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/2010/005 ES/Comunidad Valenciana Natural Stone from Spain)
Date: 2010-10-29
Institutions: European Commission
Subjects: EU aid, Spain, 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, 29.10.2010 
COM(2010) 617 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/2010/005 ES/Comunidad Valenciana Natural 
Stone from Spain) 

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EXPLANATORY MEMORANDUM 

Point  28  of  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management1  allows  for  the  mobilisation  of  the  European  Globalisation  Adjustment  Fund 
(EGF), within the annual ceiling of EUR 500 million over and above the relevant headings of 
the financial framework.  

The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 
1927/2006 of the European Parliament and of the Council of 20 December 2006 establishing 
the European Globalisation Adjustment Fund2.  

On  9  March  2010,  Spain  submitted  application  EGF/2010/005  ES/Comunidad  Valenciana 
Natural  Stone  for  a  financial  contribution  from  the  EGF,  following  redundancies  in  66 
enterprises operating in the NACE Revision 2 Division 23 (manufacture of other non-metallic 
mineral products)3 in the NUTS II region of Comunidad Valenciana (ES52) in Spain. 

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

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no. 
Member State 
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/2010/05 
Spain 
(b) 
66 
Comunidad Valenciana [ES52] 
Division 23 (manufacture of other 
non-metallic mineral products) 
31/3/2009 to 30/12/2009 
7/6/2010 
9/3/2010 

528 

300 
2 098 800 
90 200 
4,12 
2 189 000 
1 422 850 

1. 

The  application  was  presented  to  the  Commission  on  9  March  2010  and 
supplemented by additional information up to 25 May 2010. 

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 20.12.2006 (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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2. 

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

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

3. 

4. 

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

The  Commission  recognised  in  its  Economic  Recovery  Plan5  that  the  construction 
industry in the EU has seen demand plummet as a result of the crisis. Data available 
afterwards6 confirmed the significant downturn in the construction sector, which fell 
in  the  EU-27  for  three  consecutive  quarters  in  2009  (Q1: -10,8;  Q2: -8,5;  Q3: -9,2) 
compared  with  the  same  period  of  previous  year,  mainly  due  to  the  decrease  in 
private  investment  in  the  residential  sector.  The  demand  for  finished  natural  stone 
products  (flooring,  facing  of  buildings,  etc)  is  closely  linked  to  demand  in  the 
construction sector, which is influenced by the number of new-builds and demand for 
renovations  and  upgrading.  In  its  assessment  on  an  EGF  application  related  to  the 
same  sector  and  region,7  the  Commission  has  already  stated  the  impact  of  the 
economic and financial crisis on the enterprises operating in the NACE Revision 2 
Division  23  (manufacture  of  other  non-metallic  mineral  products)  in  the  NUTS  II 
region of Comunidad Valenciana.  

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

5. 

6. 

5 
6 

7 

Spain  submitted  this  application  under  the  intervention  criteria  of  Article  2(b)  of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
nine-month period in enterprises operating in the same NACE Revision 2 Division in 
one region or two contiguous regions at NUTS II level in a Member State. 

The  application  cites  528  redundancies  in  66  enterprises  classified  in  the  same 
NACE Revision 2 Division during the nine-month reference period from 31 March 
2009  to  30  December  2009,  all  located  in  a  single  region  at  NUTS  II  level,  the 
Comunidad  Valenciana.  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.  

COM(2008) 800. A European Economic Recovery Plan. 
DG Enterprise: "Impact of the economic crisis on key sectors of the EU - The case of the manufacturing 
and construction industries". December 2009 update 
(http://ec.europa.eu/enterprise/policies/industrial-competitiveness/documents/index_en.htm). 
COM(2010)  216.  Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  on  the 
mobilisation  of  the  European  Globalisation  Adjustment  Fund  […]  application  EGF/2009/014 
ES/Comunidad Valenciana. 

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Explanation of the unforeseen nature of those redundancies 

7. 

8. 

9. 

