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 {SEC(2008) 3055} {SEC(2008) 3056}
Date: 2008-12-16
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, dismissal, fund (EU), globalisation, reintegration into working life

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.12.2008 
COM(2008) 867 final 

2008/0267 (COD) 

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 

{SEC(2008) 3055} 
{SEC(2008) 3056} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The aim of this proposal is to enable the European Globalisation Adjustment Fund ('the EGF') 
to react more effectively in support of workers made redundant as a result of globalisation, to 
enlarge  its  scope  temporarily  by  covering  redundancies  caused  by  the  impact  of  the  global 
financial and economic crisis and to bring the operation of the Fund closer into line with its 
solidarity objective. In order to achieve this objective certain  provisions  of Regulation (EC) 
No  1927/20061  on  establishing  the  European  Globalisation  Adjustment  Fund  need  to  be 
amended. 

•  General context 

The  annual  report  on  the  operations  of  the  EGF  in  2007  was  an  integral  part  of  the 
Communication 'Renewed Social Agenda: Opportunities, access and solidarity in 21st century 
Europe'2 adopted by the Commission on 2 July 2008. In the Communication 'Solidarity in the 
face  of  change:  The  EGF  in  2007  —  review  and  prospects'3  the  Commission  announced  its 
intention to amend the EGF Regulation before issuing the next annual report, which is due by 
mid-2009. 

In its European Economic Recovery Plan4, published on 26 November 2008, the Commission 
announced  its  intention  to  make  the  EGF  a  more  effective  early  intervention  instrument  as 
part of Europe's crisis response. The Commission reaffirmed its intention to revise the rules of 
the EGF so that it can intervene more rapidly in key sectors, i.a. to co-finance training and job 
placements for those who are made redundant as a result of the economic crisis. 

•  Existing provisions in the area of the proposal 

The  European  Social  Fund5  ('the  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 is a response to a specific, European-scale crisis caused by globalisation. It 
provides one-off, time-limited individual support, geared directly to redundant workers. 

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OJ L 406, 30.12.2006, p. 1. Regulation as corrected in OJ L 48, 22.2.2008, p. 82 and for the English 
language in OJ L 202, 31.7.2008, p. 74. 
COM(2008) 412, 2.7.2008. 
COM(2008) 421, 2.7.2008. 
COM(2008) 800, 26.11.2008 
Regulation (EC) No 1081/2006 (OJ L 210, 31.7.2006, p. 12). 

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The amending proposal touches upon certain existing provisions of the EGF Regulation with 
a view to enhancing its performance in terms of re-integrating into employment workers who 
are made redundant as a consequence of globalisation. The concepts and provisions contained 
in  this  proposal  remain  within  the  overarching  objective  of  the  EGF  of  showing  solidarity 
towards workers who are adversely affected by changes in the global economy. 

•  Consistency with the other policies and objectives of the Union 

Community  support  for  workers  who  are  made  redundant  as  a  consequence  of  increased 
competition  in  global  markets  clearly  underpins  the  objectives  of  the  Lisbon  strategy  on 
growth and job creation. It is fully consistent with the overarching objectives of the European 
Employment  Strategy  of  achieving  full  employment  and  reducing  unemployment  and 
inactivity,  improving  quality  and  productivity  at  work,  improving  the  attractiveness  of  jobs 
and  strengthening  social  and  territorial  cohesion.  EGF  assistance  supplements  actions  co-
financed by the Structural Funds, in particular the European Social Fund. 

The  EGF  underpins  the  Employment  Guidelines  of  the  European  Employment  Strategy,  in 
particular Guidelines 20, 21 and 24. The latter concern improved matching of labour market 
needs through removing obstacles to mobility for workers across Europe, as well as through 
better  anticipation  of  skill  needs,  labour  market  shortages  and  bottlenecks.  They  promote 
flexibility through better anticipation and positive management of change, notably linked to 
trade opening, so as to minimise social costs and facilitate adaptation, and offer support for 
transitions in occupational status, including training, self-employment, business creation and 
geographical  mobility.  They  also  support  best  use  of  education  and  training  systems  in 
response  to  new  competence  requirements  by  responding  to  new  occupational  needs,  key 
competences and future skill requirements through improving the definition and transparency 
of  qualifications,  their  effective  recognition  and  the  validation  of  non-formal  and  informal 
learning. 

