BETA


2012/2160(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the shipbuilding industry in Spain

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead BUDG PICKART ALVARO Alexander Nuno (icon: ALDE ALDE)
Committee Opinion EMPL
Committee Opinion REGI
Committee Opinion INTA
Committee Opinion ITRE
Lead committee dossier:

Events

2012/11/07
   Final act published in Official Journal
Details

PURPOSE: the mobilisation of the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding industry in Spain.

NON-LEGISLATIVE ACT: Decision 2012/683/EU of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2011/019/ES/Galicia Metal from Spain).

CONTENT: by this Decision, the European Parliament and the Council have decided to mobilise the amount of EUR 2 029 235 in commitment and payment appropriations from the European Globalisation Adjustment Fund in the framework of the 2012 budget.

This amount shall assist Spain in respect of 878 redundancies in the 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11)

Given that the request for intervention from Spain fulfils the conditions laid down in accordance with Regulation (EC) No 1927/2006 , the European Parliament and the Council have decided to grant the above-mentioned amount.

To recall, the European Globalisation Adjustment Fund (EGF) was established to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework. It should also be noted that the scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis.

2012/10/23
   EP - Results of vote in Parliament
2012/10/23
   EP - Decision by Parliament
Details

The European Parliament adopted by 570 votes to 71, with 13 abstentions, a resolution approving the annexed proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund (EGF), for an amount of EUR 2 029 235 in commitment and payment appropriations in respect of redundancies in the shipbuilding sector in Spain.

Parliament recalls that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market. Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Parliament requests the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation .

Recalling the conditions that at the source of the request for an EGF contribution, Parliament underlines that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. It notes that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%. Moreover, the employment situation in the region is difficult as the unemployment rates reached 18 % for women and 16.32 % for men in the end of 2011. The perspectives for future reintegration into employment of the dismissed workers in this territory do not seem very encouraging.

Parliament welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career. It regrets that the information on the training measures does not describe in which sectors the workers are likely to find employment and if the package has been adapted to the future economic prospects in the region.

Lessons from the implementation of the EGF: Parliament highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals in a high number of small and medium enterprises (SMEs) in one sector. It calls on the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF . It appreciates the improved procedure put in place by the Commission, following its request for accelerating the release of grants. It hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved.

Parliament reiterates its usual position in respect of a dossier of this type:

the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF; the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment; assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one; the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; the need for a comparative evaluation of those data in the annual report on the Funds; the need to ensure that no duplication of Union-funded services can occur.

Parliament welcomes the fact that following its requests, the 2012 budget shows payment appropriations of EUR 50 million on the EGF budget line 04 05 01. It recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid there being transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF. Parliament regrets the decision of the Council to block the extension of the "crisis derogation" , allowing the increase in the rate of Union cofinancing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay.

Documents
2012/10/23
   EP - End of procedure in Parliament
2012/10/16
   CSL - Draft budget approved by Council
2012/10/16
   CSL - Council Meeting
2012/10/15
   EP - Budgetary report tabled for plenary
Details

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation .

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF . They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020).

Members reiterate their usual position in respect of a dossier of this type:

the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF; the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment; assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one; the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; the need for a comparative evaluation of those data in the annual report on the Funds; the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation" , allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

Documents
2012/10/10
   EP - Vote in committee
2012/09/21
   EP - Amendments tabled in committee
Documents
2012/09/11
   EP - Committee referral announced in Parliament
2012/09/06
   EP - PICKART ALVARO Alexander Nuno (ALDE) appointed as rapporteur in BUDG
2012/09/04
   EP - Committee draft report
Documents
2012/08/09
   EC - Non-legislative basic document
Details

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain.

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

CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows:

Spain : EGF/2011/019 ES/Galicia Metal:

on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012.

In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010.

This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level.

The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011.

It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries ( EGF/2010/001DK/Nordjylland , EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard ) remain valid.

Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011.

After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235 , representing 65% of the total cost.

IMPACT ASSESSMENT: no impact assessment was carried out.

FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year.

By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.

2012/08/09
   EC - Non-legislative basic document published
Details

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain.

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

CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows:

Spain : EGF/2011/019 ES/Galicia Metal:

on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012.

In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010.

This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level.

The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011.

It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries ( EGF/2010/001DK/Nordjylland , EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard ) remain valid.

Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011.

After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235 , representing 65% of the total cost.

IMPACT ASSESSMENT: no impact assessment was carried out.

FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year.

By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.

Documents

Votes

A7-0323/2012 - Alexander Alvaro - Résolution #

2012/10/23 Outcome: +: 570, -: 71, 0: 13
DE IT FR ES RO PL EL BE AT BG PT HU SE IE NL SK DK LT FI SI CZ EE LV LU MT CY ?? GB
Total
85
62
60
47
32
45
18
19
17
16
18
17
17
12
25
13
12
7
9
7
20
5
8
5
5
4
1
67
icon: PPE PPE
235

Denmark PPE

For (1)

1

Czechia PPE

2

Luxembourg PPE

3

Malta PPE

2
2
icon: S&D S&D
166

Netherlands S&D

3

Finland S&D

2

Slovenia S&D

2

Estonia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Cyprus S&D

1

S&D

For (1)

1
icon: ALDE ALDE
72

Greece ALDE

1

Slovakia ALDE

For (1)

1
3

Lithuania ALDE

1

Slovenia ALDE

2

Latvia ALDE

Abstain (1)

1
icon: Verts/ALE Verts/ALE
55

Spain Verts/ALE

2

Greece Verts/ALE

1

Belgium Verts/ALE

3

Austria Verts/ALE

2

Portugal Verts/ALE

For (1)

1

Sweden Verts/ALE

Against (1)

4

Netherlands Verts/ALE

3

Denmark Verts/ALE

2

Estonia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1

United Kingdom Verts/ALE

5
icon: GUE/NGL GUE/NGL
29

France GUE/NGL

Against (1)

4

Spain GUE/NGL

For (1)

1

Greece GUE/NGL

2

Ireland GUE/NGL

For (1)

1

Netherlands GUE/NGL

2

Denmark GUE/NGL

1

Latvia GUE/NGL

For (1)

1

Cyprus GUE/NGL

1

United Kingdom GUE/NGL

1
icon: NI NI
23

France NI

2

Spain NI

1

Romania NI

2

Belgium NI

For (1)

1

Bulgaria NI

1

Hungary NI

For (1)

1
icon: EFD EFD
29

Greece EFD

2

Belgium EFD

For (1)

1

Netherlands EFD

For (1)

1

Slovakia EFD

Against (1)

1

Denmark EFD

Against (1)

1

Lithuania EFD

For (1)

1

Finland EFD

Against (1)

1
icon: ECR ECR
44

Belgium ECR

Against (1)

1

Hungary ECR

Against (1)

1

Netherlands ECR

Against (1)

1

Denmark ECR

Against (1)

1

Lithuania ECR

1

Latvia ECR

Against (1)