The  Spanish  authorities  argue  that  the  financial  and  economic  crisis  has  led  to  a 
sudden  collapse  of  the  world  economy  with  an  enormous  impact  on  many  sectors. 
Since  2008  the  economic  situation  has  not  been  following  the  trends  of  previous 
years. This is not a gradual economic decline, for which companies could have been 
prepared.  

The extraction of stone in Spain as well as the sales of cut, polished and shaped stone 
have been increasing during the last years (production in 2007 was 18 % higher than 
in  2003).  Accordingly,  the  sector  made  significant  investments  in  order  to  increase 
its  production  capacity,  as  the  only  expected  risk  was  the  gradual  increase  of  the 
production  capacity  in  the  emerging  economies;  in  particular  China,  India  and 
Vietnam, and the market seemed capable of absorbing the increase of production. 

In a survey of the natural stone observatory held in Q2/2007, 27 % of firms reported 
an  increase  in  sales  over  the  previous  quarter,  15 %  reported  a  reduction  and  58 % 
maintained sales at the same level. One year later (Q2/2008) the same survey showed 
quite different results: 57 % of the enterprises reported a decrease in sales while only 
9 % reported an increase. 

Identification of the dismissing enterprises and workers targeted for assistance 

10. 

The application relates to 528 redundancies (of which 300 are targeted for assistance) 
in the following 66 enterprises:  

Enterprises and number of dismissals 

A.E. MARMOL, S.L. 

ABADMAR SA 
ALICER, S.A. 
APLICA MARMOL SL 
ASEMAGRA SL 

AZORIN Y PAYA S.L. 

AZULEJOS VEGARA, S.L. 
BARDISA BEBES, S.L. 
BATEIG STONE,S.L. 
CALZADOS CONTRADICTION, S.L. 

CANTERAS ALICANTINAS SL 

CANTERAS ALISAN SL 
CANTERAS FASAN, S.L. 
CELITE HISPANICA, S.A. 

CEMEN, S.L. 

CEMEX ESPAÑA, S.A. 
CERAMICA MAYOR, S.A. 
CERAMICA TORREGROSA SL 

CERAMICAS ALONSO SL 

2 

HIJOS DE FRANCISCO MORANT, 
S.L. 

2 
4  HISPANO DE MARMOLES, S.A. 
2  HORMAR XXI, S.L. 
1  HORMIGONES MARTINEZ, S.A. 
1  HORMIGONES SAN VICENTE SL 
HORMIGONES TECNOLÓGICOS 
FORTES S.L. 
JESUS GAVALDA SANTANA 
JOSE A. GARCIA MOYA SLU 
JOSE RUIZ MARCO S.L. 
JUAN JOSE RUIZ GINER 
LEVANTINA Y ASOCIADOS DE 
MINERALES SA 

1 
1 
1 
1 

1 

1  MARBRES BETANIA, S.L. 
2  MARFIL MARBLE SL 
1  MARMOLES ALMOHADE, S .L. 
MÁRMOLES ARTISTICOS 
TORNEADOS, S.L. 

9 

5  MARMOLES DAMASO SL 
2  MARMOLES DEL MUNDO, S.L.U. 
11  MARMOLES MAÑEZ, S.L. 
MARMOLES MARTINEZ Y 
GALIANA, S.A. 

3 

CERAMICAS EL MOLINAR S.L. 
CERAMICAS TORREBLANCA SL 

1  MARMOLES PEPE, S.L. 

21  MARMOLES SER Y ACA, S.L. 

10 
1 
1 
1 
1 

42 

1 
28 
1 
1 

167 

7 
1 
1 

3 

10 
1 
2 

1 

1 
1 

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Enterprises and number of dismissals 

CERAMOSA SL 
DECO ESCAYOLAS ASPRILLAS, S.L. 
DECO ESCAYOLAS HNOS 
CLEMENTE, S.L. 
DEKORMAT GLASS SL 

DENIA MARBRES SL 

DURA GRANITOS Y MARMOLES SL 
ELABORACIN GENERAL DE 
MARMOLES, S.L. 
EXCLUSIVAS RESIMART IBERICA 
SL 
FRANCISCO ORDOÑEZ MEJIAS 
S.L.U. 
GRANITOS DEL MEDITERRANEO, 
S.A 
GRUPO INDUSTRIAL BEMPE, S.L. 
HERMANOS TOLEDANO SL 

14  MARMOLES VIEMAPE, S.L. 
11  MOPERBAÑ, S.L. 

1  NUEVO MARMOL, SL 

1 

1 

2 

PREFABRICADOS LUFORT SL 
PROMOTORA DE INDUSTRIAS 
CERAMICAS SL 
PULIMAR STYL, S.L. 

