# EUR-Lex - 52012PC0204 - EN

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# 52012PC0204

**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/2011/020 ES/Comunidad Valenciana footwear from Spain) /* COM/2012/0204 final */**

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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 28 December 2011, Spain submitted application EGF/2011/020 ES/Comunidad
Valenciana Footwear for a financial contribution from
the EGF, following redundancies in 146 enterprises
operating in the NACE Revision 2 Division 15 ('Manufacture of leather and
related products')[3] in the NUTS II region of Comunidad Valenciana (ES52) in Spain.

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/2011/020

Member State || Spain

Article 2 || (b)

Enterprises concerned || 146

NUTS II region || Comunidad Valenciana (ES52)

NACE Revision 2 Division || 15 ('Manufacture of leather and related products')

Reference period || 25.1.2011 – 25.10.2011

Starting date for the personalised services || 26.3.2012

Application date || 28.12.2011

Redundancies during the reference period || 876

Redundant workers expected to participate in the measures || 350

Expenditure for personalised services (EUR) || 2 392 100

Expenditure for implementing EGF[4] (EUR) || 118 000

Expenditure for implementing EGF (%) || 4,7

Total budget (EUR) || 2 510 100

EGF contribution (65 %) (EUR) || 1 631 565

1.           The application was
presented to the Commission on 28 December 2011 and supplemented by additional
information up to 23 February 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 major structural changes in world trade
patterns due to globalisation, the application describes the redundancies in
the Comunidad Valenciana region against a background of radical change in the
distribution of footwear production. Third countries, specifically China and
India, increasingly dominate the world trade in footwear, and countries such as
Vietnam and Indonesia continue to increase their share of world production.

4.           Spain argues that according
to available data[5]
imports of footwear from non-EU countries into the EU increased almost 6 %
during the period 2006-2009 while EU exports declined by 16,4 % during the
same period. As a direct consequence of the fall in exports the number of
footwear producers in EU-27 decreased: in 2008 there were only 24 000 producers
in the EU while in 2005 there were still 27 125. This reduction (11,58 %)
in the number of firms had a direct impact on employment: 78 800 direct jobs --
representing almost 20 % of the total -- were lost in the sector during
the period 2005-2008.

5.           The imports of footwear in
Spain also followed an upward trend, growing by almost 20% during the period
2006-2010. However, the impact of the imbalance between imports and exports in
the Spanish footwear industry was bigger than in the EU as a whole: the number
of manufacturers decreased by 35,96 % during 2006-2010 (or 24,27 % if
we consider only the period 2006-2009), as the number of firms fell from 2 283
to 1 462. Employment therefore contracted by 31,80 % and 10 663
direct jobs were lost during the same period.

6.           The Spanish redundancies also
follow the general trend in the footwear industry in the EU towards
delocalisation to lower-cost non-EU countries of most of manufacturing
sub-processes, keeping within the EU only the higher-value tasks such as
product design and product marketing.

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

7.           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.

8.           The application cites 876
redundancies in 146 enterprises operating in the NACE Revision 2 Division 15 ('Manufacture
of leather and related products') in the NUTS II region of Comunidad Valenciana
(ES52) during the nine-month reference period from 25 January 2011 to 25 October 2011. Of these redundancies 862 were
calculated in accordance with the second indent of the second paragraph of
Article 2 of Regulation (EC) No 1927/2006. A further 14 redundancies were
calculated in accordance with the third indent of the same paragraph. The
Commission has received the confirmation required under the third indent of the
second paragraph of Article 2(2) that this is the actual number of redundancies
effected.

Explanation of the unforeseen nature
of those redundancies

9.           The Spanish authorities
argue that the footwear sector had already restructured to cope with market
liberalization, opting to produce high value added items and focusing on exports.
During the years prior to the economic and financial crisis this approach
provided them with sustainable turnover. However the crisis and the tightening
of credit that followed put many small and medium-sized enterprises into
serious difficulties, as they did not have sufficient financial flexibility to
cope with the new situation of falling exports and contraction of the domestic
market. This resulted in enterprise closures: 188 enterprises representing
16,64 % of the total number of footwear manufacturers in Comunidad
Valenciana stopped their activity and closed in 2010 with the consequent job losses.

