# EUR-Lex - 52012PC0395 - EN

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# 52012PC0395

**Proposal for a DECISION 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/2011/009 NL/Gelderland Construction 41 from the Netherlands) /* COM/2012/0395 final - 2012/ () */**

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EXPLANATORY MEMORANDUM

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[1] 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 rules applicable to the contributions
from the EGF are laid down in Regulation (EC) No 1927/2006 of the European
Parliament and of the Council of 20 December 2006 on establishing the European
Globalisation Adjustment Fund[2].

On 15 December 2011, the Netherlands submitted application EGF/2011/009 NL/Gelderland
Construction 41 for a financial contribution from the
EGF, following redundancies in 54 enterprises operating
in the NACE Revision 2 Division 41 ('Construction of buildings')[3] in the NUTS II region of Gelderland (NL22) in the Netherlands.

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.

SUMMARY OF THE APPLICATION AND ANALYSIS

Key data: ||

EGF Reference no. || EGF/2011/009

Member State || Netherlands

Article 2 || (b)

Enterprises concerned || 54

NUTS II region || Gelderland (NL22)

NACE Revision 2 Division || 41 ('Construction of buildings')

Reference period || 1.2.2011 – 1.11.2011

Starting date for the personalised services || 1.1.2012

Application date || 15.12.2011

Redundancies during the reference period || 516

Redundant workers expected to participate in the measures || 435

Expenditure for personalised services (EUR) || 4 281 000

Expenditure for implementing EGF[4] (EUR) || 178 375

Expenditure for implementing EGF (%) || 4,0

Total budget (EUR) || 4 459 375

EGF contribution (65 %) (EUR) || 2 898 594

1.           The application was
presented to the Commission on 15 December 2011 and supplemented by additional
information up to 11 June 2012.

2.           The
application meets the conditions for deploying the EGF as set out in Article
2(b) of Regulation (EC) No 1927/2006, and was submitted within the deadline of
10 weeks referred to in Article 5 of that Regulation.

Link between the redundancies and major structural changes in world trade patterns due to globalisation or the global financial and economic crisis

3.           In order to establish the
link between the redundancies and the global financial and economic crisis, the
Netherlands argues that the construction sector in the Netherlands as well as
in the entire European Union has been severely affected by the crisis. Loans to
the construction sector and to individuals have been drastically reduced,
prices of the construction materials increased while the demand for new houses
decreased due to declining consumer confidence and the lack of cash.

4.           The Commission recognised
in its Economic Recovery Plan that the construction industry in the EU had seen
demand plummet as a result of the crisis. Available data confirms the
significant downturn in the construction sector, which fell in the EU-27 for
eight consecutive quarters (Q1/2009 to Q4/2010) compared with the same period
of the previous year, mainly due to the decrease in private investment in the
residential sector.

5.           A sharp decline in output
by 12,9 % from 2008 to 2010 was identified in the Dutch construction
industry. Although the first quarter of 2011 showed a recovery by 9,3 %,
the trend was again slowed down in the second and third quarters of 2011 and
the forecasts for 2012 are not positive. The economic growth in the third
quarter of 2011 compared to the same period of 2010 in the province of
Gelderland slowed down more than in the rest of the country (0,6 % for
Gelderland compared to 1,1 % of the Netherlands). Many economic indicators
(turnover, employment, investment) turned from positive in 2010 to negative in
2011. The price level of houses in 2011 declined further by 3,6 % in
comparison to 2010 and reached the level of 2005; this had a negative impact on
the construction sector.

6.           The economic and financial
crisis resulted in cuts in order to reduce the government budget deficit.
Reduction of public expenditure had a direct negative impact on investments in
infrastucture and housing programmes. The reduction of central government
expenditure influences also the regional governments so that they too are
obliged to reduce their expenditure. The province of Gelderland will have to reduce
its expenditure by EUR 58 million per year starting from 2011. Since
the construction sector is highly dependent on the regional domestic market,
the reduction of public budgets and programmes puts the construction sector in
a vulnerable position. The budget cuts will continue to have negative
consequences for employment in the sector.

