Corrigendum 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 ( OJ L 406, 30.12.2006 )
Date: 2008-02-22
Institutions: Council of the European Union, European Parliament
Subjects: cereal flour, cereals, export refund, groat, meal, rye, wheat

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CORRIGENDA

Corrigendum 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

(Official Journal of the European Union L 406 of 30 December 2006)

On Page 1, Regulation (EC) No 1927/2006 should read as follows:

REGULATION (EC) No 1927/2006 of the EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 20 December 2006

on establishing the European Globalisation Adjustment Fund

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty
Community,
and in particular
Article 159 thereof,

establishing the European
third paragraph of

the

Having regard to the proposal from the Commission,

(3)

Having regard to the opinion of the European Economic and
Social Committee (1),

Having regard to the opinion of
Regions (2),

the Committee of

the

Acting in accordance with the procedure
Article 251 of the Treaty (3),

laid down in

(4)

Whereas:

(1)

Notwithstanding the positive effects of globalisation on
jobs and prosperity and the need to enhance
growth,
European competitiveness
through structural
further
change, globalisation may also have negative conse-
the most vulnerable and least qualified
quences for
workers in some sectors.
It is therefore opportune to
establish a European Globalisation Adjustment Fund
through
(the EGF), accessible to all Member States,
solidarity
which the Community
could show its
towards workers affected by redundancies
resulting
from changes in world trade patterns.

(2)

is necessary to preserve European values and to
It
promote the development of
trade. The
negative effects of globalisation should be tackled in

fair external

(1) OJ C 318, 23.12.2006, p. 38.
(2) OJ C 51, 6.3.2007, p. 1.
(3) Opinion of the European Parliament of 13 December 2006 (OJ C
317 E, 23.12.2006, p. 432) and Council Decision of 19 December
2006.

first

long

instance

a
sustainable
term,
the
by
Community strategy for
trade policy aimed at high
social and ecological standards. The assistance provided
by the EGF should be dynamic and capable of adapting
to circumstances
that are constantly
changing and often unforeseen.

in the market

The EGF should provide specific, one-off support
to
facilitate the re-integration into employment of workers
in areas, sectors,
territories, or labour market regions
suffering the shock of serious economic disruption. The
for example
EGF should promote entrepreneurship,
through micro-credits or by setting up cooperative
projects.

Actions under
this Regulation should be defined
according to strict intervention criteria relating to the
scale of economic dislocation and its impact on a
given sector or geographical area,
the
financial contribution from the EGF is concentrated on
workers
seriously affected regions and
economic sectors of the Community. Such dislocation
is not necessarily concentrated within a single Member
State. In such exceptional circumstances, Member States
may therefore submit joint requests for assistance from
the EGF.

to ensure that

in the most

(5)

(6)

The activities of
the EGF should be coherent and
compatible with the other Community policies and
comply with its acquis, especially the interventions of
the Structural Funds, while making a genuine contri-
bution to the Community's social policies.

Point 28 of the Interinstitutional Agreement between the
European Parliament, the Council and the Commission of
17 May 2006 on budgetary discipline and sound
financial management (4)
(Interinstitutional Agreement)
determines the budgetary framework of the EGF.

(4) OJ C 139, 14.6.2006, p. 1.

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(7)

(8)

(9)

A specific action funded under this Regulation should
not receive financial assistance from other Community
financial
instruments. Coordination with existing or
planned modernisation and restructuring measures in
is necessary
the framework of
however, although such coordination should not result
in the creation of parallel or additional management
structures for actions funded by the EGF.

regional development

To facilitate the implementation of
this Regulation,
expenditure should be eligible from the date on which
a Member State begins to provide personalised services to
the affected workers. Reflecting the need for a concen-
trated response aiming specifically at re integration into
employment, a deadline should be set for the use of the
financial contribution from the EGF.

The Member States should remain responsible for the
implementation of
the financial contribution and for
the management and control of the actions supported
by Community financing,
in accordance with Council
Regulation (EC, Euratom) No 1605/2002 of 25 June
2002 on the Financial Regulation applicable to the
(the
general budget of
Financial Regulation). The Member States should justify
the use made of the financial contribution received from
the EGF.

the European Communities (1)

HAVE ADOPTED THIS REGULATION:

Article 1

Subject-matter and scope

stimulating economic growth and
1. With the aim of
creating more jobs in the European Union,
this Regulation
establishes the EGF to enable the Community to provide
for workers made redundant as a result of major
support
structural changes in world trade patterns due to globalisation
where these redundancies have a significant adverse impact on
the regional or local economy.

