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/2010/026 PT/Rohde from Portugal)
Date: 2011-08-17
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Portugal, commitment of expenditure, dismissal, economic recession, footwear industry, globalisation, reintegration into working life

EUROPEAN COMMISSION 

Brussels, 17.8.2011 
COM(2011) 491 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/2010/026 PT/Rohde from Portugal) 

 
 
  
 
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  26  November  2010,  Portugal  submitted  application  EGF/2010/026  PT/Rohde  for  a 
financial  contribution  from  the  EGF,  following  redundancies  in  Rohde  Sociedade  Industrial 
de Calçado Luso-Alemã, Lda ('Rohde') in Portugal. 

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/2010/026 
Portugal 
(a) 
Rohde - Sociedade Industrial de 
Calçado Luso-Alemã, Lda. 
0 
19.05.2010 – 19.09.2010 
20.05.2010 
26.11.2010 
974 
0 
974 
680 
2 135 000 
95 000 
4,26 
2 230 000 
1 449 500 

1. 

The  application  was  presented  to  the  Commission  on  26  November  2010  and 
supplemented by additional information up to 19 May 2011. 

1 
2 
3 

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 

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2. 

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. 

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

3. 

4. 

5. 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  Portugal  argues  that  the  clothing  and  footwear  industries  were 
strongly hit by the crisis. These sectors are very vulnerable to external factors such as 
loss of consumer purchasing power. The economic recession had a negative impact 
on  the  labour  market,  unemployment  levels  rose,  and  this  affected  consumer 
confidence. As a consequence, manufacturing industries experienced a sharp drop in 
sales  and  production.  The  Portuguese  authorities  report  that  Portugal  recorded  a 
decline  in  GDP  over  the  last  two  quarters  of  2008  and  in  2009  (4%  decrease 
according to the Banco de Portugal). Both clothing and footwear industries recorded 
a  decrease  in  exports  (EUR  24  million  in  clothing,  EUR  6  million  in  footwear). 
Portuguese  footwear  exports  declined  in  2009  to  EUR 1 207 million,  representing 
6,4 % less than those of the previous year.  

The  Rohde  company  kept  a  stable  position  on  the  market  despite  the  increasing 
difficulties  due  to  intensified  competition,  China  becoming  a  global  leader  in  the 
sector  and  growing  importance  of  Vietnam,  India  and  Indonesia.  However,  the 
situation of Rohde was affected by the decrease in sales, and the position of Rohde 
on  the  European  market  deteriorated.  As  a  result  of  the  crisis  and  the  reduced 
capacity  to  invest,  the  parent  enterprise  based  in  Schwalmstadt,  Germany,  finally 
went bankrupt.  

The Rohde Group was then the subject of a recovery plan: the company was bought 
by a joint venture between Square Four and the Morgan Stanley Merchant bank in an 
attempt  to  save  Rohde  and  its  level  of  production.  The  factory  in  Portugal  was 
planned to remain in production. However, finally the group substantially downsized. 
These  circumstances,  including  the  declining  orders  from  the  parent  enterprise, 
affected the situation of the Rohde factory based in Santa Maria da Feira, Portugal, 
and  as  a  result,  insolvency  proceedings  started  in  September  2009,  leading  to  the 
eventual closure of the factory and the dismissal of the workers.  

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

6. 

7. 

4 

Portugal 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  9744 redundancies  in  Rohde  during  the  four-month  reference 
period  from  19  May  2010  to  19  September  2010.  All  of  these  redundancies  were 

The  Portuguese  authorities  explained  that  the  redundancies  concerned  983  workers  in  the  reference 
period, however nine of these did not register in Job Centres and therefore are not eligible for inclusion 
in this application.  

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calculated in accordance with the second indent of the second paragraph of Article 2 
of Regulation (EC) No 1927/2006.  

Explanation of the unforeseen nature of those redundancies 

8. 

The Portuguese authorities argue that the financial and economic crisis and its impact 
could not have been foreseen. The redundancies in Rohde were not expected despite 
the  gradually  increasing  difficulties  facing  the  company  due  to  intensified 
competition,  successive  growth  in  imports  and  decline  in  consumption.  The 
enterprise  was  in  a  stable  position  in  the  market  until  this  was  undermined  by  the 
crisis. Moreover, the bankruptcy of the parent company in Germany was not initially 
seen as a significant danger, since the company was the subject of a recovery plan in 
2008/09.  

Identification of the dismissing enterprises and workers targeted for assistance 

9. 

