BETA

Awaiting Council 1st reading position / budgetary conciliation convocation



2016/2235(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the manufacture of petroleum and chemicals products in Estonia
RoleCommitteeRapporteurShadows
Lead BUDG NEGRESCU Victor (S&D)
Opinion EMPL
Opinion REGI
Lead committee dossier: BUDG/8/07978

Activites

  • 2016/10/26 Decision by Parliament, 1st reading/single reading
    • T8-0413/2016 summary
  • 2016/10/24 Vote in committee, 1st reading/single reading
    • A8-0314/2016 summary
  • 2016/10/06 Committee referral announced in Parliament, 1st reading/single reading
  • 2016/09/28 Non-legislative basic document published
    • COM(2016)0622 summary
    • DG {'url': 'http://ec.europa.eu/social/', 'title': 'Employment, Social Affairs and Inclusion'}, THYSSEN Marianne

Documents

  • Non-legislative basic document published: COM(2016)0622
  • Budgetary report tabled for plenary, 1st reading: A8-0314/2016
  • Decision by Parliament, 1st reading/single reading: T8-0413/2016
AmendmentsDossier
14 2016/2235(BUD)
2016/10/13 BUDG 14 amendments...
source: 592.196

History

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

activities/4
date
2016-12-01T00:00:00
type
Final act published in Official Journal
procedure/final
url
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2016:326:TOC
title
OJ L 326 01.12.2016, p. 0014
activities/0/commission/0
DG
Commissioner
THYSSEN Marianne
activities/0/docs/0/text
  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Estonia in respect of redundancies in the manufacture of petroleum and chemicals products.

    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 Estonia and expressed its position as follows:

    Estonia: EGF/2016/003 EE/petroleum and chemicals: on 11 May 2016, Estonia submitted an application EGF/2016/003 EE/petroleum and chemicals for a financial contribution from the EGF, following redundancies in the economic sectors classified under the NACE Revision 2 Division 19 (Manufacture of coke and refined petroleum products) and Division 20 (Manufacture of chemicals and chemical products) in Estonia.

    Estonia submitted application EGF/2016/003 EE/petroleum and chemicals within 12 weeks of the date on which the intervention criteria set out in Article 4 of the EGF Regulation were met. The deadline expires on 28 September 2016. 

    In order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Estonia argues that the country is a small open economy with high reliance on exports of goods and services (nearly 80 % of national GDP in 2015 compared to 43.5 % in EU28). The Estonian economy highly suffered from the recent global oil market turbulences and a general decrease in Europe's international trade position. The county of Ida-Virumaa, in the north-east of Estonia, has been hit particularly hard, not only due to its geopolitically remote position at the Russian border, but especially because of a high concentration of industries dependent on oil and gas prices in this area.

    Regarding the manufacturing of chemicals and chemical products sector, the production of mineral fertilizers is highly energy intensive (gas prices make up to 80 % of total production costs). Due to the high increase of natural gas prices, low-cost gas regions outside Europe have a competitive advantage and allow producing fertilizers at far lower costs than in Europe. The EU share of world chemicals production dropped from 30.9 % in 2004 to 17 % in 2014. The EU gradually lost its top position in world chemicals sales to China.

    In July 2015, Nitrofert, a company producing synthetic ammonia and urea, shut down its production plant. Eesti Energia, the leading energy company in the Baltic States and the largest company in the world working with oil shale, decided to reduce shale oil production due to dramatically fallen profits caused by lower oil prices. The third enterprise subject to the application is Viru Keemia Grupp (VKG), another shale oil producer in Ida-Virumaa, facing similar problems caused by the drop in oil prices.

    Besides the loss of many jobs, the region is also affected by significant demographic problems and sparce population due to the remoteness of the region, which reduces the chances of finding suitable jobs.

    Basis of the Estonian application: Estonia submitted the application under the intervention criteria of Article 4(2) derogating from the criteria of Article 4(1)(b) of the EGF Regulation, which requires at least 500 workers being made redundant over a reference period of nine months in enterprises operating in the same economic sector defined at NACE Revision 2 Division and located in one region or two contiguous regions defined at NUTS 2 level in a Member State. 

    The reference period runs from 1 August 2015 to 1 May 2016.

    The total number of eligible beneficiaries is 1550.

    With regard to the Estonian request, the Commission proposes to mobilise the EGF for the amount of EUR 1 131 358.

    BUDGETARY 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 1 131 358, 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.

    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.

activities/2
date
2016-10-24T00:00:00
body
EP
type
Vote in committee, 1st reading/single reading
committees
docs
url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0314&language=EN type: Budgetary report tabled for plenary, 1st reading title: A8-0314/2016
activities/3/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0413 type: Decision by Parliament, 1st reading/single reading title: T8-0413/2016
activities/3/type
Old
Indicative plenary sitting date, 1st reading/single reading
New
Decision by Parliament, 1st reading/single reading
other/0
body
EC
dg
commissioner
THYSSEN Marianne
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Council 1st reading position / budgetary conciliation convocation
activities/1
date
2016-10-06T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
procedure/dossier_of_the_committee
BUDG/8/07978
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
activities
  • date: 2016-09-28T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0622/COM_COM(2016)0622_EN.pdf title: COM(2016)0622 type: Non-legislative basic document published celexid: CELEX:52016PC0622:EN body: EC commission: type: Non-legislative basic document published
  • date: 2016-10-26T00:00:00 body: EP type: Indicative plenary sitting date, 1st reading/single reading
committees
  • body: EP responsible: True committee: BUDG date: 2016-10-03T00:00:00 committee_full: Budgets rapporteur: group: S&D name: NEGRESCU Victor
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Regional Development committee: REGI
links
other
    procedure
    reference
    2016/2235(BUD)
    title
    Mobilisation of the European Globalisation Adjustment Fund: redundancies in the manufacture of petroleum and chemicals products in Estonia
    stage_reached
    Preparatory phase in Parliament
    subtype
    Mobilisation of funds
    type
    BUD - Budgetary procedure
    subject