Identification of the dismissing
enterprises and workers targeted for assistance

10.         The application relates to 876
redundancies in the following 146 enterprises:

Enterprises and number of dismissals

ABACO SHOES S.L. || 3 || ILICESOLES S.L. || 10

ADDI SHOES S.L || 1 || INDALO SHOES S.L || 4

ADOANSA S.L || 5 || INDUSTRIA AUXILIAR DEL CALZADO CRIMEA S.L || 1

ADORNOS LA TORRESTA S.L.U || 26 || IRAMEN CALZADOS S.L.U || 26

ADRIANO SHOES S.L.U || 13 || IRONMATRIC S.L || 1

AGNELLI INTERNACIONAL S.L || 1 || JANDRO MODA S.L. || 6

ALANDA SHOES S.L || 4 || JESO CONFORT S.L || 1

ALFIE SHOES S.L || 2 || J'HAYBER S.L. || 3

ALUYTEC DEL SURESTE S.L Y ALUVEGA || 1 || JOROS SHOES S.L || 2

ANALPE SHOES S.L. || 1 || JOSE CANO PALAZON || 1

ANTONIO ANDREU MACIÁ || 1 || JOSE FERRER CALZADOS S.L. || 7

APARADOS DANISA S.L || 9 || JOSE LOPEZ MARTINEZ || 2

APARADOS CRIS S.L || 11 || JOVIRES SHOES S.L || 64

APRILE INTERNACIONAL 2002 S.L || 1 || KILMAS S.L || 1

ARTESANIAS Y COMPLEMENTOS DEL CALZADO S.L || 4 || KINSPARTEL S.L || 12

ARTESANOS DE SAX S.L. || 1 || KMB ROC S.L || 1

ASEPYME ELDA ASOCIADOS S.L. || 1 || KNOW SHOES DESIGN S.L || 1

ATHELETIC SPORT GROUP S.L.U || 1 || LINEA OCCIDENTAL S.L. || 1

AUXILIAR DE CALZADO RICOCHI S.L. || 8 || LORTEL SHOES S.L. || 1

AUXILIAR DEL CALZADO CRIMEA S.L || 2 || MANKEITO S.L || 23

AUXILIARES DEL CALZADO ANTON S.L. || 1 || MANUEL GIMENEZ BARRAGAN || 1

BABY PARDO S.L.U || 4 || MANUFACTURAS CARCOLA, S.L || 6

BESTINN SHOES S.L || 1 || MANUFACTURAS NEWMAN S.L.U || 2

BOLITRES S.L.U || 1 || MAPELL ELX 2010 S.L || 3

BONAFORMA S.L || 1 || MARIA TERESA NAVARRO YAÑEZ || 2

CALZADOS BELMAR S.L || 1 || MARROQUINERIA LEYVA S.L. || 1

CALZADOS DAURO S.L. || 1 || MARTINETTI THE BAGS CLUB S.L || 4

CALZADOS DEL PAS BLAN S.L || 1 || MECANIZADOS Y SUMINISTROS GUTIERREZ S.L || 1

CALZADOS IGNACIO BERNABEU S.L.U || 26 || MOLDES JOFAN S.L || 5

CALZADOS JOSE VICENTE E HIJOS S.L || 31 || MTNG EUROPE EXPERIENCE,S.L. || 1

CALZADOS JOSEMI 2010 S.L || 1 || MUSTANG PRODUCTION S.L || 1

CALZADOS LAMAR S.L || 32 || MUZZYPIEL S.L || 9

CALZADOS LUCATONI .S.L || 1 || NARCO SHOES S.L || 2

CALZADOS MAGIAN S.L || 1 || NATISAND SHOES S.L || 16

CALZADOS MARIA GARCIA S.L || 15 || NEW GRABORD S.L || 1

CALZADOS MAYFRAN S.A || 56 || NODO SHOES,S.LU || 2

CALZADOS MONTIEL S.L || 1 || PADALIS SHOES S.L || 29

CALZADOS SALEM SL || 1 || PANAMA JACK S.A || 1

CALZADOS VALORI S.L || 1 || PAPI MODA S.L || 14

CALZANETTO S.L || 1 || PASCO PRODUCCIONES S.L.U || 3

CARMELA LUXE S.L || 42 || PATRICIA ROSALES S.L || 3

CAT WOOMAN S.L || 1 || PEDRO MIRALLES S.L || 1

CHILSYE SHOES S.L || 6 || PLANTIFLER S.L || 1

CONFORFLEX SUMINISTRO INDUSTRIALES S.L.U || 2 || PLANTILLAS CABEZO S.L.U || 1

CONFORSUELAS S.L. || 15 || PLANTILLAS PATRICIA S.L || 9

COOLSHOE S.L || 1 || PREFABRICADOS VIENA S.L || 8

COPRA PIEL S.L || 2 || RAIZA SHOES S.L. || 1

CORTADOS Y APARADOS COCO S.L || 1 || RHINOS SHOES S.L || 2

CREACIONES CARPENA S.L. || 1 || SANDEVAL SL || 10

CREACIONES DALISA S.L.U || 2 || SANTIAGO A. RAMIREZ GUTIERREZ || 5

CREACIONES KING-BELT S.L || 4 || SIROKO SHOES S.L || 25

CREVISA S.L || 1 || SOFAMVAL S.L || 4

CRIMEA S.L || 1 || STRADIVARIUS ESPAÑA S.A || 1

CURTIDOS PIELES NATURALES S.L || 14 || SUACAL CALZADOS E INVERSIONES GILBERT || 1

