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/2010/009 ES/Comunidad Valenciana Textiles from Spain)
Date: 2010-10-29
Institutions: European Commission
Subjects: EU aid, Spain, budgetary procedure, commitment of expenditure, dismissal, financial management, fund (EU), globalisation, interinstitutional agreement, reintegration into working life, textile industry

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EUROPEAN COMMISSION 

Brussels, 29.10.2010 
COM(2010) 613 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/2010/009 ES/Comunidad Valenciana Textiles 
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  22  March  2009,  Spain  submitted  application  EGF/2010/009 ES/Comunidad  Valenciana 
Textiles for a financial contribution from the EGF, following redundancies in 143 enterprises 
operating  in  the  NACE  Revision  2  Division  13  (manufacture  of  textiles)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/2010/009 
Spain 
(b) 
143 
Comunidad Valenciana [ES52] 
Division 13 (manufacture of 
textiles) 
13/4/2009 to12/1/2010 
15/6/2010 
22/3/2010 

544 

350 
3 028 409 
140 000 
4,42 
3 168 409 
2 059 466 

1. 

The  application  was  presented  to  the  Commission  on  22  March  2010  and 
supplemented by additional information up to 17 June 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. 

In  order  to  establish  a  link  between  the  redundancies  and  the  major  structural 
changes  in  world  trade  patterns  due  to  globalisation,  Spain  argues,  using 
EUROSTAT  trade  statistics,  that  the  EU  trade  balance  in  textiles  has  deteriorated 
substantially  over  the  period  2004-2008.  There  was  a  13 %  increase  in  imports  of 
textiles  into  EU  over  the  period  2004-2008;  over  the  same  period,  the  export  of 
textiles from the EU to the rest of the world decreased by 0,5 %. The trade balance 
for  textiles  of  the  EU  decreased  from  a  surplus  of  EUR 927 million  in  2004  to  a 
deficit of EUR 1 441 million in 2008. 

Textiles 
mio EUR 

Imports  
into EU 

Exports 
from EU 

Balance 

2004 

2005

2006

2007

2008 

% growth 
2004/2008

17 610 

18 074

19 868

20 930

19 885 

13

18 537 

18 482

19 220

19 392

18 444 

-0.5

927 

408

-649

-1 537

-1 441 

4. 

This  decline  in  demand  was  also  felt  in  Spain.  During  the  period  2005-2008,  the 
Spanish  balance  of  trade  for  textiles,  which  at  the  time  was  already  negative, 
decreased by a further 15 %, falling from EUR -609 million to EUR -698 million.  

In  addition  the  MS  argued  that  the  crisis  further  exacerbated  the  downturn  in  the 
sector.  

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

5. 

6. 

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

The  application  cites  544  redundancies  in  143  enterprises  classified  in  the  same 
NACE  Revision  2  Division  during  the  nine-month  reference  period  from  13  April 
2009  to  12  January  2010,  all  located  in  a  single  region  at  NUTS  II  level,  the 
Comunidad Valenciana. Of these redundancies, 247 redundancies were calculated in 
accordance with the first indent of the second paragraph of Article 2 of Regulation 
(EC) No 1927/2006. A further 217 redundancies were calculated in accordance of the 
second  indent  and  80  redundancies  were  calculated  in  accordance  with  the  third 
indent of the same paragraph.  

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The dismissals for each enterprise were calculated using one of the three indents of 
article  2  of  Regulation  (EC)  No  1927/2006.  For  seven  enterprises5  however, 
redundancies were calculated using two different indents.  

7. 

The Commission has received the confirmation required under the third indent of the 
second  paragraph  of  Article  2(2)  that  544  is  the  actual  number  of  redundancies 
effected.  

Explanation of the unforeseen nature of those redundancies 

8. 

9. 

