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/2009/019 FR/Renault from France)
Date: 2011-07-11
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, France, budgetary procedure, commitment of expenditure, dismissal, financial management, interinstitutional agreement

EUROPEAN COMMISSION 

Brussels, 11.7.2011 
COM(2011) 420 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/2009/019 FR/Renault from France) 

 
 
  
 
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 9 October  2009, France  submitted application EGF/2009/019 FR/Renault for a financial 
contribution  from  the  EGF,  following  redundancies  in  Renault  s.a.s.  and  seven  of  its 
subsidiaries in France. 

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/2009/019 
France 
(a) 
Renault s.a.s. 
7 
1.4.2009 – 31.7.2009 
15.10.2008 
9.10.2009 
1 384 
3 061 
4 445 
3 582 
37 628 780 
53 566 
0,14 
37 682 346 
24 493 525 

1. 

2. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  9  October  2009  and 
supplemented by additional information up to 10 February 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. 

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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. 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  France  argues  that  Renault  suffered  from  the  increasing  cost  of 
credit  and  the  hardening  of  credit  conditions  from  2008  onwards,  which  seriously 
affected  the  ability  of  the  enterprise  to  fund  its  own  activities  in  the  short  term  as 
well as its investment plans or the future. Thus, the interest rate with which Renault 
could  theoretically  fund  itself  for  five  years4  rose  from  5,60 %  in  January  2008  to 
more  than 14,50 %  in  October of  the same year. At the same time, consumers also 
felt  the  tightening  of  credit  and  the  effects  of  the  global  financial  and  economic 
crisis,  leading  to  anxiety  about  job  security  and  the  postponement  of  vehicle 
purchases. Despite the temporary measures introduced by some Member States (e.g. 
scrappage schemes), registrations  of new Renault cars  in Europe dropped by 6,5 % 
between  2007  and  2008.  This  downward  tendancy  accelerated  during  the  fourth 
quarter of 2008, when new registrations dropped from -15,2 % in October 2008 to -
27,5 % in December 2008 compared with the same period of 2007. 

The  Commission  has  already  recognised  in  response  to  previous  applications 
concerning  the  automotive  sector  that  the  financial  crisis  at  the  origin  of  the 
economic  slow-down  affected  this  sector  particularly  seriously,  since  60  to  80 % 
(varying  from  one  Member  State  to  another)  of  new  vehicles  sold  in  Europe  are 
bought  on  credit5.  During  the  second  quarter  of  2009,  the  total  number  of  vehicles 
constructed  in  the  European  Union  was  39,5 %  lower  than  that  recorded  a  year 
earlier.  The  crisis  weighed  heavily  on  the  major  car  manufacturers  in  Europe  and 
their suppliers6. 

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

5. 

6. 

4 

5 
6 

France  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  1 384  redundancies  in  Renault  s.a.s.  and  six  suppliers  during 
the  four-month  reference  period  from  1  April  2009  to  31  July  2009  and  a  further 
3 061 redundancies in Renault s.a.s. and seven suppliers outside the reference period, 
but included in the same voluntary redundancy plan. 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. 

This theoretical interest rate is composed of the interest rate on the premium against payment default -- 
CDS, i.e. Credit Default Swap -- of a credit to Renault plus the interest on a risk free loan, both for two 
to five years. 
COM(2009)104 of 25.2.20096, "Responding to the crisis in the European automotive industry". 
Directorate General for Entreprise and Industry: "Impact of the economic crisis on the manufacturing 
and construction industries - April 2009 update" 

(http://ec.europa.eu/enterprise/newsroom/cf/itemshortdetail.cfm?&tpa_id=0&item_id=3437). 

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Explanation of the unforeseen nature of those redundancies 

7. 

The French authorities argue that the global financial crisis led to a sudden collapse 
of the world economy, with serious effects for many sectors. Since the second half of 
2008, the economic situation has developed very differently from the gradual decline 
known  in  previous  business  cycles,  for  which  enterprises  could  have  prepared 
themselves. 

Identification of the dismissing enterprises and the workers targeted for assistance 

8. 

The application relates to 1 384 redundancies in Renault and seven of its suppliers. 

Name of the entreprise 

Number of redundancies during the 
reference period 

Renault s.a.s. 
ALPINE 
Fonderie de Normandie 
MCA Maubeuge construction auto 
RST 
STA Société de transmission auto 
SOFRASTOCK 
SOVAB 
Total 

1 333
7
12
15
3
7
7
0
1 384

As provided for by Article 3a(b) of Regulation (EC) No 1927/2006, a further 2 198 
workers made redundant by the same eight enterprises before and after the reference 
period,  as  a  result  of  the  same  plan  for  voluntary  redundancies,  are  targeted  for 
support  in  addition  to  the  workers  dismissed  during  the  reference  period.  The  total 
number of workers to benefit from the co-funded package of personalised services is 
therefore 3 582. 