CUTI SHOES S.L. || 17 || SUELAS DESANZ S.L || 7

DAF CALZADOS S.L || 4 || SUELAS DOMVER S.L || 11

DAMAPIEL S.L || 7 || SUELAS PAMAR S.L || 4

DESIVAL S.L || 1 || TACMOR S.L.U || 4

EBOLOTAC S.L.U || 1 || TACONES INYECTADOS PARA EL CALZADO S.L || 5

EMBOGA S.A. || 1 || TALLER CORTADO (JOSE ANDRES ALONSO) || 1

EUROELX S.L || 9 || TENERIA INDUSTRIAL VALENCIANA SA || 2

EUROPLASTICA ESPAÑA S.A || 1 || TRIO SHOES 2000 S.L || 1

FAMACAL S.L || 1 || UNIMOLDES S.L || 1

FENADELFRI S.L.U || 1 || UNIVERSAL PREFABRICADOS PARA EL CALZADO S.L || 1

FINISAJE GALEÓN S.L || 1 || VAL DISME S.L || 1

FO-PLANT 2001 S.L || 1 || VILLACALZA 2008 S.L || 2

FORMATOS COLOR Y DISEÑO S.L || 1 || VIVER Y BERNA S.L || 1

FORRADOS ODALYS S.L || 15 || VULCANIZADOS ELEVAN S.L || 1

FRANCISCO JAVIER ROS MOYA || 1 || VULCANIZADOS LA ESTRELLA S.L. || 1

FREE FASHION S.L || 1 || ZAPASTOCK S.L. || 2

FULGEN SHOES S.L || 31 || ZAPATOS DACON S.L || 1

HIJOS DE RAMON IBAÑEZ S.A || 1 || ZUHAL SHOES S.L.U || 8

HORMAR XXI S.L. || 2 || 5 FACTORIA 2009 S.L.U || 14

Total no. of enterprises: 146 || Total no. of Dismissals: 876 ||

11.         All the redundant workers
will be offered the possibility to participate in the measures. However, the
Spanish authorities, based on their previous experience in managing EGF cases,
estimate that about 350 workers will opt to participate in the EGF measures.

12.         The break-down of the 876
workers is as follows:

Category || Number || Percent

Men || 465 || 53,03

Women || 411 || 46,97

EU citizens || 872 || 99,54

Non EU citizens || 4 || 0,46

15-24 years old || 27 || 3,08

25-39 years old || 427 || 48,74

40-54 years old || 336 || 38,36

55-59 years old || 65 || 7,42

> 60 years old || 21 || 2,40

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

Category || Number || Percent

Technicians || 8 || 0,91

Clerks || 45 || 5,14

Craft and related trade workers || 455 || 51,95

Elementary occupations || 368 || 42,00

14.         In terms of educational
levels, the break-down is as follows:

Educational level || Number || Percent

Basic education (to end of compulsory education) || 362 || 41,32

Upper secondary education || 59 || 6,74

Tertiary education || 27 || 3,08

Others (non formal education) || 4 || 0,46

Uneducated or early school leavers || 424 || 48,40

15.         In accordance with Article
7 of Regulation (EC) No 1927/2006, Spain 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 territory concerned by
the redundancies is within the NUTS II region of Comunidad Valenciana, and is
concentrated in the three comarcas (roughly equivalent to a county) Alto, Medio
y Bajo Vinalopó in the NUTS III province of Alicante.

17.         Of all Spanish enterprises
11,5 % are based in the Comunidad Valenciana. The manufacturing sector
represents 26 % of total employment in this region; while the service
sector represents 60 %, construction 10 % and the primary sector 4 %.
The business model in Comunidad Valenciana is characterised by a high presence
of small and medium-sized enterprises specialized mainly in the manufacture of
furniture, shoes, textiles, ceramics and toys. These industries are
concentrated in districts around a limited number of municipalities.

