BETA


2021/0356(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the automotive industry in Spain

Progress: Awaiting Parliament's position on the draft budget

RoleCommitteeRapporteurShadows
Lead BUDG GONZÁLEZ PONS Esteban (icon: EPP EPP) GARDIAZABAL RUBIAL Eider (icon: S&D S&D), VANA Monika (icon: Verts/ALE Verts/ALE), RZOŃCA Bogdan (icon: ECR ECR), PAPADIMOULIS Dimitrios (icon: GUE/NGL GUE/NGL)
Committee Opinion EMPL ĎURIŠ NICHOLSONOVÁ Lucia (icon: Renew Renew)
Lead committee dossier:

Events

2021/12/14
   Vote in plenary scheduled
2021/12/10
   EP - Budgetary report tabled for plenary, 1st reading
Documents
2021/12/10
   EP - Budgetary report tabled for plenary
Documents
2021/12/09
   EP - Vote in committee
2021/11/23
   EP - Specific opinion
Documents
2021/11/23
   EP - Amendments tabled in committee
Documents
2021/11/11
   EP - Committee draft report
Documents
2021/11/11
   EP - ĎURIŠ NICHOLSONOVÁ Lucia (Renew) appointed as rapporteur in EMPL
2021/11/10
   EP - Committee referral announced in Parliament
2021/11/09
   EP - GONZÁLEZ PONS Esteban (EPP) appointed as rapporteur in BUDG
2021/11/08
   EC - Non-legislative basic document published
Details

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

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

CONTENT: on 26 July 2021, Spain submitted an application to mobilise the EGF, following redundancies in the automotive sector in 50 enterprises in the Aragón region of Spain .

Following the assessment of this application, the Commission concluded, in accordance with all the 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 redundancy 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.

The application concerns 592 redundant workers . The four-month reference period runs from 1 November 2020 to 1 May 2021.

Events leading to the redundancies and closure

The events giving rise to these displacements are the impact on the Spanish automotive sector of the COVID-19 pandemic and the shortage of semiconductors .

The pandemic had a significant impact on the activity and turnover of the enterprises operating in the automotive sector in Spain, which resulted in a decline in sales (32.3%), production (18.9%), and turnover (11.3%) in 2020 compared to 2019. Production in June 2021 was lower by 33.8% compared to June 2019 and by 18.1% compared to June 2020.

The lockdown and the shortage of semiconductors forced to interrupt or slow down car production in Spain, which has led to subsequent job losses. It is estimated that the chip-crisis was forecast to lead to losses of approximately EUR 60 billion in the automotive sector. The figure has been revised upwards to over EUR 90 billion. The sector expects this issue to continue throughout the first half of 2022.

In Aragón, the automotive sector represents 2.42% of net employment and around 6% of regional GDP. Unemployment between February and June 2021 remains 26% higher than pre-pandemic levels (60 000 job seekers in June 2019).

Beneficiaries

An estimated 320 redundant workers are expected to participate in the measures.

The personalised services to be provided to the redundant workers include: (i) general information and welcome sessions; (ii) vocational guidance; (iii) job search assistance; (iv) training, e.g. for soft and digital skills and reskilling; (v) incentives for participation in the measures and for outplacement.

The measures were planned in line with the Spanish circular economy strategy.

The estimated total costs are EUR 1 652 780, comprising expenditure for personalised services of EUR 1 600 280 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 52 500.

Budgetary proposal

The maximum annual amount should not exceed EUR 186 million (in 2018 prices), as laid down in Council Regulation (EU, Euratom) No 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027.

Having examined the application, the Commission proposes to mobilise the EGF for EUR 1 404 863, representing 85 % of the total costs of the proposed measures, to provide a financial contribution for the application.

Documents

  • Budgetary report tabled for plenary, 1st reading: A9-0344/2021
  • Budgetary report tabled for plenary: A9-0344/2021
  • Specific opinion: PE700.393
  • Amendments tabled in committee: PE700.573
  • Committee draft report: PE699.344
  • Non-legislative basic document published: EUR-Lex
  • Non-legislative basic document published: COM(2021)0683
  • Committee draft report: PE699.344
  • Specific opinion: PE700.393
  • Amendments tabled in committee: PE700.573
  • Budgetary report tabled for plenary, 1st reading: A9-0344/2021

Votes

Mobilisation du Fonds européen d’ajustement à la mondialisation: demande EGF/2021/004 ES/Aragón automotive - Espagne - Mobilisation of the European Globalisation Adjustment Fund: application EGF/2021/004 ES/Aragón automotive - Spain - Inanspruchnahme des Europäischen Fonds für die Anpassung an die Globalisierung: Antrag EGF/2021/004 ES/Aragón automotive – Spanien - A9-0344/2021 - Esteban González Pons - Proposition de décision #

2021/12/14 Outcome: +: 665, -: 27, 0: 5
FR IT DE ES PL RO NL BE HU PT EL AT BG SK IE HR DK LT CZ FI LV SI SE EE MT CY LU
Total
78
75
92
59
52
33
29
21
21
21
20
19
17
14
13
12
14
11
21
14
8
8
20
7
6
6
6
icon: PPE PPE
176

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
100

Italy Renew

3

Poland Renew

1

Hungary Renew

2

Austria Renew

For (1)

1

Ireland Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

1

Finland Renew

3

Latvia Renew

For (1)