Recent  years  have  been  very  difficult  for  the  textile  industry  which  has  undergone 
extensive restructuring and modernisation in respond to the competition pressure that 
followed the expiry of the World Trade Organisation Multifibre Arrangement and the 
Agreement  on  Textiles  and  Clothing  which  succeeded  it.  After  substantial  falls  in 
production  at  the  beginning  of  the  current  decade  (-5 %  per  year  in  average), 
production  showed  signs  of  stabilising  and  recovering  in  2006.  Production  in  2007 
remained at the same level as in 2006. In 2008, as a direct result of the economic and 
financial  crisis,  which  was  unforeseen,  the  production  of  textiles  started  decreasing 
and in the last quarter of that year this fall in the production of textiles accelerated  
(-17 %  compared  to  the  same  period  in  2007)  and  further  exacerbated  in  the  first 
quarter of 2009 (-24.5 % compared to the same period of 2008). The impacts of the 
economic  and  financial  crisis  are  also  reflected  in  lower  demand  from  some  of  the 
developed  trade  partners,  such  as  USA  and  Japan  (respectively  -15 %  and  -7 %  in 
value in EU exports in 2008 compared with the previous year).  

Traditionally, the trend in the European textile sector is considered to be linked to the 
behaviour of household consumption. As a result of the economic and financial crisis 
demand for industrial products decreased due to declining consumer confidence and 
the lack of cash. The Spanish authorities argue that the financial and economic crisis 
led to the sudden collapse of the world economy with an enormous impact on many 
sectors and that since 2008 the economic situation had not been following the trends 
of previous years, which could not have been foreseen.  

Identification of the dismissing enterprises and workers targeted for assistance 

10. 

The application relates to 544 redundancies (of which 350 are targeted for assistance) 
in the following 143 enterprises:  

Enterprises and number of dismissals 

ACABADOS BAÑERES, S.A. 

ACABADOS MONLLOR, S.L. 

ACABADOS RODOLFO AZNAR S.L. 

ACOYSER, S.L. 

ADROGUER Y CASTRO, S.L. 

ALCOPEL 2003, S.L. 

ALFOMBRAS AUTOMOCION, S.L. 

2 

4 

2 

1 

1 

1 

1 

M CASTELLO JOVER, S.L. 

MALLES FRANCES S.L. 

MANTEROL, S.A. 

MANUEL REVERT Y CIA, S.A. 

MANUFACTURAS ARTESA, S.L. 

MANUFACTURAS GUILABERT, 
S.L. 

MARCOS BELTRAN, S.L. 

1 

1 

12 

15 

2 

2 

1 

5 

Comersan  S.A.,  Manterol  S.A.,  Murkoc  Servicios  S.L.,  Rasilan  S.A.  Textiles  Athenea  S.A.,  Vicente 
Barceló Vaño S.L. and Peivor S.L.  

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ANA DE CASTRO Y CERVERA, S.A. 

10 

MARKET TEXTIL S.L. 

Enterprises and number of dismissals 

ANTECUIR, S.L. 

ANTONIO PEREZ ADSUAR, S.A. 

ANUBIS 63, S.L. 

ANURDIFIL S.L. 

ARTESANOS EN REDES, S.L. 

ATHOS FABRICS, S.L. 

BLANC TEXTIL, S.A. 

BLASCO TEXTIL, S.A. 

BORDADOS GRAMAR, S.L. 

BORDADOS GAMON, S.L. 

BORDADOS LAURA, S.L. 

BORDADOS SERPIS S.L. 

BORDAMALLA, S.L. 

BRAN`'S COLLECTIONS S.L. 

BREZO HILADOS S.L. 

CAÑETE, S.A. 

CAR Y FINA, S.L, 

CASA GRIM, S.L. 

CASUAL TEXTIL, S.A. 

1 

2 

1 

4 

1 

1 

4 

6 

1 

4 

3 

2 

6 

1 

1 

1 

1 

1 

4 

MIGUEL ANGEL COMPANY 
SOLER 

MIGUEL CARCELEN Y CIA S.L. 

