# EUR-Lex - 52011PC0340 - EN

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# 52011PC0340

**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/2010/007 AT/Steiermark and Niederösterreich from Austria) /* COM/2011/0340 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 09 March 2010, Austria submitted application EGF/2010/007
AT/Steiermark and Niederösterreich for a financial
contribution from the EGF, following redundancies in 54
enterprises operating in the NACE Revision 2 Division 24 ('Manufacture of basic
metals')[3] in the NUTS II regions of Steiermark (Styria, AT22) and
Niederösterreich (Lower Austria, AT12) in Austria.

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/2010/007

Member State || Austria

Article 2 || (b)

Enterprises concerned || 54

NUTS II regions || Steiermark (AT22) Niederösterreich(AT12)

NACE Revision 2 Division || 24 ('Manufacture of basic metals')

Reference period || 1.4.2009 – 31.12.2009

Starting date for the personalised services || 1.4.2009

Application date || 9.3.2010

Redundancies during the reference period || 1 180

Redundant workers targeted for support || 356

Expenditure for personalised services (EUR) || 12 266 158

Expenditure for implementing EGF[4] (EUR) || 479 855

Expenditure for implementing EGF (%) || 3,8

Total budget (EUR) || 12 746 013

EGF contribution (65 %) (EUR) || 8 284 908

1.
The application was presented to the Commission
on 9 March 2010 and supplemented by additional information up to 22 February
2011.

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, Austria argues that the global drop in demand for metal as a result of the crisis had
a particularly heavy impact on Austria's metal exports (ferrous and
non-ferrous) and thus on the country's metal output and employment. According to Eurostat and Statistik Austria figures quoted in the
application, close to 80 % of the Austrian metal production is exported,
and metal accounts for almost 9 % of Austria's total export volume, a
higher share than the EU-27 average (6,1 %).

4.
Before the crisis, the Austrian metal sector was
dynamic, achieving a clear trade surplus thanks to strong export activities,
particularly in the iron and steel (ferrous) product group. This had helped to
successfully counterbalance globalisation-related forces, such as increased
metal imports from third countries.

The sector's previous
growth stopped abruptly in the
fourth quarter of 2008, leading to a 38,6 % drop in metal exports in the
period January - July 2009 compared to the previous year. The drop in export
activities was less accentuated for Austria's other goods (-24 % for the
total export volume). Quoting Eurostat input-output
tables, Austria also emphasises the high degree of interdependence among
enterprises within the metal sector and with some of the
industries most affected by the crisis, such as the construction, engineering
and automobile industries.

5.
A working paper of the European Commission services
issued in April 2009 and in October 2009[5]
stated that the crisis impacted fiercely on all the
largest steel producing countries of the EU. Over the year to the first quarter
of 2009, the production of crude steel in the EU-27 fell by 43,8 %,
compared with a contraction in world steel output by 22,8 % over the same
period. Many European steel companies have reduced the number of days of
production or mothballed capacity, and close to 32 800 redundancies were
announced by major steel groups, according to figures from EUROFER, the European Confederation of Iron and Steel Industries. All this demonstrates the severe adverse impact of the crisis on
the European metal sector.

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

6.
Austria 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.

7.
The application cites 1 180 redundancies in
54 enterprises operating in the NACE Revision 2 Division 24 ('Manufacture of
basic metals') in the contiguous NUTS II regions of Steiermark (AT22) and
Niederösterreich (AT12) during the nine-month reference
period from 1 April 2009 to 31 December 2009. All of
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

8.
The Austrian authorities argue that the global
crisis with its impact on the basic metal sector could not be foreseen, citing radical downward revisions of the forecasts concerning real GDP
growth made by international and national bodies since the end of 2007, such as
the European Commission, the OECD and the Austrian economic research institutes
WIFO (Österreichisches Institut für
Wirtschaftsforschung) and IHS (Institut für höhere Studien). Having
forecast in autumn 2008 a slight growth of 0,9 % and 1,2 %, the two
national institutes had to adjust their prognoses for 2009 downward to -3,4 %
and -3,8 % in September 2009. Although the metal industry is generally subject to
cyclical fluctuations, the speed and intensity of the decline provoked by the
crisis was not foreseeable and came as a surprise for the sector.

