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/2009/014 ES/Comunidad Valenciana).
Date: 2010-05-06
Institutions: European Commission
Subjects: EU aid, European Globalisation Adjustment Fund, Spain, ceramics, commitment of expenditure, dismissal

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EUROPEAN COMMISSION 

Brussels, 6.5.2010 
COM(2010)216 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/2009/014 ES/Comunidad Valenciana). 

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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 2 September 2009, Spain submitted application EGF/2009/014 ES/Comunidad Valenciana 
for  a  financial  contribution  from  the  EGF,  following  2 425  redundancies  in  181  enterprises 
operating  in  the  NACE  Revision  2  division  23  ('Manufacture  of  other  non-metallic  mineral 
products') sector in the NUTS II region of Comunidad Valenciana (ES52) 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 facto termination of the contract 

–  calculated using the notification of the planned 
collective redundancies to the public authority 

Redundant workers targeted for support 
Starting date for the personalised services 
Personalised services : budget in EUR 
Administrative expenditure : budget in EUR 
% administrative expenditure 

EGF/2009/14 
Spain 
2 September 2009 
b 
Comunidad Valenciana [ES52] 
Division 23 ('Manufacture of 
other non-metallic mineral 
products') 
25.09.2008 – 24.06.2009 
181 

2 425 

0 
509 

1 916 

1 600 
15 September 2009 
9 691 900 
460 000 
4.5 

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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2 

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Total budget in EUR 
EGF contribution EUR (65 %): 

10 151 900 
6 598 735 

1. 

2. 

The  application  was  presented  to  the  Commission  on  2  September  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. The demand for 
ceramic  products  and  wall  and  floor  tiles  is  closely  linked  to  demand  in  the 
construction sector, which is influenced by the number of new-builds and demand for 
renovations  and  upgrading.  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  (including  ceramic  products), 
furniture, etc.  

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

5. 

6. 

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 
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. 

The  application  cites  2 425  redundancies  in  181  enterprises  classified  in  the  same 
NACE  Revision  2  division  during  the  nine-month  reference  period  from  25 
September 2008 to 24 June 2009, all located in a single region at NUTS II level, the 
Comunidad Valenciana. 509 of these redundancies in 120 enterprises were calculated 
in  accordance  with  the  second  indent  of  the  second  paragraph  of  Article  2  of  the 
Regulation  (EC)  No  1927/2006.  A  further  1 916  redundancies  occurred  in  64 

4 

A European Economic Recovery Plan. COM(2008) 800 

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enterprises  and  were  calculated  in  accordance  with  the  third  indent  of  the  same 
paragraph5. The Commission has received the confirmation required under the third 
indent  of  the  second  paragraph  of  Article  2(2)  that  this  is  the  actual  number  of 
redundancies  effected.  Of  the  total  of  2 425  workers,  1 600  have  been  targeted  for 
assistance. 

Explanation of the unforeseen nature of those redundancies 

7. 

8. 

9. 

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. 
Since  2008  the  economic  situation  has  not  been  following  the  trends  of  previous 
years. This is not a gradual economic decline, for which companies could have been 
prepared.  

A study on the Ceramic district of Castellón6 carried out by the Jaume I University in 
the  context  of  the  Competitiveness  Plan  of  the  Ceramic  Sector  2005-2007  reported 
the  possibility  of  a  drop  in  construction  activity  at  Spanish  national  level  by  about 
15 %. The collapse in sales, when it happened, exceeded this forecast by three times. 
In the Competitiveness Plan, all the efforts were focused on innovation, marketing, 
training  and  co-operation,  as  the  possible  decrease  in  sales  was  not  considered  a 
major risk.  

Before the crisis, the Spanish ceramics sector made significant investments in order 
to increase its production capacity (new production plants and new machinery) and 
also to develop new products with a higher added value. In 2007 the ceramics sector 
invested  in  research  and  development  by  twice7  the  level  of  the  Spanish  average 
investment in R&D. The Ceramic Technological Institute created an observatory in 
2007  to  provide  the  ceramic  tile  industry  with  information  to  enhance  their 
competitiveness  in  international  markets.  Several  of  the  companies  listed  below 
contributed  financially  and  participated  actively  in  the  work  carried  out  by  the 
observatory.  

