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 (application EGF/2009/020 ES/Castilla-La Mancha).
Date: 2010-05-06
Institutions: European Commission
Subjects: EU aid, European Globalisation Adjustment Fund, Spain, building industry, commitment of expenditure, dismissal

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EUROPEAN COMMISSION 

Brussels, 6.5.2010 
COM(2010)205 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 
(application EGF/2009/020 ES/Castilla-La Mancha). 

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EXPLANATORY MEMORANDUM 

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 
management1  allows  for  the  mobilisation  of  the  European  Globalisation  Adjustment  Fund 
(EGF), 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 establishing 
the European Globalisation Adjustment Fund2.  

On 9 October 2009, Spain submitted application EGF/2009/020 ES/Castilla-La Mancha for a 
financial contribution from the EGF, following 585 redundancies in 36 enterprises operating 
in  the  NACE  Revision  2  division  16  ('Manufacture  of  wood  and  of  products  of  wood  and 
cork,  except  furniture;  manufacture  of  articles  of  straw  and  plaiting  materials')  sector  in  the 
NUTS II region Castilla-La Mancha (ES42) in Spain. 

After  a  thorough  examination  of  this  application,  the  Commission  has  concluded  in 
accordance  with  Article  10  of  Regulation  (EC)  No  1927/2006  that  the  conditions  for  a 
financial contribution under this Regulation are met. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no.: 
Member State: 
Application date: 
Article 2: 
NUTS II region: 
NACE (revision 2)3 division: 

Reference period: 
Enterprises affected: 
Redundancies during the reference period, of which : 

–  calculated using individual notice 

–  calculated using the facto termination of the contract 

–  calculated using the notification to the public 

authorities of the planned collective redundancies  

Redundant workers targeted for support 
Starting date for the personalised services 

EGF/2009/20
Spain
9 October 2009
b
Castilla-La Mancha [ES42]
Division 16 ('Manufacture of 
wood and of products of wood 
and cork, except furniture; 
manufacture of articles of straw 
and plaiting materials')
01.11.2008-31.07.2009
36
585

585

0

0

557
4 January 2010

1 
2 
3 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 
Regulation (EC) No 1893/2006 of 20.12.2006 (OJ L 393 of 30.12.2006, p. 1) 

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Personalised services (budget in EUR) 
Administrative expenditure (budget in EUR) 
% administrative expenditure 
Total budget in EUR 
EGF contribution EUR (65 % of total budget): 

2 843 950
156 050
5,2
3 000 000
1 950 000

1. 

2. 

The  application  was  presented  to  the  Commission  on  9  October  2009  and 
supplemented by additional information up to 22 February 2010. 

The application meets the conditions for deploying the EGF as set out in Article 2(b) 
of  Regulation  (EC)  No  1927/2006,  and  was  submitted  within  the  deadline  of  10 
weeks referred to in Article 5 of that Regulation.  

Link  between  the  redundancies  and  major  structural  changes  in  world  trade  patterns 
due to globalisation or the global financial and economic crisis 

3. 

4. 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Spain argues that the construction sector has been severely affected 
by the crisis. The collapse of the subprime mortgage market in the USA, with major 
adverse  consequences  for  banks  and  financial  markets  around  the  globe,  had  as  a 
direct result the reduction of the capital base of financial institutions, rendering many 
of  them  less  capable  of  lending  and  more  cautious.  Therefore  loans  to  the 
construction  sector  or  to  individuals  have  been  drastically  reduced  and  the  demand 
for new houses decreased due to declining consumer confidence and the lack of cash. 
In Spain for instance the number of mortgages decreased from a monthly average of 
140 000 to 180 000 (beginning of 2006 to mid-2007) to a monthly average of 80 000 
(mid-2009).  

