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/2010/002 ES/Cataluña automoción)
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) 453 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/2010/002 ES/Cataluña automoción) 

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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 29 January 2010, Spain submitted application EGF/2010/002 ES/Cataluña automoción for 
a financial contribution from the EGF, following redundancies in 23 enterprises operating in 
the NACE Revision 2 Division 29 (manufacture of motor vehicles, trailers and semitrailers)3 
in the NUTS II region Cataluña (ES51) 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 
Article 2 
Enterprises concerned 
NUTS II region 

NACE Revision 2 Division 

Reference period 
Starting date for the personalised services 
Application date 
Redundancies over 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/2010/002 
Spain 
(b) 
23 
Cataluña (ES51) 
29 (manufacture of motor 
vehicles, trailers and 
semitrailers) 
23/2/2009 to 22/11/2009 
1/12/ 2009 
29/1/2010 
2 330 
1 429 
4 066 420 
168 864 
3,98 
4 235 284 
2 752 935 

1 
2 
3 

4 

OJ C 139 of 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  29  January  2010  and 
supplemented by additional information up to 26 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. 

5. 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Spain argues that the economic crisis has put the automotive sector 
worldwide  under  particular  pressure.  The  Commission  already  recognised  that,  as 
some  60-80 %  (depending  on  the  Member  State)  of  new  cars  in  Europe  are 
purchased with the aid of credit, the financial crisis at the origin of the downturn has 
hit the automotive industry particularly severely5. In the second quarter of 2009 and 
after  the  12  successive  months  of  decline  in  the  production,  the  total  vehicle 
production in EU was 39,5 % lower than a year earlier. The downturn has severely 
affected all major car manufacturers in the European market6. 

The  global  financial  and  economic  crisis  has  had  a  serious  impact  on  demand  for 
vehicles  in  Spain  and  in  its  export  markets.  In  2008  new  car  registrations  in  Spain 
declined  by  28 %  compared  with  the  previous  year,  mainly  due  to  tight  credit 
conditions,  the  very  low  consumer  confidence  and  declining  consumer  purchasing 
power.  Moreover,  the  global  nature  of  the  crisis  also  led  a  sales  drop  by  9,6 %  for 
vehicles  manufactured  in  Spain  and  sold  abroad.  As  the  Spanish  car  sector  exports 
85 % of its  production,  mainly within  the EU, this decline  in exports  and domestic 
demand had a strong negative impact on employment in the automotive sector.  

Spain  provided  information  that  the  number  of  dismissals  in  the  Catalonian 
automotive  sector  in  the  last  four  years  – each  year  compared  with  the  previous 
year – developed as follows:  

2006 

2007 

2008 

2009 

- 7,59 % 

- 5,49 % 

42,25 % 

157,21 % 

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

6. 

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. 

"Responding to the crisis in the European automotive industry" COM(2009)104. 
DG Enterprise: "Impact of the economic crisis on key sectors of the EU – the case of the manufacturing 
and construction industries". June 2009 update.  

(http://ec.europa.eu/enterprise/newsroom/cf/itemshortdetail.cfm?item_id=3437) 

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7. 

The  application  cites  2 330  redundancies  in  23  enterprises  classified  in  the  same 
NACE Revision 2 Division during the nine-month reference period from 23 February 
2009 to 22 November 2009, all located in a single region (ES51) at NUTS II level, 
Cataluña. All redundancies were calculated in accordance with the second indent of 
the second paragraph of Article 2 of Regulation (EC) No 1927/2006. Of the total of 
2 330 workers, 1 429 have been targeted for assistance.  

Explanation of the unforeseen nature of those redundancies 

8. 

The  Spanish  authorities  argue  that  although  the  automotive  sector  had  been 
experiencing  difficulties,  mainly  due  to  delocalisation,  even  before  the  crisis,  the 
automobile industry in Catalonia managed to stay stable until early 2008. From that 
moment  the  industry  began  to  feel  the  impact  of  the  financial  and  economic  crisis 
with a sudden drop in demand for vehicles in Spain and worldwide. This decline in 
demand  was  unforeseeable  for  firms  or  governments  and  happened  at  an 
unprecedented rate and speed. 