9.
WIFO survey results also reported sharp falls of
confidence among Styrian and Lower Austrian metal firms
in the first 2009 months: compared to an average 21 % in the years up to
2008, a high 83 % of the interrogated firms qualified the volume of their
export orders as not sufficient by July 2009.

Identification of the dismissing
enterprises and workers targeted for assistance

10.
The application cites a total of 1 180
redundancies in 54 enterprises during a nine-month reference period out of
which 356 workers (30,2 %) are targeted for assistance. All 356 workers
entered Voest-Alpine steel foundation ('Voest-Alpine-Stahlstiftung'), a labour
foundation of the enterprise type ('Unternehmensstiftung') as defined in federal
directive AMF/18-2010[6].
Of the remaining workers who did not enter the foundation, about 76,2 %
found new work, some 17,8 % participated in AMS training measures outside
the foundation and about 6 % retired or were planning to retire.

Enterprises and number of dismissals

Alufix-Folienverarbeitungsgesellschaft m.b.H. || 6 || Icon Anlagenbau GmbH || 3

Augusta Metalltechnik GmbH || 11 || IPA Produktions- & Vertriebsgesellschaft m.b.H. || 9

Becker & Co Ges.m.b.H. & Co KG || 1 || Isoplus Fernwärmetechnik Gesellschaft m.b.H. || 32

Benda-Lutz Werke GmbH || 11 || Johann Nemetz & Co Gesellschaft m.b.H. || 13

Biedermann || 1 || Karl Fink Ges.m.b.H. || 30

Böhler Bleche GmbH & Co KG || 47 || Kunstguss Wagner Gesellschaft m.b.H. || 1

Böhler Edelstahl GmbH & Co KG || 37 || Martin Miller GmbH || 9

Böhler Schweisstechnik Austria || 10 || Metallguss Katz GmbH || 3

Böhler-Uddeholm Precision Strip GmbH & Co KG || 133 || Neuman Aluminium Strangpresswerk GmbH || 99

Böhler-Ybbstal Profil GmbH || 45 || O. St. Feinguss- Gesellschaft m.b.H. || 12

Breitenfeld Edelstahl AG Stahlwerk und Schmiede || 32 || Schlieper Gesellschaft m.b.H. || 20

Buntmetall Amstetten Gesellschaft m.b.H. || 10 || Schoeller-Bleckmann Edelstahlrohr GmbH || 24

Dynacast Österreich Gesellschaft m.b.H. || 14 || Sonderstahlwerk Breitenfeld GmbH || 1

EGM-Industrieguss GmbH || 5 || Stahl Judenburg Gesellschaft m.b.H. || 16

ELSA Edelmetall-Legier-und Scheideanstalt Gesellschaft m.b.H. || 1 || Stahl- und Walzwerk Marienhuette Ges. m.b.H. || 5

Enzesfeld-Caro Metallwerke Aktiengesellschaft || 21 || Teich Aktiengesellschaft || 10

FM Flanschenwerk Ges.m.b.H. || 3 || Ternitz Druckguss Gesellschaft m.b.H. || 1

Franz Steininger Gesellschaft m.b.H. || 4 || TIP Formenbau GmbH || 3

Georg Fischer Eisenguss GmbH || 6 || VAEE Eisenbahnsysteme GmbH || 11

Georg Fischer Fittings GmbH || 15 || Voestalpine Austria Draht GmbH || 29

Georg Fischer GmbH & Co KG || 4 || Voestalpine Giesserei Traisen GmbH || 32

Georg Fischer Kokillenguss GmbH || 59 || Voestalpine Krems GmbH || 56

Georg Fischer Moessner GmbH Nfg & Co KG || 10 || Voestalpine Schienen GmbH || 2

GF Druckguss GmbH || 14 || Voestalpine Stahl Donawitz GmbH & Co KG || 14

GLS Tanks International GmbH || 28 || Voestalpine Tubulars GmbH & Co KG || 166

G-MAG Europe GmbH || 12 || Welser Profile AG || 14

Hammerschied Ernstbrunner Eisengiesserei GmbH & Co KG || 4 || Wuppermann Austria Gesellschaft m.b.H || 21

