EN Official Journal of the European Union CE 68/93

Tuesday 23 October 2012

European Globalisation Adjustment Fund: Application EGF/2011/019 ES/Galicia Metal

P7_TA(2012)0377

European Parliament resolution of 23 October 2012 on the 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/2011/019 ES/Galicia Metal from Spain) (COM(2012)0451 – C7-0214/2012 – 2012/2160(BUD))

2014/C 68 E/19

The European Parliament,

— having regard to the Commission proposal to Parliament and the Council (COM(2012)0451 – C7-0214/2012),

— 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 (1) (IIA of 17 May 2006), 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 on establishing the European Globalisation Adjustment Fund (2) (EGF Regulation),

— having regard to the trilogue procedure provided for in point 28 of the IIA of 17 May 2006,

— having regard to the letter of the Committee on Employment and Social Affairs,

— having regard to the report of the Committee on Budgets (A7-0323/2012),

A. whereas the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market,

B. whereas the scope of the European Globalisation Adjustment Fund (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,

C. whereas the Union’s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible, in accordance with the Joint Declaration of the European Parliament, the Council and the Commission adopted during the conciliation meeting on 17 July 2008, and having due regard for the IIA of 17 May 2006 in respect of the adoption of decisions to mobilise the EGF,

D. whereas Spain has requested assistance for 878 redundancies, 450 of which are targeted for assistance from the EGF, following redundancies in 35 enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery and equipment') (3) in the NUTS II region of Galicia (ES11) in Spain,

E. whereas the application fulfils the eligibility criteria laid down by the EGF Regulation,

1. Agrees with the Commission that the conditions set out in Article 2(b) of the EGF Regulation are met and that, therefore, Spain is entitled to a financial contribution under that Regulation;

2. Notes that the Spanish authorities submitted the application for EGF financial contribution on 28 December 2011, supplemented by additional information up to 28 May 2012, and that its assessment was made available by the Commission on 9 August 2012; observes that the evaluation process of the application could have been more expeditious;

3. Notes that the redundancies in the shipbuilding ancillary industry will exacerbate the difficult employment situation in the region of Galicia; observes that traditionally the major economic sectors in Galicia have been fisheries along with automotive, textile, natural stone and shipyards; however, given the impact of the crisis, the perspectives for future reintegration into employment of the dismissed workers in this territory do not seem very encouraging;

4. Notes that the employment situation in the region is difficult as the unemployment rates reached 18 % for women and 16,32 % for men in the end of 2011; welcomes the fact that EGF is seen as an efficient tool to support local labour markets and that the region has already applied for the EGF support (EGF/2010/003 ES Galicia / Textile sector);

5. Notes that, while the forecast at the EU level about the recovery of the shipbuilding sector was reasonably optimistic, in 2011 new orders unexpectedly fell by 43 %;

6. Welcomes the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to start the implementation of the measures on 23 March 2012, well ahead of the final decision on granting the EGF support for the proposed coordinated package;

7. Recalls the importance of improving the employability of all workers by means of tailored training and the recognition of skills and competences gained throughout the professional career; expects the training on offer in the coordinated package to be tailored not only to the needs of the dismissed workers, but also to the actual business environment;

8. Welcomes the fact that the regional authorities engaged in dialogue with the social partners in order to plan and implement the coordinated package of personalised services;

9. Welcomes the fact that the social partners participated in the planning of the measures concerning the EGF application and are expected to participate in the monitoring of the implementation of the measures;

10. Notes that the coordinated package foresees several participation incentives to encourage participation in the measures: job search allowance (EUR 400) (lump sum) outplacement incentive (EUR 200), mobility allowance (EUR 180), on-the-job training allowance (EUR 300); recalls that the EGF support should be primarily allocated to training and job search as well as training programs instead of contributing directly to unemployment benefits which are the responsibility of national institutions;

11. Highlights the fact that lessons should be learned from the preparation and implementation of this and other applications addressing mass dismissals, especially concerning a large number of small and medium-size enterprises in one economic sector;

12. Regrets that the information on the training measures does not describe in which sectors the workers are likely to find employment and if the package has been adapted to the future economic prospects in the region;

13. Requests the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements to accelerate the mobilisation of the EGF; appreciates the improved procedure put in place by the Commission, following Parliament's request for accelerating the release of grants, aimed at presenting to the budgetary authority the Commission's assessment on the eligibility of an EGF application together with the proposal to mobilise the EGF; hopes that further improvements in the procedure will be integrated in the new Regulation on the EGF (2014-2020) and that greater efficiency, transparency, visibility and follow-up of the EGF will be achieved;

14. Recalls the institutions’ commitment to ensuring a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have been made redundant as a result of globalisation and the financial and economic crisis; emphasises the role that the EGF can play in the reintegration of workers made redundant into the labour market;

15. Stresses that, in accordance with Article 6 of the EGF Regulation, it should be ensured that the EGF supports the reintegration of individual redundant workers into stable and long-term employment; further stresses that the EGF assistance can co-finance only active labour market measures which lead to durable, long-term employment; reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors; deplores the fact that the EGF might provide an incentive for companies to replace their contractual workforce with a more precarious and short-term one;

16. Notes that the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds; reiterates its call to the Commission to present a comparative evaluation of those data in its annual reports in order to ensure full respect of the existing regulations and that no duplication of Union-funded services can occur;

17. Welcomes the fact that following repeated requests from Parliament, the 2012 budget shows payment appropriations of EUR 50 000 000 on the EGF budget line 04 05 01; recalls that the EGF was created as a separate specific instrument with its own objectives and deadlines and therefore deserves a dedicated allocation, which will avoid transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the policy objectives of the EGF;

18. Regrets the decision of the Council to block the extension of the "crisis derogation", allowing to provide financial assistance to workers made redundant as a result of the current financial and economic crisis in addition to those losing their job because of changes in global trade patterns, and allowing the increase in the rate of Union co-financing to 65 % of the programme costs, for applications submitted after the 31 December 2011 deadline, and calls on the Council to reintroduce this measure without delay;

19. Approves the decision annexed to this resolution;

20. Instructs its President to sign the decision with the President of the Council and to arrange for its publication in the Official Journal of the European Union;

21. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

(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).