MOLTO REIG, S.A. 

MONLLOR HERMANOS, S.A. 

MOQUETAS ROLS, S.A. 

MUESTRARIOS HERMANOS 
CAÑADA S.L. 

MURKOC SERVICIOS S.L. 

NACHATEX S.L. 

NONWOVENS IBERICA, S.L. 

NOVIAS PEPE BOTELLA, S.L. 

ORLIMAN, S.L. 

PADUANA XXI, S.L. 

PAÑERIA Y CONFECCIONES 
GARCIA MOLINA, S.L. 

PARASOLES GANDIA SAFOR, 
S.A. 

PEDRO A GUILLEM, S.L. 

PEIVOR S.L. 

PERGOA-TEX, S.L. 

PRIMICIAS TECNICAS CARDI, 
S.L. 

QUEROL,S.A. 

CATALA Y RONHER, S.A. 

28 

RANI BURHAN, S.L. 

CCM BOREAL 2007,S.L. 

CIPRIANO MOLINA ALBERO, S.L. 

COLCHONES MIVIS, S.L. 

COLORPRINT FASHION, S.L. 

COLORTEX 1967, S.L. 

COLORTEX, S.A. 

COMALCAR SL 

COMERCIAL TIFANYS, S.A. 

COMERSAN, S.A. 

CONFECCION DE MUESTRARIOS 
GANDIA, S.L. 

1 

1 

1 

2 

3 

2 

1 

1 

2 

1 

CONFECCIONES ALBAIDA, S.L. 

11 

RASILAN, S.A. 

REDES I JOMAR SL 

REIG MARTI, S.A. 

RIBERA FLEXIBLE DEL 
COLCHON, S.L. 

RIPOLL TEJIDOS PARA LA 
DECORACION, S.L. 

ROBERTO PAYA, S.L. 

ROTATEX, S.L. 

RUEDA ARRIETE,SL 

SA RUBI INDUSTRIAL-TODOFIL 

SERVIURDID, S.L. 

SOCIEDAD COOPERATIVA 
VALENCIANA LTA.T.ASDO. 
DISTRITO 11 

CONFECCIONES BELMAY, S.L. 

CONFECCIONES ENSAYO TEXTIL, 
S.L. 

2 

2 

SONIBE SC 

TAPICERIAS, S.A. 

5 

3 

1 

39 

4 

6 

1 

2 

1 

2 

1 

1 

2 

1 

1 

1 

22 

1 

2 

2 

1 

8 

1 

41 

1 

1 

1 

1 

1 

2 

1 

5 

1 

7 

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Enterprises and number of dismissals 

CONFECCIONES RIO SOT, S.L. 

CORDISPLAY TECNOLOGIC, S.L. 

CREVILLENTE INDUSTRIAL, S.A. 

CUERDAS Y REDES ILLAN & 
ESTAN, S.L. 

DIMAS, S.A. 

DISEDIS, S.L. 

DISEÑOS JUANMI, SL 

DISEÑOS MEDI, S.L. 

8 

5 

1 

4 

TAPIRELAX SA 

TAPIZADOS NOVA LINEA, S.L. 

TEDESVAN, S.A. 

TEJIDO DE SEDA CAMILO 
MIRALLES, S.L. 

44 

TEJIDOS DOBELTEX S.L. 

1 

5 

1 

TEJIDOS REINA, S.A. 

TEJIDOS ROYO, S.L. 

TEXTILES 9463 CALERO SL 

EDUARDO GÓMEZ PASTOR 

18 

TEXTILES ATHENEA, S.A. 

ENCOTOR, S.A. 

ESTAMPADOS ELCHE SL 

FABRICA DE TAPICERIA, S.L. 

FINITEXTIL, S.L. 

FLAT WOVEN, S.L. 

FLEXOTEX, S.A. 

FRANCES TEXTIL, S.L. 

GINES CORTINAS, S.L. 