7.           Furthermore, the market
for new housing has been shrinking due to the declining investments of housing
corporations and municipalities. There has been also an increase in the number
of bankruptcies in the third quarter of 2011.

Demonstration of the number of
redundancies and compliance with the criteria of Article 2(b)

8.           The Netherlands 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.

9.           The application cites 516
redundancies in 54 enterprises operating in the NACE Revision 2 Division 41 ('Construction
of buildings') in the NUTS II region of Gelderland (NL22) during the nine-month reference period from 1 February 2011 to 1 November 2011. These redundancies were calculated in
accordance with the second indent of the second paragraph of Article 2 of Regulation
(EC) No 1927/2006.

Explanation of the unforeseen nature
of those redundancies

10.         The Dutch authorities argue
that the financial and economic crisis and its impact on the sector could not
have been foreseen. Before the crisis, the construction sector in the
Netherlands was prosperous. The turnover realised by residential and
non-residential building companies has been in decline continually since the
first quarter of 2009 and was nearly 20 % below the record level of
2008. Since the first quarter of 2010, the consequences of the economic crisis have
been also felt in civil engineering. The turnover achieved by civil engineering
companies was more than 7 % down in 2010 compared to 2009, despite the
measures taken by the government to expedite the construction of projected
infrastructure projects. In 2009 such measures still had a positive effect
on turnover.

Identification of the dismissing
enterprises and workers targeted for assistance

11.         The application relates to 516
redundancies in 54 enterprises. The Netherlands estimates that only 435 will be
targeted for the assistance; the remaining workers are expected to find
employment through their own initiative or to retire. The redundancies occurred
in the following enterprises:

Enterprises and number of dismissals

Aannemersbedrijf Kranen BV || 2 || Dijkman Bouw B.V. || 5

Aannemersbedrijf Kruisselbrink BV || 5 || EMHA B.V. || 6

Aannemersbedrijf Volman || 6 || Engelaer v.o.f. || 1

Aannemersbedrijf W. Kosters B.V. || 8 || Gebr. Heuting & zn B.V. || 1

Aannemersbedrijf Wibo Lochem BV || 40 || GML Gelders Metsel- en Lijmbedrijf BV || 8

aanneminsgbedrijf Berendsen- van Geemen BV || 1 || Hermsen Bouw & Timmerwerken B.V. || 3

Aannemingsmaatschappij Van Gelder BV || 13 || Hiddink Grondwerken transport B.V. || 12

