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/2010/008 AT/AT&amp;S from Austria)
Date: 2011-06-10
Institutions: European Commission
Subjects: Austria, European Globalisation Adjustment Fund, commitment of expenditure, electronic component, employment aid, globalisation, redundancy, reintegration into working life, vocational retraining

EUROPEAN COMMISSION 

Brussels, 10.6.2011 
COM(2011) 339 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/2010/008 AT/AT&S from Austria) 

 
 
  
 
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  11  March  2010,  Austria  submitted  application  EGF/2010/008  AT/AT&S  for  a  financial 
contribution from the EGF, following redundancies in AT&S in Austria. 

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/2010/008 
Austria 
(c) - exceptional circumstances 
AT&S (Austria Technologie & 
Systemtechnik Aktiengesellschaft) 
0 
1.9.2009 – 31.12.2009 
15.9.2009 
11.3.2010 
167 
0 
167 
74 
1 806 658 
72 000 
3,8 
1 878 658 
1 221 128 

1. 

2. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  11  March  2010  and 
supplemented by additional information up to 22 February 2011. 

The application meets the conditions for deploying the EGF as set out in Article 2(c) 
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. 

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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 major structural changes 
in  world  trade  patterns  due  to  globalisation,  Austria  argues  that  the  production  of 
printed circuit boards (PCBs)4 in Europe has for some time followed the same trend 
as  the  European  mobile  phone  sector,  i.e.  mass  production  is  being  transferred  to 
low-wage  economies,  mainly  Asia  and  more  specifically  China.  A  large  part  of 
mobile  phones  and  devices  are  produced  in  Asia,  and  almost  three  quarters  of  the 
world's PCB volume is produced there (proximity factor). Austria further argues that 
by approving several EGF applications in the mobile phone sector, the Commission 
has  already  recognised  in  the  past  that  such  a  transfer  of  production  capacities 
represents a structural shift in world trade patterns. 

Quoting  a  market  analysis  of  the  German-based  Association  of  the  Printed  Circuit 
Board  Industry  (Verband  der  Leiterplattenindustrie  VdL)  in  May  2009,  Austria 
indicates  that  the  European  PCB  production  volume  decreased  in  2008  by  10,8 % 
compared to the previous year, while the decrease was less accentuated in South-East 
Asia including China (- 5,4 %) and world-wide (- 4,8 %). In terms of European PCB 
manufacturers, the number decreased from 333 in 2007 to 307 in 2008. 

AT&S is one of the leading PCB manufacturers and among the largest producers in 
Europe,  with  several  production  sites  in  Austria  (Leoben/Styria,  Fehring/Styria, 
Klagenfurt/Carinthia),  and  in  China  (Shanghai  plant  since  2002),  India  (Nanjangud 
plant since 1999) and Korea (Ansan plant since 2006). 

Following  the  drop  in  demand  for  circuit  boards  (- 40 %  in  the  business  year 
2008/2009 as compared to the previous year), AT&S decided in November 2008 to 
transfer its entire PCB mass production from Leoben to Shanghai resulting in a far-
reaching downsizing of the Styrian site and a chain of lay-offs over more than a year. 
Only small and medium-sized batch production for the European market remains in 
Austria, supplying mainly the EU's automotive and industrial sectors. 

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

6. 

Austria  submitted  the  application  under  the  intervention  criterion  of  Article  2(c)  of 
Regulation  (EC)  No  1927/2006.  This  provision  allows  applicants  to  derogate  from 
the requirements of Articles 2(a) and 2(b) in small labour markets or in exceptional 
circumstances  when  redundancies  have  a  serious  impact  on  employment  and  the 
local economy. In this case the applicant must specify which of the main eligibility 
requirements  its  application  fails  to  meet,  and  thus  from  which  it  is  seeking  a 
derogation. 

The Austrian authorities specified that the application seeks to derogate from Article 
2(a),  where  the  normal  threshold  is  at  least  500  redundancies  over  a  four-month 
period. 

