# EUR-Lex - 52011PC0336 - EN

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# 52011PC0336

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 1927/2006 establishing the European Globalisation Adjustment Fund /* COM/2011/0336 final - COD 2011/0147 */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

· Grounds for and objectives of the proposal

The European Globalisation Adjustment Fund
(EGF) was established in 2006 by Regulation (EC) No 1927/2006[1] with the main objective of
showing solidarity with and providing support to workers affected by
redundancies resulting from changes in world trade patterns. By co-funding
active labour market policy measures, the EGF aimed at facilitating the
re-integration into employment of workers in areas, sectors, territories, or
labour market regions suffering the shock of serious economic disruption. The
eligibility requirements for EGF support were at least 1 000 redundancies
either during a four-month period in an enterprise and its suppliers and
downstream producers or during a nine-month period in an economic sector
defined as a NACE Revision 2 Division in a region or two contiguous regions
determined at NUTS II level. The maximum contribution from the EGF was set at
50 % of the total costs of the active labour market measures and the
period of implementation of EGF supported measures could not exceed 12 months
from the date of application.

In the light of the scale and the speed of
development of the financial and economic crisis in 2008, the Commission, in
its European Economic Recovery Plan[2],
envisaged the revision of Regulation (EC) No 1927/2006. The aim of this
revision, brought about by Regulation (EC) No 546/2009[3], was to extend the scope of the
EGF as part of Europe's crisis response and to turn it into an early, more
effective crisis intervention instrument in line with the fundamental
principles of solidarity and social justice. The amendments included permanent
changes to Regulation (EC) No 1927/2006, such as the reduction from 1 000
to 500 of the required number of redundancies to trigger an application for EGF
support and an extension from 12 to 24 months of the implementation period for
EGF supported measures. A temporary derogation was introduced in order (1) to
enlarge the scope of the EGF to cover support in favour of workers made
redundant as a direct consequence of the financial and economic crisis
(paragraph 1a of Article 1 of Regulation (EC) No 1927/2006) and (2) to increase
the level of EGF co-funding from 50 to 65 % (Article 10(1) of Regulation
(EC) No 1927/2006). The temporary derogation expires on 30 December 2011 and
the possibility of reviewing it is provided for in the second paragraph of
Article 20 of Regulation (EC) No 1927/2006.

Between 1 January 2007 and 30 April 2009
(i.e. before the crisis derogation existed) the Commission received 15
applications, targeting EGF support to 18 430 workers and the total amount
of the requested EGF contribution was EUR 78 776 367.

Since the entry into force on 1 May 2009 of
Regulation (EC) No 546/2009 revising Regulation (EC) No 1927/2006 the number of
applications has significantly increased as shown below.

Applications for EGF support submitted under the temporary crisis derogation

Year || Number of applications || Number of workers targeted || Sum of EGF contributions requested (EUR)

2009 || 22 || 19 381 || 99 396 898

2010 || 24 || 25 083 || 115 353 865

Total || 46 || 44 464 || 214 750 763

Applications for EGF support submitted under the trade related criterion

Year || Number of applications || Number of workers targeted || Sum of EGF contributions requested (EUR)

2009 || 4 || 6 569 || 25 990 290

2010 || 6 || 3 074 || 17 126 749

Total || 10 || 9 643 || 43 117 039

Following a consultation launched by the
Commission, Member States have indicated that, without the temporary derogation
it would have been impossible to submit most of the crisis related
applications, thus leaving about 45 000 workers who suffered from the
consequences of the economic and financial crisis without EGF support. In
addition, the increased co-funding rate of 65 % reduced the financing
burden of EGF supported measures for applicant Member States globally by about EUR 60 million
for all applications submitted between 1 May 2009 and 31 December 2010[4].

The decision on the expiry of the temporary
crisis derogation was taken in 2009. At that time, the latest available
Commission Economic Forecasts[5]
(Autumn 2008) for the European Union (EU) as a whole indicated a gradual
recovery from mid-2009 with an expected GDP growth of 0.2% in 2009 and 1.1% in
2010. Employment was forecast to decline by 0.5% in 2009 and to increase by
0,1 % in 2010. The unemployment rate was expected to reach 7.8% and
8,1 % of the labour force respectively in 2009 and 2010. Compared with
these forecasts, the situation in 2009 turned out to be significantly worse. EU
GDP declined by 4,2 %, while employment decreased by 1.9% and the rate of
unemployment reached 8.9%. Despite the fact that GDP growth in 2010 is foreseen
to have been higher than expected at some 1.8%, employment has further
decreased by 0,6 % while the unemployment rate reached a record high of
9,6 %.

