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/2010/019 IE/Construction 41 from Ireland)
Date: 2011-10-05
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Ireland, building industry, commitment of expenditure, dismissal, economic recession, globalisation, reintegration into working life

EUROPEAN COMMISSION 

Brussels, 5.10.2011 
COM(2011) 617 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/2010/019 IE/Construction 41 from Ireland) 

{SEC(2011) 1146 final} 

 
 
  
 
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  June  2010,  Ireland  submitted  application  EGF/2010/019  IE/Construction  41  for  a 
financial contribution from the EGF, following redundancies in 1 482 enterprises operating in 
the  NACE  Revision  2  Division  41  ('Construction  of  buildings')3  in  the  NUTS  II  regions  of 
Border, Midlands and Western (IE01) and Southern and Eastern (IE02) in Ireland. These two 
contiguous regions comprise the entire State of Ireland. 

This application is part of a series of three, all concerning the construction sector in Ireland. 
The  other  two  applications  are  in  support  of  workers  made  redundant  in  NACE  Revision  2 
Divisions  43  ('Specialised  construction  activities')  and  71  ('Architectural  and  engineering 
activities; technical testing and analysis'). 

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 
Enterprises concerned 

NUTS II regions 

NACE Revision 2 Division 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundant workers targeted for support 
Expenditure for personalised services (EUR) 

EGF/2010/019 
Ireland 
(b) 
1 482 
Border, Midlands and Western (IE01) 
Southern and Eastern (IE02)  
41 ('Construction of buildings') 
1.7.2009 – 31.3.2010 
1.7.2009 
9.6.2010 
4 866 
3 205 
18 245 633,73 

1 
2 
3 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 

EN 

1 

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Expenditure for implementing EGF4 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

1 277 195,15 
6,5 
19 522 828,88 
12 689 838 

1. 

2. 

The application was presented to the Commission on 9 June 2010 and supplemented 
by additional information up to 17 June 2011. 

The application meets the conditions for deploying the EGF as set out in Article 2(b) 
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, Ireland argues that the global financial and economic crisis started 
with the sub-prime mortgage crisis in the United States in mid-2007, with contagion 
rapidly  spreading  to  the  financial  markets.  As  a  small  export-oriented  economy, 
Ireland suffered from the effects of the credit crunch on its major trading partners, at 
a time when the world economy was experiencing its worst contraction in the post-
war  period.  The  credit  crunch  severely  affected  the  banks  in  Ireland,  with  further 
effects on mortgage loans and building activity in the country. 

Employment in the previously fast-growing building sector fell sharply. Ireland had 
been enjoying a building boom, with the ratio of housing investment to GDP peaking 
at 11 % of GDP in 2006 compared with a long-run EU housing investment to GDP 
average of around 6 % of GDP. When the crisis hit, the share of those employed in 
construction in Ireland dropped from 12,25 % in Q4 / 2007 to 9,2 % in Q1 / 2009 and 
6,25 %  by  Q3  /  2010.  Many  of  the  redundancies  in  the  sector  were  caused  by  the 
effective  closure  of  the  employing  enterprise  for  reasons  cited  such  as  liquidation, 
receivership, closure, insolvency, end of contract and bankruptcy. 

Following  a  decade  of  low  unemployment  (4 %  -  6 %),  the  unemployment  rate  in 
construction increased over six-fold between Q2 / 2007 and Q2 / 2009. In mid-2009, 
one  in  three  construction  workers  were  unemployed.  This  compares  to  the  overall 
national  unemployment  rate  at  that  time  of  12,4 %.  In  terms  of  construction  sub-
sectors,  in  Q4  /  2009,  the  greatest  absolute  unemployment  levels  were  observed  in 
the  construction  of  buildings  (NACE  Revision  2  Division  41)  and  specialised 
construction  (NACE  Revision  2  Division  43)  subsectors.  In  Q2 
/  2009, 
unemployment rates in these subsectors was almost 40 %. 

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

6. 

