Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Globalisation Adjustment Fund (2014 - 2020)
Date: 2011-10-06
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, European Social Fund, aid to agriculture, economic recession, globalisation, job access, job cuts, micro-enterprise, offshoring, redundancy, self-employed person, temporary employment, updating of skills

EUROPEAN COMMISSION 

Brussels, 6.10.2011 
COM(2011) 608 final 

2011/0269 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the European Globalisation Adjustment Fund (2014 - 2020) 

{SEC(2011) 1130 final} 
{SEC(2011) 1131 final} 
{SEC(2011) 1133 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

• 

General context 

In its Communication 'A Budget for Europe 2020'1 the Commission stressed the need 
to tackle effectively a number of challenges that constitute a serious threat to social 
cohesion  and  competitiveness.  These  pressing  challenges  are  mainly:  shortfalls  in 
skills  levels,  under-performance  of  active  labour  market  policy  and  education 
systems, social exclusion of marginalised groups and low labour mobility. 

In this context, the need is recognised to provide, for the duration of the Multiannual 
Financial Framework (MFF) 2014 – 2020, specific, one-off support to workers made 
redundant  as  a  result  of  major  structural  changes  triggered  by  the  increasing 
globalisation  of  production  and  trade  patterns.  As  in  the  2007-2013  programming 
period, this specific support should be provided through the European Globalisation 
Adjustment Fund (EGF), one of the existing special instruments whose mobilisation 
does not affect the expenditure ceilings of the MFF. 

In  the  same  Communication  the  Commission  indicated  that  through  the  EGF  the 
Union should also be able to provide support in the event of large-scale redundancies 
resulting from a serious disruption of the local, regional or national economy caused 
by  an  unexpected  crisis.  The  scope  of  the  EGF  will  furthermore  be  extended  to 
provide  transitory  support  to  farmers  to  facilitate  their  adaptation  to  a  new  market 
situation  resulting  from  the  conclusion  by  the  Union  of  trade  agreements  affecting 
agricultural products. 

• 

Grounds for and objectives of the proposal 

The European Globalisation Adjustment Fund (EGF) was initially established for the 
duration of the programming period 2007 – 2013 by Regulation (EC) No 1927/20062 
to  provide  the  Union  with  an  instrument  to  demonstrate  solidarity  with,  and  give 
support to, workers made redundant as a result of major structural changes in world 
trade  patterns  caused  by  globalisation  where  these  redundancies  have  a  significant 
adverse impact on the regional or local economy. By co-funding active labour market 
policy  measures,  the  EGF  aims  to  facilitate  the  re-integration  of  workers  in  areas, 
sectors,  territories  or  labour  markets  suffering  the  shock  of  serious  economic 
disruption. 

In the light of the scale and the speed of development of the financial and economic 
crisis in 2008, the Commission, in its European Economic Recovery Plan3, envisaged 
the revision of Regulation (EC) No 1927/2006. Apart from some permanent changes 
based on the first years of EGF implementation, the main aim of this revision4 was to 
extend from 1 May 2009 until 30 December 2011 the scope of the EGF to enable it 

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COM(2011) 500 final, 29.6.2011. 
OJ L 406, 30.12.2006, p. 1. 
COM(2008) 800 final, 26.11.2008. 
Regulation (EC) No 546/2009, OJ L 167, 29.6.2009, p. 26. 

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to demonstrate Union solidarity and provide support for workers made redundant as 
a  direct  consequence  of  the  financial  and  economic  crisis  and  to  increase  the  co-
funding rate from 50 to 65 %, thus reducing the burden for Member States. Taking 
into account the current economic situation and the need for fiscal consolidation the 
Commission has proposed5 that the temporary crisis derogation be extended until 31 
December  2013,  i.e.  the  end  of  the  implementation  period  of  Regulation  (EC)  No 
1927/2006. 

The prime objective of this proposal is to ensure that the EGF continues to operate in 
the next programming period in line with the basic principles laid down for the MFF 
2014 – 2020, which also extended the scope of the EGF to include farmers. 

In  line  with  the  main  aim  of  Regulation  (EC)  No  1927/2006  the  proposal  aims  to 
demonstrate solidarity at Union level with redundant workers affected by exceptional 
circumstances  and  to  provide  support  towards  their  rapid  reintegration  into 
employment in line with the objectives of the Europe 2020 strategy. 

