Progress: Procedure completed
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | BUDG | SARVAMAA Petri ( PPE) | |
Committee Opinion | EMPL | ||
Committee Opinion | REGI |
Lead committee dossier:
Subjects
Events
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) for EUR 5 364 000 to assist Finland in respect of redundancies in the information and communications technology sector (in particular, the mobile phone sector).
NON-LEGISLATIVE ACT: Decision (EU) 2016/1857 of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (following an application from Finland — EGF/2016/001 FI/Microsoft).
CONTENT: under this Decision, the European Parliament and the Council decided to mobilise EUR 5 364 000 in commitment and payment appropriations under the European Globalisation Adjustment Fund in the framework of the 2016 budget.
This amount shall assist Finland financially in respect of redundancies in Microsoft (Microsoft Mobile Oy) and 8 suppliers and downstream producers.
Given that the application complies with the requirements for determining a financial contribution from the EGF as laid down in Regulation (EU) No 1309/2013 , the European Parliament and the Council have responded by granting the above-mentioned amount.
In brief, the European Globalisation Adjustment Fund (EGF) 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.
Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 provides that the EGF is not to exceed a maximum annual amount of EUR 150 million .
ENTRY INTO FORCE: the Decision shall enter into force on 20.10.2016 and shall apply from 11.10.2016.
The European Parliament adopted by 594 votes to 68, with 12 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Union Solidarity Fund for an amount of EUR 5 364 000 in payment and commitment appropriations to assist Finland in respect of redundancies in the information and communications technology sector (in particular, the mobile phone sector).
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 or of the global financial and economic crisis and to assist their reintegration into the labour market.
Finnish application : Finland submitted application EGF/2016/001 FI/Microsoft for a financial contribution from the EGF under the intervention criteria set out in Article 4(1)(a) of the EGF Regulation, following 2161 redundancies in Microsoft Mobile Oy and 8 of its suppliers and downstream producers in Finland, operating in the NACE Revision 2 division 62 (Computer programming, consultancy and related activities).
Parliament agreed with the Commission that the conditions set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Finland is entitled to a financial contribution of EUR 5 364 000 under that Regulation, which represents 60 % of the total cost of EUR 8 940 000.
Nature of the redundancies : Parliament noted that the main reason behind the redundancies at Microsoft is the declining market share of its phones using the Microsoft Windows operating system from over 50 % in 2009 to 0.6 % in the second quarter of 2016.
It considered that the redundancies in Microsoft are linked with the trend that has affected the entire Finnish electronics industry since the decline of Nokia in its country of origin and for which four previous applications have been presented. Those events are directly linked to structural changes in world trade patterns due to globalisation.
Members also noted that redundancies are concentrated in NUTS 2 regions Helsinki-Uusimaa (FI1B), Etelä-Suomi (FI1C) and Länsi-Suomi, (FI197) and concern workers with highly varying competencies, 89 % of them between 30 and 54 years of age. However, the situation is already difficult as regards the unemployment situation of highly skilled and educated people, especially women who face a greater challenge in finding employment.
A package of personalised services : Parliament welcomed the fact that the Finnish authorities started providing the personalised services to the affected workers on 11 September 2015, well ahead of the application for the EGF support for the proposed coordinated package.
Finland is planning six types of measures for the redundant workers covered by this application:
coaching measures and other preparatory measures; employment and business services; vocational labour training; pay subsidiesd; start-up grants; allowances for travel, overnight and removal costs, sufficient funds have been allocated to control and reporting.
Pay subsidies : Parliament noted that the pay subsidies will be between 30 and 50 % of the worker’s payroll costs and will be given for a period of 6 to 24 months. It called on Member States to pay strict attention when using pay subsidies to ensure that redundant workers hired with a subsidy are not replacing, in whole or in part, a position held previously by another employee at the company concerned. It called on the Commission to evaluate and provide information about the impact of the income support measures over a period of several years, to ensure that they are supporting high-quality employment and not being used to subsidise short-term, low-cost contracts.