The period of implementation of the EGF shall be linked to the
financial framework, from 1 January 2007 to 31 December
2013.

2.
This Regulation lays down rules regarding the operation
of the EGF in order to facilitate re-integration into employment
of workers affected by trade-related redundancies.

Article 2

Intervention criteria

A financial contribution from the EGF shall be provided where
major structural changes in world trade patterns lead to a
serious economic disruption, notably a substantial increase of
imports into the European Union, or a rapid decline of the EU
market share in a given sector or a delocalisation to third
countries, which results in:

(10)

The European Monitoring Centre on Change may assist
the Commission and the Member State concerned with
qualitative and quantitative analyses in order to help in
the evaluation of an application for EGF funds.

(a) at least 1 000 redundancies over a period of 4 months in an
including workers made

enterprise in a Member State,
redundant in its suppliers or downstream producers; or

(11)

Since the objectives of this Regulation cannot be suffi-
ciently achieved by the Member States and can therefore,
by reason of their scale and effects, be better achieved at
Community level, the Community may adopt measures,
in accordance with the principle of subsidiarity as set out
in Article 5 of
In accordance with the
principle of proportionality, as set out in that Article,
this Regulation does not go beyond what is necessary
in order to achieve those objectives.

the Treaty.

(b) at least 1 000 redundancies, over a period of 9 months,
particularly in small or medium-sized enterprises,
in a
NACE 2 sector in one region or two contiguous regions
at NUTS II level.

(c)

In small
labour markets or in exceptional circumstances,
where duly substantiated by the concerned, an application
for a contribution from the EGF may be considered
admissible even if the conditions laid down in points (a)
and (b) are not entirely met, when redundancies have a
serious impact on employment and the local economy.
The aggregated amount of contributions in exceptional
circumstances may not exceed 15 % of the EGF each year.

(12) As the period of implementation of the EGF is linked to
the duration of the financial framework from 1 January
2007 to 31 December 2013, support should be available
to workers affected by trade-related redundancies from
1 January 2007,

(1) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation

(EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).

Article 3

Eligible actions

A financial contribution from the EGF may be made for active
labour market measures
form part of a coordinated
package of personalised services designed to re-integrate
redundant workers into the labour market, including:

that

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(a)

for job-search assistance, occupational guidance, tailor-made
training and re-training, including information and commu-
nication technology skills and certification of acquired
experience, as well as for outplacement assistance and entre-
preneurship promotion or aid for self-employment;

(b) for

special

time-limited measures,

job-search
allowances, mobility allowances or allowances to individuals
participating in lifelong learning and training activities; and

such as

(c)

for measures to stimulate in particular disadvantaged or
older workers, to remain in or return to the labour market.

The EGF shall not finance passive social protection measures.

On the initiative of the Member State concerned, the EGF may
and
finance
publicity, and control activities for its implementation.

preparatory, management,

information

the

(c) a description of the territory concerned and its authorities
and other stakeholders, and the expected impact of the
redundancies
regional or national
employment;

regards

local,

as

(d) the coordinated package of personalised services to be
funded and a breakdown of its estimated cost,
including
its complementarity with actions financed by the Structural
Funds as well as information on actions that are mandatory
by virtue of national
to collective
agreements;

law or pursuant

(e)

the date(s) on which personalised services to the affected
workers were started or are planned to be started;

(f)

the procedures followed for consulting the social partners;
and

(g) the authority responsible for management and financial

control in accordance with Article 18.

Article 4

Type of financial contribution

The Commission shall award a financial contribution in the
form of a single instalment, which shall be implemented
within the framework of shared management between the
Member States and the Commission,
in accordance with
Article 53(1)(b) and Article 53(5) and (6) of the Financial Regu-
lation.

the region,

Having regard to the actions implemented by the Member
3.
the social partners and the enterprises
State(s),
law or collective agreements,
concerned by virtue of national
funded by the
and paying particular attention to actions
European Social Fund (the ESF),
the information provided
under paragraph 2 shall include a summary description of the
actions taken and planned by the national authority and enter-
prises concerned, including an estimate of their cost.