10. 

The strategy of developing high added value products and related 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 

11. 

The  application  relates  to  2 425  redundancies  (of  which  1 600  are  targeted  for 
assistance) in the following 181 enterprises:  

Enterprises and number of dismissals 

4bm Cerámicas Comunidad 
Valenciana 2008, S.L. 
Abad Ceramistas, S.L. 
Absolut Keramica, S.L. 

92 

Halcón Cerámicas, S.A. 

6 
1 

Hatz Spain, S.A. 
Herarbo 2, S.L. 

76 

20 
1 

5 

6 

7 

For three of these enterprises (Artísticos del Levante S.A., Azulejos Sanchís S.L. and Roig Cerámica 
S.A.) redundancies were calculated in accordance with the third indent for most of its workers (98 %, 
78 % and 64% respectively) and with the second for the remaining ones. 
Estudio sobre El Distrito de la Cerámica de Castellón. Instituto Interuniversitario de Desarrollo Local 
de la Universidad Jaume I 
INE, Spanish national statistical institute. 

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Enterprises and number of dismissals 

Adobe Cerámicas, S.L. 
Alfa Cerámico y Porcelánico, S.A. 
Alundum, S.A. 
Apavisa Porcelánico, S.L. 
Arce Cerámicas, S.L. 

Arcillas Atomizadas S.A. 

Aresmat, S.L.U. 

Argenta Cerámica, S.A. 
Arrandis Cerámicas, S.L. 
Arte y Diseño Cerámico, S.A. 
Artisticos del Levante, S.A. 
Azteca Cerámica S.L. 
Azteca Products & Services, S.L.  
Azteca Sergrup, S.L.  
Azulejera Técnica, S.A. 
Azulejo Español, S.L. 
Azulejos Mallol, S.A. 
Azulejos Mijares, S.L. 
Azulejos Sanchis, S.L. 
Azulev S.A. 
Azuliber 1, S.L. 
Azuvi, S.A. 
Ballesmar, S.L. 
Barro Diseño y Arte, S.L. 

Batimat Mediterraneo, S.L. 

Batimat, S.A. 
Biselglass, S.L. 
Cales de La Plana, S.A. 
Candida Conde Gomez, S.L.U. 
Cartonajes La Plana, S.L. 
Cerámica Artia, S.L. 
Cerámica Bechinense, S.A. 
Cerámica Da Vinci, S.L. 
Cerámica Kersa, S.L. 
Cerámica Latina, S.L. 
Cerámica Montgo, S.L. 
Cerámica Nulense, S.A. 
Cerámica Saloni, S.A. 
Cerámica Tres Estilos, S.L. 
Cerámicas Artísticas Ondenses, S.L. 
Cerámicas Belcaire, S.A. 
Cerámicas Fanal, S.A. 
Cerámicas Peñarroya, S.A. 
Cerámicas Triconten, S.L. 
Cerámicas Vives, S.A. 
Ceraworld Produccion, S.A. 