23 

ROCAS ALICANTE VALENCIA, S.A 

1 

1 

SANEAMIIENTOS Y AZULEJKOS 
TAMAIX SL 

SINKMAR, S.L. 

3 

SOLER ESTEVAN INSTALACIONES, 
S.L. 
TEJAS COVERT SL 
18 
9  YESOS IBERICOS, S.A. 

Total no. of enterprises: 66 

Total no. of dismissals: 528 

3 
1 

2 

14 

2 

1 

4 

1 

5 

1 

53 
1 

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 45 years old 
Over 45 years old 

Number
280
20
295
5
7
107
186

12. 

13. 

14. 

Three of the targeted workers are disabled. 

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

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

Number
3
4
12
7
37
140
44
53

Educational level 
Basic education  
(to end of compulsory education) 
Upper secondary education 

Number
103

18

Percent
93,33
6,67
98,33
1,67
2,33
35,67
62,00

Percent
1,00
1,33
4,00
2,33
12,33
46,67
14,67
17,67

Percent
34,33

6,00

8 
9 

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

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15. 

16. 

Tertiary education  
Others (non formal education) 
Uneducated or early school leavers 

23
3
153

7,67
1,00
51,00

Similar percentages can be found when considering the 528 redundant workers with 
the exception that targeted workers between 25 and 45 years old are fewer (61,14 %) 
while targeted workers over 45 years old are more numerous. Almost all dismissed 
workers  over  45  years  old  are  targeted  for  assistance.  Likewise,  all  uneducated 
workers can be beneficiaries of the measures.  

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 

17. 

18. 

19. 

The  territory  concerned  by  the  redundancies  is  within  the  NUTS  II  region  of 
Comunidad Valenciana, and is concentrated in the comarca (roughly equivalent to a 
county)  Medio  Vinalopó  in  the  NUTS  III  province  of  Alicante.  The  designation  of 
'District  of  the  natural  stone'  includes  the  five  municipalities  in  the  county  (Pinós, 
Algueña,  La  Romana,  Novelda  and  Monforte  del  Cid),  where  the  cutting,  shaping 
and finishing of stone is the main economic activity in both the number of companies 
and the number of people working in the sector.  

Of  all  Spanish  enterprises  11,5 %  are  based  in  the  Comunidad  Valenciana.  The 
manufacturing sector represents 26 % of total employment in this region; while the 
service  sector  represents  60 %,  construction  10 %  and  the  primary  sector  4 %.  The 
business  model  in  Comunidad  Valenciana  is  characterised  by  a  high  presence  of 
small  and  medium  sized  enterprises  specialized  mainly  in  the  manufacture  of 
furniture,  shoes,  textiles,  ceramics  and  toys.  These  industries  are  concentrated  in 
districts around a limited number of municipalities. 

The  main  stakeholders  are  the  Generalitat  Valenciana  (Comunidad  Valenciana 
autonomous government) and in particular the SERVEF (labour public offices of the 
autonomous  government),  the  Consorcio  del  Pacto  Territorial  por  el  Empleo  del 
Valle  del  Vinalopó  (consortium  of  the  employment  agreement  in  the  Vinalopó 
valley)10,  trade  unions:  UGT-PV,  CCOO-PV,  MCA-UGT-PV  and  FECOMA-
CCOO-PV11, 
the  Valencia 
the  Confederation  of  Business  Organisations  of 
Autonomous  Region  (CIERVAL)  and  Marmol  de  Alicante  (Asociation  of  marble 
producers). 