GLOBALTEX HOME, S.L. 

GONZALO FERRI, S.A. 

HICORRED, S.L. 

HIJOS DE ANTONIO FERRE, S.A. 

HIJOS DE ROQUE MONLLOR, S.L. 

HILATURAS CANALENSES SAL 

HILATURAS FERRE, S.A. 

INCOR CORTE INDUSTRIAL DE 
TEJIDOS, S.L.U. 

INDUSTRIAS TEXTILES COPATEX, 
S.L. 

JOAQUIN MOLTO, S.A. 

JOSE ANTONIO GARCIA BORNAY 

JOSE ANTONIO REIG FERRANDIZ 

JOSE LUIS AVELLAN BLANES, S.L. 

JOVERTEXT, S.A. 

1 

2 

5 

5 

2 

1 

1 

1 

1 

2 

1 

1 

7 

1 

1 

1 

4 

1 

1 

1 

1 

3 

TEXTILES BERBEL, S.L. 

TEXTILES MONTCABRER, S.A. 

TEXTILS MORA, S.A.L. 

TEXTISOL, S.L. 

TINTES BOLTA, S.A. 

TOALLAS LA BRUJA, S.A. 

TRANSPORTES Y SERVICIOS 
MONLLOR, S.L. 

TRAVEL-FIL,S.L. 

TRENZADOS DAI SL 

TRENZAFIL SL 

TRITURADOS CORREAL, S.L. 

TUTTO PICCOLO, S.A. 

UBESOL, S.L. 

UNITEX ALFOMBRAS 14, S.L. 

VANGUARDIA TEXTIL S.L. 

VIATEX, S.L. 

VICENTE BARCELO VAÑO, SL 

VICENTE SEMPERE, S.L. 

WINTEX, S.A. 

YEBANE ESPAÑOLA, S.A. 

ZORQUESA, S.L. 

1 

1 

1 

2 

1 

2 

17 

1 

13 

1 

1 

4 

2 

4 

1 

3 

1 

1 

2 

1 

1 

1 

1 

1 

2 

2 

9 

3 

2 

2 

Total no. of enterprises: 143 

Total no. of Dismissals: 544 

11. 

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

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15 to 24 years old 

Number
216
134
346
4
2

Percent
61,7
38,3
98,9
1,1
0,6

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Category 
25 to 54 years old 
55 to 64 years old 
Over 64 years old 

Number
269
75
4

Four of the targeted workers are disabled. 

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

Category 
Managers 
Technicians  
Clerks 
Craft and related trade workers 
Machine operators 
Elementary occupations 
Others 
In terms of educational level7, the break-down is as follows: 

Number
6
33
37
56
182
26
10

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

Number
280

31
30
3
6

Percent
76,9
21,4
1,1

Percent6
1,6
9,5
10,6
16,1
52,1
7,3
2,7

Percent8
79,9

8,8
8,6
0,9
1,7

The  same  percentages  can  be  found  when  considering  the  totality  of  the  544 
redundant workers. 

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. 

12. 

13. 

14. 

15. 

16. 

Description of the territory concerned and its authorities and stakeholders 

17. 

18. 

The  territory  concerned  by  the  redundancies  is  within  the  NUTS  II  region  of 
Comunidad  Valenciana,  and  is  mainly  concentrated  in  five  comarcas  (roughly 
equivalent  to  a  county)  on  both  sides  of  the  boundary  between  the  NUTS  III 
provinces of Alicante and Valencia.  

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. 

6 
7 
8 

Total does not tally due to rounding. 
Categories based on the International Standard Classification of Education (ISCED-97). 
Total does not tally due to rounding. 

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19. 

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)9,  trade  unions:  UGT-PV,  CCOO-PV,  FIA-UGT  and  FITEQA-CCOO-PV10, 
the  Confederation  of  Business  Organisations  of  the  Valencia  Autonomous  Region 
(CIERVAL)  and  Association  of  Textile  Entrepreneurs  in  Comunidad  Valenciana 
(ATEVAL). 

