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, Germany, commitment of expenditure, dismissal, globalisation, integration into employment, motor vehicle industry

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THE EUROPEAN COMMISSION 

Brussels, 22.1.2010 
COM(2010)7 final 

2010/0005 (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  broadens  temporarily  the  scope  for 
application of EGF and modifies the eligibility criteria. The amended Regulation is applicable 
for applications received as of 1 May 2009.  

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

Case EGF/2009/013 DE/ Karmann 

1. 

2. 

3. 

Germany  submitted  the  application  to  the  Commission  on  13  August  2009  and 
supplemented it by additional information up to 23 October 2009. It was based upon 
the  specific  intervention  criteria  of  Article  2(a)  of  Regulation  (EC)  No  1927/2006 
which requires at least 500 redundancies over a four-month period in an enterprise in 
a  Member  State,  including  workers  made  redundant  in  its  suppliers  or  downstream 
producers and was submitted within the deadline of 10 weeks referred to in Article 5 
of that Regulation. 

The  application  concerns  2 476  redundancies  in  two  companies  of  the  enterprise 
Karmann GmbH (Wilhelm Karman GmbH and Karmann-Rheine GmbH & Co.KG), 
of whom 1 793 are targeted for EGF assistance.  

The  detailed  elements  of  the  assessment  are  to  be  found  in  the  Communication 
adopted by the Commission 4. 

On  the  basis  of  the  conclusions  of  the  above  mentioned  communication,  it  is  proposed  to 
accept  application  EGF/2009/013  DE/Karmann  submitted  by  Germany  relating  to  the 
redundancies  in  the  enterprise  Karmann  GmbH  involved  in  the  automotive  manufacturing 
industry, as evidence has been provided that these redundancies result from major structural 
changes in world trade patterns. A co-ordinated package of eligible personalised services has 
been  proposed  of  which  the  requested  contribution  of  the  EGF  is EUR  6 199 341  (see  next 
page). 

Financing 

The total annual budget available for the EGF is EUR 500 million.  

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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)1619 of 30/11/2009 

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An amount of EUR 258 163 has already been mobilised for prior application in 2010 leaving 
an amount of EUR 499 741 837 available. The Commission's proposed allocation under the 
Fund is based on the information made available by Germany.  

On the basis of the application for support from the Fund submitted by Germany and in which 
the  automotive  manufacturing  sector  is  affected,  the  contribution  from  the  EGF  to  the 
coordinated package of personalised services to be funded is of EUR 6 199 341, representing 
65 % of the total cost. 

Considering  the  maximum  possible  amount  of  a  contribution  from  the  EGF  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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2010/0005 (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 direct 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. 

Germany submitted an application to mobilise the EGF, in respect of redundancies in 
the  automotive  manufacturing  sector,  on  13  August  2009  and  supplemented  it  by 
additional  information  up  to  23  October  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 6 199 341. 

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

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(5) 

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

HAVEADOPTED 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 
6 199 341 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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