Moreover, the latest Commission Economic
Forecast (Spring 2011) indicates that the prospects for economic and especially
labour market recovery for 2011 and 2012 are worse than those broadly expected
in autumn 2008. This is particularly true as regards the creation of new jobs
and the rate of unemployment.. For 2011, the Spring forecast foresees a small
increase of employment by 0.4% and a stable unemployment rate of 9,5 %.
For 2012 the same forecast predicts employment growth to remain subdued at 0.7%
and the unemployment rate to still be at 9,1 %. This reflects the fact
that recovery in employment normally lags that of GDP. The relatively weak
labour market conditions[6]
despite a gradual improvement of the Gross Domestic Product (GDP) growth
prospects demonstrate that besides the effect of an unwinding of the policy
measures taken in response to the crisis to dampen its effect on unemployment,
structural adjustment resulting from the crisis continues to take place across
sectors and enterprises and consequently further job losses due to closure of
enterprises should be expected to continue for a certain time. As a result, a
more substantial improvement of employment conditions could only be expected
from 2013 onwards. .

This outlook for a rather jobless recovery
is confirmed by the Commission in its Annual Growth Survey: advancing the EU's
comprehensive response to the crisis[7].
In order to avoid the risk of a return to growth without sufficiently dynamic
job creation, tackling unemployment and preventing long term exclusion from the
labour market are seen as essential. Restoring the main growth drivers would
require a reallocation of labour and capital across sectors and enterprises and
better financial incentives to move from unemployment to employment.

As stated by the Commission the crisis has
resulted in a large loss in economic activity, a substantial increase in
unemployment, a steep fall in productivity, and badly weakened public finances.
This is a particularly difficult context for Member States to provide
tailor-made support to a large number of workers simultaneously made redundant
as a result of the crisis. An extension of the increased EGF co-financing rate
of 65 % would make it possible to alleviate to some extent the burden on
Member States' public finances.

The expected continued impact of the crisis
on company closures and the need for fiscal consolidation in Member States
justify an extension of the crisis related derogation in Regulation (EC) No
1927/2006.

Therefore, it is proposed to extend the
temporary crisis-related derogation, which expires on 30 December 2011, until
31 December 2013, i.e. until the end of the implementation period of Regulation
(EC) No 1927/2006. This will make it possible for Member States to continue to
present applications for EGF support in favour of workers still made redundant
as a consequence of the financial and economic crisis and to benefit from an
EGF co-funding rate of 65 %.

· General context

Since the introduction of the temporary
crisis-related derogation, there has been a sharp increase in the number of
applications for EGF support and an increase in the number of Member States
applying for EGF support. This indicates that the role of the EGF as a crisis
intervention instrument in case of large scale redundancies resulting from the
financial and economic crisis is genuinely being accepted.

The European Parliament called for the
extension of the crisis related derogation in its resolution of 7 September
2010[8] on the funding and functioning
of the European Globalisation Adjustment Fund. The European Parliament took the
view that 'the period of validity of the derogation inserted in 2009 with a
view to assisting workers who lose their jobs as a result of the economic and
financial crisis should be extended until the end of the current Multiannual
Financial Framework and that the co-financing rate should, therefore, be
maintained at 65 %, given that the underlying causes on which their
approval was based are far from having been removed.'

· Existing provisions in the area of the proposal

The European Social Fund[9] (ESF) was established to
contribute to the priorities of the Community as regards strengthening economic
and social cohesion by improving employment and job opportunities, encouraging
a high level of employment and more and better jobs. It supports the European
Employment Strategy as well as Member States' policies aiming to achieve full
employment and quality and productivity at work, promote social inclusion,
including the access of disadvantaged people to employment, and reduce
national, regional and local employment disparities.