Total no. of enterprises: 54 || Total no. of dismissals: 1 180 ||

11.
The break-down of the 356 targeted workers is as
follows:

Category || Number || Percent

Men || 343 || 96,3

Women || 13 || 3,7

EU citizens || 354 || 99,4

Non EU citizens || 2 || 0,6

15-24 years old || 96 || 27,0

25-54 years old || 246 || 69,1

55-64 years old || 14 || 3,9

> 64 years old || 0 || 0,0

12.
There are 11 workers (or 3,1 %) with a
longstanding health problem or disability included in the categories above.

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

Category || Number || Percent

Managers || 2 || 0,6

Technicians || 31 || 8,7

Clerical support workers || 22 || 6,2

Craft and related trades workers || 75 || 21,1

Plant and machine operators and assemblers || 42 || 11,8

Elementary occupations || 184 || 51,7

14.
In accordance with Article 7 of Regulation (EC)
No 1927/2006, Austria 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

15.
The territories concerned by the redundancies
are the Land of Steiermark (AT22) and the Land of Niederösterreich (AT12), two
of Austria's nine federal provinces. Both provinces belong to Austria's
industrial regions, together with Oberösterreich and Vorarlberg.
Niederösterreich is Austria's largest federal province, surrounding Vienna, the
Austrian capital, which itself also has province status. It shares a border
with the Czech Republic and Slovakia, and its provincial capital is Sankt
Pölten. Steiermark shares a border with Slovenia, and its provincial capital,
Graz, is Austria's second largest city after Vienna.

16.
The Austrian authorities explained that both
provinces continue to suffer from structural weaknesses with gross regional
products (regional GDPs) below the national average (2006 figures). The
unemployment rate in Steiermark is generally above the national average, in
particular around the city of Graz and the Western and Eastern parts of the
province, whereas unemployment in Niederösterreich is roughly at the same level
as for Austria as a whole. Long-term unemployment (more than a year) is above the
national average in both provinces, and both experience significant differences
in income within their regions, which reflects the diversity of their
territories in terms of geography, character and economic structure. Reasons
for the relatively unfavourable situation are the late effects of the
structural crises in the late 1980s in Steiermark which had led to early
retirement schemes and a low employment rate of women, particularly in the
rural areas. Niederösterreich is experiencing structural changes and is facing
the challenge of matching qualifications with jobs.

17.
The main stakeholders are the Styrian and Lower
Austrian regional public employment services (regionale Geschäftsstellen des
Arbeitsmarktservice/AMS), the Engineering and Metalworking Association of the
Austrian Economic Chamber (Fachverband der maschinen- und metallverarbeitenden
Industrie der Wirtschaftskammer Österreich), the Mining and Iron Producing
Industry Association of the Austrian Economic Chamber (Fachverband der
Bergwerke und eisenerzeugenden Industrie der Wirtschaftskammer Österreich), the
metal-textile-food trade union (Gewerkschaft Metall-Textil-Nahrung) and the
trade union of private sector employees, printing, journalism, and paper (Gewerkschaft
der Privatangestellten, Druck, Journalismus, Papier), both under the umbrella
of Austria's Federation of Trade Unions (Österreichische Gewerkschaftsbund
/ÖGB).

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

18.
The figures quoted in the application illustrate
the importance of the metal industry for both provinces' employment situation: in
2008 the sector represented 2,1 % of employment in Steiermark (highest
share in Austria, against 1 % for the whole country) and in
Niederösterreich this share was 1,5 % (third highest share in Austria).

19.
Quoting figures of Statistik Austria and
Austrian research institutes, the Austrian authorities explained that overall
unemployment increased sharply in 2009: +39,9 % in Steiermark and +31,3 %
in Niederösterreich, compared to a lower +29,3 % for Austria as a whole (2nd
quarter 2009). The decline in demand for metal had a strong negative impact on
the Styrian and Lower Austrian labour markets, as the job losses in their metal
enterprises were higher than elsewhere in Austria. In addition to this, the
number of workers on short time working schemes (Kurzarbeit) increased: in
November 2009, Niederösterreich had the highest number of workers in this
scheme among all Austrian provinces, and Steiermark had the third highest number.

20.
Almost 60 % of the redundancies which are the
subject of this application occurred in Niederösterreich (704 workers in 33
companies) and more than 40 % of the redundancies (476 workers in 21
companies) occurred in Steiermark. Steiermark has already been accepted for EGF
support in a previous case: EGF/2009/009 AT/Steiermark (automotive sector) with
744 dismissed workers in a nine-month period.