1
AmendmentsDossier
14 2012/2160(BUD)
2012/09/21 BUDG 14 amendments...
source: PE-496.456

History

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

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  • date: 2012-10-15T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2012-323&language=EN type: Budgetary report tabled for plenary, 1st reading title: A7-0323/2012 body: EP type: Budgetary report tabled for plenary, 1st reading
  • date: 2012-10-16T00:00:00 body: CSL type: Council Meeting council: General Affairs meeting_id: 3192
  • date: 2012-10-23T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=22070&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2012-377 type: Decision by Parliament, 1st reading/single reading title: T7-0377/2012 body: EP type: Results of vote in Parliament
  • date: 2012-11-07T00:00:00 type: Final act published in Official Journal docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32012D0683 title: Decision 2012/683 url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2012:307:TOC title: OJ L 307 07.11.2012, p. 0077
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  • body: CSL type: Council Meeting council: General Affairs meeting_id: 3192 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=3192*&MEET_DATE=16/10/2012 date: 2012-10-16T00:00:00
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  • date: 2012-09-04T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE494.803 title: PE494.803 type: Committee draft report body: EP
  • date: 2012-09-21T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE496.456 title: PE496.456 type: Amendments tabled in committee body: EP
events
  • date: 2012-08-09T00:00:00 type: Non-legislative basic document published body: EC docs: url: http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/com/2012/0451/COM_COM(2012)0451_FR.pdf title: COM(2012)0451 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2012&nu_doc=451 title: EUR-Lex summary: PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain. PROPOSED ACT: Decision of the European Parliament and of the Council. CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework. The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows: Spain : EGF/2011/019 ES/Galicia Metal: on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012. In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010. This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level. The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011. It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries ( EGF/2010/001DK/Nordjylland , EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard ) remain valid. Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011. After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met. On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235 , representing 65% of the total cost. IMPACT ASSESSMENT: no impact assessment was carried out. FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework. The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year. By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened. The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.
  • date: 2012-09-11T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2012-10-10T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2012-10-15T00:00:00 type: Budgetary report tabled for plenary, 1st reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2012-323&language=EN title: A7-0323/2012 summary: The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector. Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market. Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation . Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%. Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career. Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals. Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF . They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020). Members reiterate their usual position in respect of a dossier of this type: the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF; the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment; assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one; the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; the need for a comparative evaluation of those data in the annual report on the Funds; the need to ensure that no duplication of Union-funded services can occur. They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation" , allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.
  • date: 2012-10-16T00:00:00 type: Draft budget approved by Council body: CSL
  • date: 2012-10-23T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=22070&l=en title: Results of vote in Parliament
  • date: 2012-10-23T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P7-TA-2012-377 title: T7-0377/2012 summary: The European Parliament adopted by 570 votes to 71, with 13 abstentions, a resolution approving the annexed proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund (EGF), for an amount of EUR 2 029 235 in commitment and payment appropriations in respect of redundancies in the shipbuilding sector in Spain. Parliament recalls that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market. Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Parliament requests the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation . Recalling the conditions that at the source of the request for an EGF contribution, Parliament underlines that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. It notes that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%. Moreover, the employment situation in the region is difficult as the unemployment rates reached 18 % for women and 16.32 % for men in the end of 2011. The perspectives for future reintegration into employment of the dismissed workers in this territory do not seem very encouraging. Parliament welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career. It regrets that the information on the training measures does not describe in which sectors the workers are likely to find employment and if the package has been adapted to the future economic prospects in the region. Lessons from the implementation of the EGF: Parliament highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals in a high number of small and medium enterprises (SMEs) in one sector. It calls on the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF . It appreciates the improved procedure put in place by the Commission, following its request for accelerating the release of grants. It hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved. Parliament reiterates its usual position in respect of a dossier of this type: the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF; the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment; assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one; the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; the need for a comparative evaluation of those data in the annual report on the Funds; the need to ensure that no duplication of Union-funded services can occur. Parliament welcomes the fact that following its requests, the 2012 budget shows payment appropriations of EUR 50 million on the EGF budget line 04 05 01. It recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid there being transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF. Parliament regrets the decision of the Council to block the extension of the "crisis derogation" , allowing the increase in the rate of Union cofinancing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay.
  • date: 2012-10-23T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2012-11-07T00:00:00 type: Final act published in Official Journal summary: PURPOSE: the mobilisation of the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding industry in Spain. NON-LEGISLATIVE ACT: Decision 2012/683/EU of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2011/019/ES/Galicia Metal from Spain). CONTENT: by this Decision, the European Parliament and the Council have decided to mobilise the amount of EUR 2 029 235 in commitment and payment appropriations from the European Globalisation Adjustment Fund in the framework of the 2012 budget. This amount shall assist Spain in respect of 878 redundancies in the 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) Given that the request for intervention from Spain fulfils the conditions laid down in accordance with Regulation (EC) No 1927/2006 , the European Parliament and the Council have decided to grant the above-mentioned amount. To recall, the European Globalisation Adjustment Fund (EGF) was established to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework. It should also be noted that the scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis. docs: title: Decision 2012/683 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32012D0683 title: OJ L 307 07.11.2012, p. 0077 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2012:307:TOC
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  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget commissioner: LEWANDOWSKI Janusz
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BUDG/7/10259
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  • BUDG/7/10259
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procedure/subject
Old
  • 3.40.02 Iron and steel industry, metallurgical industry
  • 3.40.04 Shipbuilding, nautical industry
  • 4.15.05 Industrial restructuring, job losses, redundancies, relocations, Globalisation Adjustment Fund (EGF)
  • 8.70.52 2012 budget
New
3.40.02
Iron and steel industry, metallurgical industry
3.40.04
Shipbuilding, nautical industry
4.15.05
Industrial restructuring, job losses, redundancies, relocations, Globalisation Adjustment Fund (EGF)
8.70.60
Previous annual budgets
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4.15.05 Industrial restructuring, job losses, redundancies, relocations
New
4.15.05 Industrial restructuring, job losses, redundancies, relocations, Globalisation Adjustment Fund (EGF)
activities/0/docs/0/text/0
Old

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain.

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

CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows:

Spain: EGF/2011/019 ES/Galicia Metal:

on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012.

In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010.

This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level.

The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011.

