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/2010/001 DK/Nordjylland from Denmark)
Date: 2010-09-02
Institutions: European Commission
Subjects: Denmark, EU aid, 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) 451 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/2010/001 DK/Nordjylland from Denmark) 

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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  22  January  2010,  Denmark  submitted  application  EGF/2010/001  DK/Nordjylland  for  a 
financial  contribution  from  the  EGF,  following  redundancies  in  45  firms  operating  in  the 
NACE  Revision  2  Division  28  (manufacture  of  machinery  and  equipment)3  sector  in  the 
NUTS II region of Nordjylland (DK05) in Denmark. 

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 
Enterprises concerned 
NUTS II region 
NACE Revision 2 Division 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundant workers targeted for support 
Personalised services: budget in EUR 
Expenditure for implementing EGF4: budget in EUR 
% expenditure for implementing EGF 
Total budget in EUR 
EGF contribution EUR (65 %) 

EGF/2010/001 
Denmark 
(b) 
45 
Nordjylland (DK05)  
28 (manufacture of machinery and equipment) 
15/2/2009 to 14/11/2009 
1/4/2010 
22/1/2010 
1 122 
951 
10 967 314 
604 008 
5,2 
11 571 322 
7 521 359 

1 
2 
3 

4 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 
Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains. (OJ L 
393 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  22  January  2010  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(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, Denmark explains that the companies concerned were for the most 
part  involved  in  producing  machinery  and  equipment  for  the  shipbuilding  sector. 
CESA  (the  Community  of  European  Shipyards  Association)  has  prepared  a 
Guestimate  on  World  Shipbuilding  Requirements  until  2014,  which  states  that  the 
global financial crisis had changed several of the conditions and expectations for the 
future  development of the market. A combination of factors brought about  reduced 
shipbuilding requirements and by the end of 2008 / beginning of 2009, the placement 
of new orders came to an almost complete halt. In addition, about 10 % of new ship 
orders  are  expected  to  be  cancelled.  Several  of  the  ships  on  order  will  have  their 
delivery dates postponed. 

CESA  estimates  that  some  30 %  of  the  fleet  in  2011  will  be  surplus  and  that 
therefore  some  53  million  deadweight  tons  (dwt)  out  of  a  total  order  book  of  566 
million  dwt  will  be  cancelled.  Already,  the  crisis  has  caused  a  high  number  of 
inactive ships and ships operating at slow speeds around the world. In the future, the 
shipbuilding industry is expected to move to low cost areas, mainly in Asia, which 
have been increasing their market share spectacularly in the years leading up to the 
crisis (source: Lloyds Register Fairplay, as quoted by CESA). It is therefore unlikely 
that the companies concerned by this application could potentially return to normal 
production at the end of the crisis. 

In the case of MAN Diesel (which, with 541 redundancies, is laying off the largest 
numbers  in  respect  of  this  application),  the  downturn  has  meant  that  it  would  be 
using only 23 % of its production capacity in 2010 and 3 % in 2011, so that it was no 
longer justifiable to continue production in Frederikshavn. The other companies are 
mainly subcontracted to large industrial enterprises in Germany and Asia. Decline in 
demand  from  these  enterprises  as  a  result  of  the  crisis  has  caused  declines  in 
production by these North Jutland enterprises. 

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

5. 

6. 

Denmark 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 a NACE Revision 2 Division in one region or two contiguous 
regions at NUTS II level. 

The application cites 1 122 redundancies in 45 enterprises in the NACE Revision 2 
Division  28  (manufacture  of  machinery  and  equipment)  in  the  NUTS  II  region  of 
Nordjylland  (DK05)  during  the  reference  period  from  15  February  2009  to  14 

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November  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. 

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Explanation of the unforeseen nature of those redundancies 

7. 

The  Danish  authorities  argue  that  the  severity  of  the  global  credit  crisis  and  the 
resultant impact on the financial markets was impossible to predict. Thus, at the start 
of the fourth quarter  of  2008,  MAN  Diesel had  orders for the next  two years, with 
deliveries  planned  for  the  end  of  2010  /  beginning  of  2011.  From  September  / 
October 2008, new orders stopped totally for the next 12 months; this was followed 
by cancellations of existing orders (MAN estimate: 40 % of orders were lost). 

