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/2009/023 PT/Qimonda from Portugal)
Date: 2010-09-02
Institutions: European Commission
Subjects: EU aid, Portugal, budgetary discipline (EU), budgetary procedure, commitment of expenditure, dismissal, financial management, fund (EU), globalisation, interinstitutional agreement, reintegration into working life

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EUROPEAN COMMISSION 

Brussels, 2.9.2010 
COM(2010) 452 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/2009/023 PT/Qimonda from Portugal) 

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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  on 
establishing the European Globalisation Adjustment Fund2. 

On  17  December  2009,  Portugal  submitted  application  EGF/2009/023  PT/Qimonda  for  a 
financial contribution from the EGF, following redundancies in Qimonda Portugal S.A. 

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 
Article 2 
Enterprise concerned 
Suppliers / downstream producers 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period: 
-- total number 
-- in the main enterprise 
-- in suppliers / downstream producers 
Redundancies before / after the reference period 
Total redundancies 
Redundant workers targeted for support 
Personalised services: budget in EUR 
Expenditure for implementing EGF3: budget in EUR 
% expenditure for implementing EGF 
Total budget in EUR 
EGF contribution EUR (65 %) 

EGF/2009/023 
Portugal 
(a) 
Qimonda Portugal S.A. 
0 
8/6/2009 to 8/10/2009 
1/12/2009 
17/12/2009 

519 
519 
0 
395 
914 
839 
3 494 532 
206 500 
5,6 
3 701 032 
2 405 671 

1 
2 
3 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

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1. 

2. 

The  application  was  presented  to  the  Commission  on  17  December  2009  and 
supplemented by additional information up to 28 April 2010. 

The application meets the conditions for deploying the EGF as set out in Article 2(a) 
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,  Portugal  refers  to  the  insolvency  of  the  German  multinational 
Qimonda AG in January 2009. By the end of March 2009, Qimonda Portugal, with 
its base in Vila do Conde (Norte region) also applied for a state of insolvency. The 
cause  of  this  request  was  the  total  stoppage  of  production  at  the  German  Qimonda 
factory, which was the supplier of raw materials to the Vila do Conde unit, together 
with  the  failure  to  find  an  agreement  with  potential  investors  who  would  have 
continued production in Portugal. 

The  insolvency  of  the  German  multinational  Qimonda  AG  was  due  to  (a)  the 
financial  crisis,  causing  a  contraction  of  the  global  economy  and,  in  the  case  of 
Qimonda,  the  additional  effect  of  reducing  its  capacity  to  invest  in  innovation  and 
production  equipment;  (b)  the  difficulties  in  access  to  finance  in  the  capital  and 
investment markets, as a result of the crisis; (c) the excess capacity in the Dynamic 
Random  Access  Memory  (DRAM)  market,  which  created  enormous  pressure  on 
prices,  forcing  various  companies  to  reduce  production  and  carry  our  greater  stock 
control; and (d) the high investment needed for the development of new production 
technologies. 

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

5. 

6. 

Portugal submitted this application under the 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. 

The application cites 519 redundancies in Qimonda during the reference period from 
8  June  2009  to  8  October  2009.  All  of  these  redundancies  were  calculated  in 
accordance with the second indent of the second paragraph of Article 2 of Regulation 
(EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

7. 

The Portuguese authorities argue that the severity of the global credit crisis and the 
resultant  impact  on  the  financial  markets  was  impossible  to  predict.  Qimonda  AG, 
with its head office in Munich and premises in various countries worldwide, was the 
leader in the world production of DRAM memories for incorporation into computers, 
servers  and  a  variety  of  digital  readers  (MP3  readers,  mobile  telephones, 
photographic cameras, games consoles, etc.). The Portuguese plant in Vila do Conde, 
with 1 700 workers in 2007, was active in the production and engineering services in 
the  area  of  semiconductors,  operating  in  particular  in  the  areas  of  assembly  and 

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testing  of  DRAM  memory  products.  The  insolvency  of  Qimonda  AG  in  January 
2009 came as a shock, since the company was preparing to launch a new technology 
at the time.  