Ad Hofmans Hedel B.V. || 1 || Joosten Bouwservice B.V. || 5

B&V Geveltechniek b.v. || 1 || KBZ BV (Keijzer Betonwerken Zutphen BV) || 22

Borreman Bouw BV || 6 || Klaassen Bouwmaatschappij Arnhem B.V. || 1

Borst Aannemersbedrijf BV || 7 || Kroeze Betonbouw BV || 9

Bouw Service Ermelo BV || 42 || Kroeze Geodesie BV || 2

Bouwbedrijf Bolster BV || 6 || La Paloma || 1

Bouwbedrijf Folmer de Vries BV || 1 || Lenting Bouw V.O.F. || 2

Bouwbedrijf Heimensen BV || 8 || Metselbedrijf Asselman BV || 18

Bouwbedrijf Jansen-Bolk BV || 8 || Metselbedrijf W. Renden || 6

Bouwbedrijf Kiezenbrink BV || 4 || P.B. Huberts Aanneming- en Wegenbouw- || 45

Bouwbedrijf Kuiperij BV || 16 || Scholten Gevelrenovatie BV || 13

Bouwbedrijf Rusbo BV || 4 || Scholten Metsel- en Stelwerken BV || 35

Bouwmij Te Brake B.V. || 6 || Schutten Bouw B.V. || 1

Bouw's Staalbouw B.V. || 10 || T.S. Alround Services BV || 1

Burgers van der Wal || 3 || Van den Boom Bouwbedrijf BV || 8

Claes B.V. || 1 || Veerdonk en Mulder Bouwbedrijf || 2

D & G Timmerfabriek BV || 10 || Verboon Bouwbedrijf B.V. || 1

D & M Bouw VOF || 8 || Voegersbedrijf Scholten BV || 15

Daams H.T. || 3 || Weijers Eikhout Vestiging Groesbeek BV || 66

De Boer Montagetechnieken || 1 || Welling Bouw Didam B.V. || 6

Total enterprises: || 54 || Total dismissals: || 516

12.         The break-down of the
targeted workers is as follows:

Category || Number || Percent

Men || 420 || 96,55

Women || 15 || 3,45

EU citizens || 435 || 100,00

Non EU citizens || 0 || 0

15-24 years old || 25 || 5,75

25-54 years old || 290 || 66,67

55-64 years old || 120 || 27,59

> 64 years old || 0 || 0

13.         There are no workers with a
longstanding health problem or disability.

14.         In terms of occupational
categories, the break-down is as follows:

Category || Number || Percent

Manager || 2 || 0,46

Professional || 50 || 11,49

Technicians || 55 || 12,64

Clerical support workers || 35 || 8,05

Service and sales workers || 10 || 2,30

Elementary occupations || 283 || 65,06

15.         In accordance with Article
7 of Regulation (EC) No 1927/2006, the Netherlands has confirmed that a policy
of equality between women and men as well as non-discrimination has been
applied, and will continue to apply, during the various stages of the
implementation of and, in particular, in access to the EGF.

Description
of the territory concerned and its authorities and stakeholders

16.         The
Dutch province of Gelderland is the biggest province of the Netherlands
counting approximately 2 million inhabitans. The region has a
well-educated population and counts 146 000 companies. There are
relatively many people working in construction (approximately 60 000 in
2011) compared with other sectors of industry such as chemical (9 000), food
(15 000) and metal / electrical (40 300) industries.

17.         The main authorities
concerned are the Ministry of Social Affairs and Employment; the Opleidingsbedrijf
Doetinchem, a sectoral organisation in the construction sector; the Provincial
Government of Gelderland; UWVwerkbedrijf, the regional public employment
agency assisting people in finding a new job and Platform Arbeidsmarkt Onderwijs,
in which all educational and vocational institutions are represented. Other
relevant stakeholders are: Bouwend Nederland regio oost, the regional
representation of the employers’ federation of the construction sector; FNV
Bouw regio oost, the regional representation of the trade union federation
for the construction sector; CNV Vakmensen, the representation of the
Christian trade union federation for the construction sector and OBD
opleidingen, other vocational training centres for the construction sector.

Expected impact of the redundancies
as regards local, regional or national employment

18.         The Dutch authorities argue
that given the importance of the the construction sector in Gelderland, the
redundancies are deeply felt. The unemployment rate in 2011 in Gelderland was
5,9 %, a fraction higher than the Dutch average. In 2010, employment in
the construction sector in Gelderland was 6,5 % of the total employment in
the province. In 2010 4 100 jobs were lost in the construction sector
(drop by 6,5 %). In 2011 a small recovery was seen (500 jobs), however,
the fourth quarter of 2011 was again characterised by numerous redundancies in
the sector. Youth unemployment increased by 10 % in 2011.