Specifically, the EGF will provide support in cases where workers have been made 
redundant as a result of major structural changes in world trade patterns, in line with 
the  initial  scope  of  the  EGF  as  laid  down  in  Article  1  of  Regulation  (EC)  No 
1927/2006. The EGF will also be able to act in the event of unexpected crises leading 
to a serious disruption of the local, regional or national economy. Such unexpected 
crises could, for example, include a major recession in important trading partners, a 
collapse  of  the  financial  system  comparable  to  the  one  that  occurred  in  2008,  a 
serious  energy  or  primary  commodity  supply  problem,  a  natural  disaster,  etc.  The 
EGF will also be available to help farmers adjust to a new market situation resulting 
from a trade agreement, such as an agreement on agricultural products concluded by 
the Union. Examples of such possible forthcoming trade agreements are those under 
negotiation  with  Mercosur  countries,  or  in  the  context  of  the  World  Trade 
Organisation under the Doha Development Agenda. 

In  order  to  ensure  that  the  EGF  remains  a  valid  European-level  instrument,  an 
application  for  EGF  support  for  workers  can  be  triggered  when  the  number  of 
redundancies  reaches  a  minimum  threshold.  Experience  with  the  functioning  of 
Regulation  (EC)  No  1927/2006  has  shown  that  a  threshold  of  500  redundancies 
within  a  given  reference  period  is  acceptable,  in  particular  taking  into  account  the 
possibility to submit applications for a lower number of redundancies in small labour 
markets or in exceptional circumstances. 

For  the  agricultural  sector  an  EGF  application  would  be  triggered  on  a  different 
basis. Ex-ante information about the sectors and / or products likely to be affected by 
increased  imports  as  a  direct  result  of  trade  agreements  will  be  provided  in  the 
analysis carried out by the Commission departments for the trade negotiations. Once 
the  trade  agreement  is  initialled,  the  Commission  departments  further  check  the 
sectors  or  products  for  which  a  substantial  increase  in  Union  imports  and  a 
significant  drop  in  prices  are  expected  and  will  assess  the  likely  effect  on  sectoral 
income.  On  this  basis  the  Commission  would  designate  agricultural  sectors  or 
products and, where relevant, regions as eligible for possible EGF support. Member 

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COM(2011) 336 final, 10.6.2011. 

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States  would  have  the  possibility  to  submit  applications  for  an  EGF  contribution, 
provided that they can prove that eligible sectors experience significant trade-related 
losses,  that  farmers  operating  in  these  sectors  are  affected  and  that  they  have 
identified and targeted the affected farmers. 

In  order  to  ensure  that  EGF  support  is  available  to  workers  independently  of  their 
contract  of  employment  or  employment  relationship,  the  notion  of  'workers'  is 
extended  to  include  not  only  workers  with  contracts  of  employment  of  indefinite 
duration  as  in  Regulation  (EC)  No  1927/2006,  but  also  workers  with  fixed-term 
contracts,  temporary  agency  workers  and  owner-managers  of  micro,  small  and 
medium-sized enterprises and self-employed workers (including farmers). 

As the access to EGF support is conditioned by the fact that the workers must have 
been made redundant, or for farmers that they are adjusting that part of their activity 
affected by the relevant trade agreement, the proposal contains specific provisions on 
how the redundancy should be counted for each worker. 

The EGF is designed to contribute to the growth and employment objectives of the 
Europe 2020 strategy. Therefore, its focus is on active labour market measures aimed 
at  reintegrating  dismissed  workers  rapidly  into  stable  employment.  As  does 
Regulation  (EC)  No  1927/2006,  this  proposal  provides  for  a  financial  contribution 
from the EGF for a package of active labour market measures. It cannot contribute to 
the  funding  of  passive  measures  as  these  are  not  compatible  with  the  growth  and 
employment  objectives  of  the  Europe  2020  strategy.  Allowances  may  only  be 
included if they are designed as incentives to facilitate the participation of dismissed 
workers  in  active  labour  market  policy  measures.  In  order  to  ensure  a  reasonable 
balance  between  genuinely  active  labour  market  policy  measures  and  'activated' 
allowances, the share of allowances in a coordinated package of active labour market 
measures is capped. 

