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/2010/025 DK/Odense Steel Shipyard from Denmark)
Date: 2011-05-06
Institutions: European Commission
Subjects: Denmark, EU aid, budgetary discipline (EU), budgetary procedure, commitment of expenditure, dismissal, financial management, fund (EU), globalisation, interinstitutional agreement, reintegration into working life

EUROPEAN COMMISSION 

Brussels, 6.5.2011 
COM(2011) 251 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/2010/025 DK/Odense Steel Shipyard from 
Denmark) 

 
 
  
 
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  6  October  2010,  Denmark  submitted  application  EGF/2010/025  DK/Odense  Steel 
Shipyard for a financial contribution from the EGF, following redundancies in Odense Steel 
Shipyard in Denmark. 

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

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no. 
Member State 
Article 2 
Primary enterprise 
Suppliers and downstream producers 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundancies before and after the reference period 
Total eligible redundancies 
Redundant workers targeted for support 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF3 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2010/025 
Denmark 
(a) 
Odense Steel Shipyard 
0 
13.4.2010 – 31.7.2010 
1.10.2010 
6.10.2010 
710 
646 
1 356 
950 
20 874 362 
943 948 
4,3 
21 818 310 
14 181 901 

1. 

2. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  6  October  2010  and 
supplemented by additional information up to 8 March 2011. 

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

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

EN 

1 

   EN 

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

3. 

4. 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Denmark argues that shipyards in Europe over the last decades have 
been  losing  substantial  market  shares  to  Asia.  The  global  financial  and  economic 
crisis then further affected the global shipbuilding market, such that, according to the 
Community  of  European  Shipyards'  Associations  (CESA),  the  global  orderbook 
dropped  from  194,2 million CGT4  to  156,2 million CGT  between  2008  and  2009, 
while  new  orders  dropped  from  43,0  million CGT  to  16,5 million CGT  during  the 
same period. 

In  its  annual  report  for  2009-2010,  CESA  writes  that  this  reduction  in  the  world 
orderbook was leading to a fast shrinking of shipyards' workloads. Since the collapse 
of demand in the standard cargo ships segments, the European yards’ market shares 
in  the  tankers,  container  ships  and  bulk  carriers  segments  contracted  further  as 
approximately  1,5 million CGT,  roughly  17 %  of  the  current  orderbook  of  CESA 
members were cancelled since the second half of 2008. According to CESA, the high 
value and complexity of ships completed in 2009 helped reduce the impact in terms 
of  turnover  –  5 %  as  compared  with  20 %  decrease  in  terms  of  tonnage.  The  full 
impact of the current conditions on the European yards would, however, be delayed 
due  to  long  production  leadtimes.  Since  2008,  the  new  orders  intake  in  the  CESA 
shipyards had reduced dramatically. In terms of employment, at the end of 2009, on 
average about 20 % of the jobs at shipyards had already been affected. Without new 
contracts  before  the  summer  of  2010,  CESA  estimated  that  an  employment  crisis 
with half the jobs at stake could be unavoidable. Numerous European shipyards were 
increasingly  resorting  to  short-time  work,  announcing  or  executing  lay-offs.  Some 
yards had already declared bankruptcy, triggering a chain reaction to their suppliers. 

5. 

This is the third EGF case in the shipbuilding sector, and the arguments presented in 
the  two  previous  cases  (EGF/2010/001  DK/Nordjylland5  and  EGF/2010/006  PL/H. 
Cegielski-Poznan6) remain valid.  

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

6. 

7. 

4 

5 
6 

Denmark submitted this application under the intervention criteria of Article 2(a) of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
four-month  period  in  an  enterprise  in  a  Member  State,  including  workers  made 
redundant in its suppliers and downstream producers. 