Co-ordinated package of personalised
services to be funded and a breakdown of its estimated costs, including its
complementarity with actions funded by the Structural Funds

19.         The personalised services
will be offered to redundant workers at the vocational training centers managed
by the construction sector. Apart from job-search assistance, each of the targeted
workers will participate only in one measure, although in limited cases, the
measures will be combined to achieve the desired results. The Netherlands
proposes a package of measures in support of redundant workers, that is built
around three consecutive stages: intake (job-search assistance), preparation
for labour market (individual package of measures) and work:

–
Job-search assistance: This programme is offered to the individual participant and is
composed of counselling on available training and career opportunities,
intensive training in applying for a job and writing application letters. Every
participant will be given a contact point for assistance in their neighbourhood
(since every regional UWV is involved) where they will find help in
transferring necessary documents (income declarations, unemployment benefit
documents) and will also initiate contacts with the construction industry. It
is estimated that all targeted workers will take up this action.

–
Training and retraining: This covers an intensive training programme that is targeted at new
occupational profiles. Training sessions contain several modules, which can be
followed separately, depending on personal needs and skills. A full training
course takes about a year and consists of a package of modules, e.g. 11,5-month
training in bricklayer/masonry is composed of: treatment of facades, masonry,
tiling and flushing. It is estimated that 75 workers will take this intensive
training option.

–
Outplacement assistance: This covers counselling the targeted workers towards new sectors
like engineering, electro-technical installation work, the health sector or
catering services. It can also result in counselling for the construction
sector to retrain skills which are more up to date in what the construction
sector requires (e.g. in composition construction). The counselling is done on an
individual basis and consists of: assessment of skills and profile, finding the
right job or educational path on the basis of the assessed skills/profile and
monitoring progress of the individual outplacement process. It is estimated
that 150 workers will take part in this measure.

–
Entrepreneurship promotion: This relates to guiding redundant workers into self-employment and
supporting them in starting their own businesses. The measure will consist of
vocational training (e.g. in craftsmanship) and courses in running a business. It
is estimated that 60 workers will take up this measure.

–
Flexpool: This is
the flexible pool for both job-seekers and employers in the construction sector
that can offer temporary employment. Thanks to this service, flexible deployment
can be organised. The retrained workers will be able to gain new work
experience, but also working will be combined with learning. Workers will
receive a normal regular salary as noted in the collective labour agreement and
its duration will be limited in time according to the Dutch law on flexible
work. It is estimated that 150 workers will participate in this measure.

20.         The expenditure for
implementing the EGF, which is included in the application in accordance with
Article 3 of Regulation (EC) No 1927/2006, covers management and
control activities as well as information and publicity.

21.         The personalised services
presented by the Dutch authorities are active labour market measures within the
eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The Dutch
authorities estimate the total costs of these services at EUR 4 281 000
and the expenditure for implementing the EGF at EUR 178 375 (4,00 %
of the total amount). The total contribution requested from the EGF is EUR 2
898 594 (65 % of the total costs).

Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR)

Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006)

Job-search assistance || 435 || 2 600 || 1 131 000

Training and re-training || 75 || 18 000 || 1 350 000

Outplacement assistance || 150 || 8 200 || 1 230 000

Entrepreneurship promotion || 60 || 4 500 || 270 000

Flexpool || 150 || 2 000 || 300 000

Sub total personalised services || || 4 281 000

Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006)

Preparatory activities || || 0

Management || || 44 594

Information and publicity || || 44 594

Control activities || || 89 187

Sub total expenditure for implementing EGF || || 178 375

Total estimated costs || || 4 459 375

EGF contribution (65 % of total costs) || || 2 898 594

22.         The Netherlands confirms
that the measures described above are complementary with actions funded by the
Structural Funds. The Netherlands will put in place the necessary control
procedures to eliminate any risk of double funding and will also ensure a clear
audit trail for EGF funded activities.

Date(s) on which the personalised
services to the affected workers were started or are planned to start

23.         The Netherlands started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 1 January 2012. This date
therefore represents the beginning of the period of eligibility for any
assistance that might be awarded from the EGF.