15 
10 
2 
2 
70 

2 

1 

1 
15 
1 
22 
1 
8 
10 
61 
2 
16 
3 
41 
5 
24 
70 
32 
1 

7 

1 
9 
1 
2 
1 
1 
43 
10 
43 
1 
12 
1 
82 
14 
1 
1 
1 
11 
1 
4 
30 

5 

Hidrapren, S.A. 
Hijos de Francisco Gaya Fores, S.L 
Hispanoazul, S.A. 
Hormigones del Este, S.A. 
Iberoalcorense, S.L. 
Industria Cooperadora del Azulejo, 
S.L. (Incoazul) 
Industrias Alcorenses Confederadas 
(Inalco) 
Inoxpro, S.L. 
Iruba Ceramic, S.L. 
Itaca, S.A. 
Juan Jose Limo Casals, S.L.  
Kaleydos Design S.L. 
Kerabén, S.A. 
Keramapol Sl 
Keramarmol S.L. 
Keramia Cerámicas, S.L. 
Keratrim, S.A. 
Keren Marmoles, S.L. 
Kerlux, S.A. 
Keros Cerámica, S.A. 
Land Porcelánico, S.L. 
Levitile Ibérica, S.A.  
Lucena Cerámicas 
Mª Soledad Pascual Conde 
Mantenimiento y Montajes Ceramicos 
Man, S.L. 
Marazzi Iberia 
Marmoles Portoles, S.L. 
Mecacer, S.L. 
Mercury Cerámica, S.L. 
Metropol Cerámica, S.L. 
Miura Cerámicas, S.L. 
Molcer, S.A. 
Moldeados Ceramicos, S.L. 
Navarti Cerámica, S.L. 
Nexo Iberica, S.L. 
Nomazul, S.A. 
Nuevos Productos Cerámicos, S.A. 
Ondabaño 
Palo Rosa Cerámicas y Parquet, S.L. 
Pamesa Cerámica, S.L. 
Pavimentos Bechi, S.L. 
Pavires Azulejos del Sur S.L. 
Piedras Bernad, S.L 
Pinceram, S.L. 
Planagrup, S.L. 
Planomyr, S.A. 

2 
1 
1 
1 
32 

7 

12 

2 
1 
2 
21 
18 
48 
1 
8 
18 
5 
1 
69 
3 
1 
13 
23 
1 

1 

4 
1 
2 
1 
1 
1 
6 
1 
29 
1 
2 
2 
17 
2 
21 
1 
1 
1 
5 
1 
31 

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Enterprises and number of dismissals 

Cerbarro, S.L. 
Cergrup Cerámicas, S.L. 
Cerpa, S.L. 
Cerrajeria Mecanica Vila-Real, S.A. 
Cifre Cerámica, S.L. 
Colorificio Cerámico Bonet, S.A. 
Colorker, S.A. 
Comayco Vidrio La Plana, S.L. 
Comercial Coinge, S.L. 

Comercial Nou Colors, S.L. 

Compacglass, S.L. 
Composiciones Artísticas de 
Cerámica, S.L. 
Corintia Esmaltes Ceramicos, S.L 
Cottocer, S.L. 
Cristal Cerámicas, S.A. 
Deciver 21, S.L. 
Deltaker, S.A. 
Disfrimur, S.L. 

Egeum 2000, S.L. 

Endeka Ceramics, S.A. 
Equipe Cerámica, S.L. 
Esmalglass, S.A. 
Esmaltes, S.A. 
Estudio Cerámico, S.L. 

Eurodema, S.L. 

Exagres, S.A. 
Experiencia Cerámica, S.A. 
"Expersa" 
Expo-Rotul, S.L. 
Fabricacion Española Sanitaria, S.A. 
(Fabresa) 
Ferraes Cerámica, S.A. 
Ferro Spain Sa 
Forjados Amo, S.L. 
Gama-Decor, S.A. 
Garogres, S.A. 
Gocare, S.L. 
Gres Blanc 
Gres Cid, S.L. 
Gres de Valls, S.A. 
Gres Rústico Extrusionado, S.A. 
Grespania, S.A. 
Grupo Serviclean 3000, S.L. 
Guillamon Bou, S.A. 
Total Enterprises: 181 

1 
17 
10 
1 
1 
43 
1 
12 
1 

1 

1 

Porcelanicos HDC, S.A. 
Porcelanite, S.L 
Porcelanosa Cerámica, S.A. 
Prefabricados Pavi, S.L. 
Promosanit, S.A. 
R.Hervas S.A. 
Real Cerámica, S.A.U. 
Realonda, S.A.  
Repuestos Cerámicos Almazora, S.L. 
Revestimientos Ceramicos Castellon, 
S.A. 
Roig Cerámica, S.A. (Rocersa) 