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

20. 

21. 

22. 

23. 

The number of dismissals in the textile sector in the Comunidad Valenciana, which 
remained  relatively  stable  and  on  a  decreasing  trend  during  the  period  2005-07, 
increased by 40,61 % in the next two years (2008-09). The employment in the textile 
sector  represents  4.8 %  of  the  total  employment  in  the  manufacturing  sector  in  the 
region. 

The impact at local level of these redundancies is high due to the concentration of the 
sector in a small number of areas. The textile activity in the Comunidad Valenciana 
(30 % of employment in the textile sector in Spain) is located in industrial districts 
where  this  sector  dominates.  Seven  counties,  almost  all  of  them  contiguous  (Vall 
d'Albaida, L'Alcoia, El Comtat, La Costera, Alt Vinalopó, Baix Vinalopó and Baix 
Segura), represent 75,2 % of employment in the textile in Comunidad Valenciana.  

In  the  five  municipalities11  most  affected  by  the  redundancies  resulting  from  the 
crisis in  the  textile sector,  the redundancies  concerned  by this application  represent 
35,13 %  of  the  unemployment  increase  in  the  manufacturing  sector  during  the 
reference period (April 2009-January 2010).  

Traditionally the major economic sectors in Alicante (NUTS III level) have been the 
manufacture of shoes along with leather, textile 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.  The  marble 
industry – considered during these years as a safety-net sector – is also suffering the 
consequences  of  the  recent  financial  and  economic  crisis.  Following  these 
redundancies  in  the  sector  of  natural  stone  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 

9 

10 

11 
12 

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 de  Industrias  afines  de  la  Unión General  de  Trabajadores (FIA 
UGT)  and  Federación  de  Industrias  del  Textil,  Piel,  Químicas  y  Afines  de  Comisiones  Obreras 
(FITEQA-CC.OO.-PV). 
Albaida, Ontinyent, Cocentaina, Muro d'Alcoi and Alcoi. 
Application EGF/2010/005 ES/Comunidad Valenciana Natural Stone. 

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8 

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24. 

The following 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.  

Preparatory activities and accompaniment  

–  Welcome  sessions:  The  first  measure  provided  to  all  350  participants  includes 
information on skills and training requirements, on available training programmes 
and apprenticeship support schemes, as well as allowances and incentives. 

–  Guidance:  This 

involves 

the  design, 
implementation and follow-up of personalised support, including mentoring. The 
mentoring  process,  throughout  the  EGF  implementation,  will  ensure  that  the 
packages can be adjusted if necessary.  

the  workers  and 

the  profiling  of 

Training  

–  Basic training, prior to the acquisition of new skills: The participants will receive 
job  search,  self-esteem  and  basic 

in  ICT,  active 

some  basic 
entrepreneurship skills.  

training 

–  Training  in  vocational  skills.  The  participants  in  this  measure  will  be  trained  in 
job skills currently in demand. The class-room training will be followed by a paid 
traineeship  (EUR 320  per  month  and  participant).  Around  24 %  of  the  targeted 
workers will participate in this measure. 

–  Training  for  skills  upgrading:  The  participants  will  be  trained  in  one  of  the 
training specialities of the INEM (the national public employment service). This 
training  is  scheduled  to  be  shorter  than  the  training  in  vocational  skills  as  the 
participants will be trained to reinforce or upgrade pre-existing skills. The workers 
will be given the possibility of complementing the class-room training with a paid 
traineeship  period  although  enrolling  in  this  traineeship  will  not  be  compulsory 
for  the  participants  in  the  measure.  Around  24 %  of  the  targeted  workers  will 
participate in this measure. 