Synergies with other actions : Parliament noted that the Microsoft case will cooperate with Labour Mobility in Europe 2014–2020, which is a national EURES service development project. It welcomed such measures and the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right to free movement.
It also noted that a national package of measures entitled "Models between the recruiting company and the retrenching company" has been launched within the European Social Fund and welcomed the efforts of the Finnish authorities to search for synergies with other actions funded by national or Union funds.
In parallel, Parliament noted that the Finnish authorities have confirmed that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that such actions are complementary to actions funded by the Structural Funds.
Lastly, Parliament recalled that the financial contribution from the EGF will not replace actions the enterprise concerned is required to take by virtue of national law or pursuant to collective agreements.
The Committee on Budgets adopted the report by Petri SARVAMAA (EPP, FI) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Union Solidarity Fund for an amount of EUR 5 364 000 in payment and commitment appropriations to assist Finland in respect of redundancies in the information and communications technology sector (in particular, the mobile phone sector).
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 or of the global financial and economic crisis and to assist their reintegration into the labour market.
Finnish application : Finland submitted application EGF/2016/001 FI/Microsoft for a financial contribution from the EGF under the intervention criteria set out in Article 4(1)(a) of the EGF Regulation, following 2161 redundancies in Microsoft Mobile Oy and 8 of its suppliers and downstream producers in Finland, operating in the NACE Revision 2 division 62 (Computer programming, consultancy and related activities).
Members agreed with the Commission that the conditions set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Finland is entitled to a financial contribution of EUR 5 364 000 under that Regulation, which represents 60 % of the total cost of EUR 8 940 000.
Nature of the redundancies : Members noted that the main reason behind the redundancies at Microsoft is the declining market share of its phones using the Microsoft Windows operating system from over 50 % in 2009 to 0.6 % in the second quarter of 2016.
They considered that the redundancies in Microsoft are linked with the trend that has affected the entire Finnish electronics industry since the decline of Nokia in its country of origin and for which four previous applications have been presented. Those events are directly linked to structural changes in world trade patterns due to globalisation.
Members also noted that redundancies are concentrated in NUTS 2 regions Helsinki-Uusimaa (FI1B), Etelä-Suomi (FI1C) and Länsi-Suomi, (FI197) and concern workers with highly varying competencies, 89 % of them between 30 and 54 years of age. However, the situation is already difficult as regards the unemployment situation of highly skilled and educated people, especially women who face a greater challenge in finding employment.
A package of personalised services : Member welcomed the fact that the Finnish authorities started providing the personalised services to the affected workers on 11 September 2015, well ahead of the application for the EGF support for the proposed coordinated package.
Finland is planning six types of measures for the redundant workers covered by this application:
coaching measures and other preparatory measures; employment and business services; vocational labour training; pay subsidiesd; start-up grants; allowances for travel, overnight and removal costs, sufficient funds have been allocated to control and reporting.
Members noted that the Microsoft case will cooperate with Labour Mobility in Europe 2014–2020, which is a national EURES service development project. They noted that international recruitment events will be organised regionally in cooperation with EGF and EURES services. They welcomed such measures and the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right to free movement.
It also noted that a national package of measures entitled "Models between the recruiting company and the retrenching company" has been launched within the European Social Fund and welcomed the efforts of the Finnish authorities to search for synergies with other actions funded by national or Union funds.
In parallel, Members noted that the Finnish authorities have confirmed that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that such actions are complementary to actions funded by the Structural Funds.
Lastly, they recalled that the financial contribution from the EGF will not replace actions the enterprise concerned is required to take by virtue of national law or pursuant to collective agreements.
PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Finland in respect of redundancies in the information and communications technology sector (in particular, the mobile phone 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 is not to 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 .