17 

S.A. Minero Catalana Aragonesa 

4 
4 
1 
2 
1 
1 

15 

4 
55 
61 
3 
52 

2 

17 

21 

1 

1 

1 
1 
14 
3 
29 
1 
1 
5 
11 
40 
10 
2 
13 

Sanycces, S.L. 
Seriman, S.A. 
Serviquimia, S.L. 
Sesoca, S.L. 
Sichar Cerámica, S.A. 
Silvano Lassi, S.L. 
Sociedad Tecnológica Industrial 
Levantina de Cerámicas, S.L. 
Superceramica, S.A. 
System-Pool, S.A. 
Talleres Boyma, S.L. 
Taullel S.A. 
Tecnofoc Design, S.L. 
Tecnologia de Limpieza Ambiental, 
S.L. 
Tendencias Cerámicas, S.L. 

Terracota Pavimento de Gres, S.A. 

Terracuita S.A. 

Todagres, S.A. 

Torrecid, S.A. 
Tot Encofrat, S.L. 
Tottall Ceramic, S.L. 
Trazos Ceramicos, S.L. 
Tres F., S.L. 
Tres Terminos Arregui, S.A. 
Undefasa, S.A. 
Universal Cerámica, S.L. (Unicer) 
Utiles Ceramicos, S.L. 
Venis, S.A. 
Vicente Enrique Bort Martinez 
Vidrepur, S.A. 

Total of Dismissals: 2 425 

2 
3 
11 
1 
2 
13 
50 
22 
1 

34 

55 

2 

2 
57 
1 
5 
4 
25 

42 

39 
8 
1 
37 
55 

2 

24 

1 

6 

46 

4 
1 
2 
2 
36 
2 
11 
3 
1 
17 
1 
1 

12. 

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

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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
1 137
463
1 556
44
58
1 398
143
1

23 of the targeted workers are disabled. 

In terms of professional categories8, the break-down is as follows : 

Category 
Managers 
Professionals 
Technicians and associated professionals 
Clerks 
Craft and related trade workers 
Plant and machine operators 
Elementary occupations 
Others 
In terms of educational level9, the break-down is as follows: 

Number
26
36
200
132
307
663
215
21

Educational level 
Basic education  
(to end of compulsory education) 
Upper secondary education 
Tertiary education  
Others (non formal education) 
Uneducated or early school leavers 

Number
528

158
90
104
720

Percent
71,1
28,9
97,3
2,7
3,6
87,4
8,9
0,1

Percent
1,63
2,25
12,50
8,25
19,19
41,44
13,44
1,31

Percent
33,00

9,87
5,63
6,50
45,00

Similar  percentages  can  be  found  when  considering  the  2 425  redundant  workers 
with one exception: uneducated workers represent 37 % of the dismissed workers but 
45 % of the workers targeted for assistance. 

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-
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. 

13. 

14. 

15. 

16. 

17. 

Description of the territory concerned and its authorities and stakeholders 

18. 

The  territory  concerned  by  the  redundancies  is  within  the  NUTS  II  region  of 
Comunidad Valenciana, and is concentrated in three comarcas (roughly equivalent to 
counties)  in  the  NUTS  III  province  of  Castellón:  Alcalatén,  La  Plana  Alta  and  La 
Plana  Baixa.  This  area  of  about  30  km  around  the  main  town  of  the  province, 

8 
9 

Categories based on the one-digit International Standard Classification of Occupations (ISCO-88). 
Categories based on the International Standard Classification of Education (ISCED-97) 

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Castellón  de  la  Plana,  is  known  as  the  'ceramics  industrial  district'  as  almost  the 
entire Spanish production of ceramics is located here.  

19. 

The  main  stakeholders  are  the  Generalitat  Valenciana  (Comunidad  Valenciana 
autonomous  government),  Diputación  de  Castellón  (the  local  authority  of  the 
relevant  province), 
trade  unions:  UGT-PV,  CCOO-PV,  MCA-UGT-PV  and 
FECOMA-CCOO-PV10,  the  Confederation  of  Business  Organisations  of  the 
Valencia  Autonomous  Region  (CIERVAL)  and  the  Spanish  Association  of 
Manufacturers of Ceramic Tiles (ASCER). These stakeholders have been in contact 
and  consultations  with  each  other  on  several  occasions,  and  have  formed  a 
consortium in support of the EGF measures and their results. 