Identification of the dismissing enterprises and workers targeted for assistance 

9. 

The application relates to 2 330 redundancies in the following 23 enterprises:  

Enterprises and number of dismissals 
14 
Industrias del Molde y Derivados, SA 
59  Manufactura Moderna de Metales, SA 
15  Nissan Motor Ibérica, SA 

Ac de Mecaniques Joan, SL 
Castellón, SA 
Catalana de Material Auxiliar de la 
Construccion SA (CAMAC) 
Construcciones Mecanicas Ceman, SA 

Decolletatge Farrés, SA 
Esteban Ikeda, SA 
Fabricación Componen. Motocicletas, 
SA 
Febersa Industrial, Sa 
Federal Mogul Friction Products, SAU 
Flexngate España. SA 
Frape Behr, SA 
Industrial Carrocera Arbuciense SA 
(INDCAR) 
Total no. of enterprises: 23 

8  Peguform Module Div. Iberica Front 

Ends, SLU 
10  Poliester Nautic 
263  Poliester So Ma, SL 
17  Prensas y Montajes Industriales, SA 

38  Solfer Componenti España, SL 
24  Talleres Lape, SL 
213  Utymat, SA 
234  Y-Tec Europa, SA 
69 

Total no. of dismissals: 2 330 

14 
74 
901 

21 

24 
15 
55 

17 
10 
142 
93 

10. 

All dismissed workers, with the exception of the 901 ex-Nissan workers (i.e. 1 429 
redundant workers of the total 2 330) are targeted for assistance. Nissan workers will 
not be supported by the EGF as they benefit from the measures of their own social 
plan.  

11. 

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 

Number
1 060
369
1 394
35
27
1 050

Percent
74,18
25,82
97,55
2,45
1,89
73,48

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12. 

13. 

14. 

15. 

Category 
55 to 64 years old 
Over 65 years old 

Number
351
1

Five of the targeted workers are disabled. 

In terms of professional categories7, the break-down is as follows : 

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

Number
22
41
180
130
1
135
463
457

Educational level 
Basic education  
Secondary education 
Post-secondary non-tertiary education 
Tertiary education  
Uneducated or early school leavers 

Number
591
338
93
71
336

Percent
24,56
0,07

Percent
1,54
2,87
12,60
9,10
0,07
9,45
32,40
31,98

Percent
41,36
23,65
6,51
4,97
23,51

In accordance with Article 7 of 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. 

Description of the territory concerned and its authorities and stakeholders 

16. 

17. 

18. 

The  territory  concerned  by  the  redundancies  is  within  the  NUTS  II  region  of 
Catalonia  and  is  concentrated  in  Barcelona's  metropolitan  area,  i.e.  the  city  of 
Barcelona  and  the  surrounding  medium-sized  towns,  which  form  a  polycentric 
metropolitan area.  

The  business  model  in  Catalonia  is  characterised  by  a  high  presence  of  micro 
enterprises  (nine  out  of  ten  enterprises  employed  fewer  than  ten  workers) 
complemented  by  enterprises  employing  more  than  250  workers,  which  provide 
30 % of total employment. The service sector represents 69 % of total employment, 
industry  19 %  and  the  primary  sector  12 %.  Employment  in  the  automotive  sector 
represents 3 % of industrial employment in Catalonia. 

The  main  stakeholders  are  the  Generalitat  de  Cataluña-Departament  de  Treball 
(labour  services  of  the  Catalonia  autonomous  government)  and  the  social  partners 
constituting the governing board of the Servei de Ocupació de Catalunya (the public 
labour offices of Catalonia): the trade unions Comisión Obrera Nacional de Cataluña 

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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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and  Unión  General  de  Trabajadores,  two  employers'  organizations:  Foment  del 
Treball and PIMEC9, and two associations representing the town halls of Catalonia. 
The  Servei  de  Ocupació  de  Catalunya  will  be  responsible  for  implementing  the 
measures, supervising the procedures and controlling the expenditure. 