The  application  cites  710  redundancies  in  Odense  Steel  Shipyard  during  the 
reference period from 13 April 2010 to 31 July 2010 as well as a further 646 during 
the  period  from  10  August  2009,  when  the  shipyard  closure  announcement  was 

Compensated Gross Tonnage (CGT) is an indicator of the amount of work that is necessary to build a 
given ship and is calculated by multiplying the tonnage of a ship by a coefficient, which is determined 
according 
ship 
type 
(http://en.wikipedia.org/wiki/Compensated_gross_tonnage) 
COM(2010)451 final. 
COM(2010)631 final. 

particular 

size 

and 

of 

to 

a 

EN 

2 

   EN 

 
                                                 
made, to January 2011 (incl.). The applicant Member State chose not to use the full 
four  months  for  the  establishment  of  its  reference  period,  as  the  figure  reached  in 
three  and  a  half  months  was  sufficient  to  establish  eligibility.  All  of  these 
redundancies  were  calculated  in  accordance  with  the  first  indent  of  the  second 
paragraph of Article 2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

8. 

The  Danish  authorities  argue  that  the  closure  of  the  shipyard  and  the  resulting 
redundancies  could  not  have  been  foreseen.  The  shipyard  owners  invested  heavily 
into  the  yard  until  2009;  this  would  not  have  happened  if  the  closure  had  been 
expected. It must be noted that this is one of the biggest and most modern shipyards 
in  Europe,  holding  records  such  as  that  of  having  built  (in  2006-08)  the  biggest 
container ships in the world, Emma Maersk and her E-class sister. The yard has been 
known  for  designing  and  building  innovative  vessels  that  apply  the  newest 
technology in design and equipment.  

Demonstration of the redundancies and identification of the dismissing enterprises 

9. 

The  application  relates  to  1 356  redundancies  in  total  in  Odense  Steel  Shipyard. 
Following a survey, the applicant Member State has concluded that close to 70 % of 
the workers affected will wish to benefit from the EGF measures. 

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 
> 64 years old 

Number 
903 
47 
950 
0 
58 
726 
162 
4 

Percent
95,0
4,9
100,0
0,0
6,1
76,4
17,1
0,4

11. 

There are no workers with longstanding health problems or disabilities among either 
the affected or the targeted workers. 

12. 

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

Category 
Professionals 
Technicians and associated professionals 
Clerks 
Service  workers  and  shop  and  market  sales 
workers 
Elementary occupations 

Number 
30 
616 
19 
153 

Percent
3,2
64,8
2,0
16,1

132 

13,9

13. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Denmark  has 
confirmed  that  a  policy  of  equality  between  women  and  men  as  well  as  non-
discrimination has been applied, and will continue to apply, during the various stages 
of the implementation of and, in particular, in access to the EGF. 

EN 

3 

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Description of the territory concerned and its authorities and stakeholders 

14. 

15. 

16. 

Odense is Denmark's third largest city with almost 200 000 inhabitants. The city is in 
the  centre  of  the  island  of  Funen,  where  the  total  population  is  close  to  500 000. 
Funen  is  the  eastern  part  of  the  region  of  Southern  Denmark,  which  has  a  total  of 
1 200 000 inhabitants.  The  infrastructure  of  both  Funen  and  the  region  is  well 
developed and the working population increasingly commutes to work outside their 
home towns. In the case of the Odense Steel Shipyard workers, however, commuting 
cannot  be  seen  as  the  solution  to  their  employment  problem,  as  there  are  few 
employment  opportunities  for  workers  elsewhere  on  the  island  and  no  labour 
shortage  in  Denmark  as  a  whole  in  the  metallurgical  sector.  Major  efforts  will 
therefore have to be made to prepare the redundant workers for new jobs. 

Odense  has  access  to  the  sea  via  a  canal  and  the  Odense  Fjord,  on  which  Odense 
Steel  Shipyard  is  located  in  the  small  town  of  Munkebo  (5 500 inhabitants). 
Munkebo is part of Kerteminde Municipality, forming the northeast part of Funen. 

In  2008,  the  total  workforce  in  Odense  and  Kerteminde  was  109 000 people.  The 
direct losses at Odense Steel Shipyard covered by this application therefore amount 
to more than 1 % of the workforce, to which must be added further job losses from 
subcontractors, which will arise at a later stage, and further losses from the shipyard 
itself, when it closes down completely. It is estimated that the indirect job losses will 
eventually be as heavy as the direct ones, so that the shipyard closure is regarded as a 
major crisis in the regional economy. 