4 

A printed circuit board (PCB) is an electronic component which is needed in many electronic industries 
such  as  the  electronic  and  computer  industries  (mobile  phones,  digital  cameras  etc.),  medical  devices 
and the automotive industry. 

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7. 

The application cites 167 redundancies in the AT&S Leoben site over the four-month 
reference  period  from  1  September  2009  to  31  December  2009,  all  calculated  in 
accordance with the second indent of the second paragraph of Article 2 of Regulation 
(EC) No 1927/2006. 

The longer chain of redundancies in the Leoben site is described in the application as 
follows: 298 workers were dismissed in mid-December 2008, 167 workers in the 4-
month reference period from September to December 2009, 138 temporary workers, 
before expiry of their contracts, between November 2008 and August 2009. Together 
this  makes  603 dismissals  over  13  ½  months.  Back  in  2006,  200  further  jobs  were 
lost following the closure of the AT&S Fohndorf site, located at about 50 km from 
Leoben. AT&S notified their respective collective redundancy plans to the Austrian 
authorities  at  different  moments,  according  to  the  specific  notification  deadlines 
stipulated  by  the  Austrian  'Frühwarnsystem'/early  warning  system  (§ 45a  of 
Arbeitsmarktförderungsgesetz/AMFG).  Because  of  the  notification  rules  applicable 
under  Austrian  law,  a  combined  EGF  application  covering  all  the  workers  was  not 
possible. 

According  to  the  Austrian  authorities,  Leoben  is  in  a  very  difficult  situation.  This 
district's unemployment rate increased by + 51,6 % in August 2009 compared to the 
previous  year,  and  few  jobs  are  available  (1 746  people  were  registered  as 
unemployed  against  only  180  vacancies).  Austria  argues  that  the  redundancies  in 
AT&S  have  a  significant  impact  on  the  Leoben  district  and  the  surrounding 
NUTS III region Östliche Obersteiermark (Eastern Upper Styria) as the market does 
not  offer  sufficient  employment  options  for  the  workers,  many  of  whom  are  lower 
skilled  people  trained  by  the  company.  The  NUTS III  region  further  faces  the 
challenges  of  an  above-average  decline  in  population  and  an  above-average  ageing 
population. Moreover, the applicant refers to the fact that long-term unemployment 
in  Styria  (NUTS  II  level)  is  generally  higher  than  the  national  average,  and  that 
Styria's gross regional product remains below the national average. 

Styria  was  also  affected  by  other  mass  redundancies  for  which  EGF  applications 
were submitted to the Commission: 744 redundancies in a nine-month period related 
to  the  automotive  sector  (EGF/2009/009,  approved  by  the  Budgetary  Authority  in 
2009, OJ L 347, 24.12.2009) and 476 redundancies in a nine-month period related to 
the basic metal sector (application EGF/2010/007 for which a separate Commission 
proposal is under preparation). 

The Commission services consider that the 167 redundancies in question along with 
the redundancies due to the same cause before the four-month reference period have 
a serious impact on employment and the economy at local and NUTS III level, and 
that,  in  combination  with  the  particularity  in  respect  of  the  mass  redundancy 
notification rules in Austria, the exceptional circumstances criterion of Article 2(c) of 
Regulation (EC) No 1927/2006 is met. 

8. 

9. 

10. 

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Explanation of the unforeseen nature of those redundancies 

11. 

Austria  states  in  the  application  that  dismissals  of  this  magnitude  were  not 
foreseeable despite the fact that the shift of PCB mass production to Asia has been a 
trend  observed  for  some  years.  AT&S  had  intended  initially  to  keep  specific  high-
tech parts of PCB production in Austria, but this was not finally realised because of 
the  aggravated  financial  and  economic  situation  in  2008  and  2009  including 
increased pressure on purchasing prices, a weak US dollar against the Euro and an 
increase of salaries in the European plants. 

