Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | BUDG |
GEIER Jens ( S&D)
|
ŠULIN Patricija ( PPE),
KÖLMEL Bernd ( ECR),
ARTHUIS Jean ( ALDE),
VANA Monika ( Verts/ALE),
ZANNI Marco ( EFDD)
|
| Committee Opinion | EMPL | ||
| Committee Opinion | REGI |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to come to the aid of Germany which is confronted by redundancies in its car industry.
NON-LEGISLATIVE ACT: Decision (EU) 2015/1871 of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Germany — EGF/2015/002 DE/Adam Opel).
CONTENT: with this Decision, the European Parliament and Council decide to mobilise the sum of EUR 6 958 623 in commitment and payment appropriations from the European Globalisation Adjustment Fund for the general budget for the financial year 2015.
This sum is intended to assist Germany following redundancies in Adam Opel AG and one supplier in Germany.
Noting that the application complies with the requirements for determining a financial contribution from the EGF as laid down in Regulation (EU) No 1309/2013 ( EGF Regulation 2014-2020 ), Parliament and Council decided to respond by granting the above amount.
To recall, the European Globalisation Adjustment Fund aims to provide support for workers made redundant and self-employed persons whose activity has ceased as a result of major structural changes in world trade patterns due to globalisation, as a result of a continuation of the global financial and economic crisis, or as a result of a new global financial and economic crisis, and to assist them with their reintegration into the labour market.
The EGF is not to exceed a maximum annual amount of EUR 150 million as laid down in Council Regulation (EU, Euratom) No 1311/2013 .
ENTRY INTO FORCE: 20.10.2015. The Decision is applicable from 6.10.2015.
The European Parliament adopted by 551 votes to 78, with 63 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 6 958 623 in commitment and payment appropriations in order to assist Germany following redundancies in its automotive industry.
Parliament recalled that the Union set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.
German application : Germany submitted application EGF/2015/002 DE/Adam Opel for a financial contribution from the EGF following 2 881 redundancies in Adam Opel AG, operating in the NACE Rev. 2 division 29 ('Manufacture of motor vehicles, trailers and semi-trailers') and 1 supplier. Parliament noted that the conditions set out in Article 4(1)(a) of the EGF Regulation are met. Therefore, Germany is entitled to a financial contribution under that Regulation .
Nature of the redundancies : Parliament noted that manufacturers of small and medium-sized vehicles of the medium-price segment have been hit particularly hard and that Adam Opel AG, being one of the major players in the medium-price segment of small and medium-sized vehicles, has thus been hit particularly hard by the crisis. Furthermore, Adam Opel AG was disadvantaged by the owning enterprise General Motors, which allowed Opel to sell only within Europe, thus excluding Opel from emerging markets on other continents. Germany is of the opinion that austerity policies imposed in European countries contributed to the dramatic drop in sales by Opel/Vauxhall.
Hard hit region : Parliament noted that these redundancies will have a significant adverse impact on the local economy in Bochum . Bochum is a city in the Ruhr area, a highly urbanised industrial area in the German Federal State of North Rhine-Westphalia, which, like other traditional coal-mining and steel producing regions, has been facing tremendous structural challenges since the 1960s.
The unemployment rate in the Ruhr area is already far above the German average;
It recalled that Bochum has already been supported by the EGF after Nokia stopped the production of cell phones, with a loss of more than 1 300 jobs. It also noted that Outukumpu intends to stop the production of stainless steel in Bochum at the end of 2015, which will lead to a further deindustrialisation of the city and a worsening of the local and regional labour situation.
A package of personalised services : Parliament noted that the German authorities decided to initiate the implementation of the personalised services to the affected workers on 1 January 2015, well ahead of the decision and even the application on the granting the EGF support for the proposed coordinated package.
Germany is planning the following measures for the redundant workers covered by this application:
vocational training measures, career guidance, peer groups/workshops, business start-up advisory service, job search/job fairs, follow-up mentoring and advisory services and training allowances.
It recalled that these measures have been drawn up in consultation with the social partners through the creation of transfer companies.
The resolution stated that the authorities plan to utilise the maximum allowed 35% of total costs for the coordinated package of personalised services on allowances and incentives in form of training allowance.
Recalling the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career, Parliament expect the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment.
The German authorities confirmed that the eligible actions do not receive assistance from other Union financial instruments. Members reiterated their call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect for existing regulations and that no duplication of Union-funded services can occur.
Lastly, Parliament appreciated the improved procedure put in place by the Commission, following the Parliament's request for the accelerated release of grants and noted the time pressure that the new timetable implies and the potential impact on the effectiveness of case instruction.
