 2006-05-02T00:00:00 committee_full: Regional Development rapporteur: group: PSE name: MADEIRA Jamila
links
National parliaments
European Commission
other
  • body: CSL type: Council Meeting council: Former Council configuration
  • body: EC dg: url: http://ec.europa.eu/social/ title: Employment, Social Affairs and Inclusion commissioner: ŠPIDLA Vladimír
procedure
dossier_of_the_committee
EMPL/6/34875
reference
2006/0033(COD)
instrument
Regulation
legal_basis
EC Treaty (after Amsterdam) EC 159-p3
stage_reached
Procedure completed
summary
subtype
Legislation
title
Establishing the European Globalisation Adjustment Fund (EGF)
type
COD - Ordinary legislative procedure (ex-codecision procedure)
final
subject