BETA


2021/0316(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in metal products manufacturing in Spain

Progress: Awaiting Parliament's position on the draft budget

RoleCommitteeRapporteurShadows
Lead BUDG GARDIAZABAL RUBIAL Eider (icon: S&D S&D) FERNANDES José Manuel (icon: EPP EPP), GARICANO Luis (icon: Renew Renew), VANA Monika (icon: Verts/ALE Verts/ALE), RZOŃCA Bogdan (icon: ECR ECR)
Committee Opinion EMPL ĎURIŠ NICHOLSONOVÁ Lucia (icon: Renew Renew)
Lead committee dossier:

Events

2021/11/25
   Vote in plenary scheduled
2021/11/10
   EP - Budgetary report tabled for plenary
Details

The Committee on Budgets adopted the report by Eider GARDIAZABAL RUBIAL (S&D, ES) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for a total of EUR 1 214 607 in commitment and payment appropriations to assist Spain in supporting displaced workers.

The European Globalisation Adjustment Fund (EGF) is intended to provide additional support to workers suffering from the consequences of major structural changes in world trade patterns. In light of the COVID-19 pandemic and its social and economic consequences, the Commission reinforced the role of the EGF as an emergency tool and allowed for cases directly linked to the pandemic to be financed from the EGF.

Spanish application

Spain submitted application EGF/2021/001 ES/País Vasco metal for a financial contribution from the European Globalisation Adjustment Fund (EGF), following the displacement of 491 workers in the economic sector classified under the NACE Revision 2 division 25 (Manufacture of fabricated metal products, except machinery and equipment) in the NUTS 2 region of País Vasco (ES21) in Spain. The application relates to a total of 491 displaced workers whose activity has ceased, out of which 192 occurred in the course of collective redundancies that were notified to the authorities in six companies. Furthermore, the report noted that Spain expects that 300 out of the total eligible beneficiaries will participate in the measures (targeted beneficiaries).

Members agreed with the Commission that the conditions set out in the EGF Regulation are met and that Spain is entitled to a financial contribution of EUR 1 214 607 under that Regulation , which represents 85 % of the total cost of the proposed actions.

Link between the redundancies and a global financial and economic crisis

The report noted that the COVID-19 pandemic, the strict lockdown measures implemented in the second quarter of 2020 in Spain and the subsequent shortages of supplies and raw materials have adversely affected the metal sector in the country. In the Basque region, the fabricated metal products sector represents 27.4 % of the gross value added (GVA) of the industry, while the EU-28 average is 18.8 %. In 2020, production in Spain fell by more than 50 % in 18 % of the metal enterprises, turnover fell by more than 50 % in 16 % of the businesses and a third of metal enterprises experienced a decrease between 30 % and 50 % of both production and turnover.

The social impacts of the redundancies are expected to be important for workers, as well as the entire Basque region, where the number of unemployed persons increased by 25 % between March and August 2020, and where long-term unemployment represented 55.6 % of total unemployment in May 2021. Moreover, the report noted that the wage gap between men and women is 22.6 % and the temporary employment rate is 25.8 % in the Basque region, 11.6 % above the EU average, which is 14.2 %.

Personalised package of services

Members noted that Spain is planning seven types of actions for the displaced workers and self-employed persons:

- profiling sessions;

- occupational guidance;

- job-search assistance;

- support and/or contribution to business creation;

- re-skilling, up-skilling;

- on-the-job training;

- participation allowances.

Lastly, Members reiterated that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements, or any allowances or rights of the recipients of the EGF allocation to ensure full additionality of the allocation.

Documents
2021/11/09
   EP - Vote in committee
2021/10/28
   EP - Amendments tabled in committee
Documents
2021/10/26
   EP - Specific opinion
Documents
2021/10/26
   EP - ĎURIŠ NICHOLSONOVÁ Lucia (Renew) appointed as rapporteur in EMPL
2021/10/18
   EP - Committee referral announced in Parliament
2021/10/12
   EP - Committee draft report
Documents
2021/10/11
   EP - GARDIAZABAL RUBIAL Eider (S&D) appointed as rapporteur in BUDG
2021/10/07
   EC - Non-legislative basic document published
Details

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help Spain facing redundancies in the metal sector.

PROPOSED ACT: Decision of the European Parliament and of the Council.

CONTENT: on 25 June 2021, Spain submitted an application for a financial contribution from the EGF, following redundancies in the metal manufacturing sector (excluding machinery and equipment) in the Basque region in Spain .