Procedures
for consulting the social partners

24.         Social
partners were involved in preparing the application. The proposal was initiated
by the Opleidingsbedrijf Doettinchem, a sectoral organisation for the
construction sector in which social partners are represented. Preparation
activities included series of regional meetings with sector representatives and
construction companies and discussions among collaborating partners and UWV. The
discussions resulted in a plan for redundant workers including the establishment
of a service point for occupations in the construction and technical sector
professions. Many aspects of the plan were later introduced into the project. Social
partners are also involved in implementation as they govern the training and
educational facilities in the sector.

25.         The Dutch authorities
confirmed that the requirements laid down in national and EU legislation
concerning collective redundancies have been complied with.

Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements

26.         As regards the criteria
contained in Article 6 of Regulation (EC) No 1927/2006, the Dutch authorities
in their application:

· confirmed that the financial contribution from the EGF does not
replace measures which are the responsibility of companies by virtue of
national law or collective agreements;

· demonstrated that the actions provide support for individual workers
and are not to be used for restructuring companies or sectors;

· confirmed that the eligible actions referred to above do not receive
assistance from other EU financial instruments.

Management and control systems

27.         The Netherlands has
notified the Commission that the financial contribution will be managed and
controlled by the same bodies that manage and control the European Social Fund
in the Netherlands. The Agency for Social Affairs (department of the Ministry
of Social Affairs and Employment) will have responsibility for monitoring,
control, information, publicity and payments for the EGF case.

Financing

28.         On the basis of the
application from the Netherlands, the proposed contribution from the EGF to the
coordinated package of personalised services (including
expenditure to implement EGF) is EUR 2 898 594, representing 65 %
of the total cost. The Commission's proposed allocation under the Fund is based
on the information made available by the Netherlands.

29.         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.

30.         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, as required by Article 12(6) of Regulation (EC) No 1927/2006.

31.         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.

32.         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.

Source of payment appropriations

33.         Appropriations from the EGF
budget line will be used to cover the amount of EUR 2 898 594 needed for the present
application.

Proposal for a

DECISION 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/2011/009 NL/Gelderland Construction 41 from the
Netherlands)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union,

Having regard to the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[5], and in particular point 28
thereof,

Having regard to Regulation (EC) No
1927/2006 of the European Parliament and of the Council of 20 December 2006
establishing the European Globalisation Adjustment Fund[6], and in particular Article
12(3) thereof,

Having regard to the proposal from the European
Commission[7],

Whereas:

(1)       The European Globalisation
Adjustment Fund (EGF) was established to provide additional support for workers
made redundant as a result of major structural changes in world trade patterns due
to globalisation and to assist them with their reintegration into the labour
market.

(2)       The scope of the EGF was
broadened for applications submitted from 1 May 2009 to 30 December 2011 to
include support for workers made redundant as a direct result of the global
financial and economic crisis.

(3)       The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million.

(4)       The Netherlands submitted
an application to mobilise the EGF, in respect of redundancies in 54
enterprises operating in the NACE Revision 2 Division 41 ('Construction of
buildings') in the NUTS II region of Gelderland (NL22), on 15 December 2011 and supplemented it by additional information up to 11 June 2012. This application complies with the requirements for
determining the financial contributions as laid down in Article 10 of
Regulation (EC) No 1927/2006. The Commission, therefore,
proposes to mobilise an amount of EUR 2 898 594.

(5)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by the Netherlands,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European
Union for the financial year 2012, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 2 898 594 in commitment and
payment appropriations.

Article 2

This Decision shall be published in the Official
Journal of the European Union.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

[1]               OJ C 139, 14.6.2006, p. 1.

[2]               OJ L 406, 30.12.2006, p. 1.

[3]               Regulation (EC) No 1893/2006 of the European
Parliament and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1).

[4]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.

[5]               OJ C 139, 14.6.2006, p. 1.

[6]               OJ L 406, 30.12.2006, p. 1.

[7]               OJ C [...], [...], p. [...].