The  educational  standard  of  the  employed  workforce  in  Kerteminde  is  below  both 
the  national  average  and  the  average  in  Funen.  In  2008,  about  27,3 %  of  the 
the 
in  Kerteminde  had  received  some  further  education,  while 
workforce 
corresponding figure for Funen was 33 % and the national average was 34,8 %. 

17. 

Both  the  municipalities  of  Odense  and  Kerteminde  are  closely  involved  in  this 
application, which they have supported from the outset.  

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

18. 

19. 

The general employment situation deteriorated sharply in Denmark during 2009 and 
2010. Unemployment rose from a record low of 3,3 % for the year 2008 to 8,2 % in 
December 2010 (source: Eurostat7). 

The  industrial  structure  of  Kerteminde  is  characterised  by  a  high  share  of 
employment in manufacturing, particularly in metallurgy. Many jobs in this industry 
have  already  been  lost  to  other  countries  with  lower  wages.  The  shipyard  workers 
being  dismissed  have  a  high  technical  expertise  which  is  difficult  to  apply  in  other 
industries in Funen or even the whole of Denmark. 

In  addition,  the  shipyard  is  being  wound  down  in  stages,  with  groups  of  workers 
being dismissed as the final ship orders are completed. It is expected that a further 
1 100  workers  will  be  dismissed  in  three  waves  in  2011.  Without  significant 
retraining, it will be hard for these workers to find new employment. 

7 

http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database 

EN 

4 

   EN 

 
                                                 
20. 

Since  the  announcement  of  the  closure  in  August  2009,  a  consortium  of  local, 
regional  and  national  stakeholders  has  discussed  and  formulated  a  strategy  for  new 
growth  opportunities  in  the  region.  It  is  this  strategy  that  guided  the  choice  of 
measures in the application. 

Co-ordinated  package  of  personalised  services  to  be  funded  and  a  breakdown  of  its 
estimated  costs,  including  its  complementarity  with  actions  funded  by  the  Structural 
Funds 

21. 

22. 

The Region of South Denmark is, on the one hand, defining and designing measures 
which  can  be  taken  under  the  Lisbon  goals  with  the  objective  of  strong  European 
competitiveness. The regional Growth Forum uses both ESF and ERDF funding, as 
well  as  national  labour  market  assistance  to  achieve  these  long-term  goals  of 
promoting new growth industries in the area. 

In  order  to  help  these  immediate  redundancies,  however,  more  specific  activities 
need to be undertaken. These include education, training, employment incentives and 
support for entrepreneurship. The target group of workers are already highly skilled, 
but  in  a  field  where  the  outlook  for  future  employment  looks  bleak.  Hence,  the 
measures  proposed  for  them  will  be  somewhat  more  costly  than  would  be  the  case 
for  other  workers  in  mass  layoffs,  which  often  concern  people  with  relatively  low 
skills. 

–  Diagnosis, clarification and basic course: It is estimated that this will be taken up 
by  some  70 %  of  the  redundant  workers.  The  course  will  run  over  an  average 
period  of  four  weeks  and  will  contain  both  group-based  teaching  and  additional 
one-to-one  counselling.  The  objective  is  to  help  the  workers  to  understand  their 
own situation and to acquire the motivation to accept a complete reorientation, to 
understand  the  opportunities  open  in  the  region,  to  identify  their  own 
competencies,  to  identify  opportunities  of  interest  to  them,  and  to  decide  on 
further  measures  they  wish  to  take.  This  measure  will  involve  much  more 
intensive and personalised counselling than the Job Centres are normally able to 
provide. 

–  Vocational  training  and  general  education:  It  is  estimated  that  this  too  will  be 
taken up by 70 % of the redundant workers, opting for various fields of education 
and retraining. Some of the workers may need to reinforce their general education 
before they can benefit from the training options. 

– 

– 

The  first  of  these  options  will  be  in  Energy  Technology,  involving 
power  generation,  energy  storage,  energy  infrastructure  and  energy 
efficiency -- the emphasis being on green energy in these areas. This is 
a new training area which is not provided by the Job Centres so far. 