Identification of the dismissing enterprises and workers targeted for assistance 

8. 

9. 

The application cites a total of 1 122 redundancies during the nine-month reference 
period.  Of  this  total  of  1 122  workers,  951  are  targeted  for  assistance.  The  153 
workers not targeted are expected to have found a new job themselves, or to move 
away  from  the  region,  or  to  take  early  retirement,  and  thus  not  be  interested  in  the 
EGF measures on offer. 

The 45 enterprises concerned, and the numbers of workers dismissed by each, are as 
follows : 

Enterprise 
MAN Diesel A/S 
A/S Hydrema Production 
SAWO A/S 
He-Va ApS 
Morsø Jernstøberi 
Morsø Køl & Frys 
AP Gyllevogne 
Peter Kibsgaard 
Akea Automation asp 
Sjørring Maskinfabrik 
Cimbria Manufacturing A/S 
Elster-Instromet A/S 
Brüel International A/S 
Hydra Tech A/S 
Carnitech A/S 
Carna Lift 
Siemens Wind Power A/S 
A/S Dybvad Stål Industri 
Borup Andersens Maskinfabrik ApS 
Univeyor A/S 
REO-PACK A/S 
Dantherm Power A/S 
Dantherm Filtration A/S 
Aagaard A/S 
Hycon A/S 
Hamworthy Svanehøj A/S 
JB Contractors 
Aalborg Maskinfabrik A/S 
System Cleaners A/S 
NB Ventilation A/S 

Number of redundancies 
541 
11 
9 
2 
3 
1 
2 
1 
10 
36 
38 
3 
1 
11 
52 
1 
145 
12 
4 
50 
6 
11 
10 
19 
7 
44 
6 
2 
5 
3 

Method 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 

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Nilfisk Alto Food Division 
Flex Coli A/S 
GVA A/S 
PanPac Engineering A/S 
Inelco A/S 
Carsø A/S 
ESS Graphic A/S 
Scantool Group A/S 
Silvatec Skovmaskiner A/S 
Kss-Kraner A/S 
Danilift A/S 
Fransgård Maskinfabrik A/S 
Carnitech Salmon A/S 
Inno Steel A/S 
Maach Technic A/S 

Total 

6 
5 
5 
1 
2 
5 
1 
9 
16 
1 
3 
1 
16 
3 
2 

1 122 

10. 

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 
54 to 64 years old 
65 + years old 

Number 
876 
75 
951 
0 
53 
796 
101 
1 

There are no workers with a long-standing health problem / disability. 

11. 

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

1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 
1 

Percent 
92,1 
7,9 
100,0 
0,0 
5,6 
83,7 
10,6 
0,1 

Category 
Top management 
Jobs requiring top level skills and qualifications within its field 
Jobs requiring skills and qualifications on an intermediate level 
Clerical jobs 
Manual jobs, metal- and machining jobs (Skilled labour) 
Process and machinery operators, transportation and construction 
jobs. Jobs on stationary installation and plants, operating of 
industrial machinery (Skilled labour) 
Other jobs, manual jobs in manufacturing industries 
(Unskilled labour) 

Number  Percent 
1,0 
3,4 
3,7 
2,6 
40,4 

10 
32 
35 
25 
384 

146 

15,4 

319 

951 

33,5 

100,0 

Total 

12. 

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

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Description of the territory concerned and its authorities and stakeholders 

13. 

14. 

The Nordjylland region with its almost 600 000 inhabitants is the smallest region in 
Denmark, and also has the lowest population density. In terms of employment levels 
and  income,  it  is  lagging  behind  the  rest  of  Denmark.  The  region  consists  of  11 
municipalities  ranging  from  Læsø  with  under  2 000  inhabitants  to  Aalborg  with 
almost 200 000 inhabitants. The occupational structure features numerous small and 
medium-sized enterprises with a poor tradition of hiring highly educated employees. 
This  has  resulted  in  the  region  having  a  particularly  large  share  of  skilled  and 
unskilled  people  in  the  labour  force,  combined  with  only  a  few  large  globally 
oriented enterprises to add a global driving force. 