Identification of the dismissing enterprises and workers targeted for assistance 

8. 

The application cites a total of 519 redundancies in Qimonda during the four-month 
reference period. A further 395 workers were made redundant at Qimonda before and 
after  the  reference  period.  Of  this  total  of  914  workers,  839  are  targeted  for 
assistance. The 75 workers not targeted had either already found a new job or started 
self-employment, or retired, or emigrated, or were not available for other reasons. 

9. 

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

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15 to 24 years old 
25 to 54 years old 
Over 54 years old 

Number 
498 
341 
834 
5 
203 
627 
9 

Percent 
59,4 
40,6 
99,4 
0,6 
24,2 
74,7 
1,1 

It  is  to  be  noted  that  36,6 %  of  the  workers  have  only  elementary  education  (nine 
years  or  fewer of  schooling), while just 10,7 % of the workers have participated in 
post-secondary or higher education. One worker has a long-standing health problem / 
disability. 

10. 

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

Category 
General Managers 
Physical, mathematical and engineering science professionals 
Other professionals 
Physical and engineering science associate professionals 
Other associate professionals 
Office clerks 
Customer service clerks 
Models, salespersons and demonstrators 
Metal, machinery and related trades workers 
Stationary plant and related operators 
Machine operators and assemblers 
Labourers in mining, construction, manufacturing and transport 
Total 

Number  Percent 
0,1 
7,0 
0,1 
13,7 
0,6 
0,4 
0,1 
0,1 
0,6 
0,1 
76,5 
0,6 
100,0 

1 
59 
1 
115 
5 
3 
1 
1 
5 
1 
642 
5 
839 

11. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Portugal  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. 

Description of the territory concerned and its authorities and stakeholders 

12. 

Qimonda  was  situated  in  Vila  do  Conde,  in  the  NUTS  II  region  of  Norte  and  the 
NUTS  III  region  of  Grande  Porto.  The  Norte  region  is  the  most  densely  populated 

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and  the  most  highly  industrialised  of  the  country,  with  a  strong  concentration  of 
traditional  industries  (textiles,  clothing,  footwear,  wood  and  cork),  together  with 
agriculture  (milk  and  Port  wine)  and  the  emergence  of  some  new  sectors,  such  as 
health technologies. In all these sectors, small and medium sized enterprises (SMEs) 
predominate.  The  region  still  suffers  from  a  low  educational  base,  particularly 
affecting the older generation, and from long-term unemployment. 

13. 

In  the  area  concerned,  the  main  authority  is  the  Instituto  do  Emprego  e  Formação 
Profissional  (IEFP,  I.P.),  with  seven  job  centres  catering  for  the  affected  workers. 
The  most  important  of  these  is  Vila  do  Conde  itself,  where  446  of  the  workers  are 
registered. The social partners, the town councils and municipal associations are also 
active as stakeholders, as are several universities and training centres. 

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

14. 

15. 

16. 

Portugal argues that the Norte region is suffering higher rates of unemployment than 
the country as a whole, and that the unemployment rate has grown considerably from 
9.1 % in the third quarter of 2008 to 11.6 % in the same quarter of 2009. At the same 
time,  long-term  unemployment  now  represents  49  %  of  total  unemployment  in  the 
Norte region. Between January and October 2009, the job centres of the Norte region 
registered an average monthly flow of 22,000 unemployed persons, representing the 
highest in the country, and up from 17,600 in 2008.  

The Norte region, where these redundancies occurred, has already been accepted for 
EGF support in a previous case, EGF/2009/001 PT/Norte-Centro. 

Taking the job centre of Povoa do Varzim / Vila do Conde (where half the targeted 
workers  are  registered)  as  a  reference  point,  registered  unemployment  rose  here  by 
20.8 % from January to October 2009, corresponding to 1,631 persons. 

