2021/0316(BUD) | [ParlTrack]

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2021/0316(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in metal products manufacturing in Spain
Next event: Indicative plenary sitting date 2021/11/22

Progress: Awaiting Parliament's position on the draft budget

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

Lead committee dossier:

BUDG/9/07358

Subjects

Events

2021/11/22

Indicative plenary sitting date

2021/11/10

EP - Budgetary report tabled for plenary, 1st reading

Documents

A9-0319/2021

2021/11/10

EP - Budgetary report tabled for plenary

Documents

A9-0319/2021

2021/11/09

EP - Vote in committee

2021/10/28

EP - Amendments tabled in committee

Documents

PE699.240

2021/10/26

EP - Specific opinion

Documents

PE699.070

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

PE698.965

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

EUR-Lex
COM(2021)0618

Documents

Budgetary report tabled for plenary, 1st reading: A9-0319/2021
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
Budgetary report tabled for plenary, 1st reading: A9-0319/2021

Amendments	Dossier
8	2021/0316(BUD) 2021/10/29 BUDG 8 amendments... Amendment 1 # Hélène LAPORTE, Joachim KUHS Motion for a resolution Citation 4 — having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management ~~as well as on new own resources, including a roadmap towards the introduction of new own resources3 , and in particular point 9 thereof,~~3; _________________ 3 OJ L 433I, 22.12.2020, p. 28. Amendment 2 # Monika VANA Motion for a resolution Recital C C. whereas 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 companies4 ; _________________ 4 Auxiliar Troquelería SL, Calderería del Oria, Matricería Deusto, Mecanizados de la Industria Vasca SLU, Taller Mecanizado Pablo López Lacalle SL, Tratamientos Superficiales Iontech SA. Amendment 3 # Monika VANA Motion for a resolution Recital H H. whereas ~~the Commission declared that the health crisis resulted in~~, in light of the COVID-19 pandemic and its social and economic c~~risis, set out a recovery plan for the economy~~onsequences the Commission reinforced, and underlined the role of the EGF as an emergency tool8 and allowed for cases directly linked to the pandemic to be financed from the EGF; _________________ 8 COM(2020) 442 final. Amendment 4 # Pernando BARRENA ARZA, Dimitrios PAPADIMOULIS Motion for a resolution Paragraph 4 4. Recalls that the social impacts of the redundancies are expected to be important for workers in the Basque region, where the number of unemployed persons increased by 25 % between March and August 202011 , and where long-term unemployment represented 55,6 % of total unemployment in May 2021 (3,6 p.p. higher than in January 2021) and unemployed persons with basic education or less represented 60,8 %; recalls also 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 points above the Union average, which is 14.2%; _________________ 11Avance de los datos del mercado laboral del año 2020 (labor market data for 2020). Amendment 5 # Monika VANA Motion for a resolution Paragraph 4 4. Recalls that the social impacts of the redundancies are expected to be important for workers ~~in th~~, as well as the entire Basque region, where the number of unemployed persons increased by 25 % between March and August 202011 , and where long-term unemployment represented 55,6 % of total unemployment in May 2021 (3,6 p.p. higher than in January 2021) and unemployed persons with basic education or less represented 60,8 %; _________________ 11Avance de los datos del mercado laboral del año 2020 (labor market data for 2020). Amendment 6 # Monika VANA Motion for a resolution Paragraph 7 7. Recalls that personalised services ~~to be~~ provided to the displaced workers and self- employed persons following the decision consist of the following actions: profiling sessions, occupational guidance, job-search assistance, support and/or contribution to business creation, re- skilling, up-skilling and on-the-job training, as well as participation allowances; the measures were planned to be in line with the Spanish circular economy strategy and the training contributes to boost the process of digital transformation in the industry; Amendment 7 # Pernando BARRENA ARZA, Dimitrios PAPADIMOULIS Motion for a resolution Paragraph 9 9. Welcomes that the co-ordinated package of personalised services was drawn up by Spain in consultation with the social partners12 ; the involvement of certain social partners was ensured by their representation in Lanbide's governance board, which is made up of representatives of the regional government, trade unions and employer organisations; considers that the biggest trade unions and the cooperative ventures of the Basque region should have also been consulted, as they are essential social partners in the context of the social dialogue; _________________ 12The application was approved by Lanbide, the Basque public employment service (social partners are part of the governance board), on 2 July 2021. Meetings were also held on 19 January and 2 February 2021 with Federación Vizcaína de Empresas del Metal, (federation of metal enterprises of Biscay), Asociación de Empresas de Guipúzcoa - ADEGI (Business association of Gupúzcoa) and SEA-Empresas Alavesas (business associations of Alava). Amendment 8 # Monika VANA Motion for a resolution Paragraph 11 11. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements as well as any allowances and/or rights of the targeted beneficiaries; source: 699.240

Amendments

Dossier

2021/0316(BUD)

2021/10/29 BUDG 8 amendments...