It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries (EGF/2010/001DK/Nordjylland, EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard) remain valid.

Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011.

After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235, representing 65% of the total cost.

IMPACT ASSESSMENT: no impact assessment was carried out.

FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year.

By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.

New

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain.

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

CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows:

Spain: EGF/2011/019 ES/Galicia Metal:

on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012.

In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010.

This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level.

The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011.

It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries (EGF/2010/001DK/Nordjylland, EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard) remain valid.

Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011.

After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235, representing 65% of the total cost.

IMPACT ASSESSMENT: no impact assessment was carried out.

FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year.

By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.

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  • body: EP responsible: False committee_full: International Trade committee: INTA
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Regional Development committee: REGI
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  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: International Trade committee: INTA
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Regional Development committee: REGI
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Old

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020).

Members reiterate their usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

New

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020).

Members reiterate their usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

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Old

The European Parliament adopted by 570 votes to 71, with 13 abstentions, a resolution approving the annexed proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund (EGF), for an amount of EUR 2 029 235 in commitment and payment appropriations in respect of redundancies in the shipbuilding sector in Spain.

Parliament recalls that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market. Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Parliament requests the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Parliament underlines that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. It notes that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%. Moreover, the employment situation in the region is difficult as the unemployment rates reached 18 % for women and 16.32 % for men in the end of 2011. The perspectives for future reintegration into employment of the dismissed workers in this territory do not seem very encouraging.

Parliament welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career. It regrets that the information on the training measures does not describe in which sectors the workers are likely to find employment and if the package has been adapted to the future economic prospects in the region.

Lessons from the implementation of the EGF: Parliament highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals in a high number of small and medium enterprises (SMEs) in one sector. It calls on the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF. It appreciates the improved procedure put in place by the Commission, following its request for accelerating the release of grants. It hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved.

Parliament reiterates its usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

Parliament welcomes the fact that following its requests, the 2012 budget shows payment appropriations of EUR 50 million on the EGF budget line 04 05 01. It recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid there being transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF. Parliament regrets the decision of the Council to block the extension of the "crisis derogation", allowing the increase in the rate of Union cofinancing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay.

New

The European Parliament adopted by 570 votes to 71, with 13 abstentions, a resolution approving the annexed proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund (EGF), for an amount of EUR 2 029 235 in commitment and payment appropriations in respect of redundancies in the shipbuilding sector in Spain.

Parliament recalls that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market. Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Parliament requests the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Parliament underlines that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. It notes that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%. Moreover, the employment situation in the region is difficult as the unemployment rates reached 18 % for women and 16.32 % for men in the end of 2011. The perspectives for future reintegration into employment of the dismissed workers in this territory do not seem very encouraging.

Parliament welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career. It regrets that the information on the training measures does not describe in which sectors the workers are likely to find employment and if the package has been adapted to the future economic prospects in the region.

Lessons from the implementation of the EGF: Parliament highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals in a high number of small and medium enterprises (SMEs) in one sector. It calls on the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF. It appreciates the improved procedure put in place by the Commission, following its request for accelerating the release of grants. It hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved.

Parliament reiterates its usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

Parliament welcomes the fact that following its requests, the 2012 budget shows payment appropriations of EUR 50 million on the EGF budget line 04 05 01. It recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid there being transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF. Parliament regrets the decision of the Council to block the extension of the "crisis derogation", allowing the increase in the rate of Union cofinancing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay.

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  • url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32012D0683 title: Decision 2012/683
  • url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2012:307:TOC title: OJ L 307 07.11.2012, p. 0077
activities/6/text
  • PURPOSE: the mobilisation of the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding industry in Spain.

    NON-LEGISLATIVE ACT: Decision 2012/683/EU of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2011/019/ES/Galicia Metal from Spain).

    CONTENT: by this Decision, the European Parliament and the Council have decided to mobilise the amount of EUR 2 029 235 in commitment and payment appropriations from the European Globalisation Adjustment Fund in the framework of the 2012 budget.

    This amount shall assist Spain in respect of 878 redundancies in the 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11)

    Given that the request for intervention from Spain fulfils the conditions laid down in accordance with Regulation (EC) No 1927/2006, the European Parliament and the Council have decided to grant the above-mentioned amount.

    To recall, the European Globalisation Adjustment Fund (EGF) was established to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework. It should also be noted that the scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis.