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

19. 

20. 

Around 90 % of the redundancies covered by this application occurred in Barcelona's 
metropolitan  area.  They  furthermore  represent  5 %  of  total  new  unemployment  in 
industry in Catalonia. Outside Barcelona the number of layoffs was small in absolute 
terms (137 in Santa Oliva, Tarragona and 71 in Arbuciés, Gerona). Nevertheless the 
impact  at  local  level  is  great,  representing  respectively  40 %  and  20 %  of 
unemployment in these two municipalities.  

In Catalonia, the impact of the economic and financial crisis has reversed the main 
indicators  of  the  Lisbon  strategy.  Between  Q2/2008  and  Q2/2009  the  employment 
rate  for  workers  of  16  to  64  years  old  dropped  from  72,1 %  to  64,9 %  (70,5 %  for 
men  and  59,1 %  for  women).  The  overall  unemployment  rate  doubled  in  the  same 
period raising from 7,6 % to 15,9 % 

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 

21. 

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

–  Welcome  session,  occupational  guidance  and  profiling:  The  first  measure 
provided to all 1 429 participants includes the profiling of the workers as well as 
information  on  available  jobs,  on  skills  and  training  requirements,  on  available 
training  programmes  and  apprenticeship  support  schemes,  as  well  as  mobility 
grants,  participation  and  insertion  incentives.  Participating  in  this  measure  is  an 
essential  precondition  for  access  to  any  other  personalised  service.  Nonetheless 
the  participation  rate  it  is  estimated  at  only  77 %  of  the  targeted  workers,  due 
mainly  to  the  fact  that  high  proportion  of  the  workers  are  in  the  older  age 
categories. 

–  Outplacement assistance: This measure combines two complementary actions. On 
the one hand it involves the design, implementation and follow-up of personalised 
support,  including  mentoring  during  the  process  until  reintegration  into  work. 
Nevertheless taking into consideration the average profile of the participants (men 
over  45  years  with  low  qualifications)  the  mentoring  could  be  extended  beyond 
that  point  in  time.  On  the  other  hand  it  also  involves  an  intensive  employment 
search, including active research of local and regional employment opportunities. 
The  participation  rate  is  estimated  at  70 %  of  the  participants  in  the  profiling 
interview.  

–  Intensive job-search assistance: This measure aims to provide all targeted workers 
with the material means and coaching (individual or workshops) during job-search 

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Micro, petita i mitjana empresa de Catalunya (PIMEC). 

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activities. The workers participating in this measure will be provided also with a 
"social corner", i.e. a place to share experiences and advice on job searching. This 
is to motivate the participants to continue searching for a job actively.  

–  General training and re-training: This measure will offer diverse paths of training: 
(1)  Individual  tailor-made  training  to  enhance  the  abilities  and  potential  of  each 
ex-worker according to his/her situation and prospects. This may include training 
to  success  a  competition,  completing  the  upper  secondary  school,  a  degree  or 
tertiary  education,  etc.  (2)  Training  in  sectors  where  opportunities  exist  or  will 
arise  or  training  in  jobs  related  to  the  automotive  sector.  (3)  Training  for  self 
employment. This training, intended for those who already have a business idea, 
will cover issues such as planning, carrying out feasibility studies, preparation of 
business plans and raising finance. Paths 1 and 2 will be complemented, as far as 
possible,  with  one  to  three  months  in-house  traineeship.  The  participants  in  the 
traineeships will receive a monthly allowance of about EUR 350.  