The  Commission  recognised  in  its  Economic  Recovery  Plan4  that  the  construction 
industry  in  the  EU  has  seen  demand  plummet  as  a  result  of  the  crisis.  More  recent 
data5  confirm  the  significant  downturn  in  the  construction  sector,  which  fell  by 
13.4%  in  the  EU27  in  the  first  quarter  of  2009  compared  with  the  previous  year, 
mainly  due  to  the  decrease  in  private  investment  in  the  residential  sector.  The 
demand  for  doors  and  door-frames  is  closely  linked  to  demand  in  the  construction 
sector, which is influenced by the number of new-builds and demand for renovations 
and upgrading (an average house needs ten doors). The number of building permits 
granted  in  Spain  decreased  by  15 %  in  2007  and  by  57 %  in  2008.  This  decline  in 
demand had a strong negative impact on employment in the construction sector and 
ancillary industries like indoor wood, building materials, furniture, etc.  

Demonstration  of  the  number  of  redundancies  and  compliance  with  the  criteria  of 
Article 2(b) 

5. 

4 
5 

Spain  submitted  this  application  under  the  intervention  criteria  of  Article  2(b)  of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 

A European Economic Recovery Plan. COM(2008) 800 
DG Enterprise: "Impact of the economic crisis on key sectors of the EU - The case of the manufacturing 
and construction industries" 
(http://ec.europa.eu/enterprise/policies/industrial-competitiveness/documents/index_en.htm) 

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nine-month period in enterprises operating in the same NACE Revision 2 division in 
one region or two contiguous regions at NUTS II level in a Member State. 

6. 

The  application  cites  585  redundancies  in  36  enterprises  operating  in  NACE 
Revision  2  division  16  ('Manufacture  of  wood  and  of  products  of  wood  and  cork, 
except  furniture;  manufacture  of  articles  of  straw  and  plaiting  materials')  in  the 
NUTS  II  region  Castilla-La  Mancha  (ES42)  in  Spain  during  the  nine-month 
reference period from 1 November 2008 to 31 July 2009. All of these redundancies 
were calculated in accordance with the first indent of the second paragraph of Article 
2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

7. 

The  Spanish  authorities  argue  that  the  financial  and  economic  crisis  has  led  to  a 
sudden collapse of the world economy with an enormous impact on many sectors and 
in particular on demand for building construction. In countries like Spain, where the 
annual growth rate of construction activity was higher than the European average, a 
slow-down  in  construction  activity  was  already  anticipated  for  the  medium  term. 
Companies operating in ancillary industries, such as the production of doors, could 
not  be  prepared  for  a  steep  drop  in  sales  of  about  30 %  6  (units  sold  in  2008 
compared  with  the  previous  year's  sales).  Exports  (mainly  to  EU  countries)  also 
decreased by 19 % during the same period. Moreover, before the crisis, at least half 
of  the  Spanish  door  manufacturers7  had  made  significant  investments  in  order  to 
increase their production capacity (new production plants and new machinery). They 
also invested in R&D. These investments would have been delayed if the sector had 
been able to foresee the crisis. 

Identification of the dismissing enterprises and workers targeted for assistance 

8. 

The application mentions 585 redundancies (of which 557 are targeted for assistance) 
in the following 36 enterprises: 

Enterprises and number of dismissals 

ACI- MANCHA CORCHOS, S.A. 

ARPUBLOCK, S.L. 
ARTEMA PUERTAS, S.A. 

ASERYMOL, S.L. 

BARNIZADOS TECNICOS 
MANCHEGOS, S.L. 
BRICO BLOCK S.A. 
CARPIMAN CRIPTANA, S.L. 
CARPINTERIA Y EBANISTERIA 
GOMEZ, S.L. 
CERMOLCA, S.L. 
CERMOTEC, S.L. 
DECORACIONES Y 
COMPLEMENTOS EL ROMERAL 
DERMACO, S.L. 