For  farmers,  including  all  members  of  the  farm  household  active  on  the  farm,  the 
measures would focus on the acquisition of appropriate training and skills and use of 
advisory services enabling them to adjust their activities, including carrying out new 
activities, within and / or outside agriculture, as well as to support to a limited extent 
the initial investments in changing or adjusting their activities so as to assist them to 
become  structurally  more  competitive  and  secure  their  livelihoods.  Support  could 
also  be  given  to  cooperation  activities  with  a  view  to  creating  new  market  options 
especially for small-scale farmers. 

The EGF is being placed outside the MFF because of the unforeseeable and urgent 
character  of  the  circumstances  which  warrant  its  deployment.  However,  its 
effectiveness  has  suffered  from  the  length  and  procedural  requirements  of  the 
decision-making  process.  Shortening  as  much  as  possible  the  time  lag  between  the 
date  of  application  for  EGF  support  and  the  date  of  payment,  and  simplifying  the 
procedures, should be a common concern for all parties involved in the EGF process: 
Member  States  should  strive  to  submit  a  complete  application  as  soon  as  possible 
once  the  relevant  criteria  are  met;  the  Commission  should  assess  and  conclude  on 
eligibility  soon  after  the  submission  of  a  complete  application,  and  the  budgetary 
authority should swiftly take its decision on deploying the EGF funding. In order to 
cover the needs arising at the beginning of the year, the Commission will continue to 

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propose  within  the  annual  budgetary  procedure  a  minimum  amount  in  payment 
appropriations for the relevant budgetary line. 

In view of the unpredictable nature of the needs arising for support from the Fund, it 
is  necessary  to  reserve  a  part  of  the  annual  maximum  amount  for  applications 
receiving financial contributions after 1 September each year. In case the needs for 
support  from  the  Fund  exceed  the  amount  remaining  available,  the  Commission’s 
proposals will reflect the proportion set for support of the agricultural sector during 
the duration of the MFF. 

Assistance from the EGF will be in addition to the efforts of the Member States, at 
national,  regional  and  local  levels.  For  reasons  of  sound  financial  management  the 
EGF  cannot  replace  measures  that  are  already  covered  by  Union  Funds  and 
Programmes  included  in  the  MFF.  Nor  can  the  EGF  financial  contribution  replace 
measures  that  are  the  responsibility  of  dismissing  companies  under  national  law  or 
collective agreements. 

The  budget  procedure  in  the  proposal  follows  directly  from  point  13  of  the  draft 
Interinstitutional Agreement6. Whenever possible, the process will be shortened and 
streamlined. 

Taking account of the fact that the measures co-funded by the EGF are implemented 
by  means  of  shared  management  with  the  Member  States,  the  payment  mechanism 
for  the  financial  contribution  will  remain  in  line  with  those  applied  for  this 
management  mode  of  the  Union  budget.  At  the  same  time,  the  financing 
arrangements should reflect the scope of the actions to be carried out by the Member 
States as proposed in their applications. 

The  co-funding  rate  will  be  modulated,  with  a  50 %  contribution  to  the  cost  of  the 
package and its implementation as the norm, and the possibility to raise this rate to 
65 % in the case of applications submitted by those Member States on the territory of 
which  at  least  one  region  at  NUTS  II  level  is  eligible  under  the  "Convergence" 
objective of the Structural Funds. The purpose of this modulation is to ensure that the 
Union’s expression of solidarity with workers in these Member States and regions is 
not hampered by a lack of Member State co-funding resources, as recognised by the 
higher  co-funding  rates  laid  down  under  the  Structural  Funds.  The  Commission,  in 
its assessment of such applications, will decide whether the higher co-funding rate is 
justified in the specific case proposed by the Member State. 