4 

Ireland  submitted  this  application  under  the  intervention  criteria  of  Article  2(b)  of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
nine-month period in enterprises operating in the same NACE Revision 2 Division in 
one region or two contiguous regions at NUTS II level in a Member State. 

In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

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7. 

The application cites 4 866 redundancies in 1 482 enterprises operating in the NACE 
Revision  2  Division  41  ('Construction  of  buildings')5  in  the  NUTS  II  regions  of 
Border,  Midlands  and  Western  (IE01)  and  Southern  and  Eastern  (IE02)  during  the 
nine-month  reference  period  from  1  July  2009  to  31  March  2010.  All  of  these 
redundancies  were  calculated  in  accordance  with  the  first  indent  of  the  second 
paragraph of Article 2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

8. 

The  Irish  authorities  argue  that  the  global  financial  and  economic  crisis  had  been 
unforeseen by governments, financial institutions and commentators worldwide and 
the  many  small  and  medium-sized  enterprises  (SMEs)  in  the  construction  sector  in 
Ireland could not have foreseen the extent to which the crisis would affect their own 
businesses. 

Identification of the dismissing enterprises and workers targeted for assistance 

9. 

The application relates to 4 866 redundancies in 1 482 enterprises spread throughout 
the  two  contiguous  regions,  which  together  constitute  the  whole  of  the  State  of 
Ireland.  Almost  80 %  of  the  enterprises  are  located  in  the  Southern  and  Eastern 
region  (IE02)  while  the  remaining  20 %  are  located  in  the  Border,  Midlands  and 
Western  region  (IE01).  Of  the  4 866  workers  made  redundant,  3 205  workers  are 
targeted for the measures outlined below. 

Region 
Border, Midlands and 
Western (IE01) 
Southern and Eastern (IE02) 
N/A 
Total 

Number of enterprises

Number of dismissals 

409

1 072
1
1 482

1 008

3 857
1
4 866

The full  list of  enterprises mentioned in application EGF/2010/019 IE/Construction 
41 from Ireland is attached in the Commission  Staff  Working  Paper  accompanying 
this Proposal. 

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 
2 945 
260 
3 205 
0 
389 
2 345 
391 
80 

Percent
91,89
8,11
100,00
0,00
12,14
73,17
12,20
2,50

5 

Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 

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3 

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11. 

There  are  no  workers  with  longstanding  health  problems  or  disabilities  among  this 
group. 

12. 

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 
Skilled agricultural and fishery workers 
Craft and related trade workers 
Plant and machine operators and 
assemblers 
Elementary occupations 
N/A 

Number 
225 
253 
301 
76 
8 

1 
889 
255 

1 052 
145 

Percent
7,02
7,89
9,39
2,37
0,25

0,03
27,74
7,96

32,82
4,52

13. 

14. 

The  number  of  targeted  workers  within  the  overall  number  of  workers  made 
redundant  may  change,  depending  on  the  outcome  of  contacts  with  individual 
redundant  workers.  Within  the  targeted  workers  are  669  redundant  apprentices, 
predominantly young males up to the age of 25, who are particularly at risk of falling 
into medium and even long-term unemployment. 

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

15. 

16. 

The application covers the whole of the State of Ireland, which is organised into two 
contiguous  regions  at  NUTS  II  level.  Around  80 %  of  the  former  employers  of  the 
affected population were based in the Southern and Eastern region, in which the two 
largest cities of Dublin and Cork are located. While this may suggest that the other 
NUTS  II  region  (Border,  Midlands  and  Western)  is  less  impacted  on,  short 
commuting  times  and  distances,  preparedness  of  workers  to  travel,  and  greater 
preponderance  of  construction  projects  in  urban  centres  would  make  it  likely  that 
many  workers  resident  in  the  Border,  Midlands  and  Western  region  migrate  or 
commute daily to employers based in the Southern and Eastern region for work. 

Ireland  had  one  of  the  world’s  most  globalised  and  dynamic  economies  with 
extremely  strong  external  trade  and  investment  links  until  around  2008.  However, 
from the last quarter of 2008 and the first quarter of 2009, the economic growth rate 
decelerated considerably, a process which continues even now. With a GDP decline 
of 3 % in 2008, Ireland was severely affected by the global financial and economic 
crisis.  The  entire  Irish  labour  force  is  undergoing  structural  change  primarily  as  a 
result of the collapse of the construction and banking sectors. 