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.
The following types of measures are proposed,
all of which combine to form a coordinated package of personalised services
aimed at re-integrating the 356 targeted workers into employment.

The measures will be provided to the workers
through Voest-Alpine steel foundation ('Voest-Alpine-Stahlstiftung'), an enterprise-type
labour foundation established in 1987-88 to alleviate the adverse impacts of
the restructuring in the steel sector. In 2010 the foundation has a membership
of more than 80 companies, i.e. enterprises active in the metal sector. About
two thirds of the member companies belong to the
voestalpine Group, the other third is constituted by companies external to the
Group[7].
As a result of the crisis, the number of foundation
participants, i.e. unemployed workers in training,
education and re-integration programmes, has doubled (March 2010, in comparison
to the previous year). The 356 people targeted by this
application are former workers of companies belonging to the voestalpine Group who entered the labour
foundation between 1 April 2009 and
31 December 2009.

22.
The measures for the 356 targeted workers
enrolled in the foundation are agreed
with and controlled by the public employment services ('AMS, Arbeitsmarktservice') of Steiermark and
Niederösterreich. The meaningfulness of each measure for
the labour market is assessed, and compliance with the foundation rules
('Stiftungsordnung') and other applicable sets of laws is assured. The development
of the individual workers is monitored to ensure that the plans agreed in the
initial phases of the programme are pursued. In line with § 18 of
Arbeitslosenversicherungsgesetz (ALVG) and depending on each person's former
work time pattern, the workers must involve themselves full-time.

–
Preliminary consultation: All 356 dismissed workers engage in this after entering the labour
foundation. It includes the development of career perspectives and goals.

–
Occupational orientation: All 356 dismissed workers follow this after entering the
foundation. The duration is limited to six weeks with the possibility of
extending it to a maximum of 12 weeks in particular cases. An individual
occupational pathway plan and an alternative plan is agreed upon and signed by
the worker, the representatives of the steel foundation and the responsible
regional AMS. This forms the basis for the worker's subsequent activities
within the labour foundation.

–
Individual training: Training courses are planned for 174 workers and cover
classical upskilling in the workers' previous fields (e.g. foreman training,
welding and other technical courses) as well as initial vocational training to
prepare a change of career to areas such as the social, health and service
fields (proposed for approximately half of the 174 workers). Lower skilled
workers can receive vocational training to obtain a formal qualification (roughly
a quarter of the participants). A part of the
vocational training will not need to be co-financed by the EGF because it is
delivered free of charge within the Austrian educational system. In cases where
an agreed training programme takes longer than the EGF implementation period, the additional financing will be provided
by the foundation[8].

–
Practical corporate
internships for a period of up to three months per enterprise and
entrepreneurship training for those interested in setting up their own businesses
is also offered in the catalogue of measures. Those having accomplished
entrepreneurship training within the foundation will later on have the
possibility to join the Enterprise Foundation Programme of the Arbeitsmarktservice
which is financed outside the EGF. Before entering this specific programme of
the AMS, the worker's participation in the labour foundation is ended.

–
Continuous consultation & active job
search: The foundation makes available the required
infrastructure and provides advice and support to the 356 workers in their
efforts to find a new job. This includes activities such as discussions with a
coach, training on how to apply for a job, peer groups to promote networking
capabilities. The active job search can either
start directly after the orientation phase or on completion of the individual training
path. The normal duration of this measure is limited to 14 weeks, renewable to
22 weeks in particular cases (for participants aged over 50 or for people with
a reduced working capacity). Reasonable job offers from the AMS must be
accepted by the participants during the active job search phase.

–
Training and job search allowance[9]: This allowance is paid to all 356 workers only for the duration of
their participation in the training and active re-integration measures within
the labour foundation. The basic rate is between EUR 150 and EUR 450
per person and month (14 months/year), supplemented by EUR 75 / EUR 40
for sole earners with or without children (12 months/year). This allowance,
combined with the subsistence allowance, may not exceed a worker's unemployment
benefit assessment basis. Unemployment benefits are interrupted during the
period these training allowances are granted.