The closure of Qimonda had the immediate impact of adding close to 1 000 workers 
to  the  job-seekers  in  this  region,  which  is  already  depressed.  The  loss  of  Qimonda 
also  affects  the  future  prospects  of  the  region,  which  had  been  looking  to  this 
company  as  a  success  story  in  its  efforts  to  introduce  innovation,  technological 
development  and  internationalisation.  Qimonda  had  been  able  to  attract  a  more 
highly qualified group of employees, who may be lost to the region in the absence of 
immediate and attractive support towards job opportunities there. 

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 

17. 

The following types of measures are proposed, all of which combine to form a co-
ordinated  package  of  personalised  services  aimed  at  re-integrating  the  workers  into 
the  labour  market.  Given  the  diversity  of  the  group,  activities  will  start  with  the 
profiling of all unemployed persons (839) in the Job Centres, of whom 400 will be 
referred to other entities for follow-up information, guidance, mediation etc. 

–  Skills  recognition,  validation  and  certification:  This  has  been  set  up  for  150 
people.  With  the  help  of  recognised  New  Opportunities  Centres  (NOC),  the 
workers will identify the knowledge and skills acquired throughout their lives in 
formal  and  informal  contexts.  Together  with  the  trainers,  they  will  map  out  a 

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customised pathway of varying length, which will lead to the validation of school 
certification at secondary level. 

–  Vocational  training:  The  workers  will  receive  the  training  most  appropriate  to 
their  educational  and  skill  levels,  helping  them  to  adapt  to  change  and  to  new 
conditions,  as  well  as  possibly  creating  their  own  employment  or  businesses. 
Some of this training will be given on a modular basis, some will be adult training 
towards  new  professional  qualifications,  and  some  will  be  specific  professional 
training  tailor-made  to  the  needs  of  the  individuals.  Portugal  plans  to  involve 
some 250 workers in such training. The training courses will be implemented by 
various recognised training centres, including sectoral associations in the case of 
training  specific  to  those  sectors.  Allowances  for  training,  meals,  transport, 
personal  accident  insurance  and  accommodation  will  be  offered  within  strict 
limits and conditions. 

–  Grant  for  training  due  to  personal  initiative:  This  will  enable  workers  to 
participate in suitable training courses, agreed with them as part of their personal 
employment  plan,  and  which  are  offered  by  approved  training  institutions.  It  is 
expected that some 50 workers will take up this offer. 

–  Support  to  self-placement:  This  is  a  grant  awarded  to  workers  who,  during  the 
implementation  of  the  EGF  package,  find  themselves  a  new  job  with  either  an 
indefinite contract or one for at least six months. The amount varies depending on 
the length of the contract offered, and can increase if the new workplace is more 
than  100  km  from  the  location  of  the  worker's  residence.  This  is  expected  to  be 
allocated to some 80 workers. 

–  Hiring  incentive:  For  the  purposes  of  stimulating  the  creation  of  new  jobs, 
financial  support  may  be  allocated  to  employer  entities  which  sign  full-time 
contracts with an EGF beneficiary worker, which result in an effective increase in 
the employment level at the company. The minimum duration of the contract has 
to be 12 months, and a larger incentive is paid for those taking on workers with 
contracts of unlimited duration. It is expected that 100 workers will benefit from 
this incentive. 

–  Entrepreneurship  training  and  technical  support:  For  those  workers  wishing  to 
create their own businesses, training in specific knowledge and competences  for 
the  creation  and  management  of  small  businesses  will  be  organised.  The 
programme contents and schedules will be flexible and adapted to the needs of the 
beneficiaries.  Attendance  of  the  training  is  compulsory  before  the  decision  to 
support the business creation is issued, except in cases where there is confirmed 
existing  training  or  professional  experience.  Technical  support  to  the  project 
includes activities to support the development of the business idea, preparation of 
the business plan, constitution of the company and follow-up of the project during 
the  first  year  of  its  operations.  It  is  estimated  that  40  workers  will  opt  for  this 
measure. 

