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 (EGF/2011/000 TA 2011 - technical assistance at the initiative of the Commission)
Date: 2011-06-22
Institutions: European Commission
Subjects: EU financing, European Commission, European Globalisation Adjustment Fund, Internet site, commitment of expenditure, consultancy, dissemination of EU information, help desk

EUROPEAN COMMISSION 

Brussels, 22.6.2011 
COM(2011) 358 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 (EGF/2011/000 TA 2011 - technical assistance at the initiative of 
the Commission) 

 
 
  
 
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. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 

EGF Reference no. 
European Commission 
Administrative expenditure: budget in EUR 
% administrative expenditure (ceiling: 0,35 %) 

EGF/2011/000 
Technical assistance 
610 000 
0,12 % 

According to Article 8(1) of Regulation (EC) No 1927/2006, 0.35 % of the annual maximum 
amount of the EGF can be made available each year for technical assistance at the initiative of 
the Commission  

Technical assistance to be funded and break-down of its estimated costs 

1. 

2. 

3. 

4. 

The contribution will be used for expenditure mentioned in Articles 8(1) and (4) as 
well as 9(2) of Regulation (EC) No 1927/2006, as detailed hereunder. 

Monitoring: The Commission will collect the data on applications received and paid, 
and  the  measures  proposed  and  implemented,  and  it  will  update  and  print  the 
Statistical  Portrait  of  the  EGF  with  information  up  to  the  end  of  2011.  The  cost  is 
estimated at EUR 20 000. 

Information:  The  EGF  web  site,  which  the  Commission  is  required  to  set  up  and 
maintain  under  Article  9(2)  of  Regulation  (EC)  No  1927/2006,  will  be  regularly 
updated and expanded, each new element also being translated into all EU languages. 
Press  folders  will  be  printed,  and  the  annual  report  of  the  EGF  will  be  produced, 
translated,  printed  and  distributed.  General  awareness  of  the  EGF  and  its  visibility 
will be enhanced, inter alia by the production of a video based on several EGF cases 
being  implemented.  The  EGF  will  be  covered  in  various  Commission  publications 
and audio-visual activities. Costs for all these items are estimated at EUR 250 000. 

Creation of a knowledge base: The Commission will set up standardised procedures 
for  EGF  applications  and  their  processing,  which  will  allow  applications  to  be 
simplified, their processing to be speeded up and reports to be more easily extracted 
for varying needs. The cost is estimated at EUR 70 000. 

1 
2 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 

EN 

2 

   EN 

 
                                                 
5. 

6. 

7. 

Items 

Administrative  and  technical  support:  The  Expert  Group  of  Contact  Persons  of  the 
EGF, with 27 members, one from each Member State, will be holding two meetings, 
budgeted  at  EUR 35 000  per  meeting.  The  two  meetings  are  together  estimated  at 
EUR 70 000. 

In addition, the Commission will be organising the exchange of successful practices 
among 
the  Member  States,  enabling  participants  with  experience  of  EGF 
implementation  to  network  with  each  other.  The  first  of  these  meetings  will  be 
devoted  to exchanges of information and experiences on the timing and funding of 
EGF applications. This networking activity is estimated at EUR 200 000. 

Evaluation:  Activities  for  the  mid-term  evaluation  of  the  EGF,  as  laid  down  in 
Article  17  paragraph  1(a)  of  Regulation  (EC)  No  1927/2006,  were  contracted  out 
with the resources of the 2010 budget. The final evaluation of the EGF will not begin 
until 2012. There is therefore no budget set aside for EGF evaluation in 2011. 

Estimated 
number 

Estimated cost 
per item 
(in EUR) 

Total costs 
(in EUR) 

Monitoring  

1

20 000 

20 000

Information activities 

Various

Various 

250 000

Creation of a knowledge base 

Administrative and technical support : 
Meetings of the Expert Group of Contact 
Persons of the EGF 

Administrative and technical support : 
Seminars on the Implementation of the 
EGF 

1

2

2

70 000 

35 000 

70 000

70 000

100 000 

200 000

Total estimated costs 

610 000

Financing 

8. 

9. 

The  total  annual  budget  available  for  the  EGF  is  EUR 500 million.  Article  8(1)  of 
Regulation  (EC)  No  1927/2006  states 
this  amount  (i.e. 
EUR 1 750 000)  can  be  made  available  each  year  for  technical  assistance  at  the 
initiative of the Commission. Currently, the full amount for 2011 remains available; 
nothing has yet been allocated to technical assistance.  

that  0,35 %  of 

The proposed contribution for technical assistance at the initiative of the Commission 
in 2011 is EUR 610 000. Following the mobilisation of this amount, the amount of 
EUR 1 140 000 potentially remains available in case of further need at a later stage 
in the year. 

EN 

3 

   EN 

 
 
 
 
10. 

11. 

Considering  the  maximum  possible  amount  of  a  contribution  from  the  EGF  in 
accordance with Article 8(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. 

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.  

12. 

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 

13. 

An  amount  of  EUR 7 302 277  remains  available  on  the  EGF  Budget  line  04.0501 
after adoption by both arms of the Budgetary Authority of three Decisions totalling 
an  amount  of  EUR 10 371 321,  and  taking  into  account  the  four  cases  currently 
discussed  by  the  Budgetary  Authority  for  a  total  amount  of  EUR 29 935 352.  This 
available  amount  will  be  used  to  cover  the  amount  of  EUR 610 000  needed  for 
technical assistance. 

EN 

4 

   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 (EGF/2011/000 TA 2011 - technical assistance at the initiative of 
the Commission) 

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  Inter-institutional  Agreement  of  17 May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management3, 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  Fund4, 
and in particular Article 8(2) thereof, 

Having regard to the proposal from the Commission5, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional  support  to  redundant  workers  who  suffer  from  the  consequences  of  major 
structural  changes  in  world  trade  patterns  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. 

Regulation (EC) No 1927/2006 provides that 0,35 % of the annual maximum amount 
can  be  made  available  each  year  for  technical  assistance  at  the  initiative  of  the 
Commission.  The  Commission  therefore  proposes  to  mobilise  an  amount  of 
EUR 610 000. 

3 
4 
5 

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

EN 

5 

   EN 

 
                                                 
(5) 

The EGF should, therefore, be mobilised in order to provide technical assistance at the 
initiative of the Commission. 

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 610 000 
in commitment and payment appropriations. 

Article 2 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

6 

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