It is also fully consistent with the implementation of integrated flexicurity policies, as set out 
in the Communication "Towards Common Principles of Flexicurity" adopted by the European 
Council  in  December  2007  in  that  it  aims  to  facilitate  rapid  job  transition  for  redundant 
workers and therefore contribute to maintaining skilled workers in the labour force.  

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

The Commission consulted the Member States' experts and social partners twice: first in July 
2008 by way of a questionnaire relating to EGF operations and managements and to possible 
improvements  identified  in  the  EGF  annual  report,  and  secondly  at  a  conference  held  in 
Brussels  on  4  September  2008.  The  conference  agenda  covered  the  issues  identified  in  the 
annual  report  as  highlighted  in  the  responses  to  the  questionnaire,  summarised  for  ease  of 
reference in an issues paper which was sent to all participants prior to the meeting. 

Summary of responses and how they have been taken into account 

The Commission particularly wanted to ascertain the views of the Member States and other 
stakeholders  on  the  core  issues  identified  the  annual  report,  in  particular  as  regards:  the 

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usefulness  of  including  globalisation  factors  other  than  changes  in  international  trade;  the 
relevance  of  the  EGF  co-funding  rate;  the  number  and  the  nature  of  redundancy  cases 
involving  more  than  1  000  workers  as  well  as  cases  involving  between  500  and  1  000 
workers;  the  appropriateness  of  the  time  periods  established  in  the  Regulation  (reference 
periods and implementation periods); and on a number of issues relating to administration of 
the EGF at EU and national levels. Replies were received from 22 Member States and a few 
social partner organisations.  

All these concerns are addressed in the proposed amendments. 

•  Collection and use of expertise 

There  was  no  need  for  contracted  external  expertise.  However,  several  external  experts 
participated  actively  and  expressed  their  views  at  the  stakeholders'  conference  held  in 
Brussels on 4 September 2008. 

•  Impact assessment 

The impact assessment report looked at the problems associated with implementation of the 
current  EGF  Regulation  as  identified  in  the  annual  report.  The  Commission  assessed  three 
options — with two variants for the third option — as to their economic and social impacts 
with  a  view  to  extending  the  coverage  of  the  EGF  and  enhancing  its  effectiveness  in  re-
integrating workers made redundant by globalisation into employment. 

–  Under  option  1,  "No  change",  the  EGF  Regulation  would  continue  to  apply  unchanged. 
The advantages of this option relate to continuity in terms of the legislative framework and 
practical aspects of implementation of EGF-funded actions; 

–  Under option  2, "No change  plus improvements", a number of operational improvements 
would be introduced without changes to the EGF Regulation. These improvements would 
involve:  simplifying  procedures  and  application  requirements;  making  use  of  existing 
networks  to  promote  the  EGF  among  potential  stakeholders  and  exchange  of  good 
experience;  clarifying  eligibility  of  the  services  sector  and  of  measures  such  as  mobility 
allowances  and  micro-credits;  stepping  up  awareness  raising  activities  to  achieve  greater 
visibility of the EGF. 

Under  option  3,  "Improvements  and  operational  changes",  the  Commission  assessed  two 
variants related to the eligibility criterion: 

–  Under "variant A: Trade" of option 3, the eligibility criterion would continue to be changes 
in world trade patterns, but the EGF Regulation would be amended in the following ways: 
reduction  of  the  trigger  number  of  redundancies  from  1 000  to  500;  inclusion  of 
redundancies  occurring  before  the  start  of  the  reference  period  among  the  redundant 
workers eligible for EGF support; extension of the time period for implementation of EGF 
support from 12 to 24 months; clarification of the amount available for technical assistance 
at  the  initiative  of  the  Commission  and  broadening  of  the  scope  of  technical  assistance 
through the inclusion of forward-looking activities; clarification of the meaning of 'use' of 
the financial contribution; and increase of the standard rate of EGF support from 50% to 
75% of the total costs; 

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–  Under  "variant  B:  Markets"  of  option  3,  the  EGF  Regulation  would  be  amended  as 
described above with one difference: eligibility would be expanded from major changes in 
world  trade  patterns  to  include  also  major  changes  in  world  markets,  such  as  changes  in 
production  and  product  technology,  changes  in  the  organisation  of  production  (such  as 
company outsourcing) and the access to, and price of, raw materials and other inputs.  