Against this backdrop, the Commission examined the application to mobilise the EGF to assist Finland and expressed its position as follows:
Finland : EGF/2016/001 FI/Microsoft : on 11 March 2016, Finland submitted an application EGF/2016/001 FI/Microsoft for a financial contribution from the EGF, following redundancies in Microsoft (Microsoft Mobile Oy) and 8 suppliers and downstream producers in Finland.
Finland submitted its application within the 12 week deadline set out in the EGF Regulation. 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 29 July 2016.
In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Finland argues that in recent years the distribution of ICT sector employment between the EU and other economies has developed to the detriment of the EU share. These effects were particularly felt in Finland, where the ICT sector plays a key role in the economy.
In 2014, the number of people employed by technology businesses in Finland decreased by 2 %, i.e. by over 5 000 employees. During the same period, the share of China and the United States in the ICT sector personnel of the developed countries increased, while the share of Europe decreased.
The mobile phone markets have developed under constant competition between different operating systems. During the first decade of the 2000s Nokia dominated the markets. Since then the Android operating system rapidly achieved a strong market position, while Microsoft failed to achieve a significant market share. This has led to growing imports into the Union.
Thus, the main reason behind the workforce reductions at Microsoft is the declining market share of its phones (Lumia) with the Microsoft Windows operating system. Android and iOS, the two US-designed operating systems used by various Asian based manufacturers, have risen to dominate the market in recent years.
The current application is the continuation of a series of previous applications from Finland, all revolving around the decline of Nokia in its country of origin.
To date, the NACE Divison 62 sector has been the subject of two previous EGF applications, both based on trade related globalisation ( EGF/2013/001 FI/Nokia and EGF/2015/005 FI/Computer programming ).
Basis of the Finnish request : Finland 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.
The reference period of four months for the application runs from 11 September 2015 to 11 January 2016. There were 2 035 redundancies within this reference period.
The redundancies during the reference period are as follows:
1 889 workers made redundant by Microsoft,
146 workers made redundant by eight suppliers and downstream producers.
In addition to the 2 035 workers already referred to, the eligible beneficiaries include 126 workers made redundant before or after the reference period of four months. These workers were all made redundant after the general announcement of the projected redundancies on 8 July 2015.
The total number of eligible beneficiaries is therefore 2 161 .
The Commission proposes to mobilise the EGF for the amount of EUR 5 364 000 .
FINANCIAL IMPLICATIONS: 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 5 364 000, 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 Inter-institutional 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.
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 2016/1857
- Final act published in Official Journal: OJ L 284 20.10.2016, p. 0023
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T8-0366/2016
- Budgetary report tabled for plenary: A8-0273/2016
- Amendments tabled in committee: PE589.289
- Committee draft report: PE587.428
- Non-legislative basic document published: COM(2016)0490
- Non-legislative basic document published: EUR-Lex
- Committee draft report: PE587.428
- Amendments tabled in committee: PE589.289
Activities
- Tim AKER
- Marina ALBIOL GUZMÁN
- Jean ARTHUIS
- Marie-Christine ARNAUTU
- Jonathan ARNOTT
- Zigmantas BALČYTIS
- Hugues BAYET
- Xabier BENITO ZILUAGA
- José BLANCO LÓPEZ
- Marie-Christine BOUTONNET
- Renata BRIANO
- Steeve BRIOIS
- Alain CADEC
- Nicola CAPUTO
- Salvatore CICU
- Alberto CIRIO
- Jane COLLINS
- Therese COMODINI CACHIA
- Andi CRISTEA
- Pál CSÁKY
- Javier COUSO PERMUY
- Edward CZESAK
- Michel DANTIN
- Rachida DATI
- Gérard DEPREZ
- Marielle DE SARNEZ
- Norbert ERDŐS
- Georgios EPITIDEIOS
- Edouard FERRAND
- Lorenzo FONTANA
- Doru-Claudian FRUNZULICĂ
- Ildikó GÁLL-PELCZ
- Francisco de Paula GAMBUS MILLET
- Elena GENTILE
- Beata GOSIEWSKA
- Tania GONZÁLEZ PEÑAS
- Brian HAYES