1 

6 
32 

1 

3 

34 
3 

1 

3 
2 

1 

3 

INDUSTRIA DE LA MADERA 
INDEMA, S.L. 
INDUSTRIAS LOSAN, S.A. 
MADERAS VILLACAÑAS S.A. 
MUEBLES Y CARPINTERIA 
MANCHEGA, S.L. 

PUERTAS ARTEVI, S.A. 

PUERTAS DIMARA, S.A. 
PUERTAS DOCAVI, S.A. 

PUERTAS EURODOOR, S.A.L. 

PUERTAS MAYSER 2000, S.L. 
PUERTAS PROMA, S.A. 

PUERTAS SALMAR, S.A. 

PUERTAS SANRAFAEL, S.A. 

1 

1 
62 

1 

97 

2 
122 

6 

42 
24 

1 

1 

6 
7 

Source: ANFPM (Spanish National Association of wood door manufacturers). 
Idem. 

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Enterprises and number of dismissals 

DH PROYECTOS DE 
DECORACION MOBILIARIO 
EUROARMABI, S.A. 

EUROREVERSE PUERTAS S.L. 

EXPOSTAND CRIPTANA S.L. 
GUILLÉN INDUSTRIAS DE LA 
MADERA, S.A. 
HERMANOS ALCOLADO 
PATIÑO, S.L. 
Total Enterprises: 36 

1 

1 

1 

1 

3 

1 

PUERTAS TEMBLEQUE, S.L. 

SISTEMAS FERMA, S.L. 
TERMINACIONES EN MADERA 
LEYMA, S.L. 
TOLEDANA DEL BLOCK, S.A.L. 

UNIARTE S.A. 

1 

1 

1 

3 

3 

VISEL PUERTAS, S.A. 

118 

Total of Dismissals: 585 

9. 

The break-down of the 557 targeted workers is as follows : 

Category 
Men 
Women 
EU citizens 
Non-EU citizens 
15 to 24 years old 
25 to 54 years old 
55 to 64 years old 
Over 65 years old 

Number
462
95
551
6
41
465
50
1

One targeted worker is disabled. 

In terms of professional categories, the break-down is as follows : 

Category 
Professionals 
Technician and associated professionals 
Clerks 
Service workers 
Craft and related trade workers 
Plant and machine operators 
Elementary occupations 
In terms of educational level8, the break-down is as follows: 

Number
2
3
18
1
110
207
216

Category 
Basic education  
(to end of compulsory education) 
Upper secondary education 
Post-secondary non tertiary education 
Tertiary education  
Uneducated or early school leavers 

Number

300
41
13
7
196

Percent
82,94
17,06
98,92
1,08
7,36
83,48
8,98
0,18

Percent
0,36
0,54
3,23
0,18
20,10
37,17
38,42

Percent

53,86
7,36
2,22
1,26
35,19

Similar percentages can be found when considering the 585 redundant workers.  

In  accordance  with  Article  7  of  the  Regulation  (EC)  No  1927/2006,  Spain  has 
confirmed  that  a  policy  of  equality  between  women  and  men  as  well  as  non-

10. 

11. 

12. 

13. 

14. 

8 

Categories based on the International Standard Classification of Education (ISCED-97) 

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discrimination has been applied, and will continue to apply, during the various stages 
of the implementation of and, in particular, in access to the EGF. 

Description of the territory concerned and its authorities and stakeholders 

15. 

16. 

The territory concerned by the redundancies is within the NUTS II region of Castilla-
La  Mancha,  a  region  with  a  very  low  population  density  (25.7 inhabitants  per  km2 
while  the  national  average  is  91.2 inhabitants  per  km2  and  the  EU  average  is 
112 inhabitants per km2). This region accounts for 3.4% of the Spanish GDP and it is 
the region with the second lowest per capita income (76.9 % of the national average). 
The business model in Castilla-La Mancha is mainly family-type SMEs, 99.94 % of 
the  enterprises  fall  into  this  category.  The  enterprise  distribution  by  sector  is 
60 % services, 17 % industry, 14 % construction and 9 % agriculture.  