–  Training  as  qualified  care  workers:  There  is  an  increasing  demand  for  qualified 
care  workers  in  the  territory  affected  by  the  redundancies.  The  content  of  the 
training will be discussed with the social services at local level to better cover the 
expectations and needs of the towns. The training will include both classroom and 
on-the-job  training.  The  latter  will  be  organized  in  small  groups  for  a  better 
follow-up  of  the  practical  training.  Around  10 %  of  the  targeted  workers  will 
participate in this measure.  

–  Training  in  personal  development  and  introduction  to  entrepreneurship:  These 
training  courses  are  aimed  at  workers  whose  profiles  make  them  candidates  for 
middle management posts or for entrepreneurship. They will be trained in subjects 
such business values and personal values, managing change efficiently, marketing 
and innovation as a growth strategy, emotional intelligence, etc. For those workers 
who wish to start their own businesses, specific training activities will be provided 
combining  regular  training  (covering  elements  such  as  planning,  carrying  out 
feasibility  studies,  preparation  of  business  plans,  etc)  with  the  use  of  simulator 
software to allow the participants to simulate decision-making processes related to 
the start-up of a business. 

EN 

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Promotion of entrepreneurship  

–  Counselling on projects and initiatives: This aims to develop, produce and guide 
viable  business  or  self-employment  projects.  The  tutors  will  also  try  to  find 
openings for self-employment within and outside the county and propose them to 
the participants in the measure. 

–  Accompaniment towards business creation: This measure seeks to assist dismissed 
workers who envisage creating their own business. It will consist of personalized 
tutoring  during  the  whole  process  of  starting  the  business  (development  of  a 
business idea, feasibility analysis, and assistance for the elaboration of a business 
plan) and support regarding administrative requirements.  

–  Logistic  and  financial  support:  This  relates  to  fundraising  and  support  on 
administrative  requirements  to  successfully  apply  for  the  incentives  to  set  up  a 
business. The tutors will also follow up the economic development of the business 
initiatives  aiming  to  anticipate  the  future  difficulties  and  propose  possible 
solutions. 

Intensive job-search assistance 

–  Intensive job-search assistance: This will involve an intensive employment search, 
including  both  passive  and  active  research  of  local  and  regional  employment 
opportunities, in particular emerging economic activities for self-employment and 
opportunities for new specialities in the sector of the textiles. A web site will be 
created to provide the workers with some online tools which can help them with 
their  individual  job  search.  The  site  will  be  structured  in  three  sections:  general 
information,  training  activities  and  a  restricted  area  with  online  tools  such 
simulator software for business start-up.  

Incentives 

–  Participation  incentive:  To  encourage  their  participation  in  the  measures,  the 
workers  will  receive  a  lump  sum  of  EUR 350  for  completing  their  own 
personalised package of measures.  

–  Mobility allowance: The workers participating in the measures will receive up to 
EUR 500  as  a  contribution  to  their  travel  expenses.  Due  to  the  lack  of  suitable 
public transportation among the local towns, the participants will have to use their 
own  vehicle  to  commute  from  their  town  of  residence  to  the  town  where  the 
measures will take place.  

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

–  Support  for  setting  up  a  business:  Workers  who  start  their  own  businesses  will 

receive up to EUR 3 000 to cover setting-up costs.  

25. 

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 as well as information and publicity. 

EN 

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26. 

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 3 028 409  and  the  expenditure  for  implementing  the  EGF  at  EUR 140 000 
(=4,42 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 2 059 466 (65 % of the total costs). 

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. Preparatory activities and 
accompaniment.  