- Marian HARKIN
- Hans-Olaf HENKEL
- Mike HOOKEM
- Cătălin Sorin IVAN
- Diane JAMES
- Marc JOULAUD
- Ivan JAKOVČIĆ
- Philippe JUVIN
- Barbara KAPPEL
- Afzal KHAN
- Giovanni LA VIA
- Marine LE PEN
- Paloma LÓPEZ BERMEJO
- Monica MACOVEI
- Vladimír MAŇKA
- Ivana MALETIĆ
- Andrejs MAMIKINS
- Dominique MARTIN
- Notis MARIAS
- Jean-Luc MÉLENCHON
- Louis MICHEL
- Bernard MONOT
- Marlene MIZZI
- Sophie MONTEL
- Elisabeth MORIN-CHARTIER
- Alessia Maria MOSCA
- József NAGY
- Momchil NEKOV
- Liadh NÍ RIADA
- Franz OBERMAYR
- Margot PARKER
- Florian PHILIPPOT
- Marijana PETIR
- Pavel POC
- Franck PROUST
- Julia REID
- Sofia RIBEIRO
- Claude ROLIN
- Fernando RUAS
- Lola SÁNCHEZ CALDENTEY
- Jasenko SELIMOVIC
- Jill SEYMOUR
- Maria Lidia SENRA RODRÍGUEZ
- Siôn SIMON
- Branislav ŠKRIPEK
- Monika SMOLKOVÁ
- Davor ŠKRLEC
- Igor ŠOLTES
- Beatrix von STORCH
- Patricija ŠULIN
- Neoklis SYLIKIOTIS
- Eleftherios SYNADINOS
- Adam SZEJNFELD
- Dubravka ŠUICA
- Hannu TAKKULA
- Claudia ȚAPARDEL
- Pavel TELIČKA
- Mylène TROSZCZYNSKI
- Kazimierz Michał UJAZDOWSKI
- Ángela VALLINA
- Marie-Christine VERGIAT
- Miguel VIEGAS
- Pablo ZALBA BIDEGAIN
- Jana ŽITŇANSKÁ
Votes
A8-0273/2016 - Petri Sarvamaa - Résolution #
Amendments | Dossier |
21 |
2016/2211(BUD)
2016/09/16
BUDG
21 amendments...
Amendment 1 #
Draft opinion Paragraph 1 1. Agrees with the Commission that the conditions set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Finland is entitled to a financial contribution of EUR 5 364 000 under that Regulation, representing 60 % of the total cost of EUR 8 940 000;
Amendment 10 #
Draft opinion Paragraph 5 b (new) 5 b. Emphasises the importance of the ICT sector to employment in the regions of Helsinki-Uusimaa, Etelä-Suomi and Länsi-Suomi and the potential for the redundant workers to contribute to the industry if they receive sufficient support through further education, training and plans to take up entrepreneurship;
Amendment 11 #
Draft opinion Paragraph 6 6. Welcomes the fact that the Finnish authorities started providing the personalised services to the affected workers on 11 September 2015, well ahead of the application for the EGF support for the proposed coordinated package, since these actions are eligible for co-funding from the EGF;
Amendment 12 #
Draft opinion Paragraph 6 a (new) 6 a. Welcomes the high percentage (close to 80 %) of the overall package being used for personalised services;
Amendment 13 #
Draft opinion Paragraph 7 a (new) 7 a. Notes that the pay subsidy mentioned in paragraph 7 is between 30 and 50 % of the worker’s payroll costs and will be given for a period of 6 to 24 months; calls on Member States to pay strict attention when using pay subsidies to ensure that redundant workers hired with a subsidy are not replacing, in whole or in part, a position held previously by another employee at the company concerned; is pleased the Finnish authorities have given assurances that this is the case;
Amendment 14 #
7 b. Notes that the income support measures amount to 16,64 % of the overall package of personalised measures, well below the 35 % limit set by the EGF Regulation and that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities;
Amendment 15 #
Draft opinion Paragraph 7 c (new) 7 c. Invites the Commission to evaluate and provide information about the impact of these income support measures over a period of several years, to ensure that they are supporting high-quality employment and not being used to subsidise short- term, low-cost contracts;
Amendment 16 #
Draft opinion Paragraph 9 a (new) 9a. Notes that the Microsoft case will cooperate with Labour Mobility in Europe 2014–2020, which is a national EURES service development project; notes that international recruitment events will be organised regionally in cooperation with EGF and EURES services; welcomes such measures and the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right to free movement;
Amendment 17 #
Draft opinion Paragraph 9 b (new) 9b. Notes that a national package of measures entitled "Models between the recruiting company and the retrenching company" has been launched within the European Social Fund; notes that this package of measures will produce results that may be useful for the implementation of projects under this EGF application; welcomes the efforts of the Finnish authorities to search for synergies with other actions funded by national or Union funds;
Amendment 18 #
Draft opinion Paragraph 9 c (new) 9 c. Recalls 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.