–
Subsistence allowance while on training and
on job search measures[10]: This allowance is granted to 353 dismissed workers only for the
duration of their participation in the training and active re-integration
measures within the labour foundation. It permits a serious full-time involvement of each dismissed worker in the measures. The authorities estimate that 60 people will participate in the
training and re-integration measures during 6,1 months, 138 people during 15
months, 51 people during 30 months and 104 people during 33,2 months. The costs per worker/month amount to EUR 1 031. This allowance, combined with the training and job search allowance,
may not exceed a worker's unemployment benefit assessment basis. Unemployment
benefits are interrupted during the period these subsistence allowances are
granted.

–
Ancillary costs while on training: This is granted only to the 174 foundation participants who are in
training measures to cover travel expenses and the cost of learning materials.

23.
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, information and publicity as
well as control activities and the management of Voest-Alpine steel
foundation. All partners involved in the measures are committed to
communicating the EGF support. The foundation management costs will be
calculated on a pro-rata basis for the actually supervised people and will not
exceed EUR 954 per person.

24.
The personalised services presented by the
Austrian authorities are active labour market measures within the eligible
actions defined by Article 3 of Regulation (EC) No 1927/2006. The Austrian
authorities estimate the total costs of these services at
EUR 12 266 158 and the expenditure for implementing EGF at EUR 479 855 (3,80 % of the total
amount). The total contribution requested from the EGF is
EUR 8 284 908 (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)

Preliminary consultation ('Erstberatung') || 356 || 49 || 17 444

Occupational orientation ('Berufsorientierung') || 356 || 1 022 || 363 832

Individual training, including internships and entrepreneurship training ('Individuelle Qualifizierung') || 174 || 3 052 || 531 048

Continuous consultation & active job search ('laufende Beratung und aktive Jobsuche') || 356 || 1 056 || 375 936

Training and job search allowance ('Zuschussleistung/Stipendium bei aktiver Beratung, Jobsuche oder Ausbildung') || 356 || 9 307 || 3 313 292

Subsistence allowance while on training and job search - 6,1 months ('Schulungsarbeitslosengeld') || 60 || 6 308 || 378 480

Subsistence allowance while on training and job search - 15 months ('Schulungsarbeitslosengeld') || 138 || 15 456 || 2 132 928

Subsistence allowance while on training and job search - 30 months ('Schulungsarbeitslosengeld') || 51 || 30 886 || 1 575 186

Subsistence allowance while on training and job search - 33,2 months ('Schulungsarbeitslosengeld') || 104 || 34 240 || 3 560 960

Ancillary costs while on training ('Ausbildungsnebenkosten') || 174 || 98 || 17 052

Sub total personalised services || || 12 266 158

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

Preparatory activities || || 57 500

Management of the Voest-Alpine steel foundation (outplacement foundation) || || 339 355

Information and publicity || || 18 000

Control activities || || 65 000

Sub total expenditure for implementing EGF || || 479 855

Total estimated costs || || 12 746 013

EGF contribution (65 % of total costs) || || 8 284 908

25.
Austria confirmed that the measures described
above are complementary with actions funded by the Structural Funds and that
double financing is excluded. The Austrian ESF Operational Programme under
objective 2 focuses on the long-term unemployed, whereas the EGF aims to help
workers immediately after their lay-offs. Hence, there is no overlapping
between the two funds.

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

26.
Austria started the personalised services to the
affected workers included in the co-ordinated package proposed for co-financing
to the EGF on 1 April 2009, which is the date when the first workers entered
the labour foundation. 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

27.
The Austrian authorities explained that the
dialogue with social partners on how to alleviate the effects of the job losses
for the concerned workers was started when the companies notified the planned
dismissals to the Austrian authorities, in line with the Austrian
'Frühwarnsystem'/early warning system (§ 45a of Arbeitsmarkt-förderungsgesetz/AMFG).

28.
As concerns the role of Voest-Alpine steel
foundation, the social partners' agreement in principle was obtained in the
late 1980s, when the labour foundation was established. The following social
partners gave their agreement for this specific EGF application, up to August
2009: the Engineering and Metalworking Association of the Austrian Economic
Chamber (Fachverband der maschinen- und metallverarbeitenden Industrie der
Wirtschaftskammer Österreich), the Mining and Iron Producing Industry
Association of the Austrian Economic Chamber (Fachverband der Bergwerke und
eisenerzeugenden Industrie der Wirtschaftskammer Österreich), the
metal-textile-food trade union (Gewerkschaft Metall-Textil-Nahrung) and the
trade union of private sector employees, printing, journalism, and paper (Gewerkschaft
der Privatangestellten, Druck, Journalismus, Papier), both under the umbrella
of Austria's Federation of Trade Unions (Österreichische Gewerkschaftsbund
/ÖGB).

