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/2010/012 NL/Noord Holland ICT from the Netherlands)
Date: 2010-11-23
Institutions: European Commission
Subjects: EU aid, Netherlands, budgetary procedure, commitment of expenditure, dismissal, financial management, fund (EU), globalisation, interinstitutional agreement, ratification of an agreement, reintegration into working life

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EUROPEAN COMMISSION 

Brussels, 23.11.2010 
COM(2010) 685 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/2010/012 NL/Noord Holland ICT from the 
Netherlands) 

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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)  through  a  flexibility  mechanism,  within  the  annual  ceiling  of  EUR 500 million over 
and above the relevant headings of the financial framework. 

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

On  8  April  2010,  the  Netherlands  submitted  application  EGF/2010/012  NL/Noord  Holland 
ICT  for  a  financial  contribution  from  the  EGF,  following  redundancies  in  two  enterprises 
operating  in  the  NACE  Revision  2  Division  46  ('Wholesale  trade,  except  of  motor  vehicles 
and motorcycles')3 in the NUTS II region of Noord Holland (NL32) in the Netherlands. 

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 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF4 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2010/012 
the Netherlands 
(b) 
2 
Noord Holland (NL32)  
46 ('Wholesale trade, except of 
motor vehicles and motorcycles') 
1.5.2009 – 31.1.2010 
1.5.2009 
8.4.2010 
613 
613 
3 776 693 
157 362 
4 
3 934 055 
2 557 135 

1. 

The application was presented to the Commission on 8 April 2010 and supplemented 
by additional information up to 5 August 2010. 

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2 
3 

4 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
Regulation  (EC)  No  1893/2006  of  the  European  Parliament  and  of  the  Council  of  20  December2006 
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, 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. 

5. 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  the  Netherlands  argues  that  the  information  and  communication 
technologies (ICT) sector, in particular enterprises involved in the development and 
sales of hardware, has been negatively affected by the crisis. The applicant refers to 
the sharp drop in the Netherlands of the ICT-indicator5 developed by Ernst & Young: 
from a value of about 160 in August 2008 to a value of about 30 in April 2009. This 
indicator sums up the main research results related to the business cycle, expenditure 
and budgeting in the ICT sector. Global figures cited in the application show that in 
Western  Europe  the  growth  in  the  ICT  market  was  lower  in  2009  compared  to  the 
years before: a growth rate of 2,7 % in 2007, of 2 % in 2008 and of 1,2 % in 2009. 

The  Dutch  authorities  highlight  that  in  the  two  enterprises  concerned  by  this 
application  turnover  dropped  significantly  in  2009  as  a  consequence  of  the  global 
financial and economic crisis: for Getronics the decrease was 25 % and for HP it was 
17 % for the PC division and 19 % for the printing division. 

The Netherlands further argues that the negative impact on employment in the ICT 
sector of the global financial and economic crisis has been exacerbated by structural 
changes  in  the  global  ICT  market,  in  particular  a  delocalisation  of  production  to 
China and India. In 1996 the market share of OECD6 countries in total ICT trade was 
88 %; in 2006 this share had decreased to 56 %. 

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

6. 

7. 

The Netherlands 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  613  redundancies  in  two  enterprises  operating  in  the  NACE 
Revision 2 Division 46 ('Wholesale trade, except of motor vehicles and motorcycles') 
in the NUTS II region of Noord Holland (NL32) in the Netherland during the nine-
month  reference  period  from  1  May  2009  until  31  January  2010.  All  redundancies 
were calculated in accordance with the first indent of the second paragraph of Article 
2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

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6 

http://www.ict-barometer.nl. 
http://www.oecd.org. 

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8. 

The Dutch authorities argue that until mid-2008 the ICT market performed relatively 
well,  with  growth  prospects  both  for  ICT  enterprises  and  their  customer  markets. 
This  enabled  the  sector  to  counterbalance  the  impact  of  changes  in  global  trade 
patterns.  The  economic  and  financial  crisis  resulted  in  a  sudden  and  unforeseen 
reduction  in  investment  budgets  related  to  ICT  goods  and  an  ensuing  significant 
reduction in turnover for ICT enterprises. 

Identification of the dismissing enterprises and workers targeted for assistance 

9. 