–  Training  for  specific  vocational  qualifications:  This  training  will  be  designed  to 
cater  for  the  identified  needs  of  local  enterprises,  who  in  turn  will  undertake  to 
employ at least 60 % of those workers who participate in this action. Around 20 % 
of the targeted workers will participate in this measure. 

–  Workshops  on  entrepreneurship:  This  consists  in  short  and  dynamic  workshops, 
which aim to promote the idea of entrepreneurship among workers who had never 
considered  being  anything  other  than  employees.  These  workshops  will  cover 
different levels of the entrepreneurship process from the basic information or first 
contact to more elaborate issues like workshops on generation of business ideas, 
on the process of analysis of those business ideas, etc. 

–  On-the-job  training:  This  measure  is  intended  for  the  most  disadvantaged  of  the 
targeted  workers  who  will  combine  theoretical  and  on-the-job  training  during 
three months. The participants in this measure will receive a monthly wage. 

–  Entrepreneurship assistance: This measure is aimed at former managers, workers 
with  high  qualifications  or  workers  who  compensate  with  a  solid  professional 
experience and a less high qualification, willing to start a business on their own as 
self-employed,  partner  of  a  cooperative  or  by  promoting  a  spin-off  enterprise.  
It  will  consist  in  personalized  tutoring  during  the  whole  process  of  starting  the 
business  (development  of  a  business  idea,  feasibility  analysis,  fundraising  and 
development  of  the  business  plan)  and  support  in  the  completion  of  the 
administrative formalities for setting up the business. Around 10 % of the workers 
are expected to participate in this measure.  

–  Peer  support:  This  measure  is  intended  as  a  supplement  to  the  personalized 
support  (tutoring)  and  will  be  focused  in  both  the  technical  and  the  emotional 
component of the process of starting a business or searching a job. It will consist 
in putting the participating workers in contact with formerly unemployed workers 
who  succeeded  in  their  reintegration  into  employment  and  whose  experiences 
could  serve  as  a  good  example.  The  sessions  will  be  facilitated  by  the  coaches. 
Around 50 % of the participants in the outplacement assistance measure will also 
participate in this mentoring. 

–  Participation  incentive:  To  encourage  their  participation  in  the  measures,  the 
workers will receive a lump sum of EUR 600 (EUR 100 a month for a maximum 

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of  six  months)  conditional  upon  their  participation  in  the  measures  of  the  EGF 
package.  

–  Outplacement incentives: A lump sum of EUR 1 000 will be paid to workers who 
return  to  employment  and  remain  employed  at  least  for  six  consecutive  months. 
The subsidy is designed to encourage reintegration into the labour market and to 
stimulate  workers,  particularly  those  who  are  older,  to  remain  in  the  labour 
market. 

–  Entrepreneurship  incentives:  All  the  workers  who  return  to  employment  as  self-
employed or entrepreneur will receive a lump sum of EUR 1 200 when they have 
accumulated three months of social security contributions or run a business during 
three months at least. This incentive has been designed to support self-employed 
workers during the start-up months of their business.  

–  Contribution  to  the  expenses  for  change  of  residence:  The  workers,  who  change 
residence  after  taking  a  job  that  is  at  least  70  kilometres  from  their  current 
residence,  will  receive  a  lump  sum  of  EUR 3 500  to  cover  the  necessary 
expenditure.  

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  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 4 235 284  and  the  expenditure  for  implementing  EGF  at  EUR 168 864 
(=3,98 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 2 752 935 (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) 

22. 

23. 