•  Expanding the scope of the EGF 

The  global  financial  crisis  is  causing  and  will  cause  massive  redundancies,  in  a  widening 
range of sectors, as they are affected by reduced availability of credit and reduced purchasing 
power of citizens. . The Commission wants to take temporary and exceptional action to make 
the  Fund  more  responsive  to  these  problems.  The  Commission  is  therefore  proposing  to 
enlarge the scope of the Fund for a fixed period in order to enable it to intervene in response 
to the global financial and economic crisis. This option had not been included in the Impact 
Assessment at the time, which related to the more limited widening of the scope to "markets" 
as discussed above.  

Consequently  the  impact  assessment  was  adapted  to  include  employment  aspects  of  the 
financial crisis, a description of the limitations of the present Regulation in respect of the new 
situation  and  an  analysis  of  possible  changes  to  the  EGF  Regulation  which  will  enable  the 
Fund to better function as a crisis response instrument.  

The proposal is also in line with the rationale underpinning the EGF, namely that the Union 
should  be  able  to  show  solidarity  with  workers  who  lose  their  jobs  due  to  economic 
disturbances caused by global events, such as the current global crisis. The principles of the 
internal  market  would  continue  to  exclude  purely  intra-Community  driven  adjustment  and 
restructuring from EGF funding.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The proposed action aims to amend the EGF Regulation in order to ensure that the EGF fully 
meets the stated objective of solidarity with workers who have lost their job as a consequence 
of major changes brought about by globalisation, including a temporary provision to support 
workers made redundant as a result of the global financial and economic crisis. 

•  Legal basis 

The proposal is based on the third paragraph of Article 159 EC Treaty. 

•  Subsidiarity principle 

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

The  objectives  of  the  proposal  cannot  be  sufficiently  achieved  by  the  Member  States.  They 
can only be achieved through a modification of the current Regulation. 

Community action will better achieve the objectives of the proposal for the following reason: 

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As stated in the explanatory memorandum6 to the initial proposal for an EGF Regulation, the 
Community  may  take  steps,  in  accordance  with  the  principle  of  subsidiarity  laid  down  in 
Article 5 of the Treaty, to promote the objective of solidarity. 

In  making  this  proposal,  the  Commission  has  based  itself  on  quantitative  data  that  became 
available  as  a  result  of  the  functioning  of  the  EGF  in  the  first  18  months,  including  that 
described in the first annual report on the EGF. 

The functioning of this instrument can only be amended by a legislative initiative taken at the 
level  of  the  Union.  The  proposal  lays  down  the  rules  for  the  functioning  of  a  financial 
instrument available at Community level. 

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s): 

In accordance with the principle of proportionality, the provisions of this Regulation do not go 
beyond what is necessary to achieve its objectives. The amendments proposed to Regulation 
(EC) No 1927/2006 are limited to those necessary to reinforce the impact of the EGF on the 
re-integration  into  employment  of  workers  who  become  redundant  as  a  consequence  of 
changes in a global economy. 

It does not impose any additional administrative burden upon Member States compared to the 
existing EGF Regulation.  

•  Choice of instrument 

Proposed instrument: 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  20067  on  budgetary  discipline  and  sound  financial 
management provides that the EGF may not exceed a maximum annual amount of EUR 500 
million.  

As  announced  in  the  Communication  on  the  European  Economic  Recovery  Plan  the 
Commission  will  review  the  budgetary  means  available  for  the  EGF  in  the  light  of  the 
implementation of the revised rules. 

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COM(2006) 91, 1.3.2006. 
OJ C 139, 14.6.2006, p. 1. 

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5. 

ADDITIONAL INFORMATION 

•  Detailed explanation of the proposal 

The proposed amendment to Article 1 expands the scope of the EGF in response to the global 
financial and economic crisis and contains the necessary adjustments to provide support on a 
temporary basis to workers made redundant as a result of this crisis. 