–  Support  to  business  creation:  Upon  completion  of  the  entrepreneurship  training 
and  preparation,  the  workers  will  be  helped  with  a  non-reimbursable  subsidy  of 
EUR 20 000  for  each  job  created,  including  that  of  the  promoter,  up  to  a 
maximum of three. The jobs created should be filled by other EGF beneficiaries, 

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or by unemployed persons in the job centres of the region, and should be full-time 
for a minimum duration of two years. It is estimated that the 40 workers trained in 
entrepreneurship will take up this measure. 

–  Practice in the workplace: This measure is aimed at providing EGF beneficiaries 
with a period of practice in a workplace once a new qualification level has been 
acquired  or  competences  have  been  developed  in  a  new  professional  area.  The 
duration of the practice will be between three and nine months. The beneficiaries 
will receive a monthly grant, the level of which will depend on their qualification 
level, as well as a meals allowance, a transport allowance and insurance cover. It 
is estimated that 80 workers will take up this practice opportunity. 

–  Integration  plan:  The  integration  plan  will  provide  some  50  workers  with  work 
experience of at least 30 hours per week during a period of up to 12 months. The 
objective  is  to  make  sure  that  these  workers  do  not  lose  contact  with  other 
workers, do not suffer from isolation and demotivation, and gain the opportunity 
to  acquire  new  knowledge  and  skills  and  thus  to  improve  their  employability 
following  the  integration  period.  The  workers  will  be  placed  with  non  profit-
making employer entities for a limited period; this will entitle them to meals and 
transport allowances, insurance and an allowance in lieu of wages. 

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

The  personalised  services  presented  by  the  Portuguese  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Portuguese authorities estimate the total costs of these services at 
EUR 3 494 532 and the expenditure for implementing EGF at EUR 206 500 (=5,6 % 
of 
is 
total  amount).  The 
EUR 2 405 671 (65 % of the total costs). 

total  contribution  requested  from 

the  EGF 

the 

18. 

19. 

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Actions 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

Total costs 
(EGF and 
national 
cofinancing) 
(in EUR) 

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

Information Guidance and Mediation 
Actions 

Skills recognition, validation and 
certification 

Vocational training 

Grant for training due to personal 
initiative 

Support to self-placement 

Hiring incentive 

Entrepreneurship training and technical 
support 

Support to business creation 

Practice in the workplace 

Integration plan 

Sub total personalised services 

400

150

250

50

80

100

40

40

80

50

419,22 

167 688

800,00 

120 000

2 800,00 

700 000

6 000,00 

300 000

1 700,00 

136 000

3 500,00 

350 000

2 096,10 

83 844

30 000,00 

1 200 000

3 900,00 

312 000

2 500,00 

125 000

3 494 532

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

Preparatory activities 

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing 
EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

3 500

197 000

3 000

3 000

206 500

3 701 032

2 405 671

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20. 

Portugal confirms that the measures described above are complementary with actions 
funded by the Structural Funds. Portugal will also ensure a clear audit trail for EGF 
funded activities, and confirms that no other EU funding is sought or used for these 
activities. 

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

21. 

Portugal started the personalised services to the affected workers included in the co-
ordinated package proposed for co-financing to the EGF, on 1 December 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 

22. 

The  EGF  application  was  presented  at  the  meeting  of  the  IEFP,I.P.  Board  of 
Directors  on  17  December  2009.  The  IEFP,I.P.,  which  is  also  the  Managing  and 
Paying  Authority  for  the  EGF  in  Portugal,  is  itself  a  tripartite  body.  The  social 
partners  are  also  active  among  the  stakeholders  supporting  the  reintegration  of  the 
Qimonda workers into employment. 

23. 

The Portuguese 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 

24. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Portuguese 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  above  do  not  receive  assistance 

from other Community financial instruments. 

25. 