The  application  cites  a  total  of  613  redundancies,  all  of  whom  are  targeted  for 
assistance in the following two enterprises: 

Enterprises and number of dismissals 

Getronics 
Total enterprises: 2 

371 

HP 

242 

Total dismissals: 613 

10. 

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

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15-24 years old 
25-54 years old 
55-64 years old 
> 65 years old 

Number
398
215
576
37
110
338
153
12

Percent 
64,9 
35,1 
94,0 
6,0 
17,9 
55,1 
25,0 
2,0 

There  are  24  workers  (3,9 %)  with  a  longstanding  health  problem  or  disability 
included in the categories above. 

11. 

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

Category 
Manager 
Professional 
Technicians 
Clerical support workers 
Service and sales workers 

Number
31
275
215
61
31

Percent 
5,1 
44,9 
35,0 
9,9 
5,1 

12. 

In accordance with Article 7 of Regulation (EC) No 1927/2006, the Netherlands 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 

13. 

14. 

The  territory  concerned  by  the  redundancies  is  the  province  of  Noord-Holland, 
NUTS II region NL32. This is a region with a high concentration of ICT enterprises. 

The  responsible  authority  is  the  Dutch  Ministry  of  Social  Affairs  and  Employment 
and  the  Centre  for  Labour  market  questions  in  the  ICT  sector  (CA  'Centrum 
Arbeidsmarktvraagstukken'  -ICT).  Other  stakeholders  involved  are  ICT-Office 
(employers  organisation),  the  trade union  FNV  Bondgenoten,  the  trade  union  CNV 

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Dienstenbond, the trade union De Unie, the Institute for Employee Benefit Schemes 
the 
UWV 
municipality  of  Amsterdam,  the  regional  training  centre  Amsterdam,  the  regional 
training centre Midden Nederland, Avans Hogeschool and re-integration offices. 

(‘Uitvoeringsinstituut  WerknemersVerzekeringen’)  WERKbedrijf, 

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

15. 

16. 

17. 

The dismissing enterprises are located in Amsterdam and Amstelveen, both of which 
are part of the same labour market and economic entity, namely the 'Randstad'. The 
Netherlands  argue  that  the  redundancies  in  the  two  enterprises  concerned  by  this 
application  will  aggravate  the  employment  situation  in  the  province  of  Noord-
Holland,  which  deteriorated  already  as  a  consequence  of  the  global  financial  and 
economic crisis. 

In  2008  the  number  of  unemployed  in  the  active  population  in  Noord  Holland 
reached 48 500 and in 2009 as a consequence of the global economic and financial 
crisis it had increased by 20 000 to 68 300. The largest number of unemployed in the 
active population is in the larger Amsterdam area: in 2008 it was 19 000 and in 2009 
24 500. 

In addition, the province of Noord Holland has been affected by the redundancies in 
the  graphics  sector  covered  by  applications  EGF/2009/024  NL/Noord  Holland  and 
Zuid  Holland  Division  58  and  EGF/2009/026  NL/Noord  Holland  and  Utrecht 
Division 18. 

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 

18. 

The  following  types  of  measures  are  proposed,  all  of  which  combine  to  form  a 
coordinated package of personalised services aimed at re-integrating the workers into 
the labour market: 

–  Coaching from job to job/accompaniment: This relates to the establishment of an 
individual  tailor-made  programme  to  facilitate  the  re-integration  into  active 
employment. 

–  Mobility  centres:  This  covers  the  establishment  of  mobility  centres  which  will 
provide  active  accompaniment  to  the  dismissed  workers  both  with  internal  and 
external  coaches,  facilitation  of  job  application  and  training  opportunities  by 
making available PCs, overview of job vacancies. 

–  Outplacement: This covers the provision of personal attention and accompaniment 
to the dismissed workers during their vocational reorientation and labour market 
prospection phases. 

–  Application training: This covers support for the drafting of a CV, the preparation 
of an application letter and the preparation of job interviews and self-presentation. 
The  objective  is  to  prepare  and  accompany  workers  during  the  application 
process. 

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–  Training:  This  covers  training  measures  with  a  view  to  increasing  the 
employability  of  the  dismissed  workers.  Depending  on  the  situation  of  the 
individual worker the training can consist of vocational training, development of 
specific skills and technical training. 

–  Employability scan: This aims at the identification of the interests and preferences 
of the dismissed workers, the evaluation of the areas where their knowledge is up 
to date as well as those where further training is required. 