The  application  cites  a  total  of  974  redundancies  in  Rohde  during  the  four-month 
reference  period.  Of  this  total,  680  are  targeted  for  assistance:  the  Portuguese 
authorities estimate that some 70 % of the redundant workers will participate in the 
measures  co-financed  by  the  EGF,  while  the  others  will  find  another  job,  or  travel 
abroad, retire or participate in other measures complementary to those co-funded by 
the EGF. 

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
88
592
680
0
1
632
45
2

Percent 
13,00 
87,00 
100,00 
0,00 
0,15 
92,94 
6,62 
0,29 

It is to be noted that 78,5 % of these workers did not complete elementary education 
(nine  years  of  schooling),  while  just  17,8 %  concluded  elementary  and  1,2 % 
secondary  education.  There  are  7  workers  with  a  longstanding  health  problem  or 
disability included in the categories above.  

11. 

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

Category 
Legislators, senior officials and managers 
Professionals 
Technicians and associate professionals  
Clerks 
Service workers and shop and market 
sales workers  
Craft and related trades workers  
Plant and Machine operators and 
assemblers 

Number
2
1
17
34
3

537
20

Percent 
0,29 
0,15 
2,50 
5,00 
0,44 

78,97 
2,94 

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Elementary occupations 

66

9,71 

12. 

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

15. 

16. 

17. 

The  territory  concerned  is  mainly  the  municipality  of  Santa  Maria  Da  Feira  where 
Rohde  was  established.  However  the  redundancies  also  affected  the  contiguous 
municipality  of  Ovar.  They  are  located  respectively  within  two  NUTS  II  regions: 
Norte and Centro.  

Norte  is  the  most  densely  populated  region  of  Portugal  and  the  most  highly 
industrialised  of  the  country,  with  a  strong  concentration  of  traditional  industries 
(textiles,  clothing,  footwear,  wood),  while  the  services  sector  has  been  developing 
recently  too.  In  all  these  sectors,  the  small  and  medium  sized  enterprises 
predominate.  The  region  still  suffers  from  a  low  educational  base,  particularly 
affecting the older generation, and from long-term unemployment.  

Centro  is  a  region  characterised  by  low  population  density  and  sharp  demographic 
imbalances which are mainly the results of ongoing depopulation and the progressive 
ageing of the population. The productive structure is diversified, but the industry is 
dominated  by  traditional  productive  specialisations.  Similarly  to  the  Norte  region, 
Centro  is  characterised  by  a  low  level  of  education.  Unemployment  has  become 
problematic due to the regression of the primary and traditional industrial sectors.  

Both regions are characterised by vulnerability in the employment structure and the 
struggle with the low qualifications of the labour force, low salaries, and precarious 
employment. 

The  principal  stakeholders  are  the  Instituto  do  Emprego  e  Formacao  Profissional 
(IEFP,  I.P.),  a  public  administration  institution  with  decentralised  job  centres  and 
vocational  training  centres,  social  partners  (the  employer  organisations  include 
Portuguese  Association  of  Footwear,  Leather  Components  and  Articles  and  their 
branches;  the  trade  unions  structures  include  Federation  of  the  Unions  of  Textile, 
Wool Products, Clothing, Footwear and Leather Workers of Portugal). An important 
role  is  also  played  by  the  municipalities  and  their  associations  (mainly  of  the 
Metropolitan  Area  of  Porto),  Universities  and  Polytechnic  Institutes  and  the 
Footwear Technological Centre.  

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

18. 

According  to  the  National  Institute  of  Statistics  (INE)  the  unemployment  level  in 
Portugal in the third quarter of 2010 was 10,9 % which is 1,1 % higher than in the 
same  period  of  2009.  The  unemployment  rate  in  the  Norte  region  increased  from 
11,6 % in the third quarter of 2009 to 13,2 % in the same period of 2010 and was the 
highest  unemployment  rate  in  the  country.  The  Centro  region  experienced  a  slight 
increase  in  the  unemployment  rate  (from  7,2 %  to  7,4 %  in  the  same  period  as 
above).  

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In  the  municipality  of  Santa  Maria  da  Feira,  where  Rohde  was  established,  the 
unemployment rate was the highest in the NUTS III region Entre Douro e Vouga. In 
the  municipality  of  Ovar  in  the  Centro  region,  unemployment  rates  are  higher  than 
the national average.  

In  this  context,  the  direct  impact  of  closing  Rohde  was  the  dismissal  of  about  980 
workers, which severely affected these municipalities already having unemployment 
rates above the national average.  