Article 5

Applications

1.
The Member State(s) shall submit an application for a
contribution from EGF to the Commission within a period of
10 weeks from the date on which the conditions set out in
Article 2 for mobilising the EGF are met. The application may
be
State(s)
concerned.

subsequently by

supplemented

the Member

2.

The application shall

include the following information:

(a) a reasoned analysis of the link between the planned redun-
dancies and major structural changes in world trade patterns
and a demonstration of the number of redundancies and an
explanation of the unforeseen nature of those redundancies;

(b) the identification of the dismissing enterprises (national or
multi-national), suppliers or downstream producers, sectors,
and the categories of workers to be targeted;

The Member State(s)

4.
also provide
statistical and other information, at the most appropriate terri-
level, which the Commission requires to assess the
torial
fulfilment of the intervention criteria.

concerned shall

On the basis of the information provided under paragraph
5.
2 and any additional
information submitted by the Member
State(s) concerned, the Commission shall assess, in consultation
with those Member State(s), whether the conditions for making
a financial contribution under this Regulation are met.

Article 6

Complementarity, compliance and coordination

A contribution from the EGF shall not replace actions
companies by virtue of

1.
which are
national law or collective agreements.

responsibility of

the

A contribution from the EGF shall complement actions of
level,

2.
the Member State(s) at national,
including those co-financed by the Structural Funds.

regional and local

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A contribution from the EGF shall provide solidarity and
3.
support for individual workers made redundant as a result of
structural changes in world trade patterns. The EGF shall not
finance the restructuring of companies or sectors.

4.
the
In accordance with their respective responsibilities,
Commission and the Member State(s) shall ensure the coordi-
nation of the assistance from Community funds.

Article 10

Determination of financial contribution

1.
The Commission shall, on the basis of the assessment
carried out in accordance with Article 5(5), particularly taking
the
into account
proposed actions
and
propose as quickly as possible the amount of financial contri-
bution,
that may be made within the limits of the
resources available.

the number of workers to be supported,
evaluate

estimated costs,

and the

if any,

5.
The Member State(s) shall ensure that the specific actions
receiving a contribution from the EGF shall not also receive
assistance from other Community financial instruments.

The amount may not exceed 50 % of the total of the estimated
cost referred to in Article 5(2)(d).

Article 7

Equality between men and women and non-discrimination

The Commission and the Member States shall ensure that
equality between men and women and the integration of the
gender perspective are promoted during the various stages of
implementation of the EGF. The Commission and the Member
States shall take appropriate steps to prevent any discrimination
based on sex, racial or ethnic origin, religion or belief, disability,
age or sexual orientation during the various stages of the imple-
mentation of and, in particular, in access to, the EGF.

Article 8

Technical assistance at the initiative of the Commission

At the initiative of the Commission, subject to a ceiling of
1.
0,35 % of the financial resources available for that year, the EGF
may be used to finance monitoring, information, administrative
and technical support, audit, control and evaluation activities
necessary to implement this Regulation.

Such tasks shall be executed in accordance with the
implementing rules
as

2.
Financial Regulation,
as well
applicable to this form of implementation of the budget.

the

Article 9

Information and publicity

1.
The Member State(s) concerned shall provide information
on and publicise the funded actions. The information shall be
addressed to the workers concerned, local and regional autho-
rities, social partners, the media and the general public. It shall
highlight the role of the Community and ensure that the contri-
bution from the EGF is visible.

the assessment carried out

2. Where on the basis of
in
accordance with Article 5(5) the Commission has concluded
that the conditions for a financial contribution under this Regu-
lation are met, it shall immediately initiate the procedure set out
in Article 12.

the assessment carried out

3. Where on the basis of
in
accordance with Article 5(5) the Commission has concluded
that the conditions for a financial contribution under this Regu-
lation are not met, it shall notify the Member State(s) concerned
as soon as possible.

Article 11

Eligibility of expenditure

Expenditure shall be eligible for a contribution from the EGF
from the date(s) on which the Member State(s) concerned starts
to provide personalised services to the affected workers, as set
out in Article 5(2)(e).

Article 12

Budget procedure

The arrangements for the EGF shall comply with the

1.
provisions of point 28 of the Interinstitutional Agreement.

2.
Appropriations concerning the EGF shall be entered in the
general budget of the European Union as a provision through
the normal budgetary procedure as soon as the Commission has
identified sufficient margins and/or cancelled commitments.