The  main  stakeholders  are  the  Junta  de  Comunidades  de  Castilla-La  Mancha 
(Castilla-La Mancha autonomous government), Delegado Provincial de la Consejería 
de Trabajo y Empleo en Toledo (the local labour authority of the relevant province), 
trade unions: MCA-UGT and FECOMA-CCOO9, the Federation of Social Economy 
Enterprises  of  Castilla-La  Mancha  autonomous  region  (FECMES)  and  the  regional 
association of manufacturers of doors and other wood products (AFAP). 

Expected impact of the redundancies as regards local, regional or national employment 

17. 

18. 

In  Castilla-La  Mancha  the  number  of  registered  unemployed  workers  almost 
quadrupled in the last two years, rising from 3 701 in 2007 to 13 857 in 2009. 

Spain  is  the  second  most  important  producer  of  wooden  doors  in  the  EU  (65 
enterprises  and  12  million  units  produced  in  2006).  16  of  these  enterprises, 
representing more than 50 % of the total Spanish production, are located in Castilla-
La  Mancha.  93 %  of  the  dismissals  covered  by  this  application  are  concentrated  in 
two small municipalities in the province of Toledo: Villacañas (10 310 inhabitants) 
and Villa de Don Fadrique (4 065 inhabitants), where industry (mainly production of 
wooden  doors)  represents  70 %  of  total  jobs.  In  these  circumstances,  the 
redundancies can be seen as to have a significantly negative effect on the local and 
regional economy. 

19. 

The  area  suffers  from  the  additional  problem  of  depopulation  and  has  known 
difficulties  in  trying  to  enhance  the  sense  of  attachment  of  the  population  to  the 
territory, so layoffs can also have a highly negative impact on the territory.  

Co-ordinated  package  of  personalised  services  to  be  funded  and  a  breakdown  of  its 
estimated  costs,  including  its  complementarity  with  actions  funded  by  the  Structural 
Funds 

20. 

All the following measures combine to form a co-ordinated package of personalised 
services aimed at re-integrating the workers into the labour market.  

9 

Federación  Regional  del  Metal,  Construcción  y  Afines  de  la  Unión  General  de  Trabajadores  (MCA-
UGT) and Federación Regional de Madera de Comisiones Obreras (FECOMA-CCOO). 

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–  Screening  and  Occupational  Guidance.  The  first  measure  provided  to  all  557 
participants  concerns  the  profiling  of  the  workers.  Guidance  provided  includes 
information  on  available  jobs,  on  skills  and  training  requirements,  on  available 
training programmes and incentive schemes. 

–  Intensive job search assistance: This will involve an intense employment search, 
including both passive and active research of the local and regional employment 
opportunities. 

–  Training and re-training. This measure will include an assessment of the training 
needs of the workers concerned, and their training in sectors where opportunities 
exist or will arise. The training will consist in short courses (about 50 hours) with 
a highly practical content. It is estimated that 500 workers will participate in this 
measure. 

–  Training for professional qualification: Planned as a long-training measure (about 
12 months), this will be composed of a set of courses focused on providing a new 
and  certified  professional  qualification.  It  is  estimated  that  90  workers  will 
participate in this measure. 

–  Promotion of entrepreneurship: Specific training activities for those workers who 
wish to start their own business will be provided. This will cover elements such as 
planning, carrying out feasibility studies, preparation of business plans and raising 
finance. Around 10 % of the targeted workers will participate in this measure. 

–  Training  workshops  combined  with  work.  The  participants  in  this  measure  will 
combine  working  as  a  trainee  (25  hours  per  week)  with  training  (a  further  10 
hours per week). The workers, after having trained in new professional skills, will 
be  given  the  opportunity  of  gaining  work  experience  by  means  of  a  part-time 
contract as trainee. The trainees will receive the Spanish minimum wage adjusted 
proportionately to the time worked.  