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

20. 

21. 

22. 

In the Comunidad Valenciana, during the past 24 months, the number of registered 
unemployed workers trebled, rising from 19 100 in Q2/2007 to 67 400 in Q1/2009. 
The ceramic industry represents 2.2 % of the enterprises, 8,7 % of the jobs and 7,1 % 
of the net turnover in the region of Valencia.  

75 % of the total population of the province of Castellón lives in an area known as 
'the  ceramic  industrial  district'  where  the ceramic  industry  represents  an  average  of 
20 % of the total jobs, while in some municipalities this percentage rises to 80 %. 

Spain  states  that  in  'the  ceramic  industrial  district'  the  number  of  unemployed 
workers in the ceramics industry has increased by almost 500 % over the last two and 
half  years  (January  2007  –  June  2009).  Due  to  the  concentration  of  the  sector  in  a 
small number of areas (85 % of the jobs in the ceramics industry are located in seven 
municipalities) the local impact is even more significant than these figures show.  

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 

23. 

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

–  Individual job search support: This measure aims to provide all targeted workers 
with  the  material  means  and  individual  coaching  during  job-search  activities. 
Additional  support  will  be  provided  to  the  23  disabled  ex-workers,  such  as 
accompanying them when doing a job interview or applying for a job in a special 
employment  centre  (enterprises  whose  workforce  comprises  disabled  workers), 
informing  the  potential  employers  about  the  tax  benefits  when  hiring  these 
workers or organizing training schemes on job-search methods. 

–  Screening  and  Occupational  Guidance:  The  first  measure  provided  to  all  1 600 
participants  concerns  the  profiling  of  the  workers.  Guidance  provided  includes 
information  on  available  jobs,  on  skills  and  training  requirements,  on  available 

10 

Unión  General  de  Trabajadores  del  País  Valenciano  (UGT-PV),  Comisiones  Obreras  del  País 
Valenciano  (CC.OO.-PV),  Federación  del  Metal,  Madera  y  Afines  de  la  UGT  del  País  Valenciano 
(MCA-UGT-PV) and Federación de Construcción, Madera y Afines (FECOMA-CC.OO.-PV)  

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8 

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training  programmes  and  apprenticeship  support  schemes,  as  well  as  mobility 
grants, participation and insertion incentives. 

–  Outplacement assistance: This involves the design, implementation and follow-up 
of  personalised  support,  including  mentoring.  Workers  will  receive  a  mix  of 
measures  in  their  respective  packages  according  to  their  specific  needs.  The 
mentoring  process,  throughout  the  EGF  implementation,  will  ensure  that  the 
packages can be adjusted if necessary. The personalised package of measures will 
include  intensive  job-search  assistance,  the  participation  in  one  of  the  five 
proposed training paths (promotion of entrepreneurship, training for professional 
qualification/skills  upgrading  focused  on  the  ceramic  sector,  training  for 
professional  qualification  in  other  sectors  outside  the  ceramic  sector,  training  in 
social economy and training in view of mobility) and the payment to the workers 
of a participation incentive (lump sum) of EUR 350. 

–  Intensive job-search assistance: This will involve an intensive employment search, 
including  active  research  of  the  local  and  regional  employment  opportunities, 
personalised  coaching  before  and  during  the  selection  process  and  tutoring  after 
reintegration into work.  

–  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.  Around  50 %  of  the  targeted  workers  will  participate  in  this 
measure. 

–  Training for professional qualification / skills upgrading: For those workers with 
existing technical skills, some specific training will be organised to improve their 
professional  competences.  The  training  will  be  designed  to  cater  for  the  future 
needs  of  ceramic  enterprises.  Around  12,5 %  of  the  targeted  workers  will 
participate in this measure.  