Qimonda Portugal received both ERDF and ESF grants in the past. These grants are 
being  pursued  separately  through  the  appropriate  channels.  The  EGF  contribution 
under  the  present  proposal  does  not  involve  the  company  in  any  way,  nor  will  the 
company  be  involved  in  its  implementation.  The  EGF  contribution  here  proposed 
will  be  used  exclusively  on  active  labour  policy  measures  to  help  the  ex-Qimonda 
workers reintegrate into employment as quickly as possible.  

Management and control systems  

26. 

Portugal has notified the Commission that the financial contribution will be managed 
and  controlled  by  Instituto  do  Emprego  e  Formação  Profissional,  I.P.,  the  public 
employment service. The overall technical and administrative management is carried 

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out  by  the  Employment  Department,  through  an  EGF  Intervention  Co-ordination 
Committee,  which  includes  representatives  of  the  Vocational  Training  Department, 
Financial and Management Control Department and the Regional Delegations of the 
Norte region. The overall financial management has been taken on by the Financial 
and  Management  Control  Department.  The  approval  and  payment  of  aids  is  the 
responsibility of the Regional Delegations of the Norte region. The Job Centres and 
the Partner Entities of the most affected municipalities will be carrying out most of 
the  active  measures.  Portugal  has  confirmed  that  the  principle  of  separation  of 
functions among and within the relevant entities will be respected. 

The Instituto de Gestão do Fundo Social Europeu (IGFSE, I.P.), the European Social 
Fund  Management  Institute,  will  be  responsible  for  auditing  and  control  as  regards 
this EGF application. 

Financing 

27. 

28. 

29. 

30. 

On  the  basis  of  the  application  from  Portugal,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  is  EUR 2 405 671, 
representing 65 % of the total cost. The Commission's proposed allocation under the 
Fund is based on the information made available by Portugal. 

Considering the maximum possible amount of a financial contribution from the EGF 
under  Article  10(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  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  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.  

31. 

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. 

Source of payment appropriations 

32. 

In  the  current  state  of  implementation,  it  is  foreseeable  that  the  payment 
appropriations  available  under  the  budget  line  01.04  05  'Completion  of  programme 
for  enterprises:  improvement  of  the  financial  environment  for  small  and  medium-
sized enterprises (SMEs)' in 2010 will not be fully used this year.  

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33. 

34. 

Payment appropriations are transferred to trust accounts as required to ensure that the 
European Investment Fund (EIF) is at all times in a position to make disbursements 
to the financial intermediaries. 

The  financial  crisis  had  a  major  effect  on  the  disbursement  profile  of  financial 
instruments,  particularly  those  in  the  area  of  venture  capital.  According  to  the 
European Venture Capital Association (EVCA), investments and divestments (exits) 
were more than halved between 2007 and 2009 compared to the pre-crisis situation4. 
These  developments  also  had  a  substantial  impact  on  the  forecasts  in  terms  of 
disbursements for 2010. 

35. 

As  a  consequence  of  the  above  elements,  payment  appropriations  provided  in  the 
2010  budget  (EUR 35 million  for  MAP)  will  not  be  fully  needed  in  2010.  The 
amount of EUR 2 405 671 can therefore be made available for transfer.  

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The  venture  capital  investments  and  divestments:  EUR 13,1 billion  in  2007,  EUR 9,8 billion  in  2008, 
EUR 5.8 billion 
in  2009  (Source:  EVCA/PEREP_Analytics  for  2007-2009;  Market  statistics 
EVCA/Thomson Reuters/PwC for previous years). 

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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/2009/023 PT/Qimonda from Portugal) 

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  Interinstitutional  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 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. 

Portugal submitted an application to mobilise the EGF, in respect of redundancies in 
the enterprise Qimonda Portugal S.A., on 17 December 2009 and supplemented it by 
additional  information  up  to  28  April  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 2 405 671. 

5 
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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(5) 

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

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 2 405 671 in commitment and payment appropriations. 

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

Article 2 

Done at, 

For the European Parliament 
The President 

For the Council 
The President 

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