–  Participation  incentive.  To  encourage  their  participation  in  the  measures,  the 
workers will receive a lump sum of EUR 250, conditional upon their participation 
in the measures contained in the EGF package.  

–  Mobility allowance. Those workers participating in a measure taking place outside 
their municipality of residence will receive a mobility allowance of up to EUR 10 
daily  and  a  maximum  of  EUR 150  per  worker,  as  a  contribution  to  their  travel 
expenses. 

–  Outplacement incentives. A wage subsidy of EUR 350 per month for a maximum 
of six months will be paid to those workers who return to employment, if a work 
contract or contracts have been signed within the six months that following their 
enrolment  as  participants  in  this  package  of  measures  co-financed  by  the  EGF. 
The  subsidy  is  designed  to  encourage  quick  reintegration  into  the  labour  market 
and to stimulate workers, particularly those who are older, to remain in the labour 
market. It will be paid once a worker has accumulated 30 days of social security 
contributions.  

–  Outplacement incentives for self-employed workers: Self-employed workers, who 
have started a business within the six months that following their enrolment as a 
participant  in  this  package  of  measures  co-financed  by  the  EGF,  will  receive  a 

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contribution of EUR 350 per month for a maximum of six months once they have 
accumulated 30 days of social security contributions or run a business for 30 days. 
This  incentive  is  designed  to  support  those  starting  their  own  businesses  during 
the initial months after start-up. 

–  Support  for  setting  up  a  business:  Workers  who  start  their  own  businesses  will 
receive  a  lump  sum  of  EUR 3 000  to  cover  setting-up  costs,  provided  that  they 
have  not  already  received  any  of  the  contributions  that  the  region  of  Castilla-La 
Mancha makes available for the same purpose.  

–  "Back to school" incentive: Taking into account the young age of many workers 
targeted for assistance and their very low education levels, and with the objective 
of  encouraging  them  to  complete  their  compulsory  education  or  taking  up 
secondary  or  tertiary  studies,  the  workers  will  receive  a  lump  sum  of  EUR 300 
after passing the official final examination at the end of compulsory education or a 
lump  sum  of  EUR 1 500  after  completing  one  year  of  upper-secondary  school 
(bachillerato  or  formación  profesional  de  grado  medio),  or  tertiary  education 
(formación profesional de grado superior or enseñanzas universitarias de primer o 
segundo ciclo). 

–  Contribution to the expenses for change of residence: Those workers who accept a 
job  involving  a  change  of  residence  will  receive  a  lump  sum  of  EUR 2100  to 
cover the necessary expenditure.  

–  Support  for  child-care.  Workers  with  dependent  children,  who  participate  in 
measures or take up new employment, may apply for reimbursement of 50 % (up 
to EUR 300) of child-care costs (child-care centres, caretakers or school canteens) 
for up to 6 months. This measure aims to cover the additional costs faced by the 
workers in order to avail of training or other measures or after taking up a job. It is 
estimated that 350 workers will wish to benefit from this measure. 

The  administrative  expenditure,  which  is  included  in  the  application  in  accordance 
with  Article  3  of  the  Regulation  (EC)  No  1927/2006,  covers  preparatory, 
management and control activities as well as information and publicity. 

The  personalised  services  presented  by  the  Spanish  authorities  are  active  labour 
market  measures  within  the  eligible  actions  defined  by  Article  3  of  the  Regulation 
(EC) No 1927/2006. The Spanish authorities estimate the total costs of these services 
at  EUR 2 843 950  and  the  administrative  expenditure  at  EUR 156 050  (= 5.2 %  of 
the total amount). This percentage is slightly higher than usual, due to the inclusion 
of  a  study  on  the  local  economic  situation  and  the  alternative  employment 
opportunities  in  the  affected  area  valued  at  EUR 41,050  among  the  preparatory 
measures, with the objective of making the training and job search measures for the 
redundant workers more effective. The total contribution requested from the EGF is 
EUR 1 950 000 (65 % of the total costs). 