3. Where the Commission has concluded that a financial
contribution should be made from the EGF, it shall submit to
the budgetary authority a proposal to authorise appropriations
corresponding to the amount determined in accordance with
Article 10 and a request for the transfer of the amount to
the EGF budget line. Proposals may be grouped into batches.

The Commission shall set up an Internet site, available in
to proviefused applications, high-

2.
all Community languages,
lighting the role of the budgetary authority.

Transfers concerning the EGF shall be carried out pursuant to
Article 24(4) of the Financial Regulation.

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A proposal pursuant

4.
following:

to paragraph 3 shall

include the

(a)

the assessment carried out in accordance with Article 5(5),
together with a summary of the information on which that
assessment is based;

(b) evidence that the criteria laid down in Articles 2 and 6 are

met; and

(c)

the reasons justifying the amounts proposed.

present a report to the Commission on the execution of the
financial contribution,
including information on the type of
actions and main outcomes, together with a statement justifying
the expenditure and indicating, whenever appropriate,
the
complementarity of actions with those funded by the ESF.

No later

than six months after

2.
received all
shall wind up the financial contribution from the EGF.

the information required under paragraph 1,

the Commission has
it

Article 16

Annual report

At

it presents

the same time as

the
5.
Commission shall
initiate a trilogue procedure, possibly in
simplified form, to seek the agreement of both arms of the
budgetary authority on the need to use the EGF and the
amount required.

its proposal,

6.
On 1 September each year, at least one quarter of the
annual maximum amount of the EGF shall remain available
in order to cover needs arising until the end of the year.

Once the appropriations are made available by the
the Commission shall adopt a decision

7.
budgetary authority,
on a financial contribution.

Article 13

Payment and use of the financial contribution

1.
Following adoption of the decision in accordance with
Article 12(7), the Commission shall pay the financial contri-
bution to the Member State(s) concerned in a single instalment,
in principle within 15 days.

The Member State(s) shall use the financial contribution,
2.
as well as any interest earned thereon, within 12 months of the
application pursuant to Article 5.

Article 14

Use of the euro

By 1 July of each year, and for the first time in 2008, the
1.
Commission shall present to the European Parliament and to
the Council a quantitative and qualitative report on the activities
under this Regulation in the previous year. The report shall
focus mainly on the results achieved by the EGF and shall in
applications
particular
submitted, decisions adopted, actions funded,
including their
complementarity with actions funded by the Structural Funds,
notably the ESF, and the winding-up of financial contribution
It shall also document those requests that have been
made.
refused owing to a lack of sufficient appropriations or to
non-eligibility.

information

relating

contain

to

2.
The report shall be transmitted, for information, to the
European Economic and Social Committee, the Committee of
the Regions and the social partners.

Article 17

Evaluation

The Commission shall carry out at its own initiative and

1.
in close cooperation with the Member States:

(a) by 31 December 2011, a mid-term evaluation of the effec-

tiveness and sustainability of results obtained; and

Applications, decisions on financial contributions and reports
under this Regulation, as well as any other related documents,
shall express all amounts in euro.

(b) by 31 December 2014, an ex-post evaluation with the
assistance of external experts, to measure the impact of
the EGF and its added value.

Article 15

Final report and closure

1.
No later than six months after the expiry of the period
specified in Article 13(2), the Member State(s) concerned shall

The results of

for
2.
information,
the
European Economic and Social Committee, the Committee of
the Regions and to the social partners.

the evaluation shall be transmitted,
the Council,

to the European Parliament,

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Article 18

Management and financial control

1. Without prejudice to the Commission's responsibility for
implementing the general budget of the European Communities,
the Member States shall take responsibility in the first instance
for the management of actions supported by the EGF and the
financial control of the actions. To that end, the measures they
take shall include:

To that end, without prejudice to the powers of the Court of
Auditors or the checks carried out by the Member State(s) in
accordance with national
laws, regulations and administrative
provisions, Commission officials or servants may carry out
including sample checks, on the actions
on-the-spot checks,
financed by the EGF with a minimum of one working day's
notice. The Commission shall give notice to the Member State
concerned with a view to obtaining all the assistance necessary.
Officials or servants of the Member State concerned may take
part in such checks.