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

10 

11 

This  consortium  is  composed  of  the  mayors  of  Villena,  Novelda,  Salinas,  La  Algueña,  Aspe  and 
Monforte de Cid and a representative of the partnership of the municipalities of the Vinalopó Valley; 
trade-unions and business organisations at local level. 
Unión  General  de  Trabajadores  del  País  Valenciano  (UGT-PV),  Comisiones  Obreras  del  País 
Valenciano  (CC.OO.-PV),  Federación  del  Metal,  Madera  y  Afines  de  la  UGT  del  País  Valenciano 
(MCA-UGT-PV) and Federación de Construcción, Madera y Afines (FECOMA-CC.OO.-PV). 

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20. 

21. 

22. 

23. 

The  unemployment  rate  in  Medio  Vinalopó  (i.e.  at  county  level)  increased  by 
88,4 %,  rising  from  12 336  in  November  2007  to  23 243  workers  in  2009  and 
represents 12 % of the unemployment at the level of the Alicante province.  

The number of dismissals in the sector of cutting, shaping and finishing of stone in 
Comunidad Valenciana, relatively stable in the period 2005-2007, has increased by 
405 %  in  the  last  two  years.  At  local  level  (i.e.  the  municipalities  in  the  district  of 
natural stone), the layoffs increased by 525 % (Novelda) or 694 % (Monóvar). Due 
to the  small  size  of  the municipalities  of the district (9 800 inhabitants on average) 
the impact of the redundancies is huge. Ninety per cent of the redundant workers in 
the sector of natural stone in Medio Vinalopó are men.  

Traditionally  the  major  economic  sectors  in  Medio  Vinalopó  have  been  the 
manufacture of shoes along with leather and marble. However, the shoes and leather 
industry  has  been  experiencing  difficulties  during  the  last  years,  mainly  due  to  the 
competition of Asian shoes and other Asian leather products. Redundant workers of 
this  sector  have  found  new  jobs  in  the  construction  and  in  the  marble  sector 
considered during these years as safety-net sectors. 

The  employment  situation  in  the  affected  area  seems  particularly  fragile,  given  the 
impact  of  the  crisis  in  the  textile  enterprises  located  in  the  contiguous  counties  of 
Medio  Vinalopó.  Following  these  redundancies  in  the  textile  sector  in  Comunidad 
Valenciana,  Spain  submitted  a  further  application12  in  March  2010  for  a  financial 
contribution from the EGF for these workers.  

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 

24. 

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

–  Intensive job-search assistance: This will involve an intensive employment search, 
including both passive and active research of the local and regional employment 
opportunities, in particular the emerging economic activities for self-employment 
and opportunities for new specialities in the sector of the natural stone. 

–  Online individual job search support: With the aim of providing the workers with 
some online tools which can help them with their individual job search, a web site 
will be created. The site will provide information organised in following sections: 
(1) dissemination  and  communication.  This  area  will  provide  information  on  the 
EGF and on the EGF-natural stone project: calendar of events, news, publication 
of new employment opportunities, etc. (2) Resources for returning to work: Self-
diagnostic  on  capabilities  and  occupational  skills.  Self-design  of  the  path  for 
reintegration  into  work.  Online  courses  (e.g.  training  in  active  job  search  and 
career guidance). Job ads, etc. (3) Resources for self employment: Self-diagnostic 
on  capabilities  and  entrepreneurial  skills;  online  courses  (e.g.  online  training  in 
business management); online support for developing a business plan; information 
about  how  to  start  a  business,  etc.  (4) Management  area:  Monitoring  sheets  and 

12 

Application EGF/2010/009 ES/Comunidad Valenciana – Textile. 

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reports,  records  of  the  activities,  guidelines,  procedures  and  instructions,  etc. 
Some of the sections will be accessible to the general public, while others will be 
restricted to the participants in the measures and/or the monitors.  

–  Information,  Screening  and  Occupational  Guidance:  This  will  be  provided  to  all 
300  participants  and  it  covers  a  dissemination  campaign  on  the  EGF  among  the 
potential beneficiaries of the measures, the profiling of the workers, identification 
of  personalised  re-integration  itineraries,  information  on  available  jobs,  on  skills 
and training requirements, on available training programmes, as well as mobility 
grants, participation and self-employment incentives. This will be complemented 
with a workshop on active job search and a basic IT course.  