One  of  the  key  messages  for  the  period  2014  –  2020  is  that  expenditure  at  Union 
level  should  be  result-oriented,  thus  ensuring  that  the  output  and  impact  of  the 
expenditure  push  forward  the  implementation  of  the  Europe  2020  strategy  and  the 
achievement of its targets. For expenditure related to the EGF the MFF sets the target 
that at least 50 % of workers assisted through the EGF should find a new and stable 
job after 12 months. In order to enable the Commission to monitor whether Member 
States  are  successfully  striving  towards  this  target,  Member  States  will  present  an 
interim  report  on  the  implementation  of  EGF  support  after  15  months.  Within  the 
same results-oriented approach the proposal provides for the possibility that Member 

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COM(2011) 403 final, 29.6.2011. 

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States, subject to approval by the Commission, can amend the planned active labour 
market policy measures if in the course of the 24-month implementation period other 
measures become more relevant and promising to reach a higher reintegration rate. 

• 

Existing provisions in the area of the proposal 

As indicated in the  Communication7 on the  MFF, the Structural  Funds,  comprising 
the  European  Social  Fund  (ESF)  and  the  European  Regional  Development  Fund 
(ERDF)  will  provide  funding  for  structural  actions  for  economic,  social  and 
territorial  cohesion.  This  funding  will  be  concentrated  on  the  key  priorities  of  the 
Europe  2020  strategy,  such  as  promoting  employment,  investment  in  skills, 
education  and  life-long  learning,  social  inclusion  and  the  fight  against  poverty  as 
well as enhancing institutional capacity and efficient public administration. Both the 
ESF and the ERDF consist of multi-annual programmes in support of strategic, long-
term  goals,  in  particular  the  anticipation  and  management  of  change  and 
restructuring.  The  EGF,  in  turn,  is  established  to  provide  support  in  exceptional 
circumstances and outside a multi-annual programming routine. 

As  indicated  in  the  same  Communication,  the  Common  Agricultural  Policy  (CAP) 
will  maintain  its  current  two-pillar  structure  and  will  continue  to  provide  direct 
support  to  farmers  and  to  support  market  measures,  entirely  funded  by  the  Union 
budget. It will also continue to deliver specific environmental public goods, improve 
the  competitiveness  of  the  agriculture  and  forestry  sectors  and  promote  the 
diversification of economic activity and quality of life in rural areas under its second 
pillar,  and  in  particular  under  the  support  provided  by  the  European  Agricultural 
Fund  for  Rural  Development  (EAFRD).  Like  the  Structural  Funds,  the  EAFRD 
consists of multi-annual programmes in support of strategic, long-term goals. 

The EGF, in turn, is established to provide European Union solidarity by means of 
time-limited  support  to  workers  being  made  redundant  and  to  farmers  needing  to 
change  or  adjust  their  previous  agricultural  activities  in  exceptional  circumstances 
and outside the multi-annual programming routine. 

To  promote  the  effective  use  of  Union  economic,  social  and  territorial  cohesion 
instruments the choice of the instrument will be based on an assessment of whether 
the redundancies are caused by structural factors or by a temporary deterioration of 
the employment situation caused by the factors defined in the Regulation. 

• 

Consistency with the Union's other policies and objectives 

The  EGF  contributes  to  the  objectives  of  the  Europe  2020  strategy,  which  should 
enable the Union to emerge stronger from the crisis, and to turn its economy towards 
smart,  sustainable  and  inclusive  growth,  accompanied  by  a  high  level  of 
employment, productivity and social cohesion. In its Communication8 'Europe 2020 
– A strategy for smart, sustainable and inclusive growth', the Commission highlights 
the  role  of  the  EGF  under  the  flagship  initiative  'An  industrial  policy  in  the 

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COM(2011) 500 final, 29.6.2011. 
COM(2010) 2020 final, 3.3.2010. 

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globalisation  era',  in  particular  with  a  view  to  quick  redeployment  of  skills  to 
emerging high-growth sectors and markets. 

• 

Impact on fundamental rights 

The proposal has no impact on fundamental rights. 

2. 

RESULTS  OF  CONSULTATIONS  WITH  INTERESTED  PARTIES  AND 
IMPACT ASSESSMENT 

• 

Consultation of interested parties 

Two stakeholder  conferences  were held to discuss the future of  the EGF, on  25-26 
January 20119 and 8 March 201110. 