–  Training in the social economy. In Spain, the social economy is a major sector; it 
represents 18 % of employment and also 14 % of GDP. Worker-owned companies 
or  cooperatives  and  mutualities,  voluntary  organisations  and  foundations  are 
widely  supported  by  the  national  and  regional  administration  through  tax 
incentives,  grants,  etc.  This  training  aims  to  enhance  the  viability  of  self-
employment projects and to promote the association of former co-workers.  

–  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 2.5 % of the targeted workers will participate in this measure. 

–  Training  for  mobility.  One  of  the  characteristics  of  Spanish  industry  is  the 
geographic  concentration  of  economic  activities  (e.g.  production  of  ceramic 
products in Comunidad Valenciana). This measure is intended for those redundant 
workers, who are already predisposed to changing residence in order to find a job 
in  a  different  economic  sector.  They  will  be  trained  in  the  professional  skills 
required  by  other  sectors,  located  outside  Castellón  or  Comunidad  Valenciana, 
searching for personnel, or in other key aspects that facilitate mobility (e.g. local 
language).  This  measure  will  be  provided  only  when  there  is  a  high  degree  of 
certainty that a job will be offered.  

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–  Training workshops combined with apprenticeship. This measure is intended for 
the  most  disadvantaged  of  the  targeted  workers  who,  after  being  trained  in  new 
professional  skills,  will  be  given  the  opportunity  of  gaining  some  experience 
through a contract of 12 months as apprentice. These apprenticeships will be paid 
at 120 % of the Spanish minimum wage plus a pro-rata part of the 13th and 14th 
monthly wage11. 

–  Participation  incentive.  To  encourage  their  participation  in  the  measures,  the 
workers will receive a lump sum of EUR 350 conditional upon their participation 
in the training activities of the EGF package. 

–  Mobility allowance. Those workers participating in a measure taking place outside 
their  province  of  residence  (Castellón)  will  receive  a  mobility  allowance  of 
EUR 350 per month as a contribution to their travel expenses.  

–  Outplacement incentives. A wage subsidy of EUR 350 per month for a maximum 
of seven months will be paid to workers who return to employment as employees 
or  as  self-employed  workers.  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. 

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 Regulation (EC) 
No  1927/2006.  The  Spanish  authorities  estimate  the  total  costs  of  these  services  at 
EUR 9 691 900 and the  administrative  expenditure at  EUR 460 000  (= 4.5 %  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 60 000 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 6 598 735 
(65 % of the total costs). 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

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

24. 

25. 

Actions 

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

1. Individual job search support 
(Centro de apoyo) 

1 600

167,16 

267 45012

11 

12 

In Spain, the contractually agreed annual salary is divided into fourteen equal parts, twelve of which are 
paid  monthly  and  the  13th  and  14th  are  deferred  and  paid  in  June  and  December  together  with  the 
relevant monthly salary. 
Difference in total costs due to rounding up to two decimals the estimated cost per worker targeted.  

EN 

10 

   EN 

 
                                                 
Actions 

2. Guidance 
(Acogida y seguimiento) 

3. Outplacement & intensive job search 
assistance  
(Programa de apoyo a la recolocación  
 -PAR-. Subprograma empleo) 

4. Training and re-training  
(PAR subprograma Formación. Formación 
fuera del sector cerámico) 

5. Training for professional qualification 
(PAR subprograma Formación Formación 
dentro del sector cerámico) 

6. Training in social economy  
(PAR subprograma Formación. Formación 
en economía social) 

7. Promotion of entrepreneurship 
(PAR subprograma Formación. Formación 
para emprendedores) 

8. Training in view of mobility  
(Programa de apoyo a la recolocación 
 -PAR-, subprograma formación. Formación 
en movilidad) 

9. Training workshops combined with 
apprenticeship 
(Talleres de empleo para el reciclaje 
profesional) 

10. Participation incentives 
(Incentivos a la participación) 

11. Mobility allowance 
(Incentivos a la movilidad geográfica) 

12. Outplacement incentives 
(Incentivos a la recolocación) 

Subtotal personalised services 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