The  second  will  be  in  Construction  and  Landscaping,  for  which  there 
are  already  large  public  commitments  to  be  implemented  in  coming 
years.  The  course  will  include  specific  learning  in  energy  efficient 
building.  These  are  innovative  training  measures  which  depart  from 
what is available in the area. 

EN 

5 

   EN 

 
– 

– 

– 

The third will be in Robotics, an area of strong growth, where Denmark 
is successful at international level. Main focus areas would be industrial 
production,  play  and  learning,  and  biological  production.  This  is  not 
currently  provided  by  Job  Centres,  but  could  be  taken  on  by  them  in 
future, if this scheme works well. 

The fourth will be in Welfare Technology, the development of which is 
already  centred  around  Odense.  The  demand  for  public  welfare  in 
hospitals and healthcare services is expected to increase in future. The 
main focus will be a general introduction to technology and a practical 
upgrading  of  skills.  This  course  too  is  not  currently  provided  by  Job 
Centres, but may offer good employment opportunities in the future. 

The fifth is General Education, which may be a prerequisite for many of 
the  redundant  workers  so  as  to  enable  them  to  take  up  the  training 
offered. It is estimated that a quarter of the total target group will take 
up this measure, which is scheduled to last for an average of 22 weeks 
per  person.  While  this  is  being  offered  by  Job  Centres,  they  are 
currently  flooded  with  demand  from  unemployed  workers  and  not 
always able to cope. 

–  Attract and retain the youth / higher education: This will guide the young workers 
to return to education, provide support and fund training costs for up to one year. 
The support provided here goes beyond that which is normally available from Job 
Centres. 

–  Employment  Incentives  --  Teaching  in  Enterprises:  This  will  help  the  redundant 
worker  in  transition  to  new  employment,  by  facilitating  learning  and  adjustment 
for  both  the  employer  and  the  new  employee.  It  will  most  often  take  place  in 
addition  to  one  of  the  other  measures  preparing  the  worker  for  a  new  job.  In 
practical terms, it will be a course given to new employees at one to three days per 
week and over a period of six to ten weeks. It will greatly facilitate the decision 
for  new  employers  to  take  on  the  redundant  workers,  as  they  will  be  helped  to 
adapt to their new workplace more quickly. 

–  Incentives to start a new business: Entrepreneurship in Denmark is at a low level, 
but increasing, and is particularly low in the two municipalities most affected. The 
level  of  interest  in  this  measure  expressed  by  the  redundant  workers  was, 
however,  above  average,  and  almost  a  third  (285)  of  the  workers  expressed 
interest.  The  workshops  planned  will  help  these  workers  to  develop  ideas  and 
creativity,  the  screening  of  ideas  will  help  them  to  focus  on  the  best  cases  for 
further  development,  an  entrepreneurship  course  of  six  weeks'  duration  will 
enable those who decide to go down this route (estimated at 95 workers) to focus 
on how a business is run; a smaller number (estimated at 45 workers) will then be 
helped  with  advice  on  how  to  develop  a  product  and  with  the  necessary  market 
analysis.  Some  20  new  entrepreneurs  will  receive  guidance  and  coaching  in  the 
early start-up phase, and mentoring by means of a number of sessions during the 
first year. Those who successfully start businesses will be helped with marketing 
and  public  relations,  including  branding.  Entrepreneurs  who  fulfil  stringent 
conditions  can  apply  for  a  loan  --  it  is  estimated  that  some  ten  applicants  will 
qualify for this final stage of support. 

EN 

6 

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23. 

24. 

–  In  addition  to  these  measures,  Denmark  proposes  a  subsistence  allowance  of 

EUR 100,67 per worker per day of activity. 

The expenditure for implementing the EGF, which is included in the application in 
accordance  with  Article  3  of  Regulation  (EC)  No  1927/2006,  covers  preparatory, 
management,  information  and  publicity  as  well  as  control  activities.  All  partners 
involved  in  the  measures  are  committed  to  communicating  the  EGF  support  being 
provided. 