The Committee on Budgets adopted the report by Jens GEIER (S&D, DE) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 6 958 623 in commitment and payment appropriations in order to assist Germany following redundancies in its automotive industry.
Members recalled that the Union set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.
German application : Germany submitted application EGF/2015/002 DE/Adam Opel for a financial contribution from the EGF following 2 881 redundancies in Adam Opel AG, operating in the NACE Rev. 2 division 29 ('Manufacture of motor vehicles, trailers and semi-trailers') and 1 supplier. Members noted that the conditions set out in Article 4(1)(a) of the EGF Regulation are met. Therefore, Germany is entitled to a financial contribution of EUR 6 958 623 under that Regulation.
Nature of the redundancies : manufacturers of small and medium-sized vehicles of the medium-price segment have been hit particularly hard and that Adam Opel AG, being one of the major players in the medium-price segment of small and medium-sized vehicles, has thus been hit particularly hard by the crisis. Furthermore, Adam Opel AG was disadvantaged by the owning enterprise General Motors, which allowed Opel to sell only within Europe, thus excluding Opel from emerging markets on other continents. Germany is of the opinion that austerity policies imposed in European countries contributed to the dramatic drop in sales by Opel/Vauxhall.
A package of personalised services : Members noted that the German authorities decided to initiate the implementation of the personalised services to the affected workers on 1 January 2015, well ahead of the decision and even the application on the granting the EGF support for the proposed coordinated package. Germany is planning the following measures for the redundant workers covered by this application: (i) vocational training measures, (ii) career guidance, (ii) peer groups/workshops, business start-up advisory service, (iv) job search/job fairs, (v) mentoring and advisory services and training allowances. The coordinated package of personalised services has been drawn up in consultation with the social partners through the creation of transfer companies.
The report noted that the authorities plan to utilise the maximum allowed 35% of total costs for the coordinated package of personalised services on allowances and incentives in form of training allowance constituting 60% or 67% of the worker previous net income – depending on the household situation of the beneficiary.
Recalling the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career, Members expect the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment.
The German authorities confirmed that the eligible actions do not receive assistance from other Union financial instruments. Members reiterated their call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect for existing regulations and that no duplication of Union-funded services can occur.
Lastly, Members appreciated the improved procedure put in place by the Commission, following the Parliament's request for the accelerated release of grants and noted the time pressure that the new timetable implies and the potential impact on the effectiveness of case instruction.
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Germany following redundancies in its 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 provides that the EGF shall not exceed a maximum annual amount of EUR 150 million (2011 prices) over and above the relevant headings of the financial framework.
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 Commission examined the application for mobilisation of the EGF to assist Germany and concluded the following:
Germany : EGF/2015/002 DE/Adam Opel : on 26 February 2015, Germany submitted application EGF/2015/002 DE/Adam Opel for a financial contribution from the EGF, following redundancies in Adam Opel AG and one supplier in Germany.
Germany submitted its application within 12 weeks of the date on which the intervention criteria set out in the EGF Regulation were met. The deadline of 12 weeks of the receipt of the complete application within which the Commission should finalise its assessment of the application's compliance with the conditions for providing a financial contribution expires on 16 July 2015.
In order to establish the link between the redundancies and the global financial and economic crisis, Germany argues that due to the crisis, the number of cars sold in Europe is the lowest since 1997. In Western Europe sales dropped dramatically and reached a 20-year record low. As a consequence of the financial and economic crisis, the number of newly registered cars in the EU and EFTA Member States saw a 25 % drop between 2007 and 2013.
The German Automobile Manufacturers Association ( Verband der Automobilindustrie ) reports a sharp drop in market share for all relevant manufacturers on the European market of small and medium-sized vehicles within the medium-price segment, such as Opel, Fiat, PSA, Renault (excluding Dacia), Ford and Toyota, since 2007. In addition to the overall drop in car sales, a shift from medium-priced vehicles to economy vehicles could be observed. The sharp drop in overall car sales can be attributed to the ongoing economic and financial crisis.
As a consequence of the sharp decline of car sales, Adam Opel AG faced the problem of overcapacities. Adam Opel AG currently operates five plants for the production of Opel and Vauxhall cars in Europe: two in Germany (the third plant, Bochum, has been shut down since 31 December 2014 and is the subject of this proposal), and one each in Poland, the United Kingdom and Spain
To date, the NACE Revision 2 Division 29 sector (Manufacture of motor vehicles, trailers and semi-trailers) has been the subject of 21 EGF applications, 11 of which based on trade related globalisation and 10 on the global financial and economic crisis.
Basis of the German application : Germany submitted the application under the intervention criteria of Article 4(1)(a) of the EGF Regulation, which requires at least 500 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased.