Actions 

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

Welcome session, occupational guidance 
and profiling 
Información inicial y entrevista en 
profundidad  

Outplacement assistance 
Tutorización para la reinserción y la 
activación laboral 

Intensive job-search assistance 
Apoyo intensivo en la búsqueda de trabajo 

General training and re-training 

1 072

60 

64 320

750

525

375

1 400 

1 050 000

500 

262 500

1 664 

624 000

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Actions 

Formación para la recolocación 

Training for specific vocational 
qualifications 
Formación a medida de las necesidades de 
las empresas 

Workshops on entrepreneurship 
Talleres de fomento del espiritu empresarial 

On-the-job training 
Promoción del empleo 

Entrepreneurship assistance 
Tutorización para la creación de empresas 

Peer support 
Mentoring y apoyo intergeneracional  

Participation incentive 
Ayuda a la participación 

Outplacement incentives 
Ayudas a la recolocación  

Entrepreneurship incentives 
Ayudas para el autoempleo 

Traineeship allowances 
Beca salario 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

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

150

225

113

75

375

750

263

38

180

2 000 

300 000

250 

56 250

3 500 

395 500

2 000 

150 000

250 

93 750

600 

450 000

1 000 

263 000

1 200 

45 600

700 

126 000

Contribution to the expenses for change of 
residence 
Ayudas a la mobilidad geográfica.  

Subtotal personalised services 

53

3 500 

185 500

4 066 420

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

Preparatory 

Management 

Information and publicity 

Control activities 

17 864

103 000

18 000

30 000

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Actions 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

Subtotal expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

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

168 864

4 235 284

2 752 935

24. 

25. 

Spain  confirms  that  the  measures  described  above  are  complementary  with  actions 
funded  by  the  Structural  Funds.  Spain  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. 

The main objectives of the 2007-2013 ESF operational programmes for Catalonia are 
promoting entrepreneurship, 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 over 45 years old, 
women and disabled people. Although some of the EGF measures, in particular those 
related to entrepreneurship promotion, could look similar to ESF measures there is a 
difference:  EGF  measures  have  a  uniqueness  and  special  character  (they  address  a 
sector  and  a  particular  population)  and  they  are  tailor-made  and  have  an  intensive 
format. 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 

26. 

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

27. 

The  social  partners  were  consulted  during  the  preparation  of  the  co-ordinated 
package of measures. The proposed application was discussed on 17 December 2009 
at one of the regular meetings of the governing board of the Servei de Ocupació de 
Catalunya. This governing board is composed by the trade unions Comisión Obrera 
Nacional  de  Cataluña  and  Unión  General  de  Trabajadores,  two  employers' 
organizations:  Foment  del  Treball  and  PIMEC10,  and  two  associations  representing 
the town halls of Catalonia, and other stakeholders. 

28. 

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

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Micro, petita i mitjana empresa de Catalunya (PIMEC). 

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

29. 

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 20 to 22 above do not 

receive assistance from other Community financial instruments. 

Management and control systems  

30. 

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  Servei 
d'Ocupació de Catalunya will be the intermediate body for the managing authority. 

Financing  

31. 

32. 

33. 

34. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 2 752 935, representing 
65 % of the total cost. The Commission's proposed allocation from 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  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.  

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35. 

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 

36. 

37. 

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 2 752 935  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/2010/002 ES/Cataluña automoción) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having  regard  to  the  Inter-institutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management11, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20  December  2006  establishing  the  European  Globalisation  Adjustment  Fund12, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission13, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional support for workers made redundant as a result of major structural changes 
in world trade patterns due to globalisation and to assist them with their reintegration 
into the labour market. 

The scope of the EGF was broadened for applications submitted from 1 May 2009 to 
include support  for workers made  redundant  as a direct result of the global financial 
and economic crisis. 

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF 
within the annual ceiling of EUR 500 million. 

Spain submitted an application to mobilise the EGF, in respect of redundancies in 23 
enterprises  operating  in  the  NACE  Revision  2  Division  29  (manufacture  of  motor 
vehicles, trailers and semitrailers) sector in a single NUTS II region, Cataluña (ES51), 
on  29  January  2010  and  supplemented  it  by  additional  information  up  to  26  April 
2010.  This  application  complies  with  the  requirements  for  determining  the  financial 

11 
12 
13 

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

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contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006.  The 
Commission therefore proposes to mobilise an amount of EUR 2 752 935. 

(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 2 752 935 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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