In the area concerned, the main authority is the municipality of Frederikshavn. Other 
stakeholders  are  the  regional  and  municipal  authorities  of  the  areas  concerned,  as 
well  as  the  educational  and  training  bodies  which  may  become  involved  in  the 
project following a call for tenders. The region and the municipalities will take part 
in  both  the  steering  group  and  the  dialogue  and  sparring  group,  as  will  the 
educational institutions of the region. 

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

15. 

16. 

Denmark  argues  that  the  Nordjylland  region  is  particularly  dependent  upon  the 
industrial  sector,  and  that  this  has  been  hard  hit  by  the  current  crisis.  Thus,  in  the 
region, 38 % of the redundancies are from the industrial sector, while this figure is 
only 25 % in the rest of the country.  

The redundancies in the Nordjylland application are all the more serious to the region 
as it is anticipated that, even after the end of the crisis, the sector will not revive, with 
most  of  the  new  orders  going  to  the  far  East,  where  costs  are  lower.  The  proposal 
therefore aims to reconvert the redundant workers to the new fields of more efficient 
energy solutions, both in shipping and in housing, as well as equipping them for the 
knowledge and the services sectors. 

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. 

–  Mapping: The mapping of qualifications against the wishes of the participants and 
the  basic  course  offered  are  provided  for  all,  with  the  aim  of  helping  the 
unemployed  to  become  adaptable  and  to  identify  relevant  options  of  re-
conversion. The course will last four weeks with a combination of group lessons 
and individual coaching. The aim of the course is for the unemployed to obtain a 
completed plan of action and knowledge of the present labour market and to relate 
to  the  idea  of  switching  to  a  new  industry.  The  mapping  of  the  wishes  and 
interests  of  each  employee  is  followed  by  a  match  against  the  actual  offers 
expected to be available. This will be taken up by all 951 workers. 

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–  Supplementary general education: This will comprise an extraordinary course of 
preparatory adult education (FVU) to ensure a readiness for change among those 
most  in  want  of  resources  (approximately  345  participants),  and  a  course  in 
supplementary disciplines at secondary school level for the targeted workers with 
a secondary school background who have expressed a wish for further education 
(approximately 50 participants). 

–  Support to young unemployed in education: Attracting and retaining young people 
who want to embark on an out-of school or further education. This is provided for 
extra tuition and books for the first study year (50 participants). 

–  Supplementary  industrial  education  in  the  maritime  field:  Introduction  to  the 
maritime field supplemented by the training of skills in specific courses selected 
by the unemployed in the future oriented fields related to energy conservation and 
more  efficient  use  of  energy,  from  which  the  unemployed  will  choose  an 
individual set of courses in modular form, depending on the desired direction in 
which to specialise. This will be for 394 participants, each training for 20 days. 

–  Supplementary  industrial  education  in  renewable  energy  and  energy  optimising: 
The switch to a job in renewable energy and energy optimising goes through an 
introduction  to  this  industry  supplemented  by  training  in  skills  within  specific 
courses  selected  by  the  unemployed.  Recognised  courses  will  be  offered,  from 
which the unemployed will choose an individual set of courses in modular form, 
depending  on  the  desired  direction  in  which  to  specialise.  This  will  be  for  294 
participants, each training for 15 days. 

–  Courses on location with companies: If the dismissed are offered a job, they will 
also  be  offered  education  in  the  company  to  fill  in  any  gaps  in  qualifications. 
There will be 100 workers supported in this way. 

–  Entrepreneur course: The course is for six weeks and includes an introduction to 
company operation and management. It is estimated that 50 workers will take up 
this offer. 

–  Mentor  arrangement  for  entrepreneurs:  The  potential  entrepreneur  can  benefit 
from support provided by a mentor assigned with knowledge of the industry for a 
number of sessions during the first year. It is estimated that 45 workers will take 
up this offer. 

–  Course in product development: The entrepreneur has the option of participating 
in  a  course  in  product  development  and  to  receive  sparring  in  the  process  of 
developing  and  testing  an  idea.  It  is  estimated  that  45  workers  will  take  up  this 
option. 

18. 

19. 

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  Danish  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No  1927/2006.  The  Danish  authorities  estimate  the  total  costs  of  these  services  at 
EUR 11 571 322  and  the  expenditure  for  implementing  EGF  at  EUR 604 008 

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(=5,2 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 7 521 359 (65 % of the total costs). 