(a) verifying that management and control arrangements have
been set up and are being implemented in such a way as to
ensure that Community funds are being used efficiently and
correctly,
sound
financial management;

in accordance with the principles of

(b) verifying that
carried out;

the financed actions have been properly

(c) ensuring that expenditure funded is based on verifiable

supporting documents, are correct and regular; and

(d) preventing, detecting and correcting irregularities as defined
in Article 70 of Council Regulation (EC) No 1083/2006 of
11 July 2006 laying down general provisions on the
the European
European Regional Development
Social Fund and the Cohesion Fund (1) and recovering
amounts unduly paid together with interest on late
payments
same Article. The
Member State(s) shall notify any such irregularities to the
time and keep the Commission
Commission in due
informed of
the progress of administrative and legal
proceedings.

in accordance with the

Fund,

2.
The Member State(s) shall make the financial corrections
required where an irregularity is ascertained. The corrections
made by the Member State(s) shall consist in cancelling all or
part of the Community contribution. The Member State(s) shall
recover any amount lost as a result of an irregularity detected,
repay it to the Commission and, where the amount is not
repaid in the time allowed by the Member State(s) concerned,
default interest shall be due.

3.
The Commission, in its responsibility for the implemen-
tation of the general budget of the European Communities, shall
take every step necessary to verify that the actions financed are
carried out in accordance with the principles of sound and
in compliance with the
efficient
Financial Regulation.
the Member
State(s) concerned to ensure that it has smoothly functioning
management and control systems. The Commission shall satisfy
itself that such systems are in place.

is the responsibility of

financial management,

It

(1) OJ L 210, 31.7.2006, p. 25. Regulation as amended by Regulation

(EC) No 1989/2006 (OJ L 411, 30.12.2006, p. 6).

The Member State shall

supporting
4.
documents regarding expenditure incurred are kept available
for the Commission and the Court of Auditors for a period
of three years following the winding-up of the financial contri-
bution received from the EGF.

ensure that all

Article 19

Reimbursement of financial contribution

less

than the

In cases where the amount of the actual cost of an action
1.
to
is
Article 12, the Commission shall require the Member State(s)
to reimburse a corresponding amount of the financial contri-
bution received.

estimated amount quoted pursuant

2. Where the Member State(s) fails to comply with the obli-
gations stated in the decision on a financial contribution, the
Commission shall
take the necessary steps to require the
Member State(s) to reimburse all or part of the financial contri-
bution received.

3.
Prior to the adoption of a decision under paragraphs 1 or
2, the Commission shall conduct a suitable examination of the
case and shall,
in particular, allow the Member State(s) a
specified period of time in which to submit its comments.

If,

after

completing the necessary verifications,

4.
the
Commission concludes that the Member State(s) is or are not
complying with its obligations under Article 18(1), it shall, if no
agreement has been reached and the Member State has not
made the corrections in a period set by the Commission, and
taking account of any comments made by the Member State,
decide within three months from the end of the period referred
above to make the financial corrections required by cancelling
all or part of the contribution from the EGF to the action in
question. Any amount lost as a result of an irregularity detected
shall be recovered and, where the amount is not repaid in the
time allowed by the Member State(s) concerned, default interest
shall be due.

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Article 20

Review clause

On the basis of the first annual report provided for in Article 16, the European Parliament and the Council
may review this Regulation, on the basis of a proposal by the Commission, to ensure that the solidarity
objective of the EGF is met and that its provisions adequately take into account the economic, social and
territorial characteristics of all Member States.

The European Parliament and the Council shall in any case review this Regulation by 31 December 2013.

Article 21

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

It shall apply from 1 January 2007.

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

Done at Brussels, 20 December 2006.

For the European Parliament

The President

J. BORRELL FONTELLES

For the Council

The President

J. KORKEAOJA

Corrigendum to Council Regulation (EC, Euratom) No 1995/2006 of 13 December 2006 amending Regulation
(EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European
Communities

(Official Journal of the European Union L 390 of 30 December 2006)

On page 7, point 12 (amendment of Article 26 of Regulation (EC, Euratom) No 1605/2002 — Financial Regulation),
after point b (replacement of paragraph 2, first subparagraph), a new point (ba) is inserted as follows:

‘(ba)

in paragraph 2, the second subparagraph shall be replaced by the following:

“The procedure provided for in Article 24(2) and (3) shall apply. If the Commission proposal is not agreed to by
both arms of the budgetary authority and there is a failure to arrive at a common position on the utilisation of this
reserve, the European Parliament and the Council shall refrain from acting on the Commission's proposal for a
transfer.” ’