Identification of the dismissing enterprises and workers targeted for assistance 

12. 

The  application  cites  167  redundancies  in  the  single  enterprise  AT&S  (Austria 
Technologie  &  Systemtechnik  Aktiengesellschaft)  which  occurred  during  the  four-
month  reference  period.  Seventy-four  of  these  workers  (44,3 %)  are  targeted  for 
the 
assistance  within 
enterprise  type  as  defined  in  federal  directive  AMF/18-20105.  Of  the  remaining 
workers who did not enter the foundation, some found new employment while others 
were not interested in joining the foundation. 

'AT&S-Unternehmensstiftung',  a 

labour  foundation  of 

13. 

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
43
31
72
2
2
65
7
0

Percent 
58,1 
41,9 
97,3 
2,7 
2,7 
87,8 
9,5 
0,0 

14. 

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

15. 

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

Category 
Technicians and associate professionals 
Office clerks 
Machine operators and assemblers 

Number
22
3
49

Percent 
29,7 
4,1 
66,2 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Austria  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. 

Austrian labour foundations are an active labour market policy instrument in Austria to improve the 
labour market position of job seekers. They are based on Arbeitslosenversicherungsgesetz (§ 18) and on 
implementing directives issued by the labour market service (AMS). Latest AMS directive: 
http://www.ams.at/_docs/001_ast_RILI.pdf. 

16. 

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Description of the territory concerned and its authorities and stakeholders 

17. 

18. 

The redundancies concern at NUTS II level the Land of Steiermark (Styria, AT22), 
one  of  Austria's  nine  federal  provinces,  and  at  NUTS III 
level  Östliche 
Obersteiermark (Eastern Upper Styria, AT 223) and more specifically the district of 
Leoben  with  its  main  municipality,  the  town  of  Leoben.  Styria  is  an  industry-
dominated area6, and its economy depends essentially on few large enterprises in the 
electronic and metal industries, such as AT&S and the voestalpine Group. 

of 

district 

Leoben 

The  main  stakeholders  are  the  office  of  Styria's  provincial  government  (Amt  der 
Steiermärkischen Landesregierung), the public employment services of Styria and of 
the 
des 
(Wirtschaftskammer 
Arbeitsmarktservice/AMS),  Styria's  Economic  Chamber 
Steiermark), 
(Gewerkschaft  Metall-Textil-
the  umbrella  of  Austria's  Federation  of  Trade  Unions 
Nahrung)  under 
Regionalmanagement 
Gewerkschaftsbund 
(Österreichische 
Obersteiermark  Ost  GmbH,  one  of  Austria's  regional  management  agencies  which 
promote the development of sustainable regional policy. 

und  Bezirksgeschäftsstellen 

the  metal-textile-food 

trade  union 

(Landes- 

/ÖGB) 

and 

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

19. 

AT&S was until December 2008 the regions's largest employer. Austria argues that 
the  167  redundancies  within  four  months  along  with  the  company's  lay-offs  in  the 
months before the reference period (listed under point 7), put the local and regional 
labour market under severe pressure. 

Quoting data from Statistik Austria and Leoben's public employment service, Austria 
argues  that  the  redundancies  in  AT&S  have  a  significant  impact  on  the  Leoben 
district  and  the  surrounding  NUTS III  region  as  the  markets  do  not  offer  sufficient 
employment  options  for  the  dismissed  workers,  many  of  whom  are  lower  skilled 
people who had been trained by the company for specific work. The unemployment 
rate in Leoben increased by + 51,6 % in August 2009 compared to the previous year 
(1 746  people  were  registered  as  unemployed  against  only  180  vacancies)  what 
represents a sharper unemployment increase than in Styria (+ 33,7 %) and at national 
level  (+ 30 %).  The  NUTS III  region  further  faces  the  challenges  of  an  above-
average  decline  in  population  and  an  above-average  ageing  population.  Moreover, 
the  applicant  refers  to  the  fact  that  long-term  unemployment  in  Styria  (NUTS  II 
level)  is  generally  higher  than  the  national  average,  and  that  Styria's gross  regional 
product remains below the national average (2006 figure)7. 

