Proposal for a Decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund
Date: 2010-01-22
Institutions: European Commission
Subjects: EU employment policy, European Globalisation Adjustment Fund, Lithuania, commitment of expenditure, dismissal, electrical equipment, globalisation, integration into employment

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THE EUROPEAN COMMISSION  

Brussels, 22.1.2010 
COM(2010)8 final 

2010/0003 (NLE) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund 

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EXPLANATORY MEMORANDUM 

The Interinstitutional Agreement of 17 May 20061 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. 
Eligibility rules applicable to the contributions from the Fund are laid down in Regulation EC 
N°  1927/2006  of  the  European  Parliament  and  of  the  Council  of  20  December  2006 
establishing the European Globalisation Adjustment Fund (EGF) 2. This Regulation has been 
last  amended  by  Regulation  (EC)  N°  546/20093  which  temporarily  broadens  the  scope  for 
application of EGF and modifies the eligibility criteria. The amended Regulation is applicable 
for applications received from 1 May 2009.  

The  Commission  services  have  carried  out  a  thorough  examination  of  the  application 
submitted by Lithuania in accordance with Regulation (EC)  N° 1927/2006 and in  particular 
with Articles 1, 2, 3, 4, 5 and 6 thereof. 

Case EGF/2009/010 LT/Snaigė 

1. 

2. 

3. 

Lithuania submitted the application to the Commission on 23 July 2009. It was based 
upon the specific intervention criteria Article 2(c) of Regulation (EC) No 1927/2006 
which allows applicants to derogate from the requirements of Articles 2(a) and 2(b) 
in  small  labour  markets  or  in  exceptional  circumstances  when  redundancies  have  a 
serious  impact  on  employment  and  the  local  economy.  Lithuania  has  specified  that 
its application seeks to derogate from Article 2(a), where the normal threshold is at 
least 500 redundancies over a 4-month period. The redundancies in AB Snaigė took 
place  in  two  major  waves,  peaking  in  November  2008  and  February-March  2009, 
and  there  was  no  single  four-month  period that  captured  at  least  500  redundancies, 
even though the total redundancies exceeded that figure by adding around six weeks 
to  the  reference  period.  The  application  was  submitted  within  the  deadline  of  10 
weeks referred to Article 5 of that Regulation. 

The  application  concerns  651  redundancies  of  whom  480  are  targeted  for  EGF 
assistance.  

The  detailed  elements  of  the  assessment  are  to  be  found  in  the  Communication 
adopted by the Commission4. 

On  the  basis  of  the  conclusions  of  the  above  mentioned  communication,  it  is  proposed  to 
accept  application  EGF/2009/010  LT/Snaigė  submitted  by  Lithuania  relating  to  the 
redundancies in AB Snaigė and two of its suppliers, as evidence of a direct and demonstrable 
link has been provided that these redundancies result from the global financial and economic 
crisis.A  co-ordinated  package  of  eligible  personalised  services  has  been  proposed  of  which 
the requested contribution of the EGF is EUR 258 163 (see next page). 

Financing 

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OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 
OJ L 167of 29.06.2009, p. 26. 
SEC(2009)1620 of 30/11/2009 

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The  total  annual  budget  available  for  the  EGF  is  EUR 500 million.  The  Commission's 
proposed allocation under the Fund is based on the information made available by Lithuania. 

On the basis of the application for support from the Fund submitted by Lithuania and in which 
AB Snaigė and two of its suppliers are affected, the contribution from EGF to the coordinated 
packages of personalised services to be funded is of EUR 258 163, representing 65 % of the 
total cost. 

Considering  the  maximum  possible  amount  of  a  contribution  from  the  Fund  established  in 
accordance  with  Article  10  of  Regulation  (EC)  No  1927/2006  as  well  as  the  scope  for 
reallocating appropriations, the Commission proposes to deploy the EGF for the total amount 
referred above, to be allocated under heading 1a of the financial framework. 

The requested amount of support will leave more than 25 % of the maximum annual amount 
earmarked  for  the  EGF  available  for  allocations  during  the  last  four  months  of  the  year,  as 
required by Article 12 (6) of Regulation (EC) No 1927/2006. 

By  presenting  this  proposal  to  deploy  the  Fund,  the  Commission  initiates  the  simplified 
trialogue procedure, as required by Point 28 of  the  Inter-institutional  Agreement  of  17  May 
2006,  in  view  of  securing  the  agreement  of  the  two  arms  of  the  budgetary  authority  on  the 
need to use the Fund 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.  

The  Commission  presents  separately  a  transfer  request  in  order  to  enter  in  the  2010  budget 
specific  commitment  and  payment  appropriations,  as  required  in  Point  28  of  the 
Interinstitutional Agreement of 17 May 2006. 

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2010/0003 (NLE) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of 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, 

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 
management5, 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  Fund6, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission7, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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. 

The scope of the EGF was broadened for applications submitted from 1 May 2009 to 
include  support  for  workers  made  redundant  as  a  result  of  the  global  financial  and 
economic crisis. 

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

Lithuania submitted an application to mobilise the EGF, in respect of redundancies in 
AB Snaigė and two of its suppliers, on 23 July 2009. This application complies with 
the requirements for determining the financial contributions as laid down in Article 10 
of  Regulation (EC) No 1927/2006,  therefore  the  Commission  proposes  to  deploy  an 
amount of EUR 258 163 . 

(5) 

The  EGF should,  therefore,  be mobilised in  order to provide a financial contribution 
for the application submitted by Lithuania. 

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6 
7 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
OJ C […], […], p. […]. 

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HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2010,  the  European 
Globalisation Adjustment Fund (EGF) shall be mobilised to provide the sum of EUR 258 163 
in commitment and payment appropriations. 

Article 2 

This  Decision  shall  enter  into  force  on  the  […]  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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