17. 

Employment did, however, increase in 2009 in the ICT sector, with modest increases 
also recorded in the transport, food and health sectors. In addition, as a result of the 

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18. 

19. 

20. 

21. 

22. 

23. 

deregulation and the growth of the renewable energy sector, employment increased 
in the energy sector (gas and electricity).  

While in general labour supply exceeds demand, some areas of skills shortage exist 
in  a  small  number  of  posts  but  are  generally  confined  to  specialists  (e.g.  electrical 
engineers with expertise in high voltage grids, senior personnel such as ICT project 
manager, niche areas (e.g. telesales with fluency  in foreign languages) and specific 
skills mixes (e.g. ICT professionals with business development skills). 

Responsibility for national employment and training policy formulation and national 
funding  resides  with  the  Department  of  Education  and  Skills.  Responsibility  at 
operational  level  lies  with  the  national  training  and  employment  authority,  Foras 
Áiseanna Saothair (FÁS). Through a network of 66 offices and 20 training centres, 
FÁS  operates  training  and  employment  programmes,  including  apprenticeships, 
provides a recruitment service to jobseekers and employers, and an advisory service 
for industry, and it also supports community-based enterprises. 

In  addition,  the  Department  of  Education  and  Skills  is  responsible  for  policy 
formulation and funding of the public further and higher education system in Ireland. 
Operational  responsibility  for  further  education  resides  (at  lower  educational 
qualifications level) with the Vocational Education Committees (VECs) in terms of 
the  provision  of  adult  learning.  The  publicly  funded  higher  education  system 
includes  7  universities  and  13  institutes  of  technology.  The  Higher  Education 
Authority (HEA), which falls under the remit of the Department, is the funding body 
for  these  institutions.  The  institutes  of  technology  work  closely  with  FÁS  in  the 
delivery of apprenticeship training. 

The 35 City and County Enterprise Boards (CEBs), which come under the remit of 
the  Department  of  Enterprise,  Trade  &  Innovation,  provide  support  for  micro 
enterprises with 10 employees or fewer at local level. 

The  Department  of  Social  Protection  formulates  appropriate  social  protection 
policies  and  administers  and  manages  the  delivery  of  statutory  and  non-statutory 
schemes  and  services.  It  also  has  a  job  search  and  employment  support  function, 
including enterprise / start your own business support. 

Finally,  there  are  a  number  of  private  higher  education  providers  in  a  position  to 
provide  eduational  opportunities  for  those  formerly  employed  in  the  construction 
sector, which may be funded by FÁS through relevant grant systems. 

Trade  unions,  sectoral  bodies,  local  political  representatives,  local  and  regional 
development bodies, local area Partnerships and local Enterprise Boards are among 
the many other stakeholders. 

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

24. 

Following  a  sharp  contraction  in  construction  activity  in  Ireland  in  2008, 
employment in the construction sector continued to decline in 2009 and 2010. OECD 
Labour  Force  Statistics  (MEI)  statistics  show  that  Ireland  suffered  a  decrease  in 

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25. 

26. 

employment in the construction industry of 19 % in the period from Q3 / 2009 to Q1 
/ 2010, the largest decrease in employment in that sector for any OECD country6. 

Overall employment in the construction industry (all NACE Revision 2 Divisions) as 
a share of all national employment fell from 12,8 % at end Q2 / 2007 to 6,9 % at end 
Q1  /  2010.  NACE  Revision  2  Division  41  employment  fell  by  11 900  (16,6 %) 
between  end  Q2  /  2009  and  end  Q1  /  2010.  At  the  end  of  Q1  /  2010,  the 
unemployment rate for all workers in the NACE Revision 2 Division 41 was 39,9 %, 
i.e. more than three times the national unemployment rate of 12,9 %. 