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Decision 2012/683
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  • The European Parliament adopted by 570 votes to 71, with 13 abstentions, a resolution approving the annexed proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund (EGF), for an amount of EUR 2 029 235 in commitment and payment appropriations in respect of redundancies in the shipbuilding sector in Spain.

    Parliament recalls that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market. Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Parliament requests the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

    Recalling the conditions that at the source of the request for an EGF contribution, Parliament underlines that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. It notes that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%. Moreover, the employment situation in the region is difficult as the unemployment rates reached 18 % for women and 16.32 % for men in the end of 2011. The perspectives for future reintegration into employment of the dismissed workers in this territory do not seem very encouraging.

    Parliament welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career. It regrets that the information on the training measures does not describe in which sectors the workers are likely to find employment and if the package has been adapted to the future economic prospects in the region.

    Lessons from the implementation of the EGF: Parliament highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals in a high number of small and medium enterprises (SMEs) in one sector. It calls on the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF. It appreciates the improved procedure put in place by the Commission, following its request for accelerating the release of grants. It hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014–2020) and that greater efficiency, transparency and visibility of the EGF will be achieved.

    Parliament reiterates its usual position in respect of a dossier of this type:

    • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
    • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
    • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
    • the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;
    • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
    • the need for a comparative evaluation of those data in the annual report on the Funds;
    • the need to ensure that no duplication of Union-funded services can occur.

    Parliament welcomes the fact that following its requests, the 2012 budget shows payment appropriations of EUR 50 million on the EGF budget line 04 05 01. It recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and that it therefore deserves a dedicated allocation, which will avoid there being transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF. Parliament regrets the decision of the Council to block the extension of the "crisis derogation", allowing the increase in the rate of Union cofinancing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay.

activities/7/docs/0/text/0
Old

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (20142020).

Members reiterate their usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual  workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

New

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (2014–2020).

Members reiterate their usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

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  • The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

    Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

    Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

    Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

    Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

    Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

    Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (20142020).

    Members reiterate their usual position in respect of a dossier of this type:

    • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
    • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
    • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
    • the fact that the EGF should not provide an incentive for companies to replace their contractual  workforce with a more precarious and short-term one;
    • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
    • the need for a comparative evaluation of those data in the annual report on the Funds;
    • the need to ensure that no duplication of Union-funded services can occur.

    They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

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  • DG: url: http://ec.europa.eu/dgs/budget/ title: Budget Commissioner: LEWANDOWSKI Janusz
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PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain.

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

CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows:

Spain: EGF/2011/019 ES/Galicia Metal:

on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012.

In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010.

This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level.

The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011.

It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries (EGF/2010/001DK/Nordjylland, EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard) remain valid.

Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011.

After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235, representing 65% of the total cost.

IMPACT ASSESSMENT: no impact assessment was carried out.

FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year.

By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.

New

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (20142020).

Members reiterate their usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual  workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

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La commission des budgets a adopté le rapport d’Alexander ALVARO (ADLE, DE) sur la proposition de décision portant sur la mobilisation du Fonds européen d'ajustement à la mondialisation (FEM) à hauteur de 2.029.235 EUR en crédits d'engagement et de paiement afin de venir en aide à l’Espagne confrontée à des licenciements dans le secteur de la construction navale.

Les députés rappellent que l'Union européenne a mis en place des instruments législatifs et budgétaires appropriés pour fournir un appui complémentaire aux travailleurs touchés par les conséquences des modifications notables de la structure du commerce mondial et pour aider à leur réinsertion sur le marché du travail. Sachant que l'Espagne a demandé une aide concernant 858 licenciements, dont 450 sont éligibles à une aide du FEM, à la suite de licenciements survenus dans 35 entreprises de la division 25 de la NACE Rév. 2 ("Fabrication de produits métalliques, à l'exception des machines et des équipements") situées en Galice, les députés invitent les institutions à faire le nécessaire pour accélérer la mobilisation du fonds à hauteur du montant voulu, constatant par ailleurs avec la Commission, que les conditions fixées à l'article 2, point b), du règlement FEM étaient remplies. Par conséquent, l’Espagne a droit à une contribution financière au titre de ce règlement.

Rappelant également les conditions qui sont à la source de la demande de la contribution du FEM, les députés soulignent que les licenciements dans les activités connexes à la construction navale vont aggraver la situation de la Galice en matière d'emploi. En effet, alors que les prévisions à l'échelle européenne concernant la reprise du secteur de la construction navale étaient raisonnablement optimistes, en 2011, les nouvelles commandes ont chuté de 43%.

