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/2010/000 TA 2010 - technical assistance at the initiative of the Commission)
Date: 2010-04-27
Institutions: European Commission
Subjects: European Commission, European Globalisation Adjustment Fund, Internet, consultancy, dissemination of EU information

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EUROPEAN COMMISSION 

Brussels, 27.4.2010 
COM(2010)182 final 

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/2010/000 TA 2010 - technical assistance at the initiative of 
the Commission) 

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EXPLANATORY MEMORANDUM 

The  Interinstitutional  Agreement  of  17 May  2006  between  the  European  Parliament,  the 
Council  and  the  Commission  on  budgetary  discipline  and  sound  financial  management1 
allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) (point 28) 
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. 
European Commission 
Administrative expenditure: budget in EUR 
% administrative expenditure (ceiling : 0.35 %) 

EGF/2010/000 
Technical assistance 
1,110,000 
0.22 % 

According to Article 8(1) of Regulation (EC) No 1927/2006, 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 a break-down of its estimated costs 

1. 

2. 

3. 

4. 

1 
2 

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. 

Monitoring:  The  Commission  is  planning  a  series  of  parallel  studies  on  the 
implementation  of  ongoing  EGF  cases.  These  studies  will  monitor  implementation, 
strengths  and  weaknesses,  extracting  successes  and  learning  for  future  cases,  and 
providing  the  evaluators  with  useful  grassroots  material.  The  first  ten  such  studies 
will be launched in 2010 at a cost of approximately EUR 25 000 each, i.e. a total of 
EUR 250 000. 

Information:  The  EGF  web  site,  which  the  Commission  is  required  to  set  up  and 
maintain  under  Article  9(2)  of  Regulation  (EC)  No  1927/2006,  will  be  regularly 
updated and expanded, each new element also being translated into all EU languages. 
The press folder will be printed, and the annual report of the EGF will be produced, 
translated,  printed  and  distributed.  General  awareness  of  the  EGF  and  its  visibility 
will be enhanced. The EGF will be covered in various Commission publications and 
audio-visual activities. Costs for these items are estimated at EUR 240 000 in 2010. 

Creation  of  a  knowledge  base:  A  study  aimed  at  collecting  data  on  the  stages  of 
redundancy  cases  and  the  experiences  for  individual  workers  during  both  the 
dismissal  and  the  re-employment  phases,  will  be  carried  out  by  means  of  a  service 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 

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5. 

6. 

7. 

Items 

contract estimated at EUR 50 000. The Commission needs these studies in order to 
improve implementation of Regulation (EC) No 1927/2006 in the Member States. 

Administrative  and  technical  support:  The  Expert  Group  of  Contact  Persons  of  the 
EGF3, with 27 members, one from each Member State, will be holding two meetings 
in  2010,  budgeted  at  EUR  35  000  per  meeting.  The  two  meetings  are  together 
estimated at EUR 70 000. 

In addition, the Commission will be organising the exchange of successful practices 
among 
the  Member  States,  enabling  participants  with  experience  of  EGF 
implementation  to  network  with  each  other,  and  be  assisted  by  an  expert  preparing 
documentation  and  reports.  In  2010,  one  of  these  meetings  will  be  devoted  to 
exchanges  of  information  and  experiences  with  the  Member  States'  auditors 
responsible  for  EGF  audits.  The  Member  States'  auditors  are  still  very  new  to  the 
EGF,  given  the  time  lag  until  cases  are  ripe  for  audit,  and  they  have  expressed  a 
strong  wish  for  an  opportunity  to  exchange  information  and  experience  with  each 
other  and  with  the  Commission  auditors.  This  networking  activity  is  estimated  at 
EUR 200 000. 

Evaluation:  Activities  for  the  mid-term  evaluation  of  the  EGF,  as  laid  down  in 
Article 17 paragraph 1(a) of Regulation (EC) No 1927/2006, will commence in 2010. 
The evaluation framework contracts were approved too late in 2009 for the EGF to 
have  been  able  to  start  the  work  last  year;  hence  the  first  commitments  have  been 
postponed, and will amount, as originally planned, to EUR 300 000. 

Estimated 
number 

Estimated cost 
per item 
(in EUR) 

Total costs 
(in EUR) 

Monitoring : Implementation studies 

10

25,000 

250,000

Information activities 

Various

Various 

240,000

Creation of a knowledge base 

Administrative and technical support : 
Meetings of the Expert Group of Contact 
Persons of the EGF 

Administrative and technical support : 
Seminars on the Implementation of the 
EGF 

Evaluation 

Total estimated costs 

1

2

2

1

50,000 

35,000 

50,000

70,000

100,000 

200,000

300,000 

300,000

1,110,000

3 

http://ec.europa.eu/transparency/regexpert/detail.cfm?ref=2100 

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Financing 

8. 

9. 

10. 

11. 

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  2010  remains  available;  nothing 
has yet been allocated to technical assistance.  

The proposed contribution for technical assistance at the initiative of the Commission 
in 2010 is EUR 1 110 000. Following the mobilisation of this amount, the amount of 
EUR 640 000 potentially remains available in case of further need at a later stage in 
the year. 

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. 

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 2010 
budget specific commitment and payment appropriations, as required in Point 28 of 
the Interinstitutional Agreement of 17 May 2006. 

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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/2010/000 TA 2010 - 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 
management4, 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  Fund5, 
and in particular Article 8(2) thereof, 

Having regard to the proposal from the Commission6, 

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. 

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 
1 110 000. 

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6 

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 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  2010,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of  EUR 
1 110 000 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 
The President 

For the Council 
The President 

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