1.1 Welcome session 
(Servico de acogida) 

1.2. Guidance 
(Servicio de orientación) 

2. Training 

2.1. Basic training  
(Cursos básicos) 

2.2 Training in vocational skills 
(Formación e inserción laboral) 

2.3 Training for skills upgrading 
(Formación para el empleo) 

2.4 Training as qualified care workers 
(Talleres sociales)  

2.5 Training in personal development and 
Introduction to entrepreneurship 
(Formación en competencias transversales) 

2.6 Trainingship 

3. Promotion of entrepreneurship  

3.1 Counselling on projects and initiatives 
(Servicio de proyectos e iniciativas) 

3.2 Accompaniment towards business 
creation 
(Servicio de asesoría al emprendedor)  

3.3 Logistic and financial support 
(Servicio logístico y financiero) 

4. Intensive job-search asístanse 

350

350

210

84

84

36

95

96

116 

40 600

574 

200 900

571 

119 910

5 085 

427 140

3 208 

269 472

2 292 

82 512

1 895 

180 025

900 

86 400

100

1 760 

176 000

60

40

350

2 920 

175 200

4 730 

189 200

1 273 

445 550

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Actions 

(Servicio de apoyo a la inserción) 

5. Incentives 

5.1. Participation incentives 
(Incentivos a la participación) 

5.2. Mobility allowance 
(Ayudas a la movilidad) 

5.3 Outplacement incentives 
(Incentivos a la colocación) 

5.4 Support for setting up a business 
(Ayudas a la creación de empresas) 

Subtotal personalised services 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(in EUR) 

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

350

100

140

40

350 

122 500

500 

50 000

2 450 

343 000

3 000 

120 000

3 028 409

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

Management 

Information and publicity 

Control activities 

Subtotal expenditure for implementing the 
EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

60 000

40 000

40 000

140 000

3 168 409

2 059 466

27. 

28. 

the  measures  described  above  are 
The  Spanish  authorities  confirm 
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 
of social  exclusion, mainly young workers, or those over 45 years old, women and 
disabled  people,  while  the  EGF  measures  will  be  focused  on  workers  made 
redundant in a territory highly specialised in textile production without applying any 
restriction related to age, education, etc.  

29. 

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 

EN 

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   EN 

  
  
 
 
 
 
 
 
 
 
 
 
 
 
30. 

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

31. 

The  social  partners  were  consulted  during  the  preparation  of  the  co-ordinated 
package of measures. The proposed application was discussed at the meetings on 28 
January 2010 and 24 February 2010 with the social partners: SERVEF (labour public 
offices of the autonomous government); the employer organisations: CIERVAL and 
ATEVAL;  the  principal  trade  unions,  UGT  and  CCOO;  and  representatives  of  the 
town  councils  of  Ontinyent  and  Alcoi.  During  the  first  meeting  the  project  was 
presented  to  the  social  partners  and  the  steering  committee  and  the  technical 
committee were drawn up. In the second meeting the action plan for each committee 
was established and the roles and tasks allocated. 

32. 

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

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

33. 

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  

34. 

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

Financing  

35. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 2 059 466, representing 
65 %  of  the  total  cost.  The  Commission's  proposed  allocation  under  the  Fund  is 
based on the information made available by Spain. 

EN 

13 

   EN 

36. 

37. 

38. 

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  to  above,  to  be  allocated  under  heading  1a  of  the  financial 
framework. 

The proposed amount of the 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.  

39. 

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 

40. 

41. 

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 2 059 466  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/2010/009 ES/Comunidad Valenciana Textiles 
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 
management13, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20  December  2006  establishing  the  European  Globalisation  Adjustment  Fund14, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission15, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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

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

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

Spain submitted an application to mobilise the EGF, in respect of redundancies in 143 
enterprises operating in NACE Revision 2 Division 13 (manufacture of textiles) in a 
single  NUTS  II  region,  Comunidad  Valenciana  (ES52),  on  22  March  2010  and 
supplemented  it  by  additional  information  up  to  17  June  2010.  This  application 
complies  with  the  requirements  for  determining  the  financial  contributions  as  laid 

13 
14 
15 

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

EN 

15 

   EN 

                                                 
down  in  Article  10  of  Regulation (EC) No 1927/2006.  The  Commission  therefore 
proposes to mobilise an amount of EUR 2 059 466. 

(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 2 059 466 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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