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 Dutch authorities are active labour market 
measures  within  the  eligible  actions  defined  by  Article  3  of  Regulation  (EC)  No 
1927/2006.  The  Dutch  authorities  estimate  the  total  costs  of  these  services  at 
EUR 3 776 693 and the expenditure for implementing EGF at EUR 157 362 (4 % of 
the total amount). The total contribution requested from the EGF is EUR 2 557 135 
(65 % of the total costs). 

Estimated 
number of 
workers 
targeted 

Estimated cost 
per worker 
targeted 
(EUR) 

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

19. 

20. 

Actions 

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

Coaching from job to job/accompaniment 
(coaching van werk naar 
werk/begeleiding) 

Mobility centres (mobility centres opzet) 

Outplacement 

Application training (sollicitatietraining) 

Training (educatie) 

Employability scan 

Sub total personalised services 

613

760,13 

465 959,69

613

613

50

223

50

119,45 

73 222,85

4 940,85 

3 028 741,05

271,48 

13 574,00

814,43 

181 617,89

271,56 

13 578,00

3 776 693

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

Management 

Information and publicity 

Control activities 

39 340

39 341

78 681

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Sub total expenditure for implementing 
EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

157 362

3 934 055

2 557 135

21. 

The  Netherlands  confirmed  that  the  measures  described  above  are  complementary 
with actions funded by the Structural Funds. The Dutch authorities specified that the 
dismissed  workers  might  qualify  for  two  specific  ESF  projects7  for  workers  in  the 
ICT sector. The Netherlands have put in place the necessary mechanisms to prevent 
any risk of double funding from the EGF and other EU financial instruments. 

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

22. 

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

23. 

The  Netherlands  specified  that  both  enterprises  complied  with  the  obligation  to 
consult  the  social  partners  on  a  social  plan  in  cases  of  collective  redundancies 
exceeding  30  dismissals.  CA-ICT,  which  is  composed  of  representatives  of 
employers  and  employees,  played  an  important  role  in  the  preparation  of  the 
measures. 

24. 

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

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

25. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Dutch 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 EU financial instruments. 

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2008ESFN226 (project period from 1-4-2009 until 31-3-2010) and 2008ESFB295 (project period from 
1-11-2009 until 31-10-2010) 

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Management and control systems  

26. 

The Netherlands has notified the Commission that the financial contribution will be 
managed  and  controlled  by  the  same  bodies  that  manage  and  control  the  European 
Social Fund (ESF) funding in the Netherlands.  

Financing 

27. 

28. 

29. 

30. 

On the basis of the application from the Netherlands, the proposed contribution from 
the  EGF  to  the  coordinated  package  of  personalised  services  is  EUR 2 557 135, 
representing 65 % of the total cost. The Commission's proposed allocation under the 
Fund is based on the information made available by the Netherlands. 

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  Interinstitutional 
Agreement of 17 May 2006, with a view to securing the agreement of the two arms 
of the budgetary authority on the need to use the EGF and the amount required. The 
Commission invites the first of the two arms of the budgetary authority that reaches 
agreement on the draft mobilisation proposal, at appropriate political level, to inform 
the other arm and the Commission of its intentions. In case of disagreement by either 
of  the  two  arms  of  the  budgetary  authority,  a  formal  trialogue  meeting  will  be 
convened.  

31. 

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

Sources of payment appropriations  

32. 

33. 

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 

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expected  disbursements.  The  amount  of  EUR 2 557 135  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/2010/012 NL/Noord Holland ICT from the 
Netherlands) 

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 
management8, 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  Fund9, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission10, 

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. 

The  Netherlands  submitted  an  application  to  mobilise  the  EGF,  in  respect  of 
redundancies  in  two  enterprises  operating  in  operating  in  the  NACE  Revision  2 
Division  46  ('Wholesale  trade,  except  of  motor  vehicles  and  motorcycles')  in  the 
NUTS  II  region  of  Noord  Holland  (NL32)  on  8  April  2010  and  supplemented  it  by 
additional  information  up  to  5  August  2010.  This  application  complies  with  the 

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

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requirements for determining the financial contributions as laid down in Article 10 of 
Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 2 557 135. 

(5) 

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

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 2 557 135 in commitment and payment appropriations. 

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

Article 2 

Done at, 

For the European Parliament 
The President 

For the Council 
The President 

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