The main difference with the EGF is that
the ESF consists of multi-annual programmes in support of strategic, long-term
goals – notably anticipation and management of change and restructuring, with
activities such as life-long learning. The EGF, in turn, provides one-off,
time-limited individual support, geared directly to workers affected by
redundancies as a result of trade globalisation or the financial and economic
crisis.To promote an effective support of displaced workers the duration of the
EGF support measures and the choice of the instrument are based on an
assessment of whether redundancies are caused by a possibly temporary decline
in activity of the relevant enterprise and suppliers or economic sector or by
permanent structural factors.

· Consistency with the EU's other policies and objectives

The EGF contributes to the objectives of
the Europe 2020 Strategy which should enable the Union to emerge stronger from
the crisis, and to turn its economy towards smart, sustainable and inclusive
growth, accompanied by a high level of employment, productivity and social
cohesion. In the Communication[10]
Europe 2020 – A strategy for smart, sustainable and inclusive growth, the
Commission sees a clear role for the EGF is under the Flagship initiative 'An
industrial policy in the globalisation era', in particular in view of a quick
redeployment of skills to emerging high growth sectors and markets.

By aiming at a rapid re-integration into
employment of workers made redundant as a result of globalisation or the
economic and financial crisis the EGF contributes to the following guidelines[11] for Member States' employment
policies:

–
Guideline 7: Increasing labour market
participation of women and men, reducing structural unemployment and promoting
job quality;

–
Guideline 8: Developing a skilled workforce
responding to labour market needs and promoting lifelong learning;

–
Guideline 10: Promoting social inclusion and
combating poverty.

Finally, in its Communication on New Skills
for New Jobs – Anticipating and matching labour market needs[12] the Commission highlighted the
necessity for the EU in order to pave the way towards recovery to enhance its
human capital and employability by upgrading skills, as well as ensuring a
better match between the supply of skills and labour market demands.
Activation, retraining and skills upgrading measures were identified as means
to promote employment and reintegration into the labour market. Co-funding
skills upgrading activities is amongst the main objectives of the EGF.

· Impact on fundamental rights

The proposal has no impact on fundamental
rights.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES

· Consultation of interested parties

Consultation methods, main sectors
targeted and general profile of respondents

The Commission consulted the Member States
twice: firstly, by means of a questionnaire on 26 August 2010 and secondly, at
a meeting held in Porto on 29 and 30 September 2010. The main purpose of these
consultations was to collect views on the effectiveness of the crisis related
amendments introduced in 2009 by Article 1.1a and Article 10(1) into Regulation
(EC) No 1927/2006, which expire on 30 December 2011 and the need to extend these
until 31 December 2013.

Summary of
responses and how they have been taken into account

As regards the possibility to submit
applications for redundancies directly resulting from the global financial and
economic crisis (Article 1.1a of Regulation (EC) No 1927/2006) the
consultation indicated that this had indeed enabled Member States to ask for
support from the EGF for workers who lost their job as a result of the crisis
and provide EGF assistance for their reintegration into employment. A vast
majority of Member States indicated that these workers could not have
benefitted from EGF support on the basis of trade-related globalisation
criteria. The consultation further indicated that it was generally felt easier
to gather evidence and to establish a demonstrable link between the
redundancies and the financial and economic crisis, than with the changes in
world trade patterns due to globalisation.

On the need to extend the crisis-related
derogation until the end of 2013 a vast majority of responding Member States
wished the possibility of submitting applications for redundancies resulting
from the global financial and economic crisis to continue. The arguments in
favour of such an extension included comments on the positive experience with
the impact of EGF support on workers' capacity to reintegrate the labour market
in a situation where the effects of the economic crisis would be felt after
2011, it had affected different Member States at different times, and where its
effects on employment would still be strong. Moreover, it was pointed out that
an extension by two years did not prejudge the future beyond the end of 2013.

As regards the possibility for applicants
to benefit from a co-funding rate of 65 % (Article 10(1) of Regulation
(EC) No 1927/2006), the consultation indicated that the increased co-funding
rate had facilitated the decision to apply for EGF support for a number of
reasons. The extra 15 % had made it possible to give the equivalent in
extra help to the workers concerned. The gap between the ESF rate and the EGF
rate had been reduced for the Member States who could obtain higher rates from
the ESF and without this reduction no EGF applications would have been
submitted by them. National co-funding remained a problem, but at 35 %
instead of 50 %, this problem was less acute. A large majority of Member
States found the rate of 65 % during the crisis to be appropriate and
favoured an extension of this higher intervention rate until the end of 2013.