Following the assessment of this application, the Commission has concluded, in accordance with all relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF are met.

Grounds for the application

The Spanish application is based on the intervention criteria of Article 4(2)(b) of the EGF Regulation, which requires the cessation of activity of at least 200 redundant workers, over a reference period of six months, in enterprises all operating in the same economic sector and located in one region or two contiguous regions at NUTS level 2 in a Member State

There were 491 redundant workers in the NUTS level 2 region of the Basque region in Spain. The six-month reference period for the application is from 2 June 2020 to 2 December 2020.

Events leading to the redundancies and cessation of activity

The event leading to the redundancies is the economic crisis caused by the COVID-19 pandemic. The strict lock down measures implemented by Spain in the second quarter of 2020 led to a slowdown in non-essential economic activities and services, which severely affected the metals sector.

In 2020 (compared to the previous year), production fell by more than 50% in 18% of metal companies . In 16% of companies, turnover also fell by more than 50%. One third of the metalworking companies experienced a fall in production and turnover of between 30% and 50%.

Despite the intensive use of partial unemployment, 14% of the companies in the metal sector made redundancies, affecting 10.6% of their workforce.

Given the high weight of the metal products manufacturing sector in the economy of the Spanish Basque Country (27.4% of the industry's gross added value), the difficulties it has encountered have had a significant impact on the economy and employment in the region. In August 2020, there were 25% more unemployed than six months earlier . Although the registered unemployment rate fell (6.21%) between January and May 2021, it remains 4.6% higher than before the pandemic.

Beneficiaries

Out of 491 redundant workers, it is estimated that 300 redundant workers should participate in the measures.

The personalised services to be provided to the redundant workers include the following actions: (i) general information on vocational counselling and training programmes and available incentives; (ii) vocational guidance; (iii) intensive job search assistance; (iv) support and contribution to business creation of up to EUR 8000; (v) training and (vi) participation, job search and training allowances.

The measures have been designed in line with the Spanish circular economy strategy. The training helps to stimulate the process of digital transformation of the industry.

The total estimated cost amounts to EUR 1 428 950 . It corresponds to the expenditure for personalised services, which amounts to EUR 1 384 950, and to the expenditure for financing the preparation, management, information and publicity activities, as well as to the expenditure for monitoring and reporting, amounting to EUR 44 000.

Budget proposal

The annual allocation to the EGF does not exceed EUR 186 million (in 2018 prices), as foreseen in the Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021-2027.

Following the assessment of the application, the Commission proposes to mobilise the EGF for an amount of EUR 1 214 607 , representing 85% of the total cost of the proposed actions, in order to provide a financial contribution for the application.

Documents

  • Budgetary report tabled for plenary: A9-0319/2021
  • Amendments tabled in committee: PE699.240
  • Specific opinion: PE699.070
  • Committee draft report: PE698.965
  • Non-legislative basic document published: EUR-Lex
  • Non-legislative basic document published: COM(2021)0618
  • Committee draft report: PE698.965
  • Specific opinion: PE699.070
  • Amendments tabled in committee: PE699.240

Votes

Mobilisation du Fonds européen d’ajustement à la mondialisation - EGF/2021/001 ES/País Vasco metal - Espagne - Mobilisation of the European Globalisation Adjustment Fund: application EGF/2021/001 ES/País Vasco metal – Spain - Inanspruchnahme des Europäischen Fonds für die Anpassung an die Globalisierung – EGF/2021/001 ES/País Vasco metal – Spanien - A9-0319/2021 - Eider Gardiazabal Rubial - § 9 - Am 1

2021/11/24 Outcome: -: 521, 0: 108, +: 60
CY IE LU SI LV MT LT EL EE PT HR FI SK DK CZ BG BE HU SE AT NL ES RO IT PL FR DE
Total
6
13
6
8
8
6
11
20
7
19
12
14
14
14
20
17
20
21
21
19
28
54
33
75
52
78
93
icon: The Left The Left
37

Cyprus The Left

2

Finland The Left

For (1)

1

Denmark The Left

1

Czechia The Left

1

Belgium The Left

For (1)

1

Sweden The Left

For (1)

1

Netherlands The Left

For (1)

1
icon: Verts/ALE Verts/ALE
70

Ireland Verts/ALE

2

Luxembourg Verts/ALE

Abstain (1)