The proposed amendments to Article 2 reduce the trigger number of redundancies from 1 000 
to 500, clarify the situation of cases submitted under the intervention criteria of Article 2(c) 
and introduce a definition of the event constituting redundancy that results from case-law8. 

The  proposed  amendment  to  point  (a)  of  Article  5(2)  aims  to  ensure  equitable  and  non-
discriminatory treatment of those workers whose redundancy occurred before or after the 4-
month  reference  period  of  Article  2(a)  or  2(c)  but  can  be  clearly  linked  to  the  same 
redundancy event. 

The proposed amendments to Article 8 clarify the basis for calculating the amount available 
for technical assistance and the range of activities that can be funded under Article 13. 

The proposed amendment to Article 10 increases the intervention rate from 50% to 75%, thus 
better reflecting the emergency nature of the contribution to support the redundant workers. 

The  proposed  amendment  to  Article  13  increases  the  implementation  period  of  an  EGF 
contribution from 12 to 24 months. 

The proposed amendment to Article 20 provides that, on the basis of the mid-term evaluation 
provided  for  in  Article  17,  paragraph  1(a),  the  European  Parliament  and  the  Council  may 
review  this  Regulation,  including  the  temporary  derogation  provided  for  in  Article  1, 
paragraph 1a, on the basis of a proposal from the Commission. 

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Case C-188/03 Junk [2005] ECR I-885. 

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2008/0267 (COD) 

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 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular the third 
paragraph of Article 159 thereof, 

Having regard to the proposal from the Commission9, 

Having regard to the opinion of the European Economic and Social Committee10, 

Having regard to the opinion of the Committee of the Regions11, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty12, 

Whereas: 

(1) 

(2) 

(3) 

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Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 
December  200613  has  established  the  European  Globalisation  Adjustment  Fund  ('the 
EGF')  to  enable  the  Community  to  provide  support  and  show  solidarity  to  workers 
made redundant as a result of major structural changes in world trade patterns due to 
globalisation. 

The Commission has presented the first annual report to the European Parliament and 
to the Council in accordance with Article 16 of Regulation (EC) No 1927/2006. In its 
report, contained in the Communication of 2 July 200814, the Commission concluded 
that it was appropriate to reinforce the impact of the EGF on the creation of jobs and 
training opportunities for Europe's workers. 

The  Commission  Communication  on  "New  skills  for  new  jobs:  Anticipating  and 
matching labour market and skills needs"15 and the 'Common Principles of Flexicurity' 
adopted by the European Council on 14 December 2007 emphasise the objectives of 
fostering  the  continuous  adaptability  and  employability  of  workers  through  better 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 48, 22.2.2008, p. 82 
COM(2008) 421. 
COM(2008) 868. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

learning  opportunities  at  all  levels  and  through  skills  development  strategies 
responsive to the needs of the economy. 

The  Commission  adopted  on  26  November  2008  a  Communication  on  a  European 
Economic  Recovery  Plan16  based  on  the  fundamental  principles  of  solidarity  and 
social justice. As part of its crisis response the rules of the EGF need to be revised in 
order  to  broaden  its  scope  temporarily  and  to  enable  it  to  react  more  effectively  in 
response to the crisis. 

In order to ensure that the intervention criteria are applied transparently, a definition of 
the  event  constituting  redundancy  should  be  introduced.  Seeking  to  give  more 
flexibility  to  the  Member  States  to  present  applications  and  to  meet  better  the 
solidarity objective, the redundancy threshold should be lowered. 

In conformity with the objective of fair and non-discriminatory treatment all workers 
whose  redundancy  can  be  clearly  linked  to  the  same  redundancy  event  should  be 
entitled  to  benefit  from  the  package  of  personalised  services  presented  for  an  EGF 
contribution. 

Technical  assistance  at  the  initiative  of  the  Commission  should  be  used  in  order  to 
facilitate the implementation of the EGF. 

In  order  to  bring  the  co-financing  rate  for  EGF  support  more  in  line  with  the 
intervention  rates  under  the  European  Social  Fund,  the  co-financing  rate  for  EGF 
support should be increased. 

In  order  to  improve  the  quality  of  the  actions  and  leave  sufficient  time  for  the 
measures  to  be  effective  in  reintegrating  into  employment  of  the  most  vulnerable 
workers,  the  period  during  which  the  eligible  actions  must  be  carried  out  should  be 
extended and clarified. 