The outcome of these consultations is
reflected in the proposed amendments to Regulation (EC) No 1927/2006.

· Collection and use of expertise

There was no need for external expertise.

· Impact assessment

There was no impact assessment required for
this proposal.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

· Summary of the proposed action

In order to extend the temporary derogation
to support workers made redundant as a result of the global financial and
economic crisis the date laid down in the second paragraph of paragraph 1a of
Article 1 of Regulation (EC) No 1927/2006 is replaced by 31 December 2013. This
amendment also automatically extends the increased co-financing rate of
65 % until the same date, as laid down in Article 10(1) of Regulation (EC)
No 1927/2006.

· Legal basis

The Treaty on the Functioning of the European
Union, and in particular the third paragraph of Article 175.

· Subsidiarity principle

The subsidiarity principle applies insofar
as the proposal does not fall under the exclusive competence of the EU.

The objectives of the proposal cannot be
sufficiently achieved by the Member States. They can only be achieved through
an amendment of Regulation (EC) No 1927/2006.

Action at the level of the EU will better
achieve the objectives of solidarity embedded in the proposal for the following
reasons below.

The adaptation of the EGF, a financial
instrument made available at the level of the EU, to the needs of the current
economic and financial situation can only be carried out by a legislative
initiative taken at the level of the EU.

In making this proposal, the Commission has
based itself on the needs arising from the current assessment of the economic
and financial situation of the Member States and the economic forecasts for the
period 2012–13. These differ significantly from the assessment and forecasts
available at the end of 2008 and the beginning of 2009, when the temporary
crisis-related amendments were introduced in Regulation (EC) No 1927/2006.

This proposal therefore complies with the
principle of subsidiarity.

· Proportionality principle

The proposal complies with the
proportionality principle for the following reasons.

In accordance with the principle of
proportionality, the proposed amendments to Regulation (EC) No 1927/2006 do not
go beyond what is necessary to adjust the functioning of the EGF to the current
forecasts concerning the economic and financial crisis and its impact on
employment and on Member States' deficits by (1) maintaining the possibility to
apply for EGF support for workers made redundant as a result of the continuing
financial and economic crisis and (2) providing for a co-funding rate of
65 % instead of 50 %.

The crisis related derogation gives Member
States the possibility to apply for EGF support for workers made redundant as a
consequence of the crisis for cases where a clear and demonstrable link can be
established between these redundancies and the crisis. It is obvious that if no
such cases occur, the possibility will not be used.

The proposal does not impose any additional
administrative burden upon Member States compared to the requirements imposed
by the current provisions of Regulation (EC) No 1927/2006.

· Choice of instrument

Proposed instrument: a Regulation.

Other means would not be adequate for the
following reason:

A regulation is the appropriate legal
instrument to amend an existing regulation.

4.           BUDGETARY IMPLICATION

Article 28 of the Interinstitutional
Agreement between the European Parliament, the Council and the Commission of 17
May 2006[13]
on budgetary discipline and sound financial management provides that the EGF
may not exceed a maximum annual amount of EUR 500 million.

Based on the
requests for EGF support in the past[14]
the proposed extension of the crisis related derogation in Regulation (EC) No
1927/2006 is not expected to exceed this maximum annual amount. These requests
reached EUR 51,8 million in 2007 and EUR 20,6 million in 2008. In 2009 the
total amount of EGF support requested reached EUR 131,7 million, of which 75 %
concerned crisis related applications and 25 % trade related applications. In
2010 the total amount of EGF support requested reached EUR 132,5 million, of
which 87 % related to crisis related applications and 13 % to trade related
applications.

2011/0147 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Regulation (EC) No 1927/2006
establishing the European Globalisation Adjustment Fund

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular the third paragraph of
Article 175 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[15],

Having regard to the opinion of the
Committee of the Regions[16],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
Regulation (EC) No 1927/2006 of the European
Parliament and of the Council of 20 December 2006[17] has established the European
Globalisation Adjustment Fund (hereinafter "EGF") to enable the Union
to provide support and show solidarity to workers made redundant as a result of
major structural changes in world trade patterns due to globalisation.