Parallèlement, les députés se félicitent du fait que les autorités espagnoles, soucieuses d'apporter sans tarder une aide aux travailleurs, aient décidé de démarrer la mise en œuvre des actions sans attendre la décision finale sur l'octroi d'un soutien du FEM et rappellent l'importance d'améliorer l'employabilité de tous les travailleurs grâce à une formation adaptée et à la reconnaissance des aptitudes et des compétences acquises tout au long de leur carrière professionnelle.

Tirer les enseignements de la mise en œuvre du FEM : les députés estiment qu’il convient de tirer les leçons de la préparation et de la mise en œuvre de la demande espagnole, et de toute demande touchant un vaste nombre de petites et moyennes entreprises dans un secteur économique donné. D’une manière générale, ils appellent les institutions à consentir les efforts nécessaires pour améliorer les dispositions pratiques en matière de procédure et de budget, de façon à accélérer la mobilisation du Fonds. Ils se félicitent de la procédure améliorée mise en place par la Commission, à la suite de la demande du Parlement d'accélérer le déblocage des subventions, en vue de soumettre à l'autorité budgétaire l'évaluation de la Commission concernant l'éligibilité d'une demande ainsi que la proposition de mobilisation du Fonds. Ils espèrent que d'autres améliorations de la procédure seront apportées dans le nouveau règlement FEM (2014–2020).

Dans la foulée, les députés réitèrent leur position classique pour le traitement d’un dossier de cette nature :

  • la nécessité d’assurer une procédure rapide et fluide en vue de l'adoption des décisions relatives à la mobilisation du FEM ;
  • le fait que l'aide du FEM ne devrait pas se substituer aux actions relevant de la responsabilité des entreprises en vertu du droit national ou de conventions collectives, ni aux mesures de restructuration des entreprises ou des secteurs et qu’il doit permettre de cofinancer des mesures actives du marché du travail débouchant sur des emplois à long terme ;
  • le fait que le FEM ne devrait pas inciter les entreprises à remplacer leur personnel contractuel par des emplois plus précaires et de durée plus courte;
  • le fait que les informations fournies sur l'ensemble coordonné de services personnalisés à financer par le Fonds comportent des données sur la complémentarité avec les actions financées par les Fonds structurels ;
  • la nécessité d’obtenir une évaluation comparative de ces données dans les rapports annuels des Fonds;
  • la nécessité d’éviter tout double emploi dans les services financés par l'Union, y compris dans le cadre du FEM.

Ils se félicitent également de ce qu'à la suite de demandes répétées du Parlement, un montant de 50 millions EUR en crédits de paiement soit inscrit dans le budget 2012 sur la ligne budgétaire 04 05 01 consacrée au FEM. Ils rappellent que le Fonds a été créé en tant qu'instrument spécifique distinct, ayant ses propres objectifs et échéances, et qu'il doit, à ce titre, bénéficier d'une dotation spécifique, de manière à éviter de recourir, comme cela a été fait précédemment, à des virements à partir d'autres lignes budgétaires. Les députés déplorent par ailleurs la décision du Conseil de bloquer la prorogation de la dérogation afférente à la crise, laquelle permet de fournir aussi une aide financière aux travailleurs licenciés à la suite de la crise financière et économique actuelle, et pas seulement à ceux qui perdent leur emploi du fait de modifications majeures de la structure du commerce mondial, ainsi que de porter le taux de cofinancement de l'Union à 65% des coûts du programme, pour les demandes présentées au-delà du délai du 31 décembre 2011. Ils demandent au Conseil de réinstaurer cette mesure dans les meilleurs délais.

New

The Committee on Budgets adopted the report by Alexander ALVARO (ALDE, DE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 2 029 235 in commitment and payment appropriations to assist Spain in respect of redundancies in the shipbuilding sector.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Spain has requested assistance for 858 redundancies in total (450 of whom are eligible for EGF aid) following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the region of Galicia (ES), Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount. Moreover, they agree with the Commission that the conditions set out in Article 2(a) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation.

Recalling the conditions that at the source of the request for an EGF contribution, Members underline that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia. They note that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011, new orders unexpectedly fell by 43%.

Members welcome the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures well ahead of the final decision on granting the EGF support for the proposed coordinated package and recall the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career.

Lessons from the implementation of the EGF: Members welcome the fact that the EGF contribution is planned to support solely active labour measures (training and counselling) and will not be used for allowances. They highlight the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals.

Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF. They also appreciate the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF. They hope that further improvements in the procedure will be integrated in the new Regulation on the European Globalisation Adjustment Fund (20142020).

Members reiterate their usual position in respect of a dossier of this type:

  • the need to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF;
  • the fact that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors and that it can co-finance only active labour market measures which lead to durable, long-term employment;
  • assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
  • the fact that the EGF should not provide an incentive for companies to replace their contractual  workforce with a more precarious and short-term one;
  • the fact that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds;
  • the need for a comparative evaluation of those data in the annual report on the Funds;
  • the need to ensure that no duplication of Union-funded services can occur.

They also welcome the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines. They regret the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65% of the programme costs, for applications submitted after the 31 December 2011 deadline. They call on the Council to reintroduce this measure without delay.

activities/7/docs/0/text
  • La commission des budgets a adopté le rapport d’Alexander ALVARO (ADLE, DE) sur la proposition de décision portant sur la mobilisation du Fonds européen d'ajustement à la mondialisation (FEM) à hauteur de 2.029.235 EUR en crédits d'engagement et de paiement afin de venir en aide à l’Espagne confrontée à des licenciements dans le secteur de la construction navale.

    Les députés rappellent que l'Union européenne a mis en place des instruments législatifs et budgétaires appropriés pour fournir un appui complémentaire aux travailleurs touchés par les conséquences des modifications notables de la structure du commerce mondial et pour aider à leur réinsertion sur le marché du travail. Sachant que l'Espagne a demandé une aide concernant 858 licenciements, dont 450 sont éligibles à une aide du FEM, à la suite de licenciements survenus dans 35 entreprises de la division 25 de la NACE Rév. 2 ("Fabrication de produits métalliques, à l'exception des machines et des équipements") situées en Galice, les députés invitent les institutions à faire le nécessaire pour accélérer la mobilisation du fonds à hauteur du montant voulu, constatant par ailleurs avec la Commission, que les conditions fixées à l'article 2, point b), du règlement FEM étaient remplies. Par conséquent, l’Espagne a droit à une contribution financière au titre de ce règlement.

    Rappelant également les conditions qui sont à la source de la demande de la contribution du FEM, les députés soulignent que les licenciements dans les activités connexes à la construction navale vont aggraver la situation de la Galice en matière d'emploi. En effet, alors que les prévisions à l'échelle européenne concernant la reprise du secteur de la construction navale étaient raisonnablement optimistes, en 2011, les nouvelles commandes ont chuté de 43%.

    Parallèlement, les députés se félicitent du fait que les autorités espagnoles, soucieuses d'apporter sans tarder une aide aux travailleurs, aient décidé de démarrer la mise en œuvre des actions sans attendre la décision finale sur l'octroi d'un soutien du FEM et rappellent l'importance d'améliorer l'employabilité de tous les travailleurs grâce à une formation adaptée et à la reconnaissance des aptitudes et des compétences acquises tout au long de leur carrière professionnelle.

    Tirer les enseignements de la mise en œuvre du FEM : les députés estiment qu’il convient de tirer les leçons de la préparation et de la mise en œuvre de la demande espagnole, et de toute demande touchant un vaste nombre de petites et moyennes entreprises dans un secteur économique donné. D’une manière générale, ils appellent les institutions à consentir les efforts nécessaires pour améliorer les dispositions pratiques en matière de procédure et de budget, de façon à accélérer la mobilisation du Fonds. Ils se félicitent de la procédure améliorée mise en place par la Commission, à la suite de la demande du Parlement d'accélérer le déblocage des subventions, en vue de soumettre à l'autorité budgétaire l'évaluation de la Commission concernant l'éligibilité d'une demande ainsi que la proposition de mobilisation du Fonds. Ils espèrent que d'autres améliorations de la procédure seront apportées dans le nouveau règlement FEM (2014–2020).

    Dans la foulée, les députés réitèrent leur position classique pour le traitement d’un dossier de cette nature :

    • la nécessité d’assurer une procédure rapide et fluide en vue de l'adoption des décisions relatives à la mobilisation du FEM ;
    • le fait que l'aide du FEM ne devrait pas se substituer aux actions relevant de la responsabilité des entreprises en vertu du droit national ou de conventions collectives, ni aux mesures de restructuration des entreprises ou des secteurs et qu’il doit permettre de cofinancer des mesures actives du marché du travail débouchant sur des emplois à long terme ;
    • le fait que le FEM ne devrait pas inciter les entreprises à remplacer leur personnel contractuel par des emplois plus précaires et de durée plus courte;
    • le fait que les informations fournies sur l'ensemble coordonné de services personnalisés à financer par le Fonds comportent des données sur la complémentarité avec les actions financées par les Fonds structurels ;
    • la nécessité d’obtenir une évaluation comparative de ces données dans les rapports annuels des Fonds;
    • la nécessité d’éviter tout double emploi dans les services financés par l'Union, y compris dans le cadre du FEM.