1

Slovenia Renew

2

Sweden Renew

3

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
71

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Netherlands Verts/ALE

3

Belgium Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Ireland Verts/ALE

2

Denmark Verts/ALE

2

Lithuania Verts/ALE

2

Czechia Verts/ALE

3

Finland Verts/ALE

3

Latvia Verts/ALE

1

Sweden Verts/ALE

3

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
64

Germany ECR

1

Romania ECR

1

Greece ECR

1

Bulgaria ECR

2

Slovakia ECR

Abstain (1)

1

Croatia ECR

1

Lithuania ECR

1

Latvia ECR

2
3
icon: ID ID
70

Netherlands ID

Against (1)

1
3

Denmark ID

Against (1)

1

Czechia ID

For (1)

Against (1)

2

Finland ID

2

Estonia ID

For (1)

1
icon: The Left The Left
38

Netherlands The Left

For (1)

1

Belgium The Left

For (1)

1

Denmark The Left

1

Czechia The Left

1

Finland The Left

For (1)

1

Sweden The Left

For (1)

1

Cyprus The Left

2
icon: NI NI
35

Germany NI

2

Slovakia NI

2

Lithuania NI

1
AmendmentsDossier
4 2021/0356(BUD)
2021/11/24 BUDG 4 amendments...
source: 700.573

History

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

docs/4
date
2021-12-14T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0493_EN.html title: T9-0493/2021
type
Budgetary text adopted by Parliament
body
EP
events/4
date
2021-12-14T00:00:00
type
Decision by Parliament
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0493_EN.html title: T9-0493/2021
forecasts
  • date: 2021-12-14T00:00:00 title: Vote in plenary scheduled
procedure/stage_reached
Awaiting Parliament's position on the draft budget
forecasts/0/date
Old
2021-12-13T00:00:00
New
2021-12-14T00:00:00
docs/3
date
2021-12-10T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0344_EN.html title: A9-0344/2021
type
Budgetary report tabled for plenary, 1st reading
body
EP
events/3
date
2021-12-10T00:00:00
type
Budgetary report tabled for plenary
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0344_EN.html title: A9-0344/2021
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position on the draft budget
events/2
date
2021-12-09T00:00:00
type
Vote in committee
body
EP
procedure/Other legal basis
Rules of Procedure EP 159
forecasts/0/title
Old
Indicative plenary sitting date
New
Vote in plenary scheduled
docs/0
date
2021-11-08T00:00:00
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 automotive sector.
  • PROPOSED ACT: Decision of the European Parliament and of the Council.
  • CONTENT: on 26 July 2021, Spain submitted an application to mobilise the EGF, following redundancies in the automotive sector in 50 enterprises in the Aragón region of Spain .
  • Following the assessment of this application, the Commission concluded, in accordance with all the 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 redundancy 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.
  • The application concerns 592 redundant workers . The four-month reference period runs from 1 November 2020 to 1 May 2021.
  • Events leading to the redundancies and closure
  • The events giving rise to these displacements are the impact on the Spanish automotive sector of the COVID-19 pandemic and the shortage of semiconductors .
  • The pandemic had a significant impact on the activity and turnover of the enterprises operating in the automotive sector in Spain, which resulted in a decline in sales (32.3%), production (18.9%), and turnover (11.3%) in 2020 compared to 2019. Production in June 2021 was lower by 33.8% compared to June 2019 and by 18.1% compared to June 2020.
  • The lockdown and the shortage of semiconductors forced to interrupt or slow down car production in Spain, which has led to subsequent job losses. It is estimated that the chip-crisis was forecast to lead to losses of approximately EUR 60 billion in the automotive sector. The figure has been revised upwards to over EUR 90 billion. The sector expects this issue to continue throughout the first half of 2022.
  • In Aragón, the automotive sector represents 2.42% of net employment and around 6% of regional GDP. Unemployment between February and June 2021 remains 26% higher than pre-pandemic levels (60 000 job seekers in June 2019).
  • Beneficiaries
  • An estimated 320 redundant workers are expected to participate in the measures.
  • The personalised services to be provided to the redundant workers include: (i) general information and welcome sessions; (ii) vocational guidance; (iii) job search assistance; (iv) training, e.g. for soft and digital skills and reskilling; (v) incentives for participation in the measures and for outplacement.
  • The measures were planned in line with the Spanish circular economy strategy.
  • The estimated total costs are EUR 1 652 780, comprising expenditure for personalised services of EUR 1 600 280 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 52 500.
  • Budgetary proposal
  • The maximum annual amount should not exceed EUR 186 million (in 2018 prices), as laid down in Council Regulation (EU, Euratom) No 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027.
  • Having examined the application, the Commission proposes to mobilise the EGF for EUR 1 404 863, representing 85 % of the total costs of the proposed measures, to provide a financial contribution for the application.
docs/3
date
2021-11-23T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/BUDG-AM-700573_EN.html title: PE700.573
type
Amendments tabled in committee
body
EP
docs/2
date
2021-11-23T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/EMPL-AL-700393_EN.html title: PE700.393
committee
EMPL
type
Specific opinion
body
EP
events/1
date
2021-11-10T00:00:00
type
Committee referral announced in Parliament
body
EP
procedure/dossier_of_the_committee
  • BUDG/9/07610
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
docs/1/docs/0/url
https://www.europarl.europa.eu/doceo/document/BUDG-PR-699344_EN.html
committees/1/rapporteur
  • name: ĎURIŠ NICHOLSONOVÁ Lucia date: 2021-11-11T00:00:00 group: Renew Europe group abbr: Renew
docs/1
date
2021-11-11T00:00:00
docs
title: PE699.344
type
Committee draft report
body
EP
forecasts
  • date: 2021-12-13T00:00:00 title: Indicative plenary sitting date
procedure/geographical_area
  • Spain