(2)
As part of the response to the financial and
economic crisis Regulation (EC) No 546/2009 of the European Parliament and of
the Council of 18 June 2009[18]
amended the Regulation (EC) No 1927/2006 by providing, in particular for a
temporary derogation aimed at broadening its scope to cover crisis-related
redundancies and a temporary increase in the EGF co-financing rate.

(3)
In the light of the current economic and
financial situation in the Union, it is appropriate to extend this derogation before
its expiry on 30 December 2011.

(4)
Regulation (EC) No 1927/2006 should therefore be
amended accordingly.

HAVE ADOPTED THIS REGULATION:

Article 1

In Article 1(1a) of Regulation (EC) No 1927/2006

the second subparagraph is replaced by the
following:

"This derogation shall apply to all
applications submitted no later than by 31 December 2013."

Article 2

This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The
President                                                 The President

LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

Proposal for a Regulation of the European Parliament and of the
Council Amending Regulation (EC) No 1927/2006 on establishing the European
Globalisation Adjustment Fund

1.2.
Policy area(s) concerned in the ABM/ABB
structure[19]

ABB Activity: European Globalisation Adjustment Fund as included in
DG EMPL 2010 Management Plan

1.3.
Nature of the proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[20]

X The proposal/initiative relates to the extension of an existing
action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.
Objectives
1.4.1.
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative

The proposal falls under the Flagship initiative 'An industrial
policy for the globalisation era' which is part of the Commission Europe 2020
Strategy for smart, sustainable and inclusive growth.

1.4.2.
Specific objective(s) and ABM/ABB activity(ies)
concerned

Specific objective No.1: Maintain
participation in the labour market of workers made redundant as a result of
changes in world trade patterns and the economic and financial crisis.

Specific objective No 2: Raising
awareness of the EGF, as an expression of solidarity, among the general public

ABM/ABB activity(ies) concerned:
European Globalisation Adjustment Fund (EGF)

1.4.3.
Expected result(s) and impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

The proposal will enable the European Union to continue its support
through the EGF at a co-funding rate of 65 % for active labour market
measures for workers made redundant as a result of the global financial and
economic crisis. In addition, this co-funding rate will also benefit workers
made redundant as a result of trade globalisation.

1.4.4.
Indicators of results and impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

- Number of applications for EGF support received

- Number of redundant workers targeted for EGF assistance

- Number of redundant workers reintegrated into employment following
EGF supported measures

1.5.
Grounds for the proposal/initiative
1.5.1.
Requirement(s) to be met in the short or long
term

In the light of the economic and financial crisis Regulation (EC) No
1927/2006 was amended in 2009 and provided for a time-limited crisis related
derogation. This derogation expires on 30 December 2011. However, the most
recent economic forecasts predict the effects of the crisis, and in particular
its negative impact on the pace of restructuring, job creation and unemployment
rate to continue at least until the end of 2012. This proposal should enable
the EGF to intervene in support of workers made redundant as a result of the
global financial and economic crisis until 31 December 2013 at an intervention
rate of 65 %.

1.5.2.
Added value of EU involvement

EU involvement through the EGF makes it possible to complement
national means available for the re-integration of workers made redundant as a
consequence of trade globalisation or the global economic and financial crisis.
Experience achieved so far with the EGF seems to indicate that EU involvement
makes it possible to provide more tailor made support for a longer period of
time, often involving measures that would not have been provided without EU
involvement.

1.5.3.
Lessons learned from similar experiences in the
past

See the experience since the revision of Regulation (EC) No
1927/2006 set out in the explanatory Memorandum.

1.5.4.
Coherence and possible synergy with other
relevant instruments

The EGF is coherent and offers a synergy with the European Social
Fund.

1.6.
Duration and financial impact

–
X Proposal/initiative of limited duration

–
X  Proposal/initiative
in effect from 31 December 2011 to 31 December 2013

–
 ̈  Financial impact from YYYY to YYYY

 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
followed by full-scale operation.

1.7.
Management mode(s) envisaged[21]

 ̈ Centralised direct management by the Commission

 ̈ Centralised indirect management with the delegation of implementation tasks to:

–
 ̈  executive agencies

–
 ̈  bodies set up by the Communities[22]

–
 ̈  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

X Shared management with the Member States

 ̈ Decentralised management with third countries

 ̈ Joint management with international organisations (to be specified)

If more than one
management mode is indicated, please provide details in the
"Comments" section.