(10) 

It  is  appropriate  to  review  the  functioning  of  the  EGF,  including  the  temporary 
derogation to support workers made redundant as a result of the global financial and 
economic crisis. 

(11)  Regulation (EC) No 1927/2006 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1927/2006 is amended as follows: 

1. 

In Article 1 a new paragraph 1a is inserted: 

"1a.  By way of derogation from paragraph 1, the EGF shall also provide support to 
workers made redundant as a result of the global financial and economic crisis, 
provided applications comply with the criteria set out in Article 2(a), (b) or (c). 

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COM (2008) 800. 

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This  derogation shall  apply to  all applications  submitted  before  31 December 
2010." 

2. 

Article 2 is replaced by the following: 

'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: 

(a) 

(b) 

(c) 

at  least  500  redundancies  over  a  period  of  4  months  in  an  enterprise  in  a 
Member  State,  including  workers  made  redundant  in  its  suppliers  or 
downstream producers, or 

at  least  500  redundancies  over  a  period  of  9  months,  particularly  in  small  or 
medium-sized  enterprises,  in  a  NACE  2  division  in  one  region  or  two 
contiguous regions at NUTS II level, or 

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

For  the  purposes  of  calculating  the  number  of  redundancies  provided  for  in  points 
(a), (b) and (c) of the first paragraph, a redundancy may be counted from the moment 
of either the employer's individual notice to terminate the contract of employment of 
the redundant worker, or the de facto termination of a contract of employment before 
its  expiry  for  reasons  not  related  to  the  individual  worker  concerned.  In  each  case, 
either of the two options must be chosen and specified in the application.' 

3. 

Article 5 is amended as follows: 

In paragraph 2 point (a) is replaced by the following: 

'(a)  a reasoned analysis of the link between the redundancies and major structural 
changes  in  world  trade  patterns  or  the  financial  and  economic  crisis,  a 
demonstration  of  the  number  of  redundancies,  and  an  explanation  of  the 
unforeseen nature of those redundancies. Redundancies which occurred before 
or  after  the  period  provided  for  in  Article  2(a)  or  in  Article  2(c)  in  case  an 
application under the latter derogates from the criteria set out in Article 2 (a), 
may  be  covered  by  the  co-financed  measures,  provided  that  the  redundancies 
occurred  after  the  general  announcement  of  the  projected  redundancies  and  a 
clear  functional  link  can  be  established  with  the  event  which  triggered  the 
redundancies during the reference period;' 

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4. 

Article 8 is replaced by the following: 

'Article 8 

Technical assistance at the initiative of the Commission 

1.  At  the  initiative  of  the  Commission,  subject  to  a  ceiling  of  0.35%  of  the 
maximum  amount  for  the  EGF  that  year,  the  EGF  may  be  used  to  finance 
preparation, monitoring, information, creation of a knowledge base relevant to 
the  implementation  of  the  EGF,  administrative  and  technical  support,  audit, 
control and evaluation activities necessary to implement this Regulation.  

2. 

3. 

Subject to the ceiling set out in paragraph 1, the budgetary authority shall make 
available  an  amount  for  technical  assistance  at  the  start  of  each  year  on  the 
basis of a proposal by the Commission. 

The  tasks  set  out  in  paragraph  1  shall  be  executed  in  accordance  with  the 
Financial Regulation, as well as the implementing rules applicable to this form 
of implementation of the budget.' 

5. 

In Article 10 paragraph 1 is replaced by the following: 

'1.  The Commission shall, on the basis of the assessment carried out in accordance 
with Article 5(5), particularly taking into account the number of workers to be 
supported, the proposed actions and the estimated costs, evaluate and propose 
as quickly as possible the amount of financial contribution, if any, that may be 
made within the limits of the resources available. The amount may not exceed 
75% of the total of the estimated cost referred to in Article 5(2)(d).' 

6. 

In Article 13 paragraph 2 is replaced by the following: 

'2.  The  Member  State(s)  shall  carry  out  all  eligible  actions  included  in  the 
coordinated package of personalised services within 24 months of the date of 
application pursuant to Article 5.' 

7. 

