PURPOSE: to mobilise the European Globalisation
Adjustment Fund (EGF) to assist Italy following redundancies in its
manufacture of electrical equipment sector.
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 provides that the EGF shall not
exceed a maximum annual amount of EUR 150 million (2011
prices).
The rules applicable to financial contributions from
the European Globalisation Adjustment Fund (EGF) are laid down in
Regulation (EU) No 1309/2013
of the European Parliament and of the Council on the European
Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006
(the 'EGF Regulation').
The Commission examined the application for
mobilisation of the EGF to assist Italy and concluded the
following:
Italy:application
EGF/2014/010 IT/Whirlpool:
the Italian authorities submitted application
EGF/2014/010 IT/Whirlpool for a financial contribution from the
EGF, following redundancies in Whirlpool Europe S.r.l. and five
suppliers and downstream producers in Italy. The authorities
submitted the application within the 12 week delay as set
out in the EGF Regulation, which expires on 5 November
2014.
In order to establish the link between the
redundancies and the global financial and economic crisis, Italy
argues that in 2009, as a consequence of the global financial and
economic crisis, there was a significant downturn in the economy at
EU-28 level, as well as in the Italian economy. The Italian GDP
growth rate was positive in 2010 (1.7%) and 2011 (0.4%) and
negative since then (-2.4% in 2012 and -1.9% in 2013).
This situation of recession has had a profound effect
on the consumption choices of Italian households which had
reconsidered their buying decisions, in particular those related to
buying durable goods. Domestic appliances belong to this group of
goods.
According to data referred to by the Italian
authorities, all five largest domestic appliance manufacturers in
Italy (Electrolux, Indesit, Whirlpool Europe, Franke and Antonio
Merloni), have suffered a sharp decline in production over the
period 2008-2012 due to the economic and financial
crisis.
The Commission states that to date, the manufacture of
electrical equipment sector has been the subject of three EGF
applications, all of them based on the global financial and
economic crisis. The arguments presented in previous EGF
applications related to this sector remain valid.
Background to the French application: the Italian authorities submitted the application
under the intervention criterion of Article 4(1)(a) of the EGF
Regulation, which requires at least 500 workers being made
redundant or self-employed persons' activity ceasing, over a
reference period of four months in an enterprise in a Member State,
including workers made redundant in its suppliers and downstream
producers.
The Italian authorities voluntarily shortened the
reference period of four months provided for in Regulation (EU) No
1309/2013. The reference period is from 10 December 2013 to 31
March 2014.
The application relates to 608 workers made redundant
in Whirlpool Europe S.r.l. and five providers and downstream
producers. The primary enterprise operated in the economic sector
classified under NACE Rev. 2 division 27 ('Manufacture of
electrical equipment'). The redundancies made by the enterprises
concerned are located in the NUTS level 2 region of Provincia
Autonoma di Trento (ITH2).
Following its assessment of this application, the
Commission has concluded, in accordance with all applicable
provisions of the EGF Regulation, that the conditions for awarding
a financial contribution from the EGF are met.
In view of the Italian request, it is proposed to
mobilise the EGF for the amount of EUR 1 890 000 to
make a contribution to the package of personalised
services.
BUDGETARY IMPLICATION: having examined the application
in respect of the conditions set out in Article 13(1) of the EGF
Regulation, and having taken into account the number of targeted
beneficiaries, the proposed actions and the estimated costs, the
Commission proposes to mobilise the EGF for the amount of EUR
1 890 000, representing 60 % of the total costs of the
proposed actions, in order to provide a financial contribution for
the application.
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.
At the same time as it presents this proposal for a
decision to mobilise the EGF, the Commission will present to the
European Parliament and to the Council a proposal for a transfer to
the relevant budgetary line for the requested amount.
When the Commission adopts this proposal for a
decision to mobilise the EGF, it will also adopt a decision on a
financial contribution, by means of an implementing act, which will
enter into force on the date at which the European Parliament and
the Council adopt the proposed decision to mobilise the
EGF.