21. 

22. 

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Actions 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

Total costs in 
EUR 
(EGF and 
national co- 
financing) 

Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) 

1. Screening and occupational guidance (for 
employees) 
(Orientación y asesoramiento laboral para 
la inserción por cuenta ajena) 

2. Screening and occupational guidance (for 
self-employers) 
(Orientación y asesoramiento laboral. 
Programa de autoempleo) 

3. Intensive job search assistance 
(Intermediación y gestión laboral) 

4. Training and re-training 
(Formación para la activación laboral) 

5. Training for professional qualification 
(Programa para la recualificación 
profesional –formación de larga duración-) 

6. Promotion of entrepreneurship 
(Formación en autoempleo) 

7. Training workshops combined with work 
(Módulos de formación en alternancia con 
el trabajo) 

8. Participation incentive 
(Incentivos para la participación activa) 

9. Mobility allowances 
(Becas de desplazamiento) 

10. Outplacement incentives 
(Incentivos para la reinserción laboral) 

11. Outplacement incentives (for self-
employers) 
(Incentivos para el fomento del autoempleo) 

12. Support for the setting up of a business 
(Incentivo para la cobertura de gastos de 
establecimiento 

13. "Back to the school" incentive 
(Incentivo de retorno a las aulas) 

14. Contribution to the expenses for change 
of residence 
(Incentivos a la movilidad geográfica) 

500

780 

390 000

57

500

500

90

57

16

557

400

75

20

20

120

30

600 

34 200

800 

400 000

1 210 

605 000

4 000 

360 000

3 000 

171 000

12 500 

200 000

250 

150 

139 250

60 000

2 100 

157 500

2 100 

42 000

3 000 

60 000

900 

108 000

2 100 

63 000

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Actions 

15. Support for child care 
(Incentivo para la conciliación) 

Subtotal personalised services 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

Total costs in 
EUR 
(EGF and 
national co- 
financing) 

30

1 800 

54 000

2 843 950

Technical  assistance  for  implementing  EGF  (third  paragraph  of  Article  3  of  Regulation 
(EC) No 1927/2006) 

Preparatory 

Management 

Information and publicity 

Control activities 

Subtotal administrative expenditure 

Total estimated costs 

EGF contribution (65 % of total costs) 

63 050

55 000

15 000

23 000

156 050

3 000 000

1 950 000

23. 

24. 

As  regards  the  complementarity  with  actions  funded  by  the  Structural  Funds,  the 
Spanish  authorities  confirm  that  the  measures  described  above  are  complementary 
with  actions  funded  by  the  Structural  Funds.  Thus,  for  instance,  the  measure 
"Training combined with work" will benefit those workers who, due to their age, are 
excluded from similar ESF measures. 

The EGF assistance will be directly targeted at mitigating the consequences of mass 
redundancies associated with the effects of the current global financial and economic 
crisis, while support from the European Social Fund (ESF) is programmed and used 
to  finance  active  labour  market  policy  measures  planned  over  a  seven-year 
programming  period.  The  main  objectives  of  the  2007-2013  ESF  operational 
programmes  for  Castilla-La  Mancha  are  promoting  workers'  lifelong  learning  and 
decreasing  the  rate  of  early  school  leaving,  focusing  in  particular  on  the  most 
vulnerable people or people threatened by social exclusion. 

Date(s)  on  which  the  personalised  services  to  the  affected  workers  were  started  or  are 
planned to start 

25. 

Personalised  services  to  the  affected  workers  included  in  the  co-ordinated  package 
proposed for co-financing by the EGF were started by Spain on 4 January 2010. This 
date therefore represents the beginning of the period of eligibility for any assistance 
that might be awarded from the EGF. 

Procedures for consulting the social partners 

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26. 