9. 

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
2 987
595
3 468
114
4
999
2 579
0

Percent 
83,4 
16,6 
96,8 
3,2 
0,1 
27,9 
72,0 
0,0 

10. 

Amongst  the  targeted  workers  are  included  422  (11,8 %)  suffering  from  a 
longstanding health problem or a disability. 

11. 

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

Category 
Senior executives ("Cadres supérieurs") 
Middle-ranking executives ("Cadres") 
Employees,  technicians  and  supervisors 

Number
69
878
1 579

Percent 
1,9 
24,5 
44,1 

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techniciens  et  agents  de 

("Employés, 
maîtrise" or "ETAM") 
Workers ("Ouvriers") 

1 056

29,5 

12. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  France  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  redundancies  covered  in  this  application  occurred  mainly  in  three  regions  of 
France : the Ile-de-France (53 %), the Haute-Normandie (29,5 %) and the Nord-Pas-
de-Calais (12,5 %).  

The  responsible  authorities  in  the  affected  areas  are  the  Préfet  of  the  relevant 
Department  and  the  Departmental  Directors  for  Employment  and  Vocational 
Training  (directeur  départemental  du  travail,  de  l'emploi  et  de  la  formation 
professionnelle). Renault itself will be a major stakeholder, and will be co-ordinating 
the scheme. 

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

15. 

In  the  Ile-de-France,  the  redundancies  occur  mainly  in  the  plant  of  Guyancourt 
Aubevoie  (941)  and  the  headquarters  of  the  company  (448).  As  this  concerns  the 
region  of  Paris,  unemployment  levels  are  relatively  low  (4,7 %  and  5,9 % 
respectively) and employment levels as a whole are rising (by respectively 3,6 % and 
5,2 %  between  2003  and  2007),  while  manufacturing  employment  is  declining 
(respectively by 3,9 % and 15,2 % over the same period). 

In  the  Haute-Normandie,  the  redundancies  occur  in  Cléon  (334)  near  Rouen  and 
Sandouville  (887)  near  Le  Havre.  The  latter  region  in  particular  has  been  suffering 
industrial  decline  (a  drop  in  industrial  employment  by  8,9 %  between  2003  and 
2007) and thus offers fewer opportunities to the redundant workers. 

In  the  Nord-Pas-de-Calais,  the  redundancies  occur  mainly  in  Douai  (306)  and 
Maubeuge (153). These are located in zones of already high unemployment (13,8 % 
and  15,5 %  as  opposed  to  the  national  unemployment  rate  of  9,1 %).  These  zones 
have  been  suffering  a  decline  in  industrial  employment  (by  respectively  9,1 %  and 
13,9 % between 2003 and 2007). 

16. 

As  Renault  employs  more  than  1 000  workers,  it  is  obliged  to  contribute  to  the 
revitalisation of these regions under Article L1233-84 of the Code du Travail. This 
means  that  the  Renault  Group  will  contribute  to  the  creation  of  new  activities  and 
jobs so as to alleviate the impact of the dismissals in these regions. 

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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 

17. 

The  "Projet  Renault  Volontariat",  which  is the  object  of  this  EGF  application  from 
France, aims to support the 4 445 workers who volunteered to leave the company and 
specifically the 3 582 targeted workers. 

Until 30 April 2009, each of the participating workers could opt for: 

(1) 
(2) 
(3) 
(4) 

a "projet professionnel ou personnel", or 
a "congé de reclassement", or 
early retirement, or 
help to return to their country of origin. 

The EGF application only concerns the first two of these provisions. 

The projet professionnel ou personnel is for those workers who already know what 
they wish to do, have a future sector or employer in mind and need some transitional 
help (e.g. advice, training, etc.) to reach their aim. The congé de reclassement is for 
those  workers  who  do  not  yet  have  a  specific  objective  and  are  willing  to  spend  a 
period of up to or even beyond nine months being  retrained and  being helped with 
advice and guidance. Both schemes may also include the creation of a new business 
by the redundant worker. Each worker has to decide which of these two schemes to 
enter - they cannot be combined by any one worker. 

Of  the  workers  targeted  in  the  application,  2 910  opted  in  favour  of  the  congé  de 
reclassement  and  679  for  the  projet  professionel  ou  personnel.  The  difference 
between  this  total  of  3 589  workers  budgeted  for  and  the  3 582  workers  finally 
participating,  lies  in  the  fact  that  seven  workers  passed  away  after  the  start  of  the 
measures. 

