# EUR-Lex - 52013PC0120 - EN

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# 52013PC0120

**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/2011/016 IT/Agile from Italy) /* COM/2013/0120 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 30 December 2011, Italy submitted application EGF/2011/016 IT/Agile for a financial contribution from the EGF, following redundancies in
Agile S.r.l, an entreprise operating
in the Information and Communications Technology (ICT)
sector in Italy.

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/2011/016

Member State || Italy

Article 2 || (a)

Primary enterprise || Agile S.r.l.

Suppliers and downstream producers || 0

Reference period || 22.9.2011 – 22.12.2011

Starting date for the personalised services || 15.3.2012

Application date || 30.12.2011

Redundancies during the reference period || 1 257

Redundancies before and after the reference period || 0

Total eligible redundancies || 1 257

Redundant workers expected to participate in the measures || 856

Expenditure for personalised services (EUR) || 5 458 115

Expenditure for implementing EGF[3] (EUR) || 218 000

Expenditure for implementing EGF (%) || 3,84

Total budget (EUR) || 5 676 115

EGF contribution (65 %) (EUR) || 3 689 474

1.           The application was
presented to the Commission on 30 December 2011 and supplemented by additional
information up to 2 October 2012.

2.           The
application meets the conditions for deploying the EGF as set out in Article
2(a) 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, Italy argues that according to available data[4],
the financial crisis, in particular during the 2008/2009 period, contributed
significantly to the slowdown in the ICT sector. Between 2005 and 2008 the ICT
market in the EU grew at a rate exceeding 3 % per year (in 2007 -compared
with the previous year- it grew by 6,8 %) while 2009 marked the reversal
of the trend with a negative growth of 2,4 %. This downward trend
continued in 2010 (-1 %). The Italian ICT sector followed a similar trend
as the EU as a whole. However the crisis had a major impact on the sector and
the negative growth reached -4,2 % in 2009 and -2,5 % in 2010
compared with the relevant previous years.

4.           The consequences of the
global economic and financial crisis hit the information technology market in
the EU particularly hard. In 2009 the volume of trade decreased by EUR 20 billion
representing -5,4 % compared with the previous year. This put an end to
the upward trend of the 2005-2008 period during which the volume of trade
constantly increased, reaching EUR 359 billion in 2008. The downturn
of the IT market hit hardware and technical assistance as well as software and
services. Compared with 2008, the hardware and technical assistance sub-sectors
decreased in 2009 by 7,6 % at EU level and by 10 % in Italy, while
the software and services sub-sectors decreased by 4 % in the EU and by
5,6 % in Italy.

5.           In its assessment on the
application EGF/2010/012 Noord Holland ICT[5],
the Commission has already stated the impact of the economic and financial
crisis on the enterprises operating in the ICT sector. Those arguments continue
to be valid.

6.           The
strong decline of the ITC sector in Italy hit Agile S.r.l., an Italian IT
services provider, particularly hard. The effects of the global financial and
economic crisis occurred when Agile was changing its commercial strategy by
moving from offering call center services at local level to offering integrated
IT services at multiregional level. In a context of downturn the enterprise’s
efforts and the necessary investment proved to be unequal to achieving Agile’s
goals of growth, resulting in heavy losses and eventually in insolvency with
the consequence of dismissals.

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

7.           Italy submitted this
application under the intervention criteria of Article 2(a) of Regulation (EC)
No 1927/2006, which requires at least 500 redundancies over a four-month period
in an enterprise in a Member State, including workers made redundant in its
suppliers and downstream producers.

8.           The application cites
1 257 redundancies in Agile S.r.l. during the
reference period from 22 September 2011 to 22 December
2011. All of these redundancies were calculated in accordance with the third
indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006.
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.           Agile was established in
January 2004 within the group Getronics. Based in Potenza (Basilicata) it
offered call-centre services and had about 170 employees.

10.         Eutelia SpA was founded in
2003 resulting from the merger of IT Plug SpA and Edisontel SpA. The core
business of this new company was landlines and internet services. In 2006
Eutelia SpA, which was already one of the top five providers of these services
in Italy, acquired Getronics Solutions Italia SpA (a subsidiary of Olivetti
Sistemi with approximately 1 600 employees) and Bull Italia SpA (450 employees)
as part of the company’s strategy of diversifying its activities in the IT
sector and becoming a provider of IT integrated services (voice, data,
internet, hardware and software). At the end of 2008, within the framework of
the reallocation of tasks and personnel among the enterprises of the Eutelia
group, the IT activities as well as 1 922 employees were transferred to
Agile, which was controlled by Eutelia since the acquisition of Getronics.