Comments

2.
MANAGEMENT MEASURES
2.1.
Monitoring and reporting rules

Specify frequency
and conditions.

Article 16 of Regulation (EC) No 1927/2006 requires the Commission
to present each year to the European Parliament and the Council a quantitative
and qualitative report on the activities carried out under this Regulation in
the previous year. This report contains i.a. the Commission's observations on
the monitoring activities during the year under consideration.

In accordance with Article 17 of Regulation (EC) No 1927/2006, the
Commission will carry out before the end of 2011, in close cooperation with
Member States, a mid-term evaluation of the effectiveness and sustainability of
the results obtained under the EGF. By 31 December 2014, the Commission is
required to carry out, with the assistance of external experts, an ex-post
evaluation in order to measure the impact of the EGF and its added value.

2.2.
Management and control system
2.2.1.
Risk(s) identified

The risks are those related to shared management of Community Funds.

2.2.2.
Control method(s) envisaged

The requirements applicable to management and financial control are
laid down in Article 18 of Regulation (EC) No 1927/2006.

2.3.
Measures to prevent fraud and irregularities

Specify existing or
envisaged prevention and protection measures.

The measures to prevent, detect and correct irregularities are laid
down in Article 18 (1) (d) and in Article 18 (2) of Regulation (EC) No
1927/2006.

3.
ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE
3.1.
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || DA/NDA ([23]) || from EFTA[24] countries || from candidate countries[25] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

1.1 || 04.0501 European Globalisation Adjustment Fund 04.010414 European Globalisation Adjustment Fund – Expenditure on administrative management 40.0243 Reserve for the European Globalisation Adjustment Fund || NDA || NO || NO || NO || NO

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading............................................] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

n.a. || n.a. || [...] || YES/NO || YES/NO || YES/NO || YES/NO

3.2.
Estimated impact on expenditure
3.2.1.
Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number ||

DG: EMPL || || || Year 2012[26] || Year 2013 || TOTAL

Ÿ Operational appropriations PM || || ||

Number of budget line || Commitments || (1) || || ||

Payments || (2) || || ||

Number of budget line || Commitments || (1a) || || ||

Payments || (2a) || || ||

Appropriations of an administrative nature financed  from the envelop of specific programs[27] || || ||

Number of budget line || || (3) || || ||

TOTAL appropriations for DG EMPL || Commitments || =1+1a +3 || || ||

Payments || =2+2a +3 || || ||

Ÿ TOTAL operational appropriations || Commitments || (4) || || ||

Payments || (5) || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelop of specific programs || (6) || || ||

TOTAL appropriations under HEADING EMPL of the multiannual financial framework || Commitments || =4+ 6 || || ||

Payments || =5+ 6 || || ||

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || ||

Payments || (5) || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelop of specific programs || (6) || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || || ||

Payments || =5+ 6 || || ||

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || Year 2012 || Year 2013 || TOTAL

DG: EMPL ||

Ÿ Human resources || No impact || No impact ||

Ÿ Other administrative expenditure || || ||

TOTAL DG EMPL || Appropriations || || ||

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || || ||

EUR million (to 3 decimal places)

|| || || Year N[28] || Year N+1 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || || ||

Payments || || ||

3.2.2.
Estimated impact on operational appropriations

–
X  The
proposal/initiative does not require the use of operational appropriations

–
 ̈  The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || Year 2012 || Year 2013 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL ||

||

Type of output[29] || Average cost of the ouput || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Total number of ouputs || Total cost ||

SPECIFIC OBJECTIVE No 1[30]... || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || ||

Sub-total for specific objective N°1 || || || || || || || || || || || || ||

SPECIFIC OBJECTIVE No 2... || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || ||

Sub-total for specific objective N°2 || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || || ||

3.2.3.
Estimated impact on appropriations of an
administrative nature
3.2.3.1.
Summary

–
X  The
proposal/initiative does not require the use of administrative appropriations

–
 ̈  The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

|| Year 2012 [31] || Year 2013 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