In  recent  years,  the  construction  industry  has  generated  in  excess  of  8 %  of  GDP, 
well above the average of 4 to 6 % for OECD countries. The reduction in demand for 
construction services and consequent redundancies have obvious negative impacts in 
terms of loss of direct wage income, loss in exchequer receipts through income and 
corporation taxes, increase in social welfare expenditure on the newly unemployed, 
reduction in demand for goods and services from suppliers to the industry including 
the  important  self-contractor  cohort,  less  investment  and  /  or  hiring  of  new 
machinery  and  equipment.  In  addition,  the  loss  of  secondary  consumption-related 
expenditure of former construction workers will have a wider impact on all sectors of 
the economy. 

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 

27. 

Ireland proposes a package of measures in support of the redundant workers that is 
built  around  six  pillars:  Occupational  Guidance,  Training  Programmes  and 
associated  training  allowances,  Redundant  Apprentices  on-  and  off-the-job  training 
and  supports,  Vocational  /  Second  Level  education  and  training  programmes  and 
income  supports,  Enterprise  /  Self-employment  supports,  and  Third-level  education 
and income supports : 

–  Occupational Guidance: This consists of one-to-one occupational counselling and 
advice  for  the  majority  of  the  redundant  workers,  leading  to  an  agreed  range  of 
steps  to  be  taken  towards  a  return  to  employment.  The  steps  include  not  only 
training,  but  also  support  through  group  guidance,  job  clubs  and  education 
options. 

–  Training  programmes  and  associated  training  allowances:  FÁS  courses  cover  a 
wide  range  of  relevant  subjects,  including  energy  conservation,  green  and 
sustainable  energy  technologies  and  structures,  and  the  management  of  the 
environment.  A  strategy  designed  to  augment  the  skills  and  qualifications  of 
unemployed construction workers  to enable them to obtain employment in these 
expanding  areas  is  being  pursued.  Persons  undertaking  full  time  FÁS  courses 
qualify  for  a  training  allowance  in  lieu  of  social  welfare  payment.  Grant  aid  for 
assistance  in  attending  privately  provided  training  or  educational  courses  not 
delivered  by  or  through  the  national  training  agency  will  also  be  provided  as 
appropriate. The design of specific internship, work placements and community-

6 

OECD Labour Force Statistics (MEI), Q1/2010. 

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oriented  training  programmes  will  be  a  feature  of  training  interventions  as 
appropriate. 

–  Redundant Apprentice on- and off-the-job training and supports: This is designed 
to  allow  the  669  existing  apprentices  to  complete  their  apprenticeships.  The 
Standards  Based  Apprenticeship  System  is  based  on  seven  alternating  phases  of 
on-the-job  (odd-numbered  phases)  and  off-the-job  (even-numbered  phases) 
training.  This  measure  will  subsidise  the  employment  of  redundant  apprentices 
during the required on-the-job phases 3,5 and 7 of apprenticeship, it will provide 
training  and  income  maintenance  to  them  during  phases  2,  4  and  6,  and  it  will 
provide  in-centre  training,  assessment  and  income  maintenance  in  partial 
substitution for the final on-the-job phase 7 of the apprenticeship. 

–  Vocational  /  Second  Level  education  and  training  programmes  and  income 
supports:  There  is  a  growing  recognition  that  upskilling  is  key  to  secure 
employment in the years ahead. Consequently, unemployed construction workers 
who, only a few years ago, may not have contemplated returning to education or 
training, are increasingly coming to realise that they must upskill to improve their 
chances  of  employment.  It  has  been  established  that  redundant  construction 
workers,  many  of  whom  are  highly  technically  skilled,  are  realistic  about  their 
situation and are open to considering alternative careers outside the construction 
sector.  In  doing  so,  they  are  aware  of  gaps  in  their  education  and  training  and 
welcome  guidance  about  how  these  gaps  might  be  eliminated.  In  this  context, 
several  options  are  being  proposed,  involving  the  Vocational  Education 
Committees, Post Leaving Certificate courses, Vocational Training Opportunities 
Schemes, Intensive Tuition in Adult Basic Education, and the Back to Education 
Initiative. Many of these programmes count towards the award of nationally and 
internationally recognised certification. 