Amendment 19 #
Draft opinion Paragraph 11 11.
Amendment 2 #
Draft opinion Paragraph 2 2. Notes that Finland submitted the application for a financial contribution from the EGF on 11 March 2016, and that following additional information provided by Finland, its assessment was finalised by the Commission on 29 July 2016, thereby respecting the deadline of 12 weeks from receipt of the completed application;
Amendment 20 #
Draft opinion Paragraph 12 12.
Amendment 21 #
Draft opinion Paragraph 13 a (new) 13a. Notes that it is foreseeable that Finland submits, in the near future, two further related applications for redundant workers in the ICT sector;
Amendment 3 #
Draft opinion Paragraph 2 2. Notes that Finland submitted the application for a financial contribution from the EGF on 11 March 2016, and that following additional information provided by Finland, its assessment was finalised by the Commission on 29 July 2016 who concluded that the conditions for awarding a financial contribution from the EGF had been met;
Amendment 4 #
Draft opinion Paragraph 3 3. Notes that the main reason behind the redundancies at Microsoft is the declining market share of its phones using the Microsoft Windows operating system from over 50 % in 2009 to 0,6 % in the second quarter of 2016;
Amendment 5 #
Draft opinion Paragraph 4 4. Recalls that the Union share in global ICT sector employment has decreased in recent years, and that ICT plays a key role in Finnish economy, with 6,7 % of employees working in the ICT sector in 2014, the highest percentage amongst all Member States; considers that the redundancies in
Amendment 6 #
Draft opinion Paragraph 4 a (new) 4a. Recalls that the software industry is highly international and that competition within the sector is global, meaning all market players can compete for the same customers and the location and cultural background of personnel has limited significance;
Amendment 7 #
Draft opinion Paragraph 4 b (new) 4 b. Recognises that this application continues a series of cases revolving around the decline of Nokia in Finland and that two further related applications for workers being made redundant in the ICT sector are expected to follow;
Amendment 8 #
Draft opinion Paragraph 5 5. Notes that redundancies are concentrated in NUTS 2 regions Helsinki- Uusimaa (FI1B), Etelä-Suomi (FI1C) and Länsi-Suomi, (FI197) and concern workers with highly varying competencies, 89% of them between 30 and 54 years of age; is concerned about the already difficult unemployment situation of highly skilled and educated people whose employment prospects would otherwise be traditionally good, especially women, who face a greater challenge in finding employment, taking into consideration that they represent almost half of the targeted beneficiaries;
Amendment 9 #
Draft opinion Paragraph 5 a (new) 5a. Notes that, to date, the 'Computer programming, consultancy and related activities' sector has been the subject to two previous EGF applications, both based on the globalisation criterion (EGF/2013/001 FI/Nokia and EGF/2015/005 FI/Computer programming);
source: 589.289
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