HEADING 5 of the multiannual financial framework || || || ||

Human resources || || || ||

Other administrative expenditure || || || ||

Subtotal HEADING 5 of the multiannual financial framework || || || ||

Outside HEADING 5[32] of the multiannual financial framework || || || ||

Human resources || || ||

Other expenditure of an administrative nature || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || ||

TOTAL || || || || || ||

3.2.3.2.
 Estimated requirements of human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
X  The proposal/initiative requires the use of
human resources, as explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| Year 2012 || Year 2013 || ... enter as many years as necessary to show the duration of the impact (see point 1.6)

XX 01 01 01 (Headquarters and Commission’s Representation Offices) || || ||

XX 01 01 02 (Delegations) || ||

XX 01 05 01 (Indirect research) || ||

10 01 05 01 (Direct research) || ||

XX 01 02 01 (CA, INT, SNE from the "global envelope") || ||

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || ||

XX 01 04 yy [33] || - at Headquarters[34] || ||

- in delegations || ||

XX 01 05 02 (CA, INT, SNE - Indirect research) || ||

10 01 05 02 (CA, INT, SNE - Direct research) || ||

Other budget lines (specify) || ||

TOTAL || || || || ||

XX is the
policy area or budget title concerned.

The human resources required
will be met by staff from the DG who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents ||

External personnel ||

3.2.4.
Compatibility with the current multiannual
financial framework

–
X  Proposal/initiative
is compatible the current multiannual financial framework.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

N/A

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[35].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

N/A

3.2.5.
Third-party contributions

–
X The proposal/initiative
does not provide for co-financing by third parties

–
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to 3 decimal places)

|| Year 2012 || Year 2013 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || ||

TOTAL appropriations cofinanced || || || || || ||

3.3.
Estimated impact on revenue

–
X  Proposal/initiative
has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

–
 ̈         on own resources

–
 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget exercise || ||

Year 2012 || Year 2013 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6) ||

Article ............. || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

N/A

Specify the method for
calculating the impact on revenue.

N/A

[1]               OJ
L 48, 22.2.2008, p. 82

[2]               COM(2008)800,
26.11.2008

[3]               OJ
L 167, 29.6.2009, p. 26

[4]               Excluding
applications withdrawn or rejected

[5]               http://ec.europa.eu/economy_finance/publications/european_economy/forecasts_en.htm

[6]               Ibid.

[7]               COM(2011)11,
12.1.2011

[8]               European
Parliament Resolution (2010/2072/INI)

[9]               Regulation
(EC) No 1081/2006, OJ L 210, 31.7.2006, p. 12

[10]             COM(2010)2020,
3.3.2010

[11]             Council
Decision of 21 October 2010 on guidelines for the employment policies of the
Member States. OJ L 308, 24.11.2010, p. 46

[12]             COM(2008)868,
16.12.2008

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

[14]             Excluding
withdrawn and rejected applications

[15]             OJ
C , , p. .

[16]             OJ
C , , p. .

[17]             OJ
L 48, 22.2.2008, p. 82

[18]             OJ
L 167, 29.6.2009, p. 26

[19]             ABM:
Activity-Based Management – ABB: Activity-Based Budgeting.

[20]             As
referred to in Article 49(6)(a) or (b) of the Financial Regulation.

[21]             Details
of management modes and references to the Financial Regulation may be found on
the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[22]             As
referred to in Article 185 of the Financial Regulation.

[23]             DA=
Differentiated appropriations / DNA= Non-Differentiated Appropriations

[24]             EFTA:
European Free Trade Association.

[25]             Candidate
countries and, where applicable, potential candidate countries from the Western
Balkans.

[26]             Year
N is the year in which implementation of the proposal/initiative starts.

[27]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.

[28]             Year
N is the year in which implementation of the proposal/initiative starts.

[29]             Outputs
are products and services to be supplied (e.g.: number of student exchanges
financed, number of km of roads built, etc.).

[30]             As
described in Section 1.4.2. "Specific objective(s)..."

[31]             Year
N is the year in which implementation of the proposal/initiative starts.

[32]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.

[33]             Under the ceiling for external personnel from operational appropriations (former "BA"
lines).

[34]             Essentially
for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European
Fisheries Fund (EFF).

[35]             See
points 19 and 24 of the Interinstitutional Agreement.