–  Enterprise / self-employment supports: Enterprise support bodies such as the City 
and County Enterprise Boards (CEBs) will promote the array of supports available 
to  redundant  workers  who  are  contemplating  starting  their  own  businesses 
through, for example, the holding of information workshops, fairs and roadshows 
and  other  promotion  related  activities.  Grant  assistance  will  be  offered  in  cases 
where  business  proposals  conform  with  eligibility  criteria.  Such  assistance 
includes priming and employment grants payable by CEBs to provide newly self-
employed  persons  or  small  start-up  companies  with  assistance  for  start-up  costs 
and  to  recruit  employees.  The  beneficiaries  are  generally  sole  traders  or  micro 
enterprises  with  a  focus  on  manufacturing  or  on  internationally  traded  services. 
The  Department  of  Social  Protection  operates  a  number  of  schemes  designed  to 
provide  income  support  for  social  welfare  recipients  to  engage  in  self-
employment.  These  include  the  Back  to  Work  Enterprise  Allowance  and  Short 
Term  Enterprise  Allowance  whereby  an  unemployed  person  can  set  up  as  self-
employed in a business that has been approved by a Department job facilitator or 
a local integrated development company. There is no restriction on the nature of 
the  self-employed  business,  but  it  must  be  considered  viable  and  sustainable  by 
the job facilitator. 

–  Third  Level  Educational  Programmes  and  income  supports:  Thousands  of 
modules and programmes are available within the higher education sector which 
are relevant to the redundant construction workers, depending on their educational 

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background  and  skills  levels.  Some  of  these  programmes  are  in  the  green 
technology area, which may be particularly relevant for people with a construction 
background.  Considerable  emphasis  will  be  placed  initially  on  assessing  those 
considering  higher  education  pathways,  their  skills  sets  and  suitability  to  enter 
particular  courses  or  whether  preparatory  courses  or  alternative  options  in  other 
support areas are more appropriate. The higher education sector is in a position to 
provide transition programmes, short and medium duration full-time programmes 
and part-time programmes. All third level colleges provide opportunities for direct 
entry and advanced entry to programmes based on an individual's prior skills and 
work  experience.  In  the  context  of  increased  flexibility  of  delivery  modes,  it  is 
possible for students to take modules or minor awards of a shorter duration, with 
the  option  over  time  to  build  towards  a  major  qualification.  There  are  also 
opportunities for holders of craft certificates to gain advanced entry to a number 
of specific degree level programmes in the Institutes of Technology. However, the 
finite duration of the EGF implementation period does not generally facilitate the 
support  of  a  full  degree  course  in  its  entirety.  Various  income  supports  are 
available to help redundant construction workers to access and participate in third 
level programmes. 

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.  Since  this 
case covers the whole of the State of Ireland, the Irish authorities have devoted the 
most  significant  part  of  the  expenditure  to  management  and  oversight,  as  well  as 
control, including audits. Regarding information and publicity, all measures provided 
under  EGF  assistance  will  be  highlighted  at  national,  regional  and  local  levels  to 
ensure  that  the  EGF  is  attributed  with  such  assistance.  This  will  include  publicity 
materials,  logos,  letterheads,  posters,  brochures  and  media  advertisements  etc.  The 
Government,  primarily  through  the  Department  of  Education  and  Skills,  and  all 
relevant  State  agencies  and  educational  institutions,  will  continue  to  highlight  the 
assistance  of  the  Community  at  all  appropriate  occasions,  such  as  press  briefings, 
parliamentary questions, debates, media events etc. 

The personalised services presented by the Irish authorities are active labour market 
measures  within  the  eligible  actions  defined  by  Article  3  of  Regulation  (EC)  No 
1927/2006.  The  Irish  authorities  estimate  the  total  costs  of  these  services  at 
EUR 18 245 633,73  and 
the  EGF  at 
EUR 1 277 195,15 (6,5 % of the total amount). The total contribution requested from 
the EGF is EUR 12 689 838 (65 % of the total costs). 

the  expenditure 

implementing 

for 

28. 