19. 

The  Portuguese  authorities  report  that  the  unemployed  population  of  the  most 
traditional  industrial  sectors,  including  footwear,  are  characterised  by  very  low 
education  levels  and  as  a  result,  have  greater  difficulty  in  retraining  for  other 
activities.  

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. 

(1) 

(2) 

(3) 

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

Information  and  guidance:  The  information  actions  consist  of  updating  all  potential 
beneficiaries  on  the  available  measures,  encouraging  the  workers  to  actively 
participate  in  them,  providing  information  on  the  labour  market,  as  well  as  defining 
and adjusting their respective Personal Employment Plans which should describe the 
measures in which the workers intend to participate. This profiling will be carried out 
by  Job  Centres  and  it  is  not  co-financed  by  the  EGF.  It  is  expected  that  250  of  the 
targeted workers will proceed to follow more complex guidance sessions. These will 
encourage  the  workers  towards  vocational  training,  occupational  reconversion  and 
personal development including  promotion of self-esteem  and  job  search  techniques. 
During these actions, the workers will receive meals and transport allowances.  

Recognition, validation and certification of competences: With the help of recognised 
New Opportunities Centres (NOC), the workers will identify the knowledge and skills 
acquired throughout their lives in formal and informal contexts. During individual and 
group  sessions,  together  with  professional  trainers,  they  will  prepare  a  portfolio  that 
will contain the evidence of their learning process. Special panels will be organised for 
those  workers  who  need  specific  competences  to  obtain  a  school  or  vocational 
certificate.  NOC  will  be  promoted  by  the  Vocational  Training  Centres  under  Joint 
Management.  

Vocational  Training:  The  workers  will  receive  the  training  most  appropriate  to  their 
educational  and  skills  levels,  helping  them  to  reintegrate  rapidly  into  employment. 
There  will  be  adult  training  courses  leading  to  double  certification  (educational  and 
vocational),  some  will  be  given  on  a  modular  basis  (flexible  training  organised  in 
short-term  training  units,  presented  in  the  training  benchmarks  of  the  National 
Qualifications  Catalogue)  and  some  will  be  specific  training,  suitable  to  the  specific 
needs  of  the  labour  market  (actions  not  included  in  the  National  Qualifications 
Catalogue). The training courses will be delivered by the Vocational Training Centres 
and  other  entities  of  recognised  competence  identified  by  IEFP.  Allowances  for 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

training,  meals,  transport,  personal  accident  insurance  and  accommodation  will  be 
offered within strict limits and conditions.  

Grant  for  training  at  personal  initiative:  This  will  enable  workers  to  participate  in 
suitable training courses, agreed as part of their personal employment plans and which 
are  delivered  by  recognised  training  institutions.  The  participants  of  this  form  of 
training will be offered a grant under strict conditions. They can attend, consecutively 
or  simultaneously,  more  than  one  course,  on  condition  that  they  keep  within  the  set 
limits.  

Support  for  self-placement:  This  is  a  grant  awarded  to  workers  who,  during  the 
implementation period of the EGF package, find themselves a new job with either an 
indefinite contract or one for at least six months. The amount varies depending on the 
length of the contract offered, and can be increased if the new workplace is more than 
100 km from the location of the worker's residence. 

Hiring  incentive:  For  the  purposes  of  stimulating  the  creation  of  new  jobs,  financial 
support  may  be allocated  to  employer  entities which sign full-time  contracts with an 
EGF beneficiary worker. The minimum duration of the contract has to be 12 months, 
and a higher incentive is paid to those taking on workers with contracts of unlimited 
duration.  

Entrepreneurial  support:  For  those  workers  wishing  to  create  their  own  businesses, 
training in specific knowledge and competences  for  the  creation  and  management  of 
small  businesses  will  be  organised.  Attendance  of  the  training  is  compulsory  before 
the decision to support the business creation is issued, except in cases where there is 
confirmed  pre-existing  training  or  relevant  experience.  Technical  support  to  the 
project includes activities to support the development of the business idea, preparation 
of the business plan, constitution of the company and follow-up of the project during 
the first year of its operations. 

Support  for  the  creation  of  a  business:  The  workers  will  be  helped  with  a  non-
reimbursable subsidy of EUR 20 000 per job created, including that of the promoter, 
up to a maximum of three. The jobs created should be filled by EGF beneficiaries, or 
by unemployed persons in the job centres of the region, and should be full-time for a 
minimum  duration  of  two  years.  Allowances  for  meals,  transport  and  personal 
accident insurance will be offered within strict limits and conditions. 