1

Latvia Verts/ALE

1

Lithuania Verts/ALE

2

Portugal Verts/ALE

Abstain (1)

1

Finland Verts/ALE

3

Denmark Verts/ALE

2

Czechia Verts/ALE

3

Belgium Verts/ALE

3

Sweden Verts/ALE

3

Austria Verts/ALE

3

Netherlands Verts/ALE

3

Spain Verts/ALE

3

Poland Verts/ALE

Abstain (1)

1
icon: NI NI
37

Lithuania NI

1

Croatia NI

Abstain (1)

2

Slovakia NI

For (1)

Against (1)

2

Netherlands NI

Abstain (1)

1

Germany NI

2
icon: ID ID
67

Estonia ID

Against (1)

1

Finland ID

2

Denmark ID

Against (1)

1

Czechia ID

Abstain (1)

1

Austria ID

3
icon: ECR ECR
63

Latvia ECR

2

Lithuania ECR

Against (1)

1

Greece ECR

Against (1)

1

Croatia ECR

Against (1)

1

Slovakia ECR

Against (1)

1

Bulgaria ECR

2
3

Netherlands ECR

4

Romania ECR

Against (1)

1

Germany ECR

Against (1)

1
icon: Renew Renew
97

Ireland Renew

2

Luxembourg Renew

2

Slovenia Renew

2

Latvia Renew

Against (1)

1

Lithuania Renew

Against (1)

1

Estonia Renew

3

Croatia Renew

Against (1)

1

Finland Renew

3

Bulgaria Renew

3

Hungary Renew

2

Sweden Renew

3

Austria Renew

Against (1)

1

Italy Renew

3

Poland Renew

1
icon: S&D S&D
141

Cyprus S&D

2

Luxembourg S&D

Against (1)

1

Slovenia S&D

Against (2)

2

Latvia S&D

2

Lithuania S&D

2

Greece S&D

2

Estonia S&D

2

Finland S&D

2

Slovakia S&D

3

Czechia S&D

Against (1)

1

Belgium S&D

3
icon: PPE PPE
177

Cyprus PPE

2

Luxembourg PPE

2

Slovenia PPE

For (1)

4

Latvia PPE

2

Malta PPE

2

Estonia PPE

Against (1)

1

Denmark PPE

Against (1)

1

Hungary PPE

1

Mobilisation du Fonds européen d’ajustement à la mondialisation - EGF/2021/001 ES/País Vasco metal - Espagne - Mobilisation of the European Globalisation Adjustment Fund: application EGF/2021/001 ES/País Vasco metal – Spain - Inanspruchnahme des Europäischen Fonds für die Anpassung an die Globalisierung – EGF/2021/001 ES/País Vasco metal – Spanien - A9-0319/2021 - Eider Gardiazabal Rubial - Proposition de résolution (ensemble du texte)

2021/11/25 Outcome: +: 662, -: 30, 0: 3
FR IT DE ES PL RO BE HU NL AT PT BG EL DK IE HR SK FI LT SE CZ LV SI EE MT CY LU
Total
79
75
94
58
52
33
21
21
27
19
20
17
19
14
13
12
13
14
11
21
21
8
8
7
6
6
6
icon: PPE PPE
178

Hungary PPE

1

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1

Malta PPE

2
2

Luxembourg PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Czechia S&D

For (1)

1

Latvia S&D

2

Slovenia S&D

2

Estonia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Italy Renew

3

Poland Renew

1

Hungary Renew

2

Austria Renew

For (1)

1

Ireland Renew

2

Croatia Renew

For (1)

1

Finland Renew

3

Lithuania Renew

1

Sweden Renew

3

Latvia Renew

For (1)

1

Slovenia Renew

2

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
71

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Belgium Verts/ALE

3

Netherlands Verts/ALE

2

Austria Verts/ALE

3

Portugal Verts/ALE

1

Denmark Verts/ALE

2

Ireland Verts/ALE

2

Finland Verts/ALE

3

Lithuania Verts/ALE

2

Sweden Verts/ALE

3

Czechia Verts/ALE

3

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: ID ID
68
3

Denmark ID

For (1)

1

Finland ID

2

Czechia ID

Against (2)

2

Estonia ID

For (1)

1
icon: ECR ECR
63

Germany ECR

1

Romania ECR

1

Netherlands ECR

4

Bulgaria ECR

2

Greece ECR

1

Croatia ECR

1

Slovakia ECR

Abstain (1)

1

Lithuania ECR

Against (1)