In Article 20 a new subparagraph is inserted after the first subparagraph: 

"On the basis of a proposal from the Commission, the European Parliament and the 
Council  may  review  this  Regulation,  including  the  temporary  derogation  provided 
for in Article 1, paragraph 1a." 

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

Article 2 

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

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Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Regulation  of  the  European  Parliament  and  of  the  Council  amending  Regulation 
(EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund. 

2. 

ABM/ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

Competitiveness for Growth and Employment 

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings: 

40.0243 Reserve for the European Globalisation Adjustment Fund 
04.0501 European Globalisation Adjustment Fund (EGF) 
04.010414 European Global Adjustment Fund (EGF) — Expenditure on 
administrative management 

The Interinstitutional Agreement on budgetary discipline and sound financial 
management of 17 May 2006 in its Point 28 lays down the procedure to enter the 
EGF appropriations in the budget and limits the maximum annual amount available 
for the EGF to EUR 500 million. 

3.2. 

Duration of the action and of the financial impact: 

To be reviewed by 31 December 2013 (Art. 20 of Regulation 1927/2006) 

3.3. 

Budgetary characteristics: 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

04.0501  Non-
comp 

04.01041
4 

Non-
comp 

Non-
diff 

Non-
diff 

NO 

NO 

NO 

NO 

NO 

NO 

1.1 

1.1 

EN 

13 

   EN 

 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Expenditure type 

Section 
No 

Operational expenditure 

Commitment  appropriations 
(CA) 

8.1. 

Payment 
(PA) 

appropriations 

a 

b 

2009 

2010

2011

2012

2013 

2014 

Total 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

Administrative expenditure within reference amount 

Technical  &  administrative 
assistance (NDA) 

8.2.4. 

c 

TOTAL REFERENCE AMOUNT 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

Commitment 
appropriations 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

a+c

Payment appropriations 

b+c pm 

pm 

pm 

pm 

pm 

pm 

pm 

Administrative expenditure not included in reference amount 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
not 
associated 
included 
reference 
in 
amount (NDA) 

costs, 

8.2.5. 

d 

8.2.6. 

e 

0.732  0.854 

0.976 

0.876 

0.976 

0.976 

0.732 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

Total indicative financial cost of operation 

TOTAL CA including cost 
of human resources 

TOTAL  PA  including  cost 
of human resources 

Co-financing details 

a+c
+d
+e 

b+c
+d
+e 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

If  the  proposal  involves  co-financing  by  Member  States,  or  other  bodies  (please 
specify  which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
the table below (additional lines may be added if different bodies are foreseen for the 
provision of the co-financing): 

EUR million (to 3 decimal places) 

Co-financing body 

…………………… 

TOTAL  CA  including  co-
financing 

f 

a+c
+d
+e
+f 

2009 

2010

2011

2012

2013 

2014 

Total 

pm 

pm 

pm 

pm 

pm 

pm 

pm 

4.1.2.  Compatibility with financial programming 

X 

Proposal is compatible with existing financial programming. 

(cid:133) 

X 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement17 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on revenue 

X 

Proposal has no financial implications on revenue 

(cid:133) 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

EUR million (to one decimal place) 

Situation following action 

[Yea
r n] 

[n+1] [n+2]  [n+3

] 

[n+4] [n+5]

18

Prior to
action 
[Year 
n-1] 

a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

17 
18 

See points 19 and 24 of the Interinstitutional Agreement. 
Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years. 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
4.2. 

Human resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

2009 

2010 

2011 

2012 

2013 

2014 

Total  number  of  human 
resources 

6 

7 

8 

8 

8 

8 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

See explanatory memorandum. 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

See explanatory memorandum. 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

See explanatory memorandum. 

5.4.  Method of implementation (indicative) 

(cid:133)  Centralised management 

(cid:133) 

(cid:133) 

directly by the Commission 

indirectly by delegation to: 

(cid:133) 

executive agencies 

(cid:133) 

bodies set up by the Communities as referred to in Art. 185 of the 
Financial Regulation 

(cid:133) 

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

X 

Shared or decentralised management 

X  with Member States 

(cid:133)  with third countries 

(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

EN 

16 

   EN 

 
 
 
 
 
 
 
6. 