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 

20. 

The  following  types  of  measures  are  proposed,  all  of  which  combine  to  form  a 
coordinated package of personalised services aimed at re-integrating the 74 targeted 
workers  into  the  labour  market.  They  will  be  provided  to  the  workers  through 
'AT&S-Unternehmensstiftung',  an  enterprise-type  labour  foundation  established  in 

6 
7 

Austria's four industrial provinces are Styria, Lower Austria, Upper Austria and Vorarlberg. 
Information received in connection with application EGF/2010/007 AT Steiermark-Niederösterreich. 

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January 2009 as part of the company's social plan following negotiations between the 
social  partners  at  the  end  of  2008.  The  body  responsible  for  the  delivery  of  the 
personalised measures is Team 4 Projektmanagement GmbH. 

21. 

The measures for the 74 targeted workers enrolled in the foundation are controlled by 
a  foundation  council  composed  of  Styria's  public  employment  service  ('AMS, 
Arbeitsmarktservice'), employer and employee representatives as well as the Land of 
Styria.  The  latter  also  assures  the  coordination  with  other  regional  labour  market 
policies. The meaningfulness of each EGF co-funded measure for the labour market 
is assessed, and compliance with the foundation rules ('Stiftungsordnung') and other 
applicable  sets  of  laws  is  assured.  The  development  of  the  individual  workers  is 
monitored to ensure that the plans agreed in the initial phases of the programme are 
pursued. In line with § 18 of Arbeitslosenversicherungsgesetz (ALVG) the workers 
must involve themselves full-time. 

–  Information  and  admission  to  the  labour  foundation:  General  information  for  all 
dismissed workers with the possibility for the workers to apply for admission to 
the labour foundation. This has been budgeted for 74 workers. 

–  Occupational orientation (three modules): This has been budgeted for 73 workers. 
The  activity  lasts  normally  six  weeks,  with  the  possibility  of  extending  it  to  a 
maximum  of  twelve  weeks  in  particular  cases.  It  consists  of  three  modules:  a 
compulsory screening/profiling, job matching with direct re-integration to vacant 
posts where possible, and for the other participants the development of a realistic 
occupational  pathway  plan.  The  arrangements  of  the  latter  are  laid  down  in  an 
agreement  signed  by  the  worker,  the  labour  foundation  and  the  regional  AMS 
forming the basis for the participant's subsequent activities within the foundation. 

–  Active job search: This targets first of all participants who after the occupational 
orientation  do  not  wish  to  obtain  a  higher  qualification.  It  is  scheduled  for  18 
workers. The active job search is carried out in close cooperation with the regional 
AMS, and its duration is normally 14 weeks, renewable to 22 weeks in particular 
cases, for instance participants aged over 50 or for people with a reduced working 
capacity. It is also available to workers after they have accomplished their training 
measures. 

–  Individual training: This is planned for 73 workers and can cover any training that 
has  been  approved  by  the  Styrian  public  employment  service  in  its  catalogue  of 
measures. Courses not contained in the catalogue can be approved by the AMS on 
an individual basis if they are in line with the worker's agreed pathway. Examples 
of the training on offer are: longer studies leading to advanced level qualifications 
(Fachhochschule, university, colleges), classical upskilling training in the workers' 
previous  fields  (e.g.  foreman  training)  as  well  as  initial  vocational  training  to 
prepare a change of career to areas such as the health field. A part of the studies 
and vocational training will not need to be co-financed by the EGF because it is 
delivered free of charge within the Austrian educational system. In cases where an 
agreed training programme takes longer than the EGF implementation period, the 

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additional  financing  will  be  jointly  provided  by  AT&S,  the  public  employment 
service and the Land of Styria8. 