11.         The Italian authorities
argue that Agile was confident about its future even in harsh recession
circumstances. However the deeper than expected downturn of the IT sector and
the tightening of credit that followed the economic and financial crisis -both
circumstances difficult to foresee- put an extra burden on the enterprise which
could not work out a profitable solution and entered into insolvency
proceedings in 2010.

Identification of the dismissing
enterprises and workers targeted for assistance

12.         The application relates to
1 257 redundancies in Agile S.r.l.

13.         The break-down of the
dismissed workers is as follows:

Category || Number || Percent

Men || 889 || 70,72

Women || 368 || 29,28

EU citizens || 1 254 || 99,76

Non EU citizens || 3 || 0,24

15-24 years old || 1 || 0,08

25-54 years old || 955 || 75,97

55-64 years old || 300 || 23,87

> 64 years old || 1 || 0.08

14.         There are 43 workers with a
longstanding health problem or disability.

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

Category || Number || Percent

Professionals || 377 || 29,99

Technicians and associated professionals || 457 || 36,36

Clerks || 263 || 20,92

Service workers and shop and market sales workers || 160 || 12,73

16.         In accordance with Article
7 of Regulation (EC) No 1927/2006, Italy 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

17.         The Agile redundancies are
spread out over most of the whole Italy. The territories concerned are 12 out
of the 19 Italian regions: Piemonte, Lombardia, Veneto, Emilia-Romagna, Tuscany, Umbria, Lazio, Campania, Puglia, Basilica and Calabria and Sicily.

18.         The main stakeholders are
the regional authorities of the regions concerned[6] as well as the trade unions
Federazione Impiegati e Operai Metallurgici FIOM-CGIL, Federazione Italiana
Metalmeccanici FIM-CILS, Unione Italiana Lavoratori Metalmeccanici UILM-UIL,
Unione General dei Lavoratori Metalmeccanici UGL-Metalmeccanici and Unione
Italiana Lavoratori communicazione UILCOM-UIL.

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

19.         During the three years 2008
to 2010 the unemployment rate in Italy increased from 6,8 % to 8,5 %.
However in eight of the twelve regions concerned there was an increase above
the national average ranging from 1,9 % to 2,6 %. In 2010
unemployment rates showed anew the traditional dichotomy between the Central
and Northern Italian regions on the one hand whose unemployment rates are in
line with the national average and comprised between 5 % and 9 %
(e.g. Lombardia 5,7 %; Emilia-Romagna and Veneto 5,8 %; Piemonte
7,7 % and Lazio 9,4 %) and the Southern regions where unemployment
rates are up to 6 % above the national average (e.g. Calabria 12,1 %;
Basilicata 13,1 %; Campania 14,2 %; and Sicilia 14,8 %). The
Agile redundancies will further exacerbate the current fragile employment
situation, in particular in the Southern regions where the opportunities of
economic recovery are less optimistic.

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

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

–
Occupational guidance and skills assessment: This includes a series of structured interviews and targeted
instruments such as skills analysis and employability profile to identify areas
where workers can improve their skills and be supported in defining their
occupational objectives. Through the skills assessment the workers will be
helped to identify their own skills and the opportunities related to their own
interests and to establish a realistic career plan. The worker and the
counsellor work on issues such as opportunities, interests, analysis of the
motivations and expectations. Following these assessments, a summary paper is put
together, setting out a summary of the worker's skills, his/her individual
project and an action plan. This measure will be provided to all workers.
However, as the regions of Sicilia and Piemonte will use other resources
instead the EGF co-funding to finance the cost related to this measure and in
order not to distort the average cost per worker, the former Agile workers
living in these two region are not included as targeted workers for this
particular measure in the financial table.

–
Accompanying services: This involves the design, implementation and follow-up of
personalised support, including coaching. Workers will receive a mix of
measures in their respective packages according to their specific needs. The
coaching process, throughout the EGF implementation, will ensure that the
packages can be adjusted if necessary.