–  Mentoring  (pathway  for  reintegration  in  the  same  sector):  The  mentors  will 
provide  not  only  information,  advice  and  support  during  the  period  between  the 
occupational orientation and the completion of the occupational pathway, but also 
facilitate the contacts with the potential employers in the natural stone sector and 
inform  them  about  the  available  tax  benefits  when  hiring  these  workers.  The 
mentors will also follow up the first months after reintegrating into employment to 
help the workers consolidate their posts.  

–  Training  in  vocational  skills  related  to  the  sector  of  the  natural  stone:  The 
participants in this measure will be trained in the job skills most in demand in the 
sector.  The  training  will  be  complemented  with  two  months  of  paid  traineeship 
(EUR 1 200 per month and participant). Around 10 % of the targeted workers will 
participate in this measure. 

–  Training for trainers. An eighty-hour training course will provide those redundant 
workers with the necessary teaching skills, whose work profiles recommend them 
as trainers in traditional crafts related to natural stone.  

–  Training in traditional crafts related to natural stone: These workshops delivered 
by  highly  experienced  ex-workers  will  be  focused  on  the  production  of  various 
products in natural stone (such as columns, capitals, furniture, etc) for which there 
is demand, but which were discontinued for lack of qualified personnel. Around 
7 % of the targeted workers will participate in this measure. 

–  Mentoring  (pathway  for  reintegration  in  any  sector):  The  mentors  will  provide 
information,  advice  and  support  during  the  period  between  the  occupational 
orientation  and  the  completion  of  the  occupational  pathway.  They  will  also 
facilitate  the  contacts  with  the  potential  employers  and  inform  them  about  the 
available  tax  benefits.  The  mentors  will  also  follow  up  the  first  months  after 
reintegrating into employment to help the workers to consolidate their posts.  

–  Training in new vocational skills: The participants in this measure will be trained 
in  sectors  where  opportunities  exist  or  will  arise  in  a  short  or  medium  term. 
Around 50 % of the targeted workers will participate in this measure. 

–  Training  for  specific  vocational  qualifications:  The  training  will  be  designed  to 
cater for the identified needs of local enterprises. It is expected that at least 50 % 
of  participants  in  this  action  will  be  offered  a  job.  Around  17 %  of  the  targeted 
workers will participate in this measure. 

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–  Mentoring  (pathway-promotion  of  entrepreneurship):  The  mentors  will  provide 
information,  advice  and  support  during  the  period  between  the  occupational 
orientation  and  the  completion  of  the  occupational  pathway.  They  will  also 
support the participants in the preparation of business plans and raising finance, in 
the  completion  of  the  administrative  formalities  for  setting  up  the  business  and 
during the first months of business activity. 

–  Promotion of entrepreneurship: Two workshops of short duration (16 hours each) 
focused on promoting business initiatives for self-employment and on generation 
of business ideas.  

–  Training  in  business  management:  This  course  targets  30  workers  and  aims  at 

providing participants with the basic skills to manage a small business.  

–  Equal  opportunities:  A  monitor  on  equal  opportunities  will  assure  that  the 
principle  of  equal 
the 
implementation  of  the  measures.  This  aims  at  removing  any  personal  or  family 
barriers that may prevent the targeted workers accessing the measures. 

treatment/equal  opportunities 

is  respected  during 

–  Assistance  for  carers  of  dependent  persons:  Workers  with  dependent  persons 
(children, old or disable persons) will receive an allowance of EUR 400 per month 
as a contribution to their caretaker expenses conditional upon their participation in 
the  measures.  This  aims  to  cover  the  additional  costs  faced  by  the  workers  with 
caring responsibilities in order to avail of training or other measures. 

–  Mobility  allowance:  The  workers  participating  in  the  measures  will  receive  a 
mobility allowance of EUR 20 daily as a contribution to their travel expenses. 

