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/2013/000

European Commission Technical assistance

Administrative expenditure: budget in EUR 750 000

% administrative expenditure (ceiling: 0,35 %) 0.15 %

According to Article 8(1) of Regulation (EC) No 1927/2006, the proportion corresponding to 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 breakdown 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 continue to collect the data on applications received and paid, and the measures proposed and implemented, and it will update the Statistical Portrait of the EGF with information up to the end of 2013. Building on the preparatory work of recent years, this can be done with the Commission's normal administrative resources.

3. Information: The web site on the EGF[3], which the Commission has set up within its Employment, Social Affairs and Inclusion area, and which it is maintaining as required under Article 9(2) of Regulation (EC) No 1927/2006, will be regularly updated and expanded, with each new element also being translated into all EU languages. Information on the new EGF Regulation will be produced, and the annual report of the EGF will be produced, translated, printed and distributed. General awareness of the EGF and its visibility will be encouraged. The EGF will be covered in various Commission publications and audio-visual activities. Costs for all these items are estimated at EUR 80 000.

4. Creation of a knowledge base: The Commission is continuing its work with a view to setting up an electronic application form and standardised procedures for EGF applications, which will allow applications under the new Regulation to be simplified, their processing to be speeded up and reports to be more easily extracted for varying needs. Standardisation of final report forms is also continuing, with the objective of easing the administrative burden of the Member States.

It will improve its database containing the facts and figures of EGF cases, including workers, measures and outcomes.

The cost for these items is estimated at EUR 80 000.

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

6. In addition, the Commission will be organising networking among the Member States. The priority event within this networking activity will be a seminar for practitioners on the implementation of the EGF, using the experience gathered under the current Regulation (2007 - 2013) to prepare the ground for the new one (2014 - 2020). The cost of these items is estimated at EUR 120 000.

7. Evaluation: The Commission will conduct the final phase of the ex-post evaluation of the EGF (2007-2013) by means of a contract with an external consultant evaluating EGF cases as and when they are closed, and focusing on the impact of the EGF and its added value during the current period. The cost for this evaluation is estimated at EUR 400 000.

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

Monitoring || || || 0

Information activities || Various || Various || 80 000

Creation of a knowledge base || Various || Various || 80 000

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

Administrative and technical support: Networking on the implementation of the EGF || Various || Various || 120 000

Ex-post evaluation for 2007-2013 || 1 || 400 000 || 400 000

Total estimated costs || || 750 000

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 2013 remains available; nothing has yet been allocated to technical assistance.

9. The proposed contribution for technical assistance at the initiative of the Commission in 2013 is EUR 750 000. Following the mobilisation of this amount, a further EUR 1 000 000 potentially remains available in case of 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 2013 budget specific commitment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006.

Source of payment appropriations

13. Appropriations from the EGF budget line will be used to cover the amount of EUR 750 000 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/2013/000 TA 2013 - 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[4], 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[5], and in particular Article 8(2) thereof,

Having regard to the proposal from the Commission[6],

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 Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual ceiling of EUR 500 million.

(3) 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 750 000.

(4) 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 2013, the European Globalisation Adjustment Fund (EGF) shall be mobilised to provide the sum of EUR 750 000 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] http://ec.europa.eu/egf

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

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

[6] OJ C […], […], p. […].