1
3

Latvia ECR

2
icon: The Left The Left
37

Belgium The Left

For (1)

1

Netherlands The Left

For (1)

1

Denmark The Left

1

Finland The Left

For (1)

1

Sweden The Left

For (1)

1

Czechia The Left

1

Cyprus The Left

2
icon: NI NI
37

Germany NI

2

Netherlands NI

Against (1)

1

Slovakia NI

2

Lithuania NI

1
AmendmentsDossier
8 2021/0316(BUD)
2021/10/29 BUDG 8 amendments...
source: 699.240

History

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

forecasts/0
date
2021-11-25T00:00:00
title
Vote in plenary scheduled
forecasts/0
date
2021-11-22T00:00:00
title
Indicative plenary sitting date
docs/3
date
2021-11-10T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0319_EN.html title: A9-0319/2021
type
Budgetary report tabled for plenary, 1st reading
body
EP
events/3/summary
  • The Committee on Budgets adopted the report by Eider GARDIAZABAL RUBIAL (S&D, ES) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for a total of EUR 1 214 607 in commitment and payment appropriations to assist Spain in supporting displaced workers.
  • The European Globalisation Adjustment Fund (EGF) is intended to provide additional support to workers suffering from the consequences of major structural changes in world trade patterns. In light of the COVID-19 pandemic and its social and economic consequences, the Commission reinforced the role of the EGF as an emergency tool and allowed for cases directly linked to the pandemic to be financed from the EGF.
  • Spanish application
  • Spain submitted application EGF/2021/001 ES/País Vasco metal for a financial contribution from the European Globalisation Adjustment Fund (EGF), following the displacement of 491 workers in the economic sector classified under the NACE Revision 2 division 25 (Manufacture of fabricated metal products, except machinery and equipment) in the NUTS 2 region of País Vasco (ES21) in Spain. The application relates to a total of 491 displaced workers whose activity has ceased, out of which 192 occurred in the course of collective redundancies that were notified to the authorities in six companies. Furthermore, the report noted that Spain expects that 300 out of the total eligible beneficiaries will participate in the measures (targeted beneficiaries).
  • Members agreed with the Commission that the conditions set out in the EGF Regulation are met and that Spain is entitled to a financial contribution of EUR 1 214 607 under that Regulation , which represents 85 % of the total cost of the proposed actions.
  • Link between the redundancies and a global financial and economic crisis
  • The report noted that the COVID-19 pandemic, the strict lockdown measures implemented in the second quarter of 2020 in Spain and the subsequent shortages of supplies and raw materials have adversely affected the metal sector in the country. In the Basque region, the fabricated metal products sector represents 27.4 % of the gross value added (GVA) of the industry, while the EU-28 average is 18.8 %. In 2020, production in Spain fell by more than 50 % in 18 % of the metal enterprises, turnover fell by more than 50 % in 16 % of the businesses and a third of metal enterprises experienced a decrease between 30 % and 50 % of both production and turnover.
  • The social impacts of the redundancies are expected to be important for workers, as well as the entire Basque region, where the number of unemployed persons increased by 25 % between March and August 2020, and where long-term unemployment represented 55.6 % of total unemployment in May 2021. Moreover, the report noted that the wage gap between men and women is 22.6 % and the temporary employment rate is 25.8 % in the Basque region, 11.6 % above the EU average, which is 14.2 %.
  • Personalised package of services
  • Members noted that Spain is planning seven types of actions for the displaced workers and self-employed persons:
  • - profiling sessions;
  • - occupational guidance;
  • - job-search assistance;
  • - support and/or contribution to business creation;
  • - re-skilling, up-skilling;
  • - on-the-job training;
  • - participation allowances.
  • Lastly, Members reiterated that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements, or any allowances or rights of the recipients of the EGF allocation to ensure full additionality of the allocation.
docs/3
date
2021-11-10T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0319_EN.html title: A9-0319/2021
type
Budgetary report tabled for plenary, 1st reading
body
EP
events/3/docs
  • url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0319_EN.html title: A9-0319/2021
events/3
date
2021-11-10T00:00:00
type
Budgetary report tabled for plenary
body
EP
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position on the draft budget
events/2
date
2021-11-09T00:00:00
type
Vote in committee
body
EP
procedure/Other legal basis
Rules of Procedure EP 159
committees/1/rapporteur
  • name: ĎURIŠ NICHOLSONOVÁ Lucia date: 2021-10-26T00:00:00 group: Renew Europe group abbr: Renew
docs/2/docs/0/url