MONITORING AND EVALUATION 

Article  16  of  the  EGF  Regulation  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  the  EGF  Regulation  in  the  previous  year.  This  report 
contains inter alia the Commission's observations on its monitoring activities during 
the year in question. 

Under  Article  17  of  the  EGF  Regulation,  the  Commission  has  to  carry  out  by  31 
December 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. 

7. 

ANTI-FRAUD MEASURES  

The measures laid down for shared management apply to the EGF. In addition, under 
Article 18 of the EGF Regulation, Member States must take responsibility in the first 
instance  for  the  financial  control  of  the actions,  including  the  prevention,  detection 
and correction of irregularities. 

EN 

17 

   EN 

 
8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

Type of output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

No 
outputs 

Total 
cost 

No 
outputs 

Total 
cost 

No 
outputs 

Total 
cost 

No 
outputs 

Total 
cost 

No 
outputs 

Total 
cost 

No 
outputs 

Total 
cost 

No 
outputs 

Total 
cost 

of 

(Headings 
Objectives, 
and 
actions 
outputs should be 
provided) 

OPERATIONAL 
OBJECTIVE No 1 
19……… 

Action 
1………………. 

- Output 1 

- Output 2 

Action 
2………………. 

- Output 1 

Sub-total 
Objective 1 

OPERATIONAL 
OBJECTIVE No 2 
1……… 

19 

As described under Section 5.3. 

EN 

18 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Action 
1………………. 

- Output 1 

Sub-total 
Objective 2 

OPERATIONAL 
OBJECTIVE No n 
1 

Sub-total 
Objective n 

TOTAL COST 

EN 

19 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2. 

Administrative expenditure 

8.2.1.  Number and type of human resources 

Types of post 

Staff to be assigned to management of the action using existing and/or 
additional resources (number of posts/FTEs) 

2009 

2010 

2011 

2012 

2013 

2014 

5 

2 

6 

2 

6 

2 

6 

2 

6 

2 

Officials or 
temporary 
staff20 (XX 01 
01) 

A*/AD 

B*, 
C*/AST 

4 

2 

Staff  financed21  by  Art. 
XX 01 02 

Other  staff22  financed by 
Art. XX 01 04/05 

TOTAL 

6 

7 

8 

8 

8 

8 

8.2.2.  Description of tasks deriving from the action 

Assessing  applications,  following  them  through  the  adoption  procedures,  preparing 
annual  reports,  reviewing  the  legislation,  monitoring  and  auditing  implementation, 
providing advice and guidance to potential and actual applicants, etc. 

8.2.3. 

Sources of human resources (statutory) 

X 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

20 
21 
22 

Cost of which is NOT covered by the reference amount. 
Cost of which is NOT covered by the reference amount. 
Cost of which is included within the reference amount. 

EN 

20 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.4.  Other  administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

Budget line 

(number and heading) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5  

and 
later 

TOTAL 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies23 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total 
assistance 

technical  and  administrative 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

EUR million (to 3 decimal places) 

Type of human resources 

Officials  and  temporary  staff 
(XX 01 01) 

Staff  financed  by  Art.  XX  01 
02  (auxiliary,  END,  contract 
staff, etc.) 

(specify budget line) 

2009 

2010 

2011 

2012 

2013 

2014 

0.732 

0.854 

0.976 

0.876 

0.976 

0.976 

0 

0 

0 

0 

0 

0 

of 

cost 

Total 
human 
resources  and  associated 
in  reference 
costs 
amount) 

(NOT 

0.732 

0.854 

0.976 

0.876 

0.976 

0.976 

23 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

21 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Calculation – Officials and temporary agents 

6 to 8 statutory posts @ EUR 122 000 p.a. 

Calculation – Staff financed under Art. XX 01 02 

8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and 
later 

TOTAL 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & conferences 

XX 01 02 11 03 – Committees24  

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2 Total other management expenditure 

(XX 01 02 11) 

3  Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

administrative 
expenditure, 
than  human  resources  and 
in 

Total 
other 
associated  costs  (NOT 
reference amount) 

included 

24 

Specify the type of committee and the group to which it belongs. 

EN 

22 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Calculation - Other administrative expenditure not included in reference amount 

EN 

23 

   EN