Evidence11  on  the  acceptance  of  the  EGF  was  collected  by  asking  Member  State 
experts about the future of the EGF through two questionnaires sent to them on 26 
August 2010 and 12 October 2010 and European social partner organisations through 
a  questionnaire  sent  to  them  on  2  February  2011.  Twenty-five  Member  States 
replied;  relatively  few  social  partner  organisations  answered  but  they  participated 
actively in the conferences. Member State experts were further consulted at an expert 
meeting in Porto on 29-30 September 201012 and in Brussels on 9 March 201113. The 
main  outcome  of  these  consultations  was  overwhelming  support  for  a  rapid  crisis 
intervention  instrument  in  the  event  of  large-scale  redundancies.  Nevertheless  the 
complexity of the procedure and the slowness of the current decision-making process 
were severely criticised by all. 

• 

Collection and use of expertise 

There was no need for external expertise. 

• 

Impact assessment 

The  impact  assessment  of  the  EGF  is  covered  by  the  Impact  Assessment14  of  the 
financial  instruments  of  the  Directorate-General  Employment,  Social  Affairs  and 
Inclusion,  i.e.  the  European  Social  Fund  (ESF),  the  EGF,  the  PROGRESS 
programme, EURES and the PROGRESS Micro-finance Facility. 

The impact assessment considered three options for the EGF: 

– 

Option 1 – No policy change, i.e. the EGF continues without its own budget. 
Following  each  application  the  budgetary  authority  has  to  take  a  decision 
whether  this  particular  situation  merits  support.  The  main  disadvantage  is  the 
long  delay  caused  by  the  administrative  procedures  surrounding  the  decision-

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http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=320&furtherEvents=yes 
http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=323&furtherEvents=yes 
http://ec.europa.eu/social/BlobServlet?docId=6578&langId=en 
http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=285&furtherEvents=yes 
http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=330&furtherEvents=yes 
SEC(2011)xxx. 

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– 

– 

making  process.  The  main  advantages  are the  flexibility  of  the  instrument,  in 
particular  taking  into  account  the  largely  unpredictable  nature  of  the 
expenditure,  the  awareness  it  raises  in  the  European  Parliament  of  mass 
redundancies,  the  high  visibility  of  each  application  as  well  as  the  high 
visibility of the EGF itself. 

the 

Option  2  –  Incorporation  of  EGF  actions  into  the  ESF.  The  main 
disadvantages  are  the  need  for  a  clear  budget  allocation  during  the 
'unprogrammable'  nature  of  mass 
programming  period  despite 
redundancies,  the  possible  conflict  with  overall  allocation  criteria  used  in 
cohesion policy and a reduction of the political visibility of Union support as 
the  budgetary  authority  would  not  be  involved.  The  main  advantages  of  this 
option  are  increased  coherence  and  complementarity  with  the  ESF,  the 
shortening  of  the  decision-making  process  and  the  simplification  and 
streamlining  of  EGF  applications  as  the  EGF  could  benefit  from  ESF 
structures,  procedures,  management  and  control  systems  as  well  as  ESF 
simplifications in areas such as eligible costs. 

Option 3 – the EGF as a stand-alone fund with its own budgetary allocation. 
The  main  disadvantages  are  the  loss  of  budgetary  flexibility  as  it  would 
earmark for a variable expenditure pattern a fixed amount of expenditure, the 
delivery  mechanism  (a  negative  impact  on  the  delivery  mechanism  compared 
with  option  2  as  the  EGF  would  not  benefit  from  ESF  structures,  procedures 
and simplification) and finally the risk of some overlap with the ESF. The main 
advantage is the high degree of visibility for European solidarity. 

The  assessment  has  shown  that  in  terms  of  speed  of  delivery  of  EGF  assistance 
options  2  and  3  are  preferable.  However,  these  options  involve  a  higher  risk  of 
reduced  efficiency  because  of  non-use  of  allocated  resources.  The  involvement  of 
policy makers in option 1 guarantees the highest level of public commitment of the 
Union  to  the  welfare  of  redundant  workers.  Therefore,  option  1  is  the  preferred 
option,  offering  as  it  does  the  necessary  flexibility  to  enable  effective  use  of 
resources, without affecting the Multiannual Financial Framework. It contains scope 
to further simplify the delivery mechanism and thus improve the effectiveness of the 
assistance provided to dismissed workers and to farmers affected by globalisation. 