The reference period of four months for the application runs from 15 August 2014 to 15 December 2014.
The redundancies during the reference period are as follows:
2 826 workers made redundant in Adam Opel AG, 55 workers made redundant in Johnson Controls Objekt Bochum GmbH & Co. KG, a supplier of Adam Opel AG.
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 6 958 623, representing 60% of the total costs of the proposed actions.
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 amount required.
At the same time as it adopts this proposal for a decision to mobilise the EGF, the Commission will 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.
Documents
- Final act published in Official Journal: Decision 2015/1871
- Final act published in Official Journal: OJ L 275 20.10.2015, p. 0028
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T8-0333/2015
- Budgetary report tabled for plenary: A8-0273/2015
- Amendments tabled in committee: PE567.719
- Committee draft report: PE565.193
- Non-legislative basic document published: COM(2015)0342
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE565.193
- Amendments tabled in committee: PE567.719
Activities
- Lars ADAKTUSSON
Plenary Speeches (1)
- Marina ALBIOL GUZMÁN
Plenary Speeches (1)
- Jean ARTHUIS
Plenary Speeches (1)
- Marie-Christine ARNAUTU
Plenary Speeches (1)
- Jonathan ARNOTT
Plenary Speeches (1)
- Zigmantas BALČYTIS
Plenary Speeches (1)
- Hugues BAYET
Plenary Speeches (1)
- José BLANCO LÓPEZ
Plenary Speeches (1)
- Steeve BRIOIS
Plenary Speeches (1)
- Gianluca BUONANNO
Plenary Speeches (1)
- Alain CADEC
Plenary Speeches (1)
- James CARVER
Plenary Speeches (1)
- Nicola CAPUTO
Plenary Speeches (1)
- Salvatore CICU
Plenary Speeches (1)
- David COBURN
Plenary Speeches (1)
- Alberto CIRIO
Plenary Speeches (1)
- Therese COMODINI CACHIA
Plenary Speeches (1)
- Pál CSÁKY
Plenary Speeches (1)
- Javier COUSO PERMUY
Plenary Speeches (1)
- Michel DANTIN
Plenary Speeches (1)
- William (The Earl of) DARTMOUTH
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- Rachida DATI
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- Isabella DE MONTE
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- Mark DEMESMAEKER
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- Marielle DE SARNEZ
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- Norbert ERDŐS
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- Georgios EPITIDEIOS
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- Christofer FJELLNER
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- Lorenzo FONTANA
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- Doru-Claudian FRUNZULICĂ
Plenary Speeches (1)
- Francisco de Paula GAMBUS MILLET
Plenary Speeches (1)
- Elena GENTILE
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- Arne GERICKE
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- Tania GONZÁLEZ PEÑAS
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- Marian HARKIN
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- Hans-Olaf HENKEL
Plenary Speeches (1)
- Pablo IGLESIAS
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- Cătălin Sorin IVAN
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- Diane JAMES
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- Marc JOULAUD
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- Ivan JAKOVČIĆ
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- Philippe JUVIN
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- Barbara KAPPEL
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- Afzal KHAN
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- Bernd KÖLMEL
Plenary Speeches (1)
- Giovanni LA VIA
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- Marine LE PEN
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- Bernd LUCKE
Plenary Speeches (1)
- Vladimír MAŇKA
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- Ivana MALETIĆ
Plenary Speeches (1)
- Andrejs MAMIKINS
Plenary Speeches (1)
- Notis MARIAS
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- Barbara MATERA
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- Stefano MAULLU
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- David MARTIN
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- Jean-Luc MÉLENCHON
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- Miroslav MIKOLÁŠIK
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- Louis MICHEL
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- Marlene MIZZI
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- Sophie MONTEL
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- Elisabeth MORIN-CHARTIER
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- Liadh NÍ RIADA
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- Franz OBERMAYR
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- Rolandas PAKSAS
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- Florian PHILIPPOT
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- Marijana PETIR
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- Salvatore Domenico POGLIESE
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- Franck PROUST
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- Liliana RODRIGUES
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- Claude ROLIN
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- Fernando RUAS
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- Lola SÁNCHEZ CALDENTEY
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- Jasenko SELIMOVIC
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- Jill SEYMOUR
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- Maria Lidia SENRA RODRÍGUEZ
Plenary Speeches (1)
- Siôn SIMON
Plenary Speeches (1)
- Branislav ŠKRIPEK
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- Monika SMOLKOVÁ
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- Davor ŠKRLEC
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- Igor ŠOLTES
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- Renato SORU
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- Joachim STARBATTY
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- Jutta STEINRUCK
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- Catherine STIHLER
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- Beatrix von STORCH
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- Richard SULÍK
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- Patricija ŠULIN
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- Kay SWINBURNE
Plenary Speeches (1)
- Eleftherios SYNADINOS
Plenary Speeches (1)
- Claudia ȚAPARDEL
Plenary Speeches (1)
- Pavel TELIČKA
Plenary Speeches (1)
- Ulrike TREBESIUS
Plenary Speeches (1)
- Ramon TREMOSA i BALCELLS
Plenary Speeches (1)
- Ángela VALLINA
Plenary Speeches (1)
- Miguel VIEGAS
Plenary Speeches (1)
Votes
A8-0273/2015 - Jens Geier - Résolution #
GUE/NGL
ENF
NI| Amendments | Dossier |
| 9 |
2015/2208(BUD)
2015/09/16
BUDG
9 amendments...