The  personalised  services  presented  by  the  Danish  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No  1927/2006.  The  Danish  authorities  estimate  the  total  costs  of  these  services  at 
EUR 20 874 362  and  the  expenditure  for  implementing  the  EGF  at  EUR 943 948 
(4,3 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 14 181 901 (65 % of the total costs). 

EN 

7 

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Actions 

Estimated 
number of 
workers 
targeted 

Estimated 
cost per 
worker 
targeted 
(EUR) 

Total costs 
(EGF and 
national 
cofinancing) 
(EUR) 

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

Diagnosis, clarification and basic course 

Vocational training in energy technology 

Vocational training in construction and 
landscaping 

Vocational training in robotics 

Vocational training in welfare technology 

General education 

Attract and retain in higher education 

Teaching in enterprises 

Stimulating entrepreneurship 

Screening of ideas 

Entrepreneurship course 

Course in product development 

Market analysis and feasibility study 

Business start-up cases 

Mentoring 

Advertisement and branding 

Start-up loan 

950

190

140

75

70

235

110

190

285

140

95

45

20

20

20

20

10

1 610,74 

1 530 203

10 067,11 

1 912 751

5 369,13 

751 678

10 067,11 

755 033

12 080,54 

845 638

7 973,15 

1 873 690

6 711,41 

738 255

3 221,48 

612 081

268,46 

134,23 

76 511

18 792

5 637,58 

535 570

3 758,39 

169 128

4 026,85 

80 537

5 637,58 

112 752

1 342,28 

4 026,85 

26 846

80 537

26 845,60 

268 456

Subsistence allowance 

950

11 037,80 

10 485 906

Sub total personalised services 

20 874 362

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

EN 

8 

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Preparatory activities 

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

74 260

482 694

185 652

201 342

943 948

21 818 310

14 181 901

* The totals do not entirely tally due to conversion from DKK and rounding. 

25. 

Denmark  confirms  that  the  measures  described  above  are  complementary  with 
actions  funded  by  the  Structural  Funds  and  that  all  double  financing  will  be 
prevented. 

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

26. 

Denmark started the personalised services to the affected workers included in the co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  1  October  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 

27. 

The Region of Southern Denmark, and the Municipalities of Odense and Kerteminde 
prepared  the  application  together.  This  work  has  involved  a  number  of  social 
partners,  professional  organisations,  unions  and  educational  institutions.  Joint 
meetings  have  been  held,  at  which  detailed  strategies  for  growth  and  extraordinary 
actions in the transition plan were discussed and designed by the parties. 

28. 

The Danish 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 

29. 

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

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

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

to be used for restructuring companies or sectors; 

EN 

9 

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

from other EU financial instruments. 

Management and control systems  

30. 

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

Financing 

31. 

32. 

33. 

34. 

On  the  basis  of  the  application  from  Denmark,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  is  EUR 14 181 901, 
representing 65 % of the total cost. The Commission's proposed allocation under the 
Fund is based on the information made available by Denmark. 

Considering the maximum possible amount of a financial contribution from the EGF 
under  Article  10(1)  of  Regulation  (EC)  No  1927/2006,  as  well  as  the  scope  for 
reallocating  appropriations,  the  Commission  proposes  to  mobilise  the  EGF  for  the 
total  amount  referred  to  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. 

35. 

The Commission presents separately a transfer request in order to enter in the 2011 
budget  specific  commitment  appropriations,  as  required  in  Point  28  of  the 
Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations  

36. 

As the 2011 budget includes payment appropriations of EUR 47 608 950 on budget 
line 04.0501 "European Globalisation Adjustment Fund (EGF)", this budget line will 
be used to cover the amount of EUR 14 181 901 needed for this application. 

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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/2010/025 DK/Odense Steel Shipyard from 
Denmark) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having  regard  to  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
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 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. 

Denmark submitted an application to mobilise the EGF, in respect of redundancies in 
the  enterprise  Odense  Steel  Shipyard,  on  6  October  2010  and  supplemented  it  by 
additional  information  up  to  8  March  2011.  This  application  complies  with  the 

8 
9 
10 

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 14 181 901. 

(5) 

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

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2011,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 14 181 901 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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