As far as the financial set-up is concerned this proposal is based on option 1, i.e. a 
specific  instrument  operating  outside  the  MFF.  The  specific  content  of  the 
provisions,  and  in  particular  the  adaptation  of  the  EGF  rules  to  cover  farmers,  has 
been further assessed in the ex-ante evaluation accompanying this proposal. 

The ex-ante evaluation15 considered three options: 

– 

Option  1  -  No  policy  change,  i.e.  the  EGF  continues  to  operate  under  its 
current rules as amended by the so-called 'crisis derogation' and set of eligible 
actions; 

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SEC(2011)yyy. 

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– 

– 

Option  2  -  Extension  of  the  eligible  population,  i.e.  the  EGF  continues  to 
operate  under  its  current  rules  as  amended  by  the  so-called  'crisis  derogation' 
and  set  of  eligible  actions  as  in  option  1,  but  its  intervention  criteria  are 
extended  to  include  temporary  agency  workers  and  workers  with  fixed-term 
contracts; 

Option 3 – Further extension of the eligible population and the set of eligible 
actions, i.e. the EGF expands option 2 by including in the eligible population 
owner-managers  of  micro,  small  and  medium-sized  enterprises  and  self-
employed  workers  (including  farmers)  and  by  extending  the  set  of  eligible 
actions to take into account the specific requirements of owner-managers. 

On  the  basis  of  the  assessment  of  the  advantages  and  disadvantages  of  the  three 
above  options,  this  proposal  extends  support  to  that  part  of  the  labour  force 
negatively impacted by globalisation of economic activities, sudden crisis situations 
or  trade  agreements,  either  as  a  permanent  or  temporary  employee  or  as  an  owner-
manager or self-employed worker. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

• 

Summary of the proposed action 

The  proposal  aims  to  ensure  that  the  EGF  continues  to  operate  in  the  next 
programming period in line with the basic principles laid down for the MFF 2014 – 
2020. The EGF should enable the Union to demonstrate solidarity at Union level and 
to  provide  support  to  workers  made  redundant  as  a  consequence  of  trade 
globalisation,  as  a  result  of  an  unexpected  crisis  or  as  a  consequence  of  trade 
agreements impacting upon the agricultural sector. 

• 

Legal basis 

The  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular  the  third 
paragraph of Article 175 and Articles 42 and 43. 

Article  175(3)  allows  the  European  Parliament  and  the  Council  to  take  action  in 
accordance with the ordinary legislative procedure and after consulting the Economic 
and Social Committee and the Committee for the Regions, if specific actions prove 
necessary  outside  the  Structural  Funds  and  the  Common  Agricultural  Policy  and 
without  prejudice  to  the  measures  decided  upon  within  the  framework  of  the  other 
policies of the Union. 

As regards specifically the provisions in this Regulation related to support for active 
farmers,  EGF  assistance  can  be  considered  as  aid  to  agricultural  activities  and  as 
action taken in pursuance of an express objective of the Union's Agricultural Policy. 
Therefore,  Articles  42  and  43  of  the  Treaty  on  the  Functioning  of  the  European 
Union constitute the appropriate legal basis for the measures targeting farmers. 

• 

Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Union. 

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level 

The  objectives  of  demonstrating  solidarity  at  Union 
in  exceptional 
circumstances  to  that  part  of  the  workforce  that  has  been  negatively  impacted  by 
globalisation, a sudden crisis or trade agreements, cannot be sufficiently achieved by 
the  Member  States  alone.  They  can  be  better  achieved  at  Union  level  taking  into 
account  that  the  EGF  is  an  expression  of  solidarity  across  and  between  Member 
States. Mobilising a financial contribution from the EGF will require the agreement 
of both arms of the budgetary authority, thus expressing solidarity by the Union and 
the Member States. In this way, the proposal will contribute to making the objective 
of  Union  solidarity  in  exceptional  circumstances  more  tangible  for  that  part  of  the 
labour force affected in particular and for Union citizens in general. 