18.         The main stakeholders are
the Generalitat Valenciana (Comunidad Valenciana autonomous government) and in
particular the Regional Ministry of Education, Training and Employment; the
SERVEF (labour public offices of the autonomous government); trade unions:
FIA-UGT-PV and CCOO-PV[6];
and the association of Comunidad Valenciana footwear manufacturers (AVECAL).

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

19.         Spain is the second EU
producer of footwear, manufacturing almost 25 % of the whole EU
production. Of the Spanish footwear manufacturers 64,43 % are located in
Comunidad Valenciana, therefore the consequences for employment at local level
due to changes in world trade patterns concerning footwear manufacture are
truly significant and have a huge impact on Comunidad Valenciana. Furthermore
the region was also affected by another four mass redundancy cases[7], for which EGF applications
were submitted to the Commission.

20.         Within Comunidad Valenciana
the territories most affected by the redundancies are Alto, Medio and Bajo
Vinalopó, three counties highly dependent on the manufacture of footwear. The
number of redundant workers increased by 83 % in Upper Vinalopó and it
doubled in Medio and Bajo Vinalopó in 2011 compared to 2009. The perspectives
for future reintegration into employment for the dismissed workers in this
territory do not seem very encouraging, as Alto, Medio and Bajo Vinalopó were
also affected by the redundancies covered by two of the previously mentioned
applications for EGF support: EGF/2010/005 ES Comunidad Valenciana Natural
Stone (528 redundancies in the sector of cutting, shaping and finishing of
stone) and EGF/2011/006 Comunidad Valenciana Construction (1 138
redundancies in the construction sector).

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

21.         All the following measures
combine to form a co-ordinated package of personalised services aimed at
re-integrating the workers into the labour market:

–
Welcome and information sessions and guidance: This is the first measure to be offered to all redundant workers
and includes: (1) Information on skills and training requirements; on
available counselling and training programmes; as well as allowances and
incentives. (2) The profiling of the workers and the design,
implementation and follow-up of personalised support. (3) Workshops on job
interviews. Through role playing exercises the participants will learn how to
avoid common mistakes during job interviews.

–
Intensive job-search assistance: This will involve an intensive employment search, including both
passive and active search of local and regional employment opportunities;
workshops on job-search techniques; and mentoring (i.e individual follow-up on
the job-search activities).

–
Training in vocational skills related to the
footwear sector: The participants in this measure
will be trained in job-skills related to jobs with high added value and therefore
with higher employability within the footwear sector. Since the jobs most in
demand relate mainly to design and marketing, the various training courses will
focus on footwear technology, computer aided design, biomechanics of the foot,
benchmarking in footwear, etc.

–
Training for specific vocational
qualifications: The participants in this measure
will be trained in sectors such as agri-food, plastics industry or catering and
food services, where opportunities exist or will arise in the short or medium
term.

–
Promotion of entrepreneurship. This includes: (1) Counselling on projects and initiatives aimed
to develop, produce and guide viable business or self-employment projects. The
tutors will also try to find openings for self-employment within and outside
the county and propose them to the participants in the measure. (2)
Accompaniment towards business creation: This seeks to assist dismissed workers
who envisage creating their own business and it will consist of personalized tutoring
during the whole process of starting the business and support regarding
administrative requirements. The personalized tutoring will continue to be available
for the participants during their first year as self-employed. (3) Specific
training activities for the workers who wish to start their own business. This
will cover elements such as development of a business idea, planning, carrying
out feasibility studies, preparation of business plans and raising finance.

–
Training in horizontal skills such as basic training in ICT; training in personal development;
training to acquire skills in managing teams; training for trainers aimed to
provide those redundant workers whose work profiles recommend them as trainers
with the necessary teaching skills.

–
Training for recruitment. The training will be designed to cater for the identified needs of
local enterprises, who will in turn undertake to employ at least one third of
the workers participating in the training.

–
Job-search allowance: The workers completing the agreed pathway to reinsertion will
receive an allowance of EUR 400, paid in a single instament.

–
Support for setting up a business: The workers who return to employment by starting their own
businesses will receive a lump sum of EUR 3 000. This incentive is designed to cover
setting-up costs.

–
Contribution to commuting expenses: As a contribution to their commuting expenses, workers
participating in the measures will receive a lump sum of up to EUR 300.

–
Outplacement incentives: A wage subsidy of EUR 350 per month for a maximum of six
months will be paid to those workers who return to employment as employees.