–
Outplacement and job-search assistance: This includes the development of a personalised strategy of
self-promotion and job-search actions including research of the local and
regional employment opportunities. Workers are helped to apply for jobs with
interested firms and are supported through the selection process. To help them
take up job offers with the relevant firms the workers will receive specific
training, if necessary.

–
Vocational training and skills upgrade: The redundant workers will be proposed either a variety of
vocational training or a training voucher of an average of EUR 2 100
to be spent on their training pathway. The voucher can be spent in a qualified
training institution, in a firm where the redundant worker is being re-trained
after being hired or in a firm providing on-the-job training. The worker
decides on how to spend the training voucher, which is strictly linked to the
worker's individual pathway of re-employment.

–
Postgraduate education: Those workers wishing to complete their third level qualifications
with a postgraduate course will receive a contributon of EUR 6 000
aimed at the complete/partial refund of postgraduate course fees.

–
Entrepreneurship promotion: This includes training and/or coaching support in planning new
business activities for redundant workers with entrepreneurial ideas. The
specific training activities for those workers who wish to start their own
businesses will cover elements such as planning, feasibility studies,
preparation of business plans and raising finance.

–
Contribution to business start-up: The workers who set up their own businesses will receive
EUR 5 000 as a contribution to cover setting-up costs.

–
Mentoring after reintegration into work: To prevent possible problems arising in their new jobs and to help
the workers to consolidate their posts, mentors will guide the workers
reintegrated into employment.

–
Hiring benefit:
This payment benefits the redundant workers by facilitating their re-employment
under fix-term or permanent contracts in a different company. The hiring
company will receive EUR 2 000 per worker for re-employment under fixed-term
contracts of at least 12 months and up to EUR 6 300 per worker for re-employment
under permanent contracts). The initial amount provided for re-employment under
permanent contracts will increase by EUR 3 000 euros when recruiting
a disabled worker.

–
Contributions towards special expenses: This includes two types of contributions (1) Contribution for
carers of dependent persons: Workers with dependent persons (children, elderly
or disabled persons) could receive up to EUR 1 000 as a contribution
to the expenses for carers of dependent persons, conditional upon participation
in the measures. This aims to cover the additional costs faced by the workers
with caring responsibilities in order to avail themselves of training or other
measures. (2) Contribution to commuting expenses: As a contribution to
their commuting expenses, workers participating in the measures will have
either their commuting expenses reimbursed or they will receive a lump sum
ranging from EUR 150 up to EUR 1 000 depending on the distance
commuted and the numbers to days of participation in the measures.

–
Job-search allowance: The workers participating actively in the EGF measures will
receive a monthly job-search allowance of EUR 500 on average. The
allowance will be calculated pro rata based on the worker's days of
participation.

–
Contribution to the expenses for change of
residence: Those workers who accept a job involving
a change of residence will receive a contribution of up to EUR 4 000
to cover the necessary expenditure. The allowance will be paid as a one-off
contribution upon presentation of proof of the expenditure incurred.

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

22.         The personalised services
presented by the Italian authorities are active labour market measures within
the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The
Italian authorities estimate the total costs of these services at
EUR 5 676 115 of which the expenditure for personalised services
at EUR 5 458 115 and the expenditure for implementing the EGF at
EUR 218 000 (3,84 % of the total amount). The total contribution
requested from the EGF is EUR 3 689 474 (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)

Occupational guidance and skills assessment (Orientamento professonale e bilancio delle competence) || 613 || 470 || 288 232

Accompanying services (Servizi di accompagnamento) || 282 || 351 || 98 982

Outplacement and job-search assistance (Outplacement e assistenza alla ricerca attiva) || 815 || 655 || 534 115

Vocational training and skills upgrade (Voucher formativo / formazione professionalizzante ) || 839 || 2 171 || 1 821 488

Postgraduate education (Voucher fruizione di master) || 15 || 6 000 || 90 000

Entrepreneurship promotion (Assistenza all'autoimprenditorialità) || 319 || 421 || 134 200

Contribution to business start-up (Bonus per la creazione di impressa) || 17 || 5 000 || 85 000

Mentoring after reintegration into work (accompagnamento al lavoro) || 282 || 264 || 74 448

Hiring benefit (Incentivo all'assunzione) || 123 || 5 724 || 704 000

Contributions towards special expenses (Voucher di conciliazione) || 159 || 815 || 129 650

Job-seach allowance (indennità per la ricerca attiva) || 773 || 1 894 || 1 464 000

Contribution to the expenses for change of residence (Bonus per la mobilità territoriale) || 9 || 3 778 || 34 000

Sub total personalised services || || 5 458 115

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

Preparatory activities || || 21 800

Management || || 94 200

Information and publicity || || 30 000

Control activities || || 72 000

Sub total expenditure for implementing EGF || || 218 000

Total estimated costs || || 5 676 115

EGF contribution (65 % of total costs) || || 3 689 474

(*) To
avoid decimals the estimated costs per worker have been rounded. However the
rounding has no impact on the total cost of each measure which remains as in
the application submitted by Italy.
(**)      Totals do not tally due to roundings.