Amendment 1 #

Hélène LAPORTE, Joachim KUHS

Motion for a resolution
Citation 4

— having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management ~~as well as on new own resources, including a roadmap towards the introduction of new own resources3 , and in particular point 9 thereof,~~3; _________________ 3 OJ L 433I, 22.12.2020, p. 28.

Amendment 2 #

Monika VANA

Motion for a resolution
Recital C

C. whereas 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 companies4 ; _________________ 4 Auxiliar Troquelería SL, Calderería del Oria, Matricería Deusto, Mecanizados de la Industria Vasca SLU, Taller Mecanizado Pablo López Lacalle SL, Tratamientos Superficiales Iontech SA.

Amendment 3 #

Monika VANA

Motion for a resolution
Recital H

H. whereas ~~the Commission declared that the health crisis resulted in~~, in light of the COVID-19 pandemic and its social and economic c~~risis, set out a recovery plan for the economy~~onsequences the Commission reinforced, and underlined the role of the EGF as an emergency tool8 and allowed for cases directly linked to the pandemic to be financed from the EGF; _________________ 8 COM(2020) 442 final.

Amendment 4 #

Pernando BARRENA ARZA, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 4

4. Recalls that the social impacts of the redundancies are expected to be important for workers in the Basque region, where the number of unemployed persons increased by 25 % between March and August 202011 , and where long-term unemployment represented 55,6 % of total unemployment in May 2021 (3,6 p.p. higher than in January 2021) and unemployed persons with basic education or less represented 60,8 %; recalls also 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 points above the Union average, which is 14.2%; _________________ 11Avance de los datos del mercado laboral del año 2020 (labor market data for 2020).

Amendment 5 #

Monika VANA

Motion for a resolution
Paragraph 4

4. Recalls that the social impacts of the redundancies are expected to be important for workers ~~in th~~, as well as the entire Basque region, where the number of unemployed persons increased by 25 % between March and August 202011 , and where long-term unemployment represented 55,6 % of total unemployment in May 2021 (3,6 p.p. higher than in January 2021) and unemployed persons with basic education or less represented 60,8 %; _________________ 11Avance de los datos del mercado laboral del año 2020 (labor market data for 2020).

Amendment 6 #

Monika VANA

Motion for a resolution
Paragraph 7

7. Recalls that personalised services ~~to be~~ provided to the displaced workers and self- employed persons following the decision consist of the following actions: profiling sessions, occupational guidance, job-search assistance, support and/or contribution to business creation, re- skilling, up-skilling and on-the-job training, as well as participation allowances; the measures were planned to be in line with the Spanish circular economy strategy and the training contributes to boost the process of digital transformation in the industry;

Amendment 7 #

Pernando BARRENA ARZA, Dimitrios PAPADIMOULIS

Motion for a resolution
Paragraph 9

9. Welcomes that the co-ordinated package of personalised services was drawn up by Spain in consultation with the social partners12 ; the involvement of certain social partners was ensured by their representation in Lanbide's governance board, which is made up of representatives of the regional government, trade unions and employer organisations; considers that the biggest trade unions and the cooperative ventures of the Basque region should have also been consulted, as they are essential social partners in the context of the social dialogue; _________________ 12The application was approved by Lanbide, the Basque public employment service (social partners are part of the governance board), on 2 July 2021. Meetings were also held on 19 January and 2 February 2021 with Federación Vizcaína de Empresas del Metal, (federation of metal enterprises of Biscay), Asociación de Empresas de Guipúzcoa - ADEGI (Business association of Gupúzcoa) and SEA-Empresas Alavesas (business associations of Alava).

Amendment 8 #

Monika VANA

Motion for a resolution
Paragraph 11

11. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements as well as any allowances and/or rights of the targeted beneficiaries;

source: 699.240

History

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

2021-11-19Show (2) Changes | Timetravel

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.

2021-11-12Show (2) Changes | Timetravel

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

2021-11-11Show (2) Changes | Timetravel

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

2021-11-10Show (2) Changes | Timetravel

events/2	date 2021-11-09T00:00:00 type Vote in committee body EP
procedure/Other legal basis	Rules of Procedure EP 159

2021-11-04Show (2) Changes | Timetravel

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

2021-10-30Show (1) Changes | Timetravel

docs/2

date: 2021-10-28T00:00:00

docs: title: PE699.240

type: Amendments tabled in committee

body: EP

2021-10-28Show (1) Changes | Timetravel

docs/1/docs/0/url

https://www.europarl.europa.eu/doceo/document/EMPL-AL-699070_EN.html

2021-10-27Show (1) Changes | Timetravel

docs/1

date: 2021-10-26T00:00:00

docs: title: PE699.070

committee: EMPL

type: Specific opinion

body: EP

2021-10-23Show (3) Changes | Timetravel

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

2021-10-21Show (6) Changes

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 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2021&nu_doc=0618 title: EUR-Lex title: COM(2021)0618 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

Progress: Awaiting Parliament's position on the draft budget

Lead committee dossier:

BUDG/9/07358

Subjects

Links

Events

Documents

History

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