22.         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.

23.         The personalised services
presented by the Spanish authorities are active labour market measures within
the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The Spanish
authorities estimate the total costs of these services at EUR 2 392 100
and the expenditure for implementing the EGF at EUR 118 000 (4,7 %
of the total amount). The total contribution requested from the EGF is EUR 1 631 565
(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)

Welcome & information sessions and guidance (Acogida y orientación profesional) || 350 || 1 251[8] || 438 000

Intensive job-search assistance (Apoyo intensivo en la búsqueda de empleo) || 275 || 1 142[9] || 314 250

Training in vocational skills related to the footwear sector (Formación para la recolocación en el sector del calzado) || 120 || 2 500 || 300 000

Training for specific vocational qualifications (Formación para la recolocación en otros sectores) || 150 || 2 500 || 375 000

Promotion of entrepreneurship (Formación y asesoramiento al emprendedor) || 50 || 3 825 || 191 250

Training in horizontal skills (Formación transversal para la mejora profesional) || 105 || 1 570 || 164 850

Training for recruitment. (Formación para el empleo con prácticas) || 75 || 1 050 || 78 750

Job-seach allowance (Incentivo a la participación) || 350 || 400 || 140 000

Support for setting up a business (Incentivo a la constitución de negocios) || 35 || 3 000 || 105 000

Contribution to commuting expenses (Ayudas por desplazamiento) || 320 || 300 || 96 000

Outplacement incentives (Incentivo a la inserción) || 90 || 2 100 || 189 000

Sub total personalised services || || 2 392 100

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

Preparatory activities || || 0

Management || || 87 000

Information and publicity || || 21 000

Control activities || || 10 000

Sub total expenditure for implementing EGF || || 118 000

Total estimated costs || || 2 510 100

EGF contribution (65 % of total costs) || || 1 631 565

24.         Spain confirms that the
measures described above are complementary with actions funded by the
Structural Funds and that measures are in place to prevent double funding.

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

25.         Spain started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 26 March 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

26.         The proposed application
was discussed at several meetings with the social partners referred to under
point 18 above. During the meetings held on 17 November 2011 and 2, 14 and 21
February 2012 the social partners were consulted on issues such as contents of
the integrated package of measures; allocation of roles and distribution of
tasks; and scheduling of actions.

27.         The Spanish 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

28.         As regards the criteria
contained in Article 6 of Regulation (EC) No 1927/2006, the Spanish 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

29.         Spain has notified the
Commission that the financial contribution will be will be managed and
controlled by the same bodies that manage and control the ESF. The General
Directorate European Projects and Funds of the Regional Ministry of Finance and
Government of the Comunidad Valenciana[10]
will be the intermediate body for the managing authority.

Financing

30.         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 1 631 565,
representing 65 % of the total cost. The Commission's proposed allocation
under the Fund is based on the information made available by Spain.

31.         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.

32.         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.

33.         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.

34.         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

35.         Appropriations from the EGF
budget line will be used to cover the amount of EUR 1 631 565
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/2011/020 ES/Comunidad Valenciana footwear from
Spain)

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[11], 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[12], and in particular Article
12(3) thereof,

Having regard to the proposal from the European
Commission[13],

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)       Spain submitted an
application to mobilise the EGF, in respect of redundancies in 146 enterprises
operating in the NACE Revision 2 Division 15 ('Manufacture of leather and
related products') in the NUTS II region of Comunidad Valenciana (ES52), on 28
December 2011 and supplemented by additional information up to 23 February 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 1 631 565.

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

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 1 631 565 in
commitment and payment appropriations.

Article 2

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

Done at [Brussels/Strasbourg],

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]               http://ec.europa.eu/enterprise/sectors/footwear/files/statistics/footwear_en.pdf

[6]               Federación de Industrias Afines de la UGT del País
Valenciano (MCA-UGT-PV) and Comisiones Obreras del País Valenciano (CC.OO.-PV).

[7]               COM(2010) 216, COM(2010) 613,
COM(2010) 617 and COM(2012) 053.

[8]               The real estimated cost per worker provided by the MS
is EUR 1 251,4286. In order to simplify the presentation in the table
this figure has been rounded down, without modifying the total estimated cost
for the measure as calculated by the MS

[9]               Idem EUR 1 142, 7272

[10]             Dirección General de Proyectos y Fondos Europeos de
la Consellería de Hacienda y Administraciones Públicas de la Generalitat
Valenciana.

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

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

[13]             OJ C [...], [...], p. [...].