–  Training and job search allowance9: This allowance is paid to all 74 workers only 
for the duration of their participation in the qualification and active re-integration 
measures  within  the  labour  foundation.  In  the  first  six  months  each  dismissed 
worker  receives  EUR 350  per  month  and  subsequently  EUR 70  per  month.  This 
allowance, combined with the subsistence allowance, may not exceed a worker's 
unemployment  benefit  assessment  basis.  Unemployment  benefits  are  interrupted 
during the period these training allowances are granted. 

–  Subsistence  allowance  while  on  training  and  on  job  search  measures10:  This 
allowance is paid to all 74 workers only for the duration of their participation in 
the qualification and active re-integration measures within the labour foundation. 
It  permits  a  serious  full-time  engagement  of  each  dismissed  worker  in  the 
measures.  The  costs  per  worker/month  amount  to  EUR  950.  This  allowance, 
combined with the training and job search allowance, may not exceed a worker's 
unemployment  benefit  assessment  basis.  Unemployment  benefits  are  interrupted 
during the period these subsistence allowances are granted. 

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, 
information and publicity as well as control activities and the management of AT&S 
labour  foundation.  All  partners  involved  in  the  measures  are  committed  to 
communicating  the  EGF  support.  The  foundation  management  costs  will  be 
calculated on a pro-rata basis for the actual participants and will not exceed EUR 271 
per person. 

The  personalised  services  presented  by  the  Austrian  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Austrian authorities estimate the total costs of these services at 
EUR 1 806 658  and  the  expenditure  for  implementing  the  EGF  at  EUR 72 000 
(3,8 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 1 221 128 (65 % of the total costs). 

22. 

23. 

8 

9 
10 

According  to  §  18  of  Arbeitslosenversicherungsgesetz  (ALVG),  a  worker's  participation  in  the 
foundation  is  limited  to  156  weeks  (three  years)  with  the  possibility  to  extend  it  to  209  weeks  (four 
years) in particular cases (people aged over 50 or people on longer training programmes). 
Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG). 
Based on § 18 of Arbeitslosenversicherungsgesetz (ALVG). 

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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) 

Information and admission to the labour 
foundation 

Occupational orientation -3 modules 
('Berufsorientierung – 3 Module')  

Continuous consultation & active job search 
('laufende Beratung und aktive Jobsuche') 

Individual training 
('Individuelle Qualifizierung') 

Training and job search allowance 
('Zuschussleistung/Stipendium bei aktiver 
Beratung, Jobsuche oder Ausbildung') 

Subsistence allowance while on training and 
job search ('Schulungsarbeitslosengeld')  

74

73

18

73

74

300 

22 200

1 000 

73 000

1 000 

18 000

3 718 

271 414

1 327,16 

98 210

74

17 889,65 

1 323 834

Sub total personalised services 

1 806 658

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

Preparatory activities 

Management AT&S labour foundation 
(outplacement foundation) 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

10 000

20 000

10 000

32 000

72 000

1 878 658

1 221 128

24. 

Austria  confirmed  that  the  measures  described  above  are  complementary  with 
actions  funded  by  the  Structural  Funds  and  that  double  financing  is  excluded.  The 

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Austrian  ESF  Operational  Programme  under  Objective  2  focuses  on  the  long-time 
unemployed, whereas the EGF aims to help workers immediately after their lay-offs. 
Hence, there is no overlapping between the two funds. 

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

25. 

Austria started the personalised services to the affected workers included in the co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  15  September  2009 
which  is  the  date  when  the  first  workers  entered  the  labour  foundation.  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 

26. 

27. 

The dialogue with social partners on how to alleviate the effects of the job losses for 
the concerned workers was started when AT&S notified the planned dismissals to the 
Austrian  authorities,  in  line  with  the  Austrian  'Frühwarnsystem'/early  warning 
system. The implementation concept for the AT&S labour foundation was signed by 
Styria's  Economic  Chamber  and  the  metal-textile-food  trade  union  (5.2.2009  and 
23.7.2009). 