–  Contribution to the expenses for change of residence: Those workers who accept a 
job  involving  a  change  of  residence  will  receive  a  lump  sum  of  EUR 3 000  to 
cover the necessary expenditure.  

–  Entrepreneurship  incentive:  The  workers  who  reintegrate  in  employment  by 
starting  their  own  businesses  will  receive  a  lump  sum  of  EUR 3 000.  This 
incentive  is  designed  to  support  these  self-employed  workers  during  the  initial 
months after start-up. 

–  Participation  incentive.  To  encourage  their  participation  in  the  measures  the 
workers who do not receive any unemployment benefit will receive an allowance 
of  EUR 400  per  month  for  a  maximum  of  12  months,  conditional  upon  their 
participation in the measures of the EGF package.  

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

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 2 098 800 and the expenditure for implementing EGF at EUR 90 200 (= 4,12 % 
of 
is 
total  amount).  The 
EUR 1 422 850 (65 % of the total costs). 

total  contribution  requested  from 

the  EGF 

the 

25. 

26. 

EN 

9 

   EN 

Actions 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

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

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

1. Intensive job-search assistance 
(Prospección nuevas oportunidades empleo ) 

2. Online individual job search support 
(Creación de recursos) 

3. Information, Screening and Occupational 
Guidance  
(Información, diagnóstico y derivación) 

4. Mentoring 
(pathway for reintegration in the same sector) 
(Tutorización del itinerario de inserción en el 
sector) 

5. Training in vocational skills related to the 
sector of natural stone 
(Formación específica para nuevos perfiles 
profesionales) 

6. Training for trainers  
(Formación para formadores) 

7. Training in traditional crafts related to 
natural stone 
(Recuperación de oficios tradicionales) 

8. Mentoring 
(pathway for reintegration in any sector)  
(Tutorización de itinerarios de recolocación 
en otros sectores) 

9. Training in new vocational skills  
(Formación profesional específica) 

10. Training for specific vocational 
qualifications 
(Formación a medida en el puesto de trabajo) 

11. Mentoring 
(pathway: promotion of entrepreneurship)  
(Tutorización del itinerario de desarrollo 
empresarial) 

300

300

300

50

27

3

20

240 

200 

72 000

60 000

626 

187 800

1 452 

72 600

7 500 

202 50013

1 000 

3 000

2 700 

54 000

200

1 312,5 

262 500

150

3 933 

590 00014

50

50

1 900 

95 000

1 680 

84 000

13 

14 

The mobility daily allowance of EUR 20 per participant and day of participations is included in the total 
costs of actions no. 5, 6, 7, 9, 10, 12, 13 and 14. 
Difference in total costs due to rounding of unit costs (EUR 3 933,34). 

EN 

10 

   EN 

                                                 
Actions 

12. Promotion of entrepreneurship. Promotion 
of business initiatives  
(Taller de motivación al autoempleo) 

13. Promotion of entrepreneurship. 
Generation of business ideas 
(Taller de generación de ideas de negocio) 

14. Training in business management 
(Formación básica en gestión empresarial) 

15. Equal opportunities 
(Programa de igualdad de oportunidades) 

16. Assistance for carers of dependant 
persons 
(Ayudas para la atención a personas 
dependientes) 

17. Contribution to the expenses for change 
of residence 
(Ayudas a la movilidad geográfica) 

18. Entrepreneurship incentive 
(Ayudas al autoempleo) 

19. Participation incentive 
(Incentivos a la participación) 

Subtotal personalised services 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

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

50

50

30

332 

16 600

332 

16 600

1 560 

46 800

300

108 

32 400

40

15

30

15

2 400 

96 000

3 000 

45 000

3 000 

90 000

4 800 

72 000

2 098 800

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

Management 

Control activities 

Subtotal expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

60 000

30 200

90 200

2 189 000

1 422 850

27. 

28. 