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 19272/2006) 

Mapping 

Supplementary general education 

Support to young unemployed in 
education 

Job oriented education in maritime field 

Job oriented education in energy field 

Courses on location with companies 

Entrepreneur course 

Mentor arrangement for entrepreneurs 

Course in product development 

Sub total personalised services 

951

345

50

394

294

100

50

45

45

3 020 

2 872 020

8 690 

2 998 050

8 090 

404 500

5 245 

2 066 530

3 931 

1 155 714

4 030 

5 870 

403 000

293 500

11 950 

537 750

5 250 

236 250

10 967 314

Expenditure  for  implementing  EGF  (third  paragraph  of  Article  3  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) 

90 717

302 391

120 900

90 000

604 008

11 571 322

7 521 359

20. 

Denmark  confirms  that  the  measures  described  above  are  complementary  with 
actions funded by the Structural Funds. Denmark will also ensure a clear audit trail 

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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. 

Denmark will start the personalised services to the affected workers included in the 
co-ordinated  package  proposed  for  co-financing  to  the  EGF,  on  1  April  2010.  This 
date therefore represents the beginning of the period of eligibility for any assistance 
that might be awarded from the EGF. As this date falls after the application date but 
within  three  months  of  same,  according  to  Article  13(2)  of  Regulation  (EC)  No 
1927/2006,  the  final  date  by  which  the  eligible  actions  must  be  carried  out,  is  31 
March 2012. 

Procedures for consulting the social partners 

22. 

The  EGF  application  was  prepared  by  the  municipality  of  Frederikshavn  and  the 
Nordjylland region in collaboration with the other concerned municipalities, the local 
trade promotion offices, the trade unions, the Danish Industry employers' educational 
institutions, and the municipal job centres. A mobilisation conference is planned for 
2010 with invitations to all interested parties. 

23. 

The  Danish  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 
Danish 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. 

Management and control systems  

25. 

Denmark  has  notified  the  Commission  that  the  financial  contribution  will  be 
managed and controlled by the same bodies as the European Social Fund, which also 
has  the  Danish  Enterprise  and  Construction  Authority  as  Managing  Authority.  The 
Certifying Authority will be vested in a different department of the same body. The 
Auditing  Authority  will  be  the  EU  Controllerfunction  in  the  Danish  Enterprise  and 
Construction Authority. 

The  Municipality  of  Frederikshavn  will  receive  and  manage  the  EGF  funds.  It  will 
appoint  a  project  co-ordinator  and  an  administrative  clerk  to  manage  the  initiatives 

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planned  for  the  targeted  workers.  The  Nordjylland  region  will  be  monitoring  the 
project closely and will participate in the steering group for the process. 

Financing 

26. 

27. 

28. 

29. 

On  the  basis  of  the  application  from  Denmark,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  is  EUR 7 521 359, 
representing 65 % of the total cost. The Commission's proposed allocation under the 
Fund is based on the information made available by Denmark. 

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.  

30. 

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  

31. 

32. 

In  the  current  state  of  implementation,  it  is  foreseeable  that  the  payment 
appropriations available in 2010 under the budget line 01.0404 "Competitiveness and 
Innovation  Framework  Programme  -  Entrepreneurship  and  innovation  programme" 
will not be fully used this year. 

This line covers expenditure related to the implementation of the financial instrument 
of this programme, the main objective of which is to facilitate the access of SMEs to 
finance. Some time lag exists between transfers to the trust accounts managed by the 
European Investment Fund and disbursement to the beneficiaries. The financial crisis 
has a major effect on the forecasts in terms of disbursements for 2010. As a result, in 
order  to  avoid  excessive  balances  on  the  trust  accounts,  the  methodology  for 
calculation  of  payment  appropriations  has  been  reviewed,  taking  into  account  the 
expected  disbursements.  The  amount  of  EUR 7 521 359  can  therefore  be  made 
available for transfer. 

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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/2010/001 DK/Nordjylland from Denmark) 

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. 

Denmark submitted an application to mobilise the EGF, in respect of redundancies in 
the manufacturing of machinery and equipment sector in the Nordjylland region, on 22 
January 2010 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 7 521 359. 

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 Denmark. 

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 7 521 359 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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