29. 

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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) 

Occupational guidance 

Training programmes 

Training allowances 

Redundant apprentices training programmes 
and supports 

Vocational / Second level educational and 
training programmes 

Vocational / Second level educational and 
training supports 

2 142

104,67 

224 203,14

927

305

1 024,52 

949 730,04

5 192,98 

1 583 858,90

1 324

7 719,86  10 221 094,64

757

2 922,69 

2 212 476,33

89

10 941,26 

973 772,14

Enterprise / self employment creation 

779

1 542,63 

1 201 708,77

Third level educational programmes 

Third level educational supports 

Sub total personalised services 

45

23

12 172,04 

547 741,80

14 393,39 

331 047,97

  18 245 633,73

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) 

116 097,04

667 589,90

232 194,08

261 314,13

1 277 195,15

19 522 828,88

12 689 838

30. 

Ireland confirms that the measures described above are complementary with actions 
funded by the Structural Funds. The Irish authorities have established a Monitoring 
Committee for the Coordination of EU Funds under the National Strategic Reference 
Framework. The Department of Finance chairs the Committee which discusses any 

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issues  of  relevance  including  the  demarcation  of  funds  in  operational  programmes 
and any implementation issues that may arise and any plans for new programmes to 
ensure  that  Funds  are  not  overlapping.  In  addition,  as  part  of  the  implementation 
process  for  the  ESF  and  ERDF  a  group  was  established  and  is  chaired  and  co-
ordinated  by  the  Department  of  Finance,  to  deal  with  any  issues  relating  to  the 
implementation  of  the  Structural  Funds  for  the  2007-2013  period.  Since  2010  the 
EGF has been included in this process. 

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

31. 

Ireland started the personalised services to the affected workers included in the co-
ordinated  package proposed for co-financing  to  the  EGF  on  1  July  2009.  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 

32. 

Upon  receipt  of  notification  from  the  Department  of  Enterprise,  Trade  and 
Innovation  of  impending  collective  redundancies,  FÁS  makes  contact  with  the 
company  management concerned to discuss the services available and the potential 
needs of employees. Trade Unions have also been consulted as appropriate. 

33. 

The Irish 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 

34. 

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

35. 

Ireland has notified the Commission that the financial contribution will be managed 
and controlled by the same bodies that manage and control the European Social Fund 
(ESF) funding in Ireland. 

Financing 

36. 

On the basis of the application from Ireland, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  (including  expenditure  to 

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37. 

38. 

39. 

implement  EGF)  is  EUR 12 689 838,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Ireland. 

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. 

40. 

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

Source of payment appropriations  

41. 

42. 

The  amount  of  payment  appropriations  initially  entered  on the  budget  line  04.0501 
will have been fully consumed after adoption by both arms of the budgetary authority 
of the proposals submitted to date for mobilising the EGF. 

Amending budget 3/2011 increased EGF budget line 04.0501 by EUR 50 000 000 in 
payment appropriations. Appropriations from this budget line will be used to cover 
EUR 6 091 460  of  the  amount  needed  for  the  present  application.  As  payment 
appropriations  are  available  in  2011  under  the  budget  line  04.0201  "Completion  of 
the European Social Fund (ESF) – Objective 1 (2000 to 2006)", an additional amount 
of EUR 6 598 378 needed for the present application can therefore be made available 
for transfer. 

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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/2010/019 IE/Construction 41 from Ireland) 

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. 

Ireland  submitted  an  application  to  mobilise  the  EGF,  in  respect  of  redundancies  in 
1 482  enterprises  operating  in  the  NACE  Revision  2  Division  41  ('Construction  of 
buildings')  in  the  NUTS  II  regions  of  Border,  Midlands  and  Western  (IE01)  and 
Southern  and  Eastern  (IE02),  on  9  June  2010  and  supplemented  it  by  additional 

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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information up to 17 June 2011. This application complies with the requirements for 
in  Article  10  of 
determining 
Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 12 689 838. 

financial  contributions  as 

laid  down 

the 

(5) 

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

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 12 689 838 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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