PURPOSE: to mobilise the European Globalisation
Adjustment Fund (EGF) to assist Belgium following redundancies in
the automotive industry.
PROPOSED ACT: Decision of the European Parliament and
of the Council.
CONTENT: Article 12 of Council Regulation (EU,
Euratom) No 1311/2013 laying down the multiannual financial framework for the years
2014-2020 allows for the mobilisation of the
European Globalisation Adjustment Fund (EGF) within the annual
ceiling of EUR 150 million (2011 prices) over and above the
relevant headings of the financial framework.
The rules applicable to the contributions from the EGF
for applications submitted until 31 December 2013 are laid
down in Regulation (EC) No 1927/2006
of the European Parliament and of the Council on establishing the
EGF.
To recall, this Fund was established to provide
additional support for workers made redundant as a result of major
structural changes in world trade patterns due to globalisation and
to assist them with their reintegration into the labour
market.
In this context, the Commission examined the request
for mobilisation of the EGF with a view to assisting Belgium and
stated that:
Belgium:
EGF/2013/012 BE/Ford Genk: on 23
December 2013, Belgium submitted application EGF/2013/012 BE/Ford
Genk for a financial contribution from the EGF, following
redundancies in the assembly plant of Ford-Werke GmbH located in
Genk (‘Ford Genk’) and in 10 suppliers of Ford Genk in
Belgium. The application was supplemented by additional information
up to 12 June 2014.
In order to establish the link between the
redundancies and major structural changes in world trade patterns
due to globalisation, the Belgian authorities argue that the sector
of the production of passenger cars, in which Ford Genk is active,
has undergone serious economic disruption, in particular a rapid
decline of the EU’s market share.
According to data referred to by the Belgian
authorities, between 2007 and 2012, the production of passenger
cars in the EU-27 decreased from 17.10 million units to 14.61
million units (− 14.6 %; − 3.1 % annual growth),
whereas, during the same period, at worldwide level, the production
of passenger cars increased from 53.05 million units to 63.07
million units (+ 18.9 %; + 3.5 % annual growth). This has led to a
decrease of the EU-27’s market share in the production of
passenger cars at worldwide level, measured in volume terms, from
32.2 % to 23.2 %.
These data therefore show a rapid decline of the
EU’s market share in the sector of the production of passenger
cars at worldwide level.
Background to the request from Belgium: the application therefore partly meets the
intervention criteria laid down in Article 2(a) of the EGF
Regulation, as it relates to redundancies over a period of
four
months in an enterprise in a Member State, but it
derogates from these criteria as regards the minimum number of
redundancies during the reference period as there are less than 500
redundancies.
The Belgian authorities argue that exceptional
circumstances are applicable because, although, for this first
wave of redundancies, the number of redundancies during the
reference period is below the threshold of 500 redundancies, two
other waves of redundancies are expected to occur in 2014
(approximately 650 redundancies at Ford Genk and its suppliers) and
at the closure of the plant at the end of 2014 (approximately 4 000
redundancies at Ford Genk and its suppliers), for which the Belgian
authorities may submit EGF applications. As regards this first wave
of redundancies, even though the threshold of 500 redundancies is
not met, the Belgian authorities have wished to implement specific
measures in favour of this first group of redundant workers as
rapidly as possible, so as to increase the possibilities for them
to find new employment and to give all redundant workers the same
opportunity. In total, the number of direct redundancies expected
to be caused by the closure of Ford Genk is very high
(approximately 4 340 redundancies at Ford Genk and 2 820
redundancies at its suppliers located in the same geographical
area).
These redundancies will have a serious impact on
employment and the local economy.
On the basis of the application from Belgium, the
proposed contribution from the EGF to the coordinated package of
personalised services is EUR 570 945, representing 50%
of the total cost.
BUDGETARY IMPLICATION: considering the maximum
possible amount of a financial contribution from the EGF, laid down
by Article 12 of Council Regulation (EU, Euratom) No
1311/2013, and the scope for reallocating appropriations, the
Commission proposes to mobilise the EGF for the total amount of the
requested contribution of EUR 570 945.
The proposed decision to mobilise the EGF will be
taken jointly by the European Parliament and the Council, as laid
down in point 13 of the Interinstitutional Agreement of 2 December
2013 between the European Parliament, the Council and the
Commission on budgetary discipline, on cooperation in budgetary
matters and on sound financial management.
The Commission presents separately a transfer request
in order to enter in the 2014 budget specific commitment
appropriations, as required under point 13 of the
Interinstitutional Agreement of 2 December 2013.
Appropriations allocated to the EGF budget line in the
2014 budget will be used to cover the requested amount.