In the case of the congé de reclassement (article L1233-71 of the Code du Travail), 
an  employer  of  more  then  1 000  persons  is  obliged  to  offer  the  measures  there 
defined for a period which may vary between a minimum of four and a maximum of 
nine months. Pursuant to the above mentioned law, months five to nine of this period 
are therefore optional and can be eligible for an EGF contribution in accordance with 
Article 6(1) of the EGF Regulation. Renault decided to offer these measures for up to 
nine  months,  depending  on  the  worker's  occupation,  seniority  and  site.  The 
application  does  not  contain  any  expenditure  on  the  congé  de  reclassement  for  the 
first  four  months  of  the  scheme,  which  is  the  minimum  laid  down  by  the  law,  and 
also  excludes  all  periods  when  the  workers  are  still  covered  by  their  notices  of 
dismissal. 

18. 

The  following  measures  are  proposed,  all  of  which  combine  to  form  a  coordinated 
package of personalised services aimed at re-integrating the 3 582 targeted workers 
into employment. 

–  Advisory services for workers who opted for a project professionnel ou personnel 
("Cellule  de  reclassement  pour  projet  professionnel  ou  personnel"):  These 
advisory services are at the disposal of the relevant group of workers, providing 

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guidance  on  job  search  and  available  training,  access  to  the  training  itself,  and 
advice  on  business  start-up  (search  for  funding,  help  with  a  business  plan, 
introduction to management, etc.). 

–  Advisory services for workers who opted for the congé de reclassement ("Cellule 
de reclassement pour congé de reclassement"): These advisory services are at the 
disposal of the relevant group of workers, providing guidance on job search and 
available  training,  access  to  the  training  itself,  and  advice  on  business  start-up 
(search for funding, help with a business plan, introduction to management, etc.). 
The  24  teams  of  advisers  active  in  the  Renault  sites  and  those  of  the  suppliers 
concerned, combine services to both groups of workers. 

–  Training  for  workers  who  opted  for  a  projet  professionnel  ou  personnel 
("Formation pour projet professionnel ou personnel"): The training measures are 
varied according to the plans of the redundant workers. 

–  Training for workers who opted for the congé de reclassement ("Formation pour 
congé de reclassement"): The training measures are varied according to the plans 
of  the  redundant  workers  and  may  even  extend  beyond  the  nine  months  of  the 
congé de relassement if they are included in the training pathway agreed with the 
cellule de reclassement. 

–  Allowance  provided  under  the  congé  de  reclassement  ("Allocation  de  congé  de 
reclassement"):  This  allowance  is  paid  on  a  monthly  basis  until  the  end  of  the 
congé de reclassement. It amounts to 65 % of the workers' former salary, except 
for  those  who  worked  for  the  Renault  site  located  in  Sandouville.  The  latter 
benefit from an allowance equal to 100 % of their former salary for a duration of 
six months (minus their respective periods of notice), then 65 % until the end of 
their congé de reclassement. This allowance will be paid at a rate of EUR 8 988 to 
the 2 689 workers made redundant by Renault and EUR 6 189 to the 231 workers 
made  redundant  by  the  suppliers,  making  for  an  average  of  EUR 8 765,40.  It  is 
calculated on the assumption that the workers are occupied on a full-time basis in 
active labour market policy measures; should this not be the case, the allowance 
will be paid by the EGF on a pro rata basis for each worker. 

–  Support for business creation ("Aide à la création d'entreprise"): This measure is 
provided  both  under  the  projet  professionnel  ou  personnel  and  the  congé  de 
reclassement. It can grant up to EUR 12 000 for investments per business created, 
together with EUR 1 500 for interest on loans and up to EUR 500 for registration 
fees.  A  further  EUR 3 000  can  be  paid  for  the  recruitment  of  a  worker  from 
among the group of targeted workers of this application. 

19. 

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 
activities as well as information and publicity. The French authorities explained that 
the  low  level  of  expenditure  provided  under  these  headings  and  the  zero  rating  of 
management  and  control  measures  were  due  to  the  fact  that  they  did  not  price 
activities which they were in any case obliged to carry out as part of the management 
of the State. 

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The  information  activities  proposed  by  France  include  the  distribution  of  the 
Commission's  EGF  leaflet  to  the  local  stakeholders  and  for  placement  on  notice 
boards at the production sites. This activity will aim at the active workers there, and 
will  not  include  the  redundant  workers  who  will  already  have  benefited  from  the 
EGF support. 

The French proposal also includes a press release upon adoption of the EGF support 
and a mention on the relevant Ministry web site. 

20. 

The  personalised  services  presented  by  the  French  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No  1927/2006.  The  French  authorities  estimate  the  total  costs  of  these  services  at 
EUR 37 628 780  and  the  expenditure  for  implementing  the  EGF  at  EUR 53 566 
(0,14 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 24 493 525 (65 % of the total costs). 