    Ils se félicitent également de ce qu'à la suite de demandes répétées du Parlement, un montant de 50 millions EUR en crédits de paiement soit inscrit dans le budget 2012 sur la ligne budgétaire 04 05 01 consacrée au FEM. Ils rappellent que le Fonds a été créé en tant qu'instrument spécifique distinct, ayant ses propres objectifs et échéances, et qu'il doit, à ce titre, bénéficier d'une dotation spécifique, de manière à éviter de recourir, comme cela a été fait précédemment, à des virements à partir d'autres lignes budgétaires. Les députés déplorent par ailleurs la décision du Conseil de bloquer la prorogation de la dérogation afférente à la crise, laquelle permet de fournir aussi une aide financière aux travailleurs licenciés à la suite de la crise financière et économique actuelle, et pas seulement à ceux qui perdent leur emploi du fait de modifications majeures de la structure du commerce mondial, ainsi que de porter le taux de cofinancement de l'Union à 65% des coûts du programme, pour les demandes présentées au-delà du délai du 31 décembre 2011. Ils demandent au Conseil de réinstaurer cette mesure dans les meilleurs délais.

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  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: International Trade committee: INTA
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Regional Development committee: REGI
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  • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the shipbuilding sector in Spain.

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

    CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

    The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

    The Commission services have carried out a thorough examination of the application submitted by Spain to mobilise the EGF. The main elements of the assessment are as follows:

    Spain: EGF/2011/019 ES/Galicia Metal:

    on 28 December 2011, Spain submitted application EGF/2011/019 ES/Galicia Metal for a financial contribution from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) in Spain.The application was supplemented by additional information up to 28 May 2012.

    In order to establish the link between the redundancies and the global financial and economic crisis, Spain argues that the global financial crisis changed several of the conditions and expectations for the future development of the shipbuilding market and, as a result, order books of European yards decreased both in Compensated Gross Tonnage (CGT) and value terms. The European order book dropped from 13.69 million CGT to 9.47 million CGT between 2008 and 2009, and further to 6.39 million CGT in 2010. In September 2011, the order book was of 5.95 million CGT. In value terms, the European order book dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, and further to EUR 27 031 million in 2010.

    This melt-down had an impact on the European shipbuilding workforce which declined by 23% over the past three years. The evolution of shipbuilding in Spain has followed the negative trend observed at European level.

    The Galician shipbuilding sector represents 45% of the Spanish shipbuilding sector. As a direct consequence of the decrease of new orders, the shipbuilding workforce in Galicia declined by 30% over the past three years, from 10 000 workers at the end of 2008 to 7 000 in October 2011.

    It should also be noted that all the arguments developed in previous cases related to shipbuilding and related industries (EGF/2010/001DK/Nordjylland, EGF/2010/006 PL/H. Cegielski-Poznan and EGF/2010/025DK/Odense Steel Shipyard) remain valid.

    Spain submitted this application under the intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which requires at least 500 redundancies over a nine-month period in enterprises operating in the same NACE Revision 2 Division in one region or two contiguous regions at NUTS II level in a Member State. The application cites 878 redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') in the NUTS II region of Galicia (ES11) during the nine-month reference period from 23 March 2011 to 23 December 2011.

    After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

    On the basis of the application from Spain, the proposed contribution from the EGF to the coordinated package of personalised services (including expenditure to implement EGF) is EUR 2 029 235, representing 65% of the total cost.

    IMPACT ASSESSMENT: no impact assessment was carried out.

    FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

    The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year.

    By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF and the amount required. The Commission invites the first of the two arms of the budgetary authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

    The Commission presents separately a transfer request in order to enter in the 2012 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Appropriations from the EGF budget line will be used to cover the amount needed for the present application.

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  • body: EC dg: url: http://ec.europa.eu/dgs/budget/ title: Budget commissioner: LEWANDOWSKI Janusz
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2012/2160(BUD)
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Mobilisation of the European Globalisation Adjustment Fund: redundancies in the shipbuilding industry in Spain
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