https://www.europarl.europa.eu/doceo/document/BUDG-AM-699240_EN.html
docs/2
date
2021-10-28T00:00:00
docs
title: PE699.240
type
Amendments tabled in committee
body
EP
docs/1/docs/0/url
https://www.europarl.europa.eu/doceo/document/EMPL-AL-699070_EN.html
docs/1
date
2021-10-26T00:00:00
docs
title: PE699.070
committee
EMPL
type
Specific opinion
body
EP
events/1
date
2021-10-18T00:00:00
type
Committee referral announced in Parliament
body
EP
procedure/dossier_of_the_committee
  • BUDG/9/07358
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
commission
  • body: EC dg: Employment, Social Affairs and Inclusion commissioner: SCHMIT Nicolas
committees/0/shadows/0
name
FERNANDES José Manuel
group
Group of European People's Party
abbr
EPP
docs/0
date
2021-10-12T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/BUDG-PR-698965_EN.html title: PE698.965
type
Committee draft report
body
EP
docs/0
date
2021-10-07T00:00:00
docs
type
Non-legislative basic document
body
EC
events/0/summary
  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to help Spain facing redundancies in the metal sector.
  • PROPOSED ACT: Decision of the European Parliament and of the Council.
  • CONTENT: on 25 June 2021, Spain submitted an application for a financial contribution from the EGF, following redundancies in the metal manufacturing sector (excluding machinery and equipment) in the Basque region in Spain .
  • Following the assessment of this application, the Commission has concluded, in accordance with all relevant provisions of the EGF Regulation, that the conditions for a financial contribution from the EGF are met.
  • Grounds for the application
  • The Spanish application is based on the intervention criteria of Article 4(2)(b) of the EGF Regulation, which requires the cessation of activity of at least 200 redundant workers, over a reference period of six months, in enterprises all operating in the same economic sector and located in one region or two contiguous regions at NUTS level 2 in a Member State
  • There were 491 redundant workers in the NUTS level 2 region of the Basque region in Spain. The six-month reference period for the application is from 2 June 2020 to 2 December 2020.
  • Events leading to the redundancies and cessation of activity
  • The event leading to the redundancies is the economic crisis caused by the COVID-19 pandemic. The strict lock down measures implemented by Spain in the second quarter of 2020 led to a slowdown in non-essential economic activities and services, which severely affected the metals sector.
  • In 2020 (compared to the previous year), production fell by more than 50% in 18% of metal companies . In 16% of companies, turnover also fell by more than 50%. One third of the metalworking companies experienced a fall in production and turnover of between 30% and 50%.
  • Despite the intensive use of partial unemployment, 14% of the companies in the metal sector made redundancies, affecting 10.6% of their workforce.
  • Given the high weight of the metal products manufacturing sector in the economy of the Spanish Basque Country (27.4% of the industry's gross added value), the difficulties it has encountered have had a significant impact on the economy and employment in the region. In August 2020, there were 25% more unemployed than six months earlier . Although the registered unemployment rate fell (6.21%) between January and May 2021, it remains 4.6% higher than before the pandemic.
  • Beneficiaries
  • Out of 491 redundant workers, it is estimated that 300 redundant workers should participate in the measures.
  • The personalised services to be provided to the redundant workers include the following actions: (i) general information on vocational counselling and training programmes and available incentives; (ii) vocational guidance; (iii) intensive job search assistance; (iv) support and contribution to business creation of up to EUR 8000; (v) training and (vi) participation, job search and training allowances.
  • The measures have been designed in line with the Spanish circular economy strategy. The training helps to stimulate the process of digital transformation of the industry.
  • The total estimated cost amounts to EUR 1 428 950 . It corresponds to the expenditure for personalised services, which amounts to EUR 1 384 950, and to the expenditure for financing the preparation, management, information and publicity activities, as well as to the expenditure for monitoring and reporting, amounting to EUR 44 000.
  • Budget proposal
  • The annual allocation to the EGF does not exceed EUR 186 million (in 2018 prices), as foreseen in the Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021-2027.
  • Following the assessment of the application, the Commission proposes to mobilise the EGF for an amount of EUR 1 214 607 , representing 85% of the total cost of the proposed actions, in order to provide a financial contribution for the application.
forecasts
  • date: 2021-11-22T00:00:00 title: Indicative plenary sitting date