PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Greece following redundancies in its publishing activities sector.

NON-LEGISLATIVE ACT: Decision (EU) 2015/642 of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application EGF/2014/015 GR/Attica publishing from Greece).

CONTENT: by this Decision, the European Parliament and the Council decided to mobilise EUR 3 746 700 in commitment and payment appropriations from the European Globalisation Adjustment Fund in the framework of the 2015 budget.

This amount shall assist Greece following redundancies in 46 enterprises operating in the NACE Rev. 2 division 58 (publishing activities) in the NUTS 2 level region of Attica (EL 30) in Greece.

Given that the Greek application complies with the requirements laid down in Regulation (EU) No 1309/2013 ( EGF Regulation 2014-2020 ), the European Parliament and the Council decided to mobilise the abovementioned amount.

To recall, the European Globalisation Adjustment Fund (EGF) was established to provide support for workers made redundant and self-employed persons whose activity has ceased as a result of major structural changes in world trade patterns due to globalisation, as a result of a continuation of the global financial and economic crisis addressed in Regulation (EC) No 546/2009 of the European Parliament and of the Council, or as a result of a new global financial and economic crisis and to assist them with their reintegration into the labour market.

Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 allows the mobilisation of the EGF within a maximum annual amount of EUR 150 million .

ENTRY INTO FORCE: 15.04.2015.

The European Parliament adopted by 540 votes to 54, with 7 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 3 746 700 in commitment and payment appropriations in order to assist Greece following redundancies in its publishing sector.

Parliament recalled that the Union set up 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.

Greek application : Greece submitted application EGF/2014/015 GR/Attica Publishing for a financial contribution from the EGF, following 705 redundancies in 46 enterprises operating in the NACE Rev. 2 division 58 (Publishing activities) in the NUTS 2 level region of Attica (EL 30) in Greece. Parliament noted that the conditions set out in Article 4(1)(b) of the EGF Regulation are met. Therefore, Greece is entitled to a financial contribution under that Regulation.

Parliament welcomed the fact that, in order to provide workers with speedy assistance, the Greek authorities decided to initiate the implementation of the personalised services to the affected workers on 28 November 2014, well ahead of the decision on granting the EGF support for the proposed coordinated package.

Nature of the redundancies : Parliament considered that the redundancies in the publishing sector of the Attica region are linked to the global financial and economic crisis, that, on the one hand, decreased the available household income, resulting in a huge drop of purchasing power and drastically reduced loans to enterprises and individuals due to the lack of cash in the Greek banks. It noted that these redundancies are expected to have huge negative impacts on the Attica region, which already has the largest number of all the unemployed people in Greece as compared to the other 12 regions.

A package of personalised services : Parliament noted that the coordinated package of personalised services to be co-funded mostly supports business start-ups in the form of self-employment subsidies (EUR 1.2 million) but also consists of occupational guidance, training measures, including vocational training (EUR 1.104 million) and training allowances (EUR 828 000), as well as job-search, and mobility allowances. It welcomed the fact that the co-ordinated package of personalised services has been drawn up in consultation with the representatives of the targeted beneficiaries who suggested to the Greek Labour Ministry to apply for the EGF, acknowledging its prompt impact and effectiveness. It considered that the coordinating role and the involvement of the representatives of the targeted beneficiaries was especially important in drawing up the personalised services, since the dismissals took place in 46 different companies in the publishing sector .

Occupational guidance : Parliament welcomed the fact that all eligible redundant workers have been offered occupational guidance consisting of various stages, which will provide them with individual, personalised advice and plans to reintegrate into employment. It noted that the maximum eligible amount of EUR 15 000 will be granted to up to 80 selected workers as a contribution to setting up their own businesses and underlined that the aim of this measure is to promote entrepreneurship by providing funding to viable business initiatives, which should result in the creation of further workplaces in the medium term .

Parliament recalled the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career.

Lastly, it stressed that EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment.

The Committee on Budgets adopted the report by Lefteris CHRISTOFOROU (EPP, CY) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 3 746 700 in commitment and payment appropriations in order to assist Greece following redundancies in its publishing sector.

Members recalled that the Union set up 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.

Greek application : Greece submitted application EGF/2014/015 GR/Attica Publishing for a financial contribution from the EGF, following 705 redundancies in 46 enterprises operating in the NACE Rev. 2 division 58 (Publishing activities) in the NUTS 2 level region of Attica (EL 30) in Greece. Members noted that the conditions set out in Article 4(1)(b) of the EGF Regulation are met. Therefore, Greece is entitled to a financial contribution under that Regulation .

Members welcomed the fact that, in order to provide workers with speedy assistance, the Greek authorities decided to initiate the implementation of the personalised services to the affected workers on 28 November 2014, well ahead of the decision on granting the EGF support for the proposed coordinated package.