Integration  plan:  This  will  provide  the  workers  with  work  experience  of  at  least  30 
hours per week during a period from six to twelve months. The objective is to make 
sure  that  these  workers  do  not  lose  contact  with  other  workers,  do  not  suffer  from 
isolation and loss of motivation, and gain the opportunity to acquire new knowledge 
and  skills  and  thus  to  improve  their  employability  following  the  integration  period. 
The  workers  will  be  placed  with  non  profit-making  employer  entities  for  a  limited 
period;  this  will  entitle  them  to  meals  and  transport  allowances,  insurance  and  a 
monthly subsidy instead of wages. 

21. 

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 and control activities, as well as information and publicity. 

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22. 

The  personalised  services  presented  by  the  Portuguese  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Portuguese authorities estimate the total costs of these services at 
EUR 2 135 000  and  the  expenditure  for  implementing  the  EGF  at  EUR 95 000 
(4,26 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 1 449 500 (65 % of the total costs). 

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 guidance 

Recognition, validation and certification of 
competences 

Vocational Training 

Grant for training at personal initiative 

Support for self-placement 

Hiring incentive 

Entrepreneurial support 

Support for the creation of a business 

250

250

150

20

80

50

30

20

160 

640 

6 000 

4 000 

1 000 

2 300 

2 000 

40 000

160 000

900 000

80 000

80 000

115 000

60 000

20 000 

400 000

Integration plan 

100

3 000 

300 000

Sub total personalised services 

2 135 000

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

Preparatory activities 

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

2 000

90 000

2 000

1 000

95 000

2 230 000

1 449 500

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23. 

Portugal confirms that the measures described above are complementary with actions 
funded by the Structural Funds. Portugal will also ensure a clear audit trail for EGF 
funded activities, and confirms that no other EU funding is sought or used for these 
activities. 

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

24. 

Portugal started the personalised services to the affected workers included in the co-
ordinated package proposed for co-financing to the EGF on 20 May 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 

25. 

26. 

The  EGF  application  was  presented  to  the  meeting  of  the  IEFP,  I.P.  Board  of 
Directors on 29 November 2010. The IEFP, I.P, which is the Managing and Paying 
Authority for the EGF in Portugal, is itself a tripartite body.  

The Portuguese 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 

27. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Portuguese 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. 

Management and control systems  

28. 

Portugal has notified the Commission that the financial contribution will be managed 
and  controlled  by  Instituto  do  Emprego  e  Formação  Profissional,  I.P.,  the  public 
employment  service.  The  overall  management  is  carried  out  by  the  Employment 
Department, and with the help of the Vocational Training Department, Financial and 
Management  Control  Department  and  the  Regional  Delegations  of  the  Norte  and 
Centro regions. The overall financial management has been taken on by the Financial 
and  Management  Control  Department.  The  approval  and  payment  of  aids  is  the 
responsibility of the Regional Delegations of the Norte and Centro regions. The Job 
Centres  and  the  Partner  Entities,  namely  Vocational  Joint  Training  Centres  of  the 
most  affected  municipalities  will  be  carrying  out  most  of  the  active  measures. 
Portugal  has  confirmed  that  the  principle  of  separation  of  functions  among  and 
within the relevant entities will be respected. 

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The Instituto de Gestão do Fundo Social Europeu (IGFSE, I.P.), the European Social 
Fund  Management  Institute,  will  be  responsible  for  auditing  and  control  as  regards 
this EGF application. 

Financing 

29. 

30. 

31. 

32. 

On  the  basis  of  the  application  from  Portugal,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 1 449 500,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Portugal. 

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. 

33. 

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  

34. 

Amending budget 2/2011 increased EGF budget line 04.0501 by EUR 50 000 000 in 
payment appropriations. Appropriations from this budget line will be used to cover 
the amount of EUR 1 449 500 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/2010/026 PT/Rohde from Portugal) 

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 
management5, 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  Fund6, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission7, 

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. 

Portugal submitted an application to mobilise the EGF, in respect of redundancies in 
the  enterprise  Rohde,  on  26  November  2010  and  supplemented  it  by  additional 
information up to 19 May 2011. This application complies with the requirements for 
in  Article  10  of 
determining 

financial  contributions  as 

laid  down 

the 

5 
6 
7 

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

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Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 1 449 500. 

(5) 

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

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 1 449 500 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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