29.
Austria further explained that the Austrian
social partnership cooperation is a voluntary arrangement of mostly informal
nature and not regulated by law[11].
Only when companies decide to participate in specific labour policy measures
are they subject to the applicable public employment service (AMS) rules. The
redundancies concerned by this application are based on employer/works council
agreements ('Betriebsvereinbarungen'), rather than collective agreements
negotiated for the whole metal sector.

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

30.
As regards the criteria contained in Article 6
of Regulation (EC) No 1927/2006, the Austrian authorities in their application
and supplementary information:

· 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

31.
Austria has notified the Commission that
Voest-Alpine steel foundation will provide the 35 % national co-financing.
The labour foundation itself is financed through solidarity contributions paid
by the employers and employees of current member enterprises. These
contributions vary and are regularly reviewed by the social partners.

32.
Austria confirmed that the financial
contribution will be managed by the same body that manages the ESF: unit VI/INT/9 within
the Federal Ministry for Labour, Social Affairs and Consumer Protection (BMASK Bundesministerium für Arbeit, Soziales und Konsumentenschutz)
will act as managing authority and as payment service.
The financial control authority for the EGF is
different to that of the ESF: unit VI/S/5a within BMASK will assure this
function for the EGF. The coordinated package of personalised measures is
implemented by Voest-Alpine steel foundation, monitored by the public
employment service (AMS). Furthermore, the BMASK is supported by a technical
assistance provider who will also act as first level control. All major
arrangements and obligations are laid down in written agreements.

Financing

33.
On the basis of the application from Austria, the
proposed contribution from the EGF to the coordinated package of personalised
services is EUR 8 284 908 representing
65 % of the total cost. The Commission's proposed allocation under the
Fund is based on the information made available by Austria.

34.
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.

35.
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.

36.
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.

37.
The Commission presents separately a transfer
request in order to enter in the 2011 budget specific commitment
appropriations, as required in Point 28 of the Interinstitutional Agreement of
17 May 2006.

Source of payment appropriations

38.
An amount of EUR 16 808 313
remains available on the EGF Budget line 04.0501 after adoption by both arms of
the Budgetary Authority of two Decisions totalling an amount of EUR 777 390,
and taking into account the three cases currently discussed by the Budgetary
Authority for a total amount of EUR 30 023 247. This available amount
will be used to cover the amount of EUR 8 284 908 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/2010/007 AT/Steiermark and Niederösterreich from
Austria)

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[12], 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[13], and in particular Article
12(3) thereof,

Having regard to the proposal from the
Commission[14],

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 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)       Austria submitted an
application to mobilise the EGF, in respect of redundancies in 54 enterprises
operating in the NACE Revision 2 Division 24 ('Manufacture of basic metals') in
the contiguous NUTS II regions of Steiermark (Styria, AT22) and
Niederösterreich (Lower Austria, AT12) in Austria, on 09 March 2010 and supplemented it by additional information up to 27 January 2011. 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 8 284 908.

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

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the European
Union for the financial year 2011, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 8 284 908 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]               Impact of the economic crisis
on key industrial sectors of the EU – the case of the manufacturing and
construction industries: http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=4040
(4/2009) and http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=5509
(10/2009).

[6]               Austrian
labour foundations are an active labour market policy instrument in Austria to
improve the labour market position of job seekers. They are based on
Arbeitslosenversicherungsgesetz (§ 18) and on implementing directives issued by
the labour market service (AMS). Latest AMS directive: http://www.ams.at/_docs/001_ast_RILI.pdf.

[7]               http://www.voestalpine.com/group/static/sites/default/downloads/en/share/share/Annual_Report_2009-10.pdf

[8]               According to § 18 of Arbeitslosenversicherungsgesetz
(ALVG), a worker's participation in the foundation is limited to 156 weeks
(three years) with the possibility to extend it to 209 weeks (four years) in
particular cases (people aged over 50 or people on longer qualification
programmes).

[9]               Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG).

[10]             Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG).

[11]             ÖGB website http://www.sozialpartner.at/sozialpartner/Sozialpartnerschaft_mission_en.pdf

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

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

[14]             OJ C [...], [...], p. [...].