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

1 600

250,00 

400 000

1 170

1 500,00 

1 755 000

850

2 400,00 

2 040 000

200

2 400,00 

480 000

40

40

2 400,00 

96 000

2 400,00 

96 000

40

2 400,00 

96 000

210

15 000,00 

3 150 000

1 170

350,00 

409 500

40

351

1 050,00 

42 000

2 450,00 

859 950

9 691 900

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

Preparatory 

Management 

EN 

11 

60 000

137 000

   EN 

 
  
  
 
 
 
 
Actions 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

Information and publicity 

Control activities 

Subtotal administrative expenditure 

Total estimated costs 

EGF contribution (65 % of total costs) 

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

122 000

141 000

460 000

10 151 900

6 598 735

26. 

27. 

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.  

The  main  objectives  of  the  2007-2013  ESF  operational  programmes  for  the 
Comunidad Valenciana are promoting workers' lifelong learning and decreasing the 
risk of early school leaving, focusing in particular on the most vulnerable people or 
people at risk of social exclusion, mainly young workers, or those or over 45 years 
old, women and disabled people. In particular, in relation to actions co-funded under 
the  ESF,  Spain  indicated  that  about  5 %  of  the  workers  made  redundant  in  the 
ceramic  industry  had  at  some  time  in  the  past  benefited  from  training  activities 
offered  under  the  nation-wide  ESF  programme  "Training  for  Employment". 
Continuous  follow-up  of  ESF  and  EGF  actions  pursuing  similar  purposes  and  the 
workers concerned will avoid any overlap between ESF and EGF measures. 

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

28. 

Personalised  services  to  the  affected  workers  included  in  the  co-ordinated  package 
proposed for co-financing by the EGF were started by Spain on 15 September 2009. 
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 

29. 

The  social  partners  were  consulted  during  the  preparation  of  the  co-ordinated 
package  of  measures.  The  proposed  application  was  discussed  at  the  meetings  on 
2 June  2009  and  7 July  2009  with  the  social  partners:  Generalitat  Valenciana, 
Diputación  de  Comunidad  Valenciana,  the  employer  organisations:  CIERVAL  and 
ASCER;  and  the  principal  trade  unions  (UGT-PV,  CCOO-PV,  MCA-UGT-PV  and 
FECOMA-CCOO-PV). 
In  addition,  a  consortium  has  been  created.  This 
organisational  body  will  be  in  charge  of  the  study  on  the  economic  situation  and 
employment  opportunities  in  the  affected  area  and  it  will  assure  the  consensus  and 
the  participation  of  all 
involved.  The  consortium  consists  of 
representatives from the social partners mentioned. 

the  actors 

EN 

12 

   EN 

 
 
 
 
 
 
 
 
 
 
 
30. 

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 

31. 

As regards the criteria contained in Article 6 of 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 23 to 25 above do not 

receive assistance from other Community financial instruments. 

Management and control systems  

32. 

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 Economic Affairs of the Regional Ministry of Finance and Employment 
of  the  Comunidad  Valenciana  will  be  the  intermediate  body  for  the  managing 
authority. 

Financing  

33. 

34. 

35. 

36. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 6 598 735, 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 
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 

EN 

13 

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of  the  two  arms  of  the  budgetary  authority,  a  formal  trialogue  meeting  will  be 
convened.  

37. 

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. 

EN 

14 

   EN 

 
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/2009/014 ES/Comunidad Valenciana). 

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 
management13, 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  Fund14, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission15, 

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 181 
enterprises  operating  in  NACE  Revision  2  division  23  ('Manufacture  of  other  non-
metallic  mineral  products')  in  a  single  NUTS  II  region,  Comunidad  Valenciana 
(ES52), on 2 September 2009 and supplemented it by additional information up to 22 
February  2010.  This  application  complies  with  the  requirements  for  determining  the 

13 
14 
15 

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

EN 

15 

   EN 

 
                                                 
financial  contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006. 
The Commission therefore proposes to mobilise an amount of EUR 6 598 735. 

(5) 

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

HAVE DECIDED AS FOLLOWS: 

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 6 598 735 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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16 

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