# EUR-Lex - 52011PC0358 - EN

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# 52011PC0358

**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 (EGF/2011/000 TA 2011 - technical assistance at the initiative of the Commission) /* COM/2011/0358 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].

SUMMARY OF THE APPLICATION AND ANALYSIS

Key data:

EGF Reference no.                                                                                                EGF/2011/000

European Commission                                                                                    Technical
assistance

Administrative expenditure: budget in EUR                                                                       610 000

% administrative expenditure
(ceiling: 0,35 %)                                                                    0,12 %

According to Article 8(1) of Regulation
(EC) No 1927/2006, 0.35 % of the annual maximum amount of the EGF can be made
available each year for technical assistance at the initiative of the
Commission

Technical assistance to be funded and
break-down of its estimated costs

1.
The contribution will be used for expenditure
mentioned in Articles 8(1) and (4) as well as 9(2) of Regulation (EC) No 1927/2006,
as detailed hereunder.

2.
Monitoring: The
Commission will collect the data on applications received and paid, and the
measures proposed and implemented, and it will update and print the Statistical
Portrait of the EGF with information up to the end of 2011. The cost is
estimated at EUR 20 000.

3.
Information: The
EGF web site, which the Commission is required to set up and maintain under
Article 9(2) of Regulation (EC) No 1927/2006, will be regularly updated and
expanded, each new element also being translated into all EU languages. Press
folders will be printed, and the annual report of the EGF will be produced,
translated, printed and distributed. General awareness of the EGF and its
visibility will be enhanced, inter alia by the production of a video based on
several EGF cases being implemented. The EGF will be covered in various
Commission publications and audio-visual activities. Costs for all these items
are estimated at EUR 250 000.

4.
Creation of a knowledge base: The Commission will set up standardised procedures for EGF
applications and their processing, which will allow applications to be
simplified, their processing to be speeded up and reports to be more easily
extracted for varying needs. The cost is estimated at EUR 70 000.

5.
Administrative and technical support: The Expert Group of Contact Persons of the EGF, with 27 members,
one from each Member State, will be holding two meetings, budgeted at EUR 35 000
per meeting. The two meetings are together estimated at EUR 70 000.

6.
In addition, the Commission will be organising
the exchange of successful practices among the Member States, enabling
participants with experience of EGF implementation to network with each other. The
first of these meetings will be devoted to exchanges of information and
experiences on the timing and funding of EGF applications. This networking
activity is estimated at EUR 200 000.

7.
Evaluation:
Activities for the mid-term evaluation of the EGF, as laid down in Article 17
paragraph 1(a) of Regulation (EC) No 1927/2006, were contracted out with the
resources of the 2010 budget. The final evaluation of the EGF will not begin
until 2012. There is therefore no budget set aside for EGF evaluation in 2011.

Items || Estimated number || Estimated cost per item (in EUR) || Total costs (in EUR)

Monitoring || 1 || 20 000 || 20 000

Information activities || Various || Various || 250 000

Creation of a knowledge base || 1 || 70 000 || 70 000

Administrative and technical support : Meetings of the Expert Group of Contact Persons of the EGF || 2 || 35 000 || 70 000

Administrative and technical support : Seminars on the Implementation of the EGF || 2 || 100 000 || 200 000

Total estimated costs || || || 610 000

Financing

8.
The total annual budget available for the EGF is
EUR 500 million. Article 8(1) of Regulation (EC) No 1927/2006 states
that 0,35 % of this amount (i.e. EUR 1 750 000) can be made
available each year for technical assistance at the initiative of the
Commission. Currently, the full amount for 2011 remains available; nothing has
yet been allocated to technical assistance.

9.
The proposed contribution for technical
assistance at the initiative of the Commission in 2011 is EUR 610 000.
Following the mobilisation of this amount, the amount of
EUR 1 140 000 potentially remains available in case of further
need at a later stage in the year.

10.
Considering the maximum possible amount of a contribution
from the EGF in accordance with Article 8(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.

11.
By presenting this proposal to mobilise the EGF,
the Commission initiates the simplified trialogue procedure, as required by
Point 28 of the Inter-institutional 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.

12.
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

13.
An amount of EUR 7 302 277
remains available on the EGF Budget line 04.0501 after adoption by both arms of
the Budgetary Authority of three Decisions totalling an amount of EUR 10 371 321,
and taking into account the four cases currently discussed by the Budgetary
Authority for a total amount of EUR 29 935 352. This available
amount will be used to cover the amount of EUR 610 000 needed for technical
assistance.

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 (EGF/2011/000 TA 2011 - technical assistance at the initiative of the
Commission)

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 Inter-institutional
Agreement of 17 May 2006 between the European Parliament, the Council and
the Commission on budgetary discipline and sound financial management[3], 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[4], and in particular Article 8(2)
thereof,

Having regard to the proposal from the
Commission[5],

Whereas:

(1)       The European Globalisation
Adjustment Fund (EGF) was established to provide additional support to
redundant workers who suffer from the consequences of major structural changes
in world trade patterns 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)       Regulation (EC) No
1927/2006 provides that 0,35 % of the annual maximum amount can be made
available each year for technical assistance at the initiative of the Commission.
The Commission therefore proposes to mobilise an amount of EUR 610 000.

(5)       The EGF should, therefore,
be mobilised in order to provide technical assistance at the initiative of the
Commission.

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 610 000 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 of 30.12.2006, p. 1.

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

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

[5]               OJ C [...], [...], p. [...].