The  Spanish  authorities  confirm 
the  measures  described  above  are 
complementary with actions funded by the Structural Funds and that measures are in 
place to prevent double funding. 

that 

The main objectives of the 2007-13 ESF operational programmes for the Comunidad 
Valenciana are promoting workers' lifelong learning and decreasing the risk of early 
school leaving, focusing in particular on the most vulnerable people or people at risk 

EN 

11 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
of social exclusion, mainly young workers, or those over 45 years old, women and 
disabled people. In particular, in relation to actions co-funded under the ESF, Spain 
indicated that none of the enterprises and workers concerned by this application have 
benefited  from  the  employment  plans  co-financed  by  the  ESF.  However  some 
workers had at some time in the past benefited from training activities offered under 
the nation-wide ESF programme "Training for Employment". Continuous follow-up 
of ESF and EGF actions pursuing similar purposes and the workers concerned will 
avoid any overlap between ESF and EGF measures. 

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

29. 

Personalised  services  to  the  affected  workers  included  in  the  co-ordinated  package 
proposed for co-financing by the EGF will start by Spain on 7 June 2010. This date 
therefore represents the beginning of the period of eligibility for any assistance that 
might be awarded from the EGF. 

Procedures for consulting the social partners 

30. 

The  social  partners  were  consulted  during  the  preparation  of  the  co-ordinated 
package  of  measures.  The  proposed  application  was  discussed  at  several  meetings 
from  July  to  September  2009  with  the  social  partners  referred  to  under  point  19 
above  In  addition,  they  will  also  participate  during  the  implementation  period 
through  the  sectoral  committee  created  within  the  consortium15  to  implement, 
monitor and evaluate the measures. 

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

31. 

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

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

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

to be used for restructuring companies or sectors; 

•  confirmed  that  the  eligible  actions  referred  to  above  do  not  receive  assistance 

from other Community financial instruments. 

Management and control systems  

32. 

Spain  has  notified  the  Commission  that  the  financial  contribution  will  be  managed 
and  controlled  by  the  same  bodies  that  manage  and  control  the  ESF.  The  Regional 
Ministry  of  Finance  and  Employment  of  the  Comunidad  Valenciana  will  be  the 
intermediate body for the managing authority. 

15 

Consorcio del Pacto Territorial por el Empleo del Valle del Vinalopó. 

EN 

12 

   EN 

                                                 
Financing  

33. 

34. 

35. 

36. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 1 422 850, representing 
65 %  of  the  total  cost.  The  Commission's  proposed  allocation  under  the  Fund  is 
based on the information made available by Spain. 

Considering the maximum possible amount of a financial contribution from the EGF 
under  Article  10(1)  of  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.  

37. 

The Commission presents separately a transfer request in order to enter in the 2010 
budget specific commitment and payment appropriations, as required in Point 28 of 
the Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations 

38. 

39. 

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 middle-sized 
enterprises (SMEs)' in 2010 will not be fully used this year.  

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 
the  European  Venture  Capital  Association  (EVCA), 
investments and divestments (exits) were more than halved between 2007 and 2009 
compared  to  the  pre-crisis  situation.  These  developments  had  also  a  substantial 
impact on the forecasts in terms of disbursements for 2010. 

to 

40. 

As  a  consequence  of  the  above  elements,  payment  appropriations  foreseen  in  the 
2010  budget  will  not  be  fully  needed  in  2010.  The  amount  of  EUR 1 422 850  can 
therefore be made available for transfer. 

EN 

13 

   EN 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund in accordance with 
point 28 of the Interinstitutional Agreement of 17 May 2006 between the European 
Parliament, the Council and the Commission on budgetary discipline and sound 
financial management (application EGF/2010/005 ES/Comunidad Valenciana Natural 
Stone from Spain) 

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 
management16, 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  Fund17, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission18, 

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 66 
enterprises  operating  in  NACE  Revision  2  Division  23  (manufacture  of  other  non-
metallic mineral products) in a single NUTS II region, Comunidad Valenciana (ES52), 
on 9 March 2010 and supplemented it by additional information up to 25 May 2010. 
This  application  complies  with  the  requirements  for  determining  the  financial 

16 
17 
18 

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

EN 

14 

   EN 

                                                 
contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006.  The 
Commission therefore proposes to mobilise an amount of EUR 1 422 850. 

(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 1 422 850 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 

EN 

15 

   EN