Austria  explained  that  the  Austrian  social  partnership  cooperation  is  a  voluntary 
arrangement  of  mostly  informal  nature  and  not  regulated  by  law11.  Only  when 
companies decide to participate in specific labour policy measures are they subject to 
the applicable public employment service (AMS) rules. The redundancies concerned 
by 
this  application  are  based  on  employer/works  council  agreements 
('Betriebsvereinbarungen'),  rather  than  collective  agreements  negotiated  for  the 
whole sector. 

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

28. 

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

•  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. 

11 

ÖGB website http://www.sozialpartner.at/sozialpartner/Sozialpartnerschaft_mission_en.pdf 

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Management and control systems  

29. 

30. 

Austria has notified the Commission that the national co-financing will be provided 
by AT&S (47 %), Styria's public employment services AMS (38,5 %) and the Land 
of  Styria  (14,5%).  If  the  EGF  contribution  is  granted,  the  financial  contributions 
made by the targeted workers themselves (EUR 2 500 per worker) will be regarded 
as pre-financing and will be repaid to them by the labour foundation. 

Austria confirmed that the financial contribution will be managed by the same body 
that manages the ESF: unit VI/INT/9 within the Federal Ministry for Labour, Social 
Affairs and Consumer Protection (BMASK Bundesministerium für Arbeit, Soziales 
und Konsumentenschutz) will act as managing authority and as payment service. The 
financial  control  authority  for  the  EGF  is  different  to  that  of  the  ESF:  unit  VI/S/5a 
within  BMASK  will  assure  this  function  for  the  EGF.  The  coordinated  package  of 
personalised  measures  is  implemented  by  'AT&S-Unternehmensstiftung'/'Team  4 
Projektmanagement  GmbH',  monitored  by  the  public  employment  service  (AMS). 
Furthermore,  the  BMASK  is  supported  by  a  technical  assistance  provider  who  will 
also act as first level control. All major arrangements and obligations are laid down 
in written agreements. 

Financing 

31. 

32. 

33. 

34. 

On the basis of the application from Austria, the proposed contribution from the EGF 
to the coordinated package of personalised services is EUR 1 221 128, representing 
65 %  of  the  total  cost.  The  Commission's  proposed  allocation  under  the  Fund  is 
based on the information made available by Austria. 

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. 

EN 

10 

   EN 

 
Source of payment appropriations  

36. 

An  amount  of  EUR 8 523 405  remains  available  on  the  EGF  Budget  line  04.0501 
after adoption by both arms of the Budgetary Authority of two Decisions totalling an 
amount of EUR 777 390, and taking into account the four cases currently discussed 
by  the  Budgetary  Authority  for  a  total  amount  of  EUR 38 308 155.  This  available 
amount will be used to cover the amount of EUR 1 221 128 needed for the present 
application. 

EN 

11 

   EN 

 
Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund in accordance with 
point 28 of the Interinstitutional Agreement of 17 May 2006 between the European 
Parliament, the Council and the Commission on budgetary discipline and sound 
financial management (application EGF/2010/008 AT/AT&S from Austria) 

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 
management12, 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  Fund13, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the Commission14, 

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. 

Austria submitted an application to mobilise the EGF, in respect of redundancies in the 
enterprise AT&S, on 11 March 2010 and supplemented it by additional information up 
to 22 February 2011. This application complies with the requirements for determining 
of 
the 

contributions 

in  Article 

financial 

down 

laid 

10 

as 

12 
13 
14 

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

EN 

12 

   EN 

 
 
                                                 
Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 1 221 128. 

(5) 

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

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 1 221 128 in commitment and payment appropriations. 

Article 2 

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

Done at [Brussels/Strasbourg], 

For the European Parliament 
The President 

For the Council 
The President 

EN 

13 

   EN