23.         Italy confirms that the
measures described above are complementary with actions funded by the
Structural Funds and that all double financing will be prevented.

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

24.         Italy started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 15 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

25.         As provided for by national
legislation, discussions with the trade unions mentioned in paragraph 18
regarding the management of the extraordinary administration procedure took
place at the Ministry of Economic Development.

26.         As managing authority the
Ministry of Labour has promoted using the EGF for strengthening the active
labour market policy (ALMP) measures already in place. Presentations on the
criteria for access to the EGF and the opportunities for workers who may
benefit took place on 26 October 2011 and 24 November 2011. In both meetings
the idea of applying for EGF support was widely shared by the trade unions. In
order to support redundant workers with tailor made measures meeting their
actual needs, the involvement of the trade unions in particular at local level,
proved to be a key element during the planning phase. In this regard two
meetings were held at national level on 21 January 2012 and 29 May 2012 at the
Ministry of Economic Development and a technical meeting was held on 12 April
2012 at the Ministry of Labour.

27.         The Italian 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 Italian 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.         Italy has notified the
Commission that the financial contribution will be managed as follows: The
Ministerio del lavoro e delle politiche sociali – Direzione Generale per le
Politiche attive e Passive del lavoro (MLPS – DG PAPL) is the managing,
certifying and audit authority (MLPS – DG PAPL Ufficio A as managing authority;
MLPS – DG PAPL Ufficio B as certifying authority and MLPS – DG PAPL Ufficio C
as audit authority). Eight regional authorities (i.e. Emilia-Romagna, Lazio,
Lombardia, Piemonte, Toscana, Umbria, Veneto and Sicilia.) will be the
intermediate bodies for the managing authority.

Financing

30.         On the basis of the
application from Italy, the proposed contribution from the EGF to the coordinated
package of personalised services (including expenditure
to implement EGF) is EUR 3 689 474,
representing 65 % of the total cost. The Commission's proposed allocation
under the Fund is based on the information made available by Italy.

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 2013 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 3 689 474
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/2011/016 IT/Agile from Italy)

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[7], 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[8], and in particular Article
12(3) thereof,

Having regard to the proposal from the
European Commission[9],

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)       Italy submitted an
application to mobilise the EGF, in respect of redundancies in the enterprise Agile S.r.l, on 30 December 2011 and supplemented it by additional information up to 2 October 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 3 689 474.

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

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European
Union for the financial year 2013, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 3 689 474 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]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.

[4]               Assinform – Italian Association of Information &
Communications Technologies (www.assinform.it)

[5]               COM(2010) 685 Final.

[6]               Regione Emilia-Romagna – Direzione Regionale Cultura,
Formazione e Lavoro – Servizio Lavoro,
Regione Lazio – Direzione Regionale Formazione e Lavoro – Dipartimento
Programmazione Economica e Sociale, Regione Lombardia – Direzione Generale
Occupazione e Politiche del Lavoro – Unità organizzativa Lavoro – Struttura
Tutela del lavoro e interventi per il reimpiego, Regione Piemonte – Direzione
Istruzione, Formazione Professionale e Lavoro - Settore Politiche per
l'Occupazione e per la Promozione dello Sviluppo Locale, Regione Siciliana –
Assessorato Regionale della Famiglia, delle Politiche Sociali e del Lavoro –
Dipartimento Lavoro; Regione Toscana – Direzione Generale Competitività del
Sistema Regionale e Sviluppo delle Competenze – Settore Lavoro, Regione Umbria
– Direzione Regionale Programmazione, Innovazione e Competitività dell'Umbria –
Ambito di Coordinamento: Impresse e Lavoro and Regione Veneto – Direzione
Lavoro.

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

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

[9]               OJ C [...], [...], p. [...].