Amendment 1 #
Motion for a resolution Citation 6 a (new) – having regard to its Resolution of 17 September 2014 on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with 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 (application EGF/2014/000 TA 2014 – Technical assistance at the initiative of the Commission)3a, ______________ 3a Texts adopted, P8_TA(2014)0016
Amendment 2 #
Motion for a resolution Recital D a (new) Da. whereas the Parliament in its Resolution of 17 September 2014 has expressed the need to extend access to EGF support to young people up to the age of 25 who are not in employment, education or training (NEETs) in equal numbers to workers receiving support in regions with high youth unemployment, if it is demonstrated in the mid-term evaluation that there is a need to maintain this measure after December 2017; and accordingly to review the multiannual financial framework in order to enable such a change to take place in a more sustainable manner; whereas the Parliament also underlined that the mid- term evaluation to be launched in current 2015 should also take into account the long-term impact of the crisis and globalisation on SMEs and therefore evaluate the possibility of lowering the criteria of 500 workers being made redundant set up in Article 4 of the EGF Regulation;
Amendment 3 #
Motion for a resolution Paragraph 9 a (new) 9a. Notes that dismissed workers can benefit from a range of measures aiming to re-integrate them into the labour market; considers that the estimated number of participants in business start- up advisory service is low, at only 25 estimated beneficiaries;
Amendment 4 #
Motion for a resolution Paragraph 9 b (new) 9b. Welcomes that the management and control of this application will be administered by the same bodies which administer the European Social Fund within the Federal Ministry for Labour and Social Affairs and which also administered the previous EGF contributions;
Amendment 5 #
Motion for a resolution Paragraph 11 a (new) 11a. Notes that the authorities plan to utilise the maximum allowed 35% of total costs for the coordinated package of personalised services on allowances and incentives in form of training allowance (Transferkurzarbeitergeld) constituting 60% or 67% of the worker previous net income – depending on the household situation of the beneficiary;
Amendment 6 #
Motion for a resolution Paragraph 11 b (new) 11b. Emphasises that funding provided for training allowance (in the present case Transferkurzarbeitergeld) must not replace the legal obligation of the Member State or the former employer; calls on both the Commission and the Member State to provide clear and coherent information to specify to what extent Transferkurzarbeitergeld constitutes a legal obligation once the Transfergesellschaft has been set up; requests coherence in both funding practice and information to the Parliament; expects, therefore, the Commission to provide thorough and coherent analysis and details on the elements that go beyond the legal obligations of the Member States; reiterates its position that EGF funding should be used for ‘Transferkurzarbeitergeld’ in order to enable the transfer company to go beyond what it could normally do for the workers, by providing more personalised and in- depth measures than would be possible without EGF support; emphasises that Parliament will continue to monitor that the EGF is not used to replace obligations by a Member State or a company;
Amendment 7 #
Motion for a resolution Paragraph 11 c (new) 11c. Calls on the Commission to establish a consistent approach in case of applications including the “Transferkurzarbeitergeld” measure, by consistently defining it in each application and thoroughly checking and citing evidence that the specific measure is indeed eligible for EGF funding as laid down in Article 7 of the EGF Regulation and does not in any way substitute passive social protection measures and that the risk of double financing is excluded;
Amendment 8 #
Motion for a resolution Paragraph 11 d (new) 11d. Notes that the social partners agreed on the creation of three transfer companies in order to carry out the measures for the dismisses workers, which is in line with the practice in Germany; welcomes that the workers dismissed in the supplier company (Johnson Controls Objekt Bochum GmbHCo. KG) will also be able to participate in the measures carried out by the transfer companies;
Amendment 9 #
Motion for a resolution Paragraph 12 a (new) 12a. Reminds that in line with Article 7 of the EGF Regulation, the design of the coordinated package of personalised services should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy.
source: 567.719
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