Nature of the redundancies : Members considered that the redundancies in the publishing sector of the Attica region are linked to the global financial and economic crisis, that, on the one hand, decreased the available household income, resulting in a huge drop of purchasing power and drastically reduced loans to enterprises and individuals due to the lack of cash in the Greek banks. They noted that these redundancies are expected to have huge negative impacts on the Attica region, which already has the largest number of all the unemployed people in Greece as compared to the other 12 regions.

A package of personalised services : Members noted that the coordinated package of personalised services to be co-funded consists of occupational guidance, training, retraining and vocational training, specialised training and education, job-search, training and mobility allowances. They welcomed the fact that these services have been drawn up in consultation with the representatives of the targeted beneficiaries and it was they who suggested to the Greek Labour Ministry to apply for the EGF, pointing out its prompt impact and effectiveness.

Occupational guidance : Members welcomed that all workers have been offered occupational guidance consisting of various stages, which will provide them with individual, personalised advice and plans to reintegrate into employment. These measures should take into account the emerging opportunities that the new web media could provide for these workers.

Members noted that most of the requested funds are to support business start-ups in the form of self-employment subsidies (EUR 1.2 million) and training measures including vocational training and mobility allowances.

They stressed that the maximum eligible amount of EUR 15 000 will be granted to up to 80 selected workers as a contribution to setting up their own businesses. The aim of that measure is to promote entrepreneurship by providing funding to viable business initiatives, which should result in the creation of further workplaces in the medium term.

They recalled the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career.

Lastly, they stressed that EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment.

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to assist Greece following redundancies in its publishing activities sector.

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

CONTENT: Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 provides that the EGF shall not exceed a maximum annual amount of EUR 150 million (2011 prices) over and above the relevant headings of the financial framework.

The rules applicable to financial contributions from the European Globalisation Adjustment Fund (EGF) are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006 (the 'EGF Regulation').

In this context, the Commission examined the application for mobilisation of the EGF to assist Greece and concluded the following:

Greece: EGF/2014/015 GR/Attica – Publishing Activities : the Greek authorities submitted application EGF/2014/015 GR/Attica Publishing activities for a financial contribution from the EGF, following redundancies in 46 enterprises operating in the region of Attica in Greece.

The Greek authorities submitted the application within 12 weeks of the date on which the intervention criteria set out below were met. The deadline expired on 5 February 2015.

In order to establish the link between the redundancies and the global financial and economic crisis, Greece argues that the Greek economy is for the sixth consecutive year (2008-2013) in deep recession. Since 2008 the Greek GDP has decreased by 25.7%; public consumption by 21% and private consumption by 32.3% whilst unemployment increased by 20.6%.

In order to deal with foreign debt repayments, in 2008 the Greek government took unpopular measures such as increasing tax revenues, streamlining public expenditure and decreasing public workers' salaries. Wages in the private sector have also been decreasing in an attempt to boost the competitiveness of the Greek economy. Since 2008, thousands of enterprises have stopped their activities and closed down, making their staff redundant and thousands of self-employed persons have ceased their activities, contributing to the sharp increase in unemployment.

An immediate effect of the reduced income has been a decrease in private consumption - especially of non-essential goods.

According to the data on household income and living conditions, 23% of Greeks were below the poverty threshold in 2012. Moreover, three out of four workers or employees stated that their income level had declined in 2014 compared with the previous year due to salary cuts. Moreover, 38% of respondents believed that their salaries would be cut again in the next quarter. A majority of respondents had reduced their expenses accordingly, in particular the budget for nonessential items such as magazines and newspapers.

To date, the publishing activities sector has been the subject of one more EGF application also based on the global financial and economic crisis.

The application relates to 705 workers made redundant in 46 enterprises operating in the NACE Rev. 2 division 58 (Publishing activities) in the NUTS level 2 region of Attica (EL 30).

Basis of the Greek application : the Greek authorities submitted the application under the intervention criterion of Article 4(1)(b) of the EGF Regulation, which requires at least 500 redundancies over a reference period of nine months in enterprises operating in the same economic sector defined at NACE Rev. 2 division level and located in one region or two contiguous regions defined at NUTS 2 level in a Member State.

The reference period of nine months runs from 12 September 2013 to 12 June 2014.

The Commission therefore proposes to mobilise the EGF for the amount of EUR 3 746 700 .

FINANCIAL IMPLICATIONS: having examined the application in respect of the conditions set out in Article 13(1) of the EGF Regulation, and having taken into account the number of targeted beneficiaries, the proposed actions and the estimated costs, the Commission proposes to mobilise the EGF for the amount of EUR 3 746 700, representing 60% of the total costs of the proposed actions, in order to provide a financial contribution for the application.

The proposed decision to mobilise the EGF will be taken jointly by the European Parliament and the Council, as laid down in point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management.

At the same time as it presents this proposal for a decision to mobilise the EGF, the Commission will present to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary line for the amount requested.

At the same time as it adopts this proposal for a decision to mobilise the EGF, the Commission will adopt a decision on a financial contribution, by means of an implementing act, which will enter into force on the date at which the European Parliament and the Council adopt the proposed decision to mobilise the EGF.