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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) 

Advisory services for workers who opted for a 
project professionnel ou personnel ("Cellule de 
reclassement pour projet professionnel ou 
personnel") 

Advisory services for workers who opted for 
the congé de reclassement ("Cellule de 
reclassement pour congé de reclassement") 

Training for workers who opted for a projet 
professionnel ou personnel ("Formation pour 
projet professionnel ou personnel") 

Training for workers who opted for the congé 
de reclassement ("Formation pour congé de 
reclassement") 

Allowance provided under the congé de 
reclassement ("Allocation de congé de 
reclassement") 

Support for business creation ("Aide à la 
création d'entreprise") 

679

1 981,58 

1 345 491

2 910

1 880,90 

5 473 413

88

1 430,25 

125 862

2 299

711,34 

1 635 377

2 910

8 765,40 

25 507 307

332

10 666,65 

3 541 328

Sub total personalised services 

37 628 780

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

Preparatory activities 

Information and publicity 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

51 566

2 000

53 566

37 682 346

24 493 525

* The totals in each line are averages calculated from the figures used for Renault itself and 
the seven suppliers; they do not entirely tally due to rounding. 

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21. 

France confirms that the measures described above are complementary with actions 
funded by the Structural Funds and that, as they benefit from no other EU or French 
public support, double funding is excluded. An agreement to be concluded between 
the  French  State  and  Renault  will  confirm  the  obligation  to  ensure  the  absence  of 
double funding.  

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

22. 

France  started  the  personalised  services  to  the  affected  workers  included  in  the  co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  15  October  2008,  date 
when  the  guidance  of  the  workers  included  in  the  plan  started.  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. 

On 9 September 2008, the Comité Central d'Entreprise of Renault was informed and 
consulted on the "Projet Renault Volontariat" (PRV), the subject of this application 
from  France,  and  made  its  observations  on  the  plan.  Two  meetings  with  the  trade 
union  organisations  were  held  to  develop  the  measures  included  in  the  PRV.  The 
Comité  Central  was  informed  and  consulted  once  more  on  3  October  2008  on  the 
measures for the plants. 

Following  this  phase,  the  Comités  d'Etablissement  of  Renault  were  informed  and 
consulted on 6 and 7 October 2008, following which the plan was put into effect on 
the various sites. 

In  parallel,  the  information  and  consultation  of  the  Comité  d'Entreprise  of  the 
suppliers included in this application took place. 

24. 

The French 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 
French 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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Management and control systems  

26. 

France has notified the Commission that the financial contribution will be managed 
by the Mission du Fonds National de l'Emploi (FNE) within the Délégation générale 
à  l'emploi  et  à  la  formation  professionnelle  (DGEFP)  in  the  Ministry  for  the 
Economy, Industry and Employment. The payments will be managed by the Mission 
du  Financement,  du  Budget  et  du  Dialogue  de  Gestion  (MFBDG)  within  the 
Département  Financement,  Dialogue  et  Contrôle  de  Gestion  of  the  same  ministry. 
Audits  and  controls  will  be  carried  out  by  the  Mission  Organisation  des  Contrôles 
(MOC) within the Sous-Direction Politiques de Formation et du Contrôle of the same 
Ministry. Certification will be provided by the Pôle de Certification of the Direction 
Générale des Finances. 

Financing 

27. 

28. 

29. 

30. 

On the basis of the application from France, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  is  EUR 24 493 525  (including 
expenditure  to  implement  EGF),  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by France. 

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. 

31. 

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  

32. 

The remaining amount of payment appropriations initially entered on the budget line 
04.0501  after  adoption  by  both  arms  of  the  budgetary  authority  of  the  proposals 

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submitted  to  date  for  mobilising  the  EGF  is  EUR 808 079  and  is  therefore  not 
sufficient to cover the amount of EUR 24 493 525 needed for the present application. 

As a reinforcement of the EGF budget line 04.0501 by EUR 50 000 000 is foreseen 
through AB2/2011, this budget line will be used to cover the amount of EUR 24 493 
525 needed for the present 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/2009/019 FR/Renault from France) 

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 
management7, 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  Fund8, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission9, 

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. 

France submitted an application to mobilise the EGF, in respect of redundancies in the 
enterprise  Renault  s.a.s.  and  seven  of  its  suppliers,  on  9  October  2009  and 
supplemented  it  by  additional  information  up  to  25  January  2011.  This  application 
complies  with  the  requirements  for  determining  the  financial  contributions  as  laid 

7 
8 
9 

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

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down  in  Article  10  of  Regulation (EC) No 1927/2006.  The  Commission,  therefore, 
proposes to mobilise an amount of EUR 24 493 525. 

(5) 

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

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 24 493 525 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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