The  social  partners  were  consulted  during  the  preparation  of  the  co-ordinated 
package of measures. The proposed application was discussed at a start-up meeting 
held on June 2009 as well as several meetings held in September 2009 with the social 
partners:  Servicio  Público  de  Empleo  de  Castilla-La  Mancha-SEPECAM  (public 
employment services of the affected region), the employer organisations (Asociación 
de Fabricantes de Puertas y Afines de Castilla-La Mancha –AFAP- and Federación 
Castellanomanchega  de  Empresas  de  Economía  Social  –FECMES-)  the  principal 
trade unions (FECOMA-CCOO and MCA-UGT10) and Mr. Santiago García Aranda, 
Mayor of Villacañas, the municipality most affected by the redundancies. 

27. 

The  Spanish  authorities  confirmed  that  the  requirements  laid  down  in  national  and 
Community legislation concerning collective redundancies have been complied with. 

Information  on  actions  that  are  mandatory  by  virtue  of  national  law  or  pursuant  to 
collective agreements 

28. 

As regards the criteria contained in Article 6 of the Regulation (EC) No 1927/2006, 
the Spanish authorities in their application:  

•  confirmed that the financial contribution from the EGF does not replace measures 
which are the responsibility of companies by virtue of national law or collective 
agreements, 

•  demonstrated that the actions provide support for individual workers and are not 

to be used for restructuring companies or sectors, 

•  confirmed that the eligible actions referred to under points 20 to 22 above do not 

receive assistance from other Community financial instruments. 

Management and control systems  

29. 

Spain  has  notified  the  Commission  that  the  financial  contribution  will  be  managed 
and controlled by the same bodies that manage and control the ESF. The Directorate 
General for Employment of the Public Employment Service of Castilla-La Mancha, 
which  is  mentioned  in  the  ESF  regional  operational  programme  for  Castilla-La 
Mancha, will be the intermediate body for the managing authority.  

Financing 

30. 

31. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 1 950 000, representing 
65 %  of  the  total  cost.  The  Commission's  proposed  allocation  under  the  Fund  is 
based on the information made available by Spain. 

Considering the maximum possible amount of a financial contribution from the EGF 
under Article 10 (1) of the Regulation (EC) No 1927/2006, as well as the scope for 
reallocating  appropriations,  the  Commission  proposes  to  mobilise  the  EGF  for  the 

10 

Federación Regional de Madera de Comisiones Obreras (FECOMA-CCOO) and Federación Regional 
del Metal, Construcción y Afines de la Unión General de Trabajadores (MCA-UGT) 

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32. 

33. 

total  amount  referred  above,  to  be  allocated  under  heading  1a  of  the  financial 
framework. 

The  proposed  amount  of  financial  contribution  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 the Regulation (EC) No 
1927/2006. 

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.  

34. 

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 
(application EGF/2009/020 ES/Castilla-La Mancha).  

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 
management11, 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  Fund12, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission13, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional support for workers made redundant as a result of major structural changes 
in world trade patterns due to globalisation 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. 

Spain submitted an application to mobilise the EGF, in respect of redundancies in 36 
enterprises operating in NACE Revision 2 division 16 ('Manufacture of wood and of 
products  of  wood  and  cork,  except  furniture;  manufacture  of  articles  of  straw  and 

11 
12 
13 

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

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plaiting  materials')  in  a  single  NUTS  II  region,  Castilla-La  Mancha  (ES42)  on  9 
October 2009 and supplemented it by additional information up to 22 February 2010. 
This  application  complies  with  the  requirements  for  determining  the  financial 
contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006.  The 
Commission therefore proposes to mobilise an amount of EUR 1 950 000. 

(5) 

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

HAVE DECIDED AS FOLLWS: 

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 1 950 000 in commitment and payment appropriations. 

Article 2  

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels/Strasbourg, 

For the European Parliament 
The President 

For the Council 
The President 

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