• 

Proportionality principle 

In accordance with the principle of proportionality, the provisions of this proposal do 
not go beyond what is necessary to achieve its goals. The obligations imposed on the 
Member States reflect the need to help the affected workforce to adapt to changing 
circumstances and to reintegrate rapidly into employment. The administrative burden 
on the Union and on the national authorities has been limited to what is necessary for 
the  Commission  to  exercise  its  responsibility  for  the  implementation  of  the  Union 
budget.  Since  the  financial  contribution  is  made  to  the  Member  State  under  the 
principle of shared management, the Member State will be required to report on the 
use made of the financial contribution. 

• 

Choice of instrument 

Proposed instrument: a Regulation. 

Other  means  would  not  be  appropriate  for  the  following  reason:  the  objective  of 
demonstrating  Union-level  solidarity  can  only  be  achieved  through  a  directly 
applicable legal instrument. 

4. 

BUDGETARY IMPLICATION 

The EGF is one of the special instruments not included in the MFF, with a maximum 
amount from January 2014 to 31 December 2020 of EUR 3 billion, while the amount 
in support of the agricultural sector shall not exceed EUR 2,5 billion (2011 prices). 

Its  functioning  is  governed  by  point  13  of  the  Draft  Interinstitutional  Agreement16 
between the European Parliament, the Council and the Commission on cooperation 
in budgetary matters and on sound financial management. 

It may not exceed a maximum annual amount of EUR 429 million. 

5. 

OPTIONAL ELEMENTS  

16 

COM(2011) 403 final, 29.6.2011. 

EN 

9 

   EN 

 
                                                 
2011/0269 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the European Globalisation Adjustment Fund (2014 - 2020) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
third paragraph of Article 175, as well as Articles 42 and 43 thereof, 

Having regard to the proposal from the Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee17, 

Having regard to the opinion of the Committee of the Regions18, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

On  26  March  2010,  the  European  Council  agreed  to  the  Commission's  proposal  to 
launch  a  new  strategy,  Europe  2020.  One  of  the  three  priorities  of  the  Europe  2020 
strategy  is  inclusive  growth  by  empowering  people  through  high  levels  of 
employment,  investing  in  skills,  fighting  poverty  and  modernising  labour  markets, 
training  and  social  protection  systems  so  as  to  help  people  anticipate  and  manage 
change, and build a cohesive society. 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  by  Regulation 
(EC) No 1927/2006  of  the  European Parliament  and  of  the  Council  of  20  December 
2006  on  establishing the European Globalisation Adjustment Fund19  for  the  duration 
of the Financial Framework from 1 January 2007 to 31 December 2013 to enable the 
Union  to  show  solidarity  towards  workers  made  redundant  as  a  result  of  major 
structural changes in world trade patterns due to globalisation and to provide support 
for  their  rapid  reintegration  into  employment.  This  initial  objective  of  the  EGF 
remains valid. 

(3) 

The  Communication  from  the  Commission  to  the  European  Parliament,  the  Council, 
the European Economic and Social Committee and the Committee of the Regions on 

17 
18 
19 

OJ C , , p. . 
OJ C , , p. . 
OJ L 48, 22.2.2008, p. 82. 

EN 

10 

   EN 

 
                                                 
'A  budget  for  Europe  2020'20  recognises  the  role  of  the  EGF  as  a  flexible  fund  to 
support  workers  who  lose  their  jobs  and  help  them  to  find  another  job  as  rapidly  as 
possible.  The  Union  should  continue  to  provide,  for  the  duration  of  the  Multiannual 
Financial  Framework  from  1  January  2014  to  31  December  2020,  specific,  one-off 
support to facilitate the re-integration into employment of redundant workers in areas, 
sectors,  territories  or  labour  markets  suffering  the  shock  of  serious  economic 
disruption. Given its purpose, which is to provide support in situations of urgency and 
unexpected circumstances, the EGF should remain outside the Multiannual Financial 
Framework. 

The  scope  of  Regulation  (EC)  No  1927/2006  was  broadened  in  2009  by  Regulation 
(EC)  No  546/2009  of  the  European  Parliament  and  of  the  Council21  as  part  of  the 
European Economic Recovery plan to include workers made redundant as a result of 
the  global  financial  and  economic  crisis.  In  order  to  enable  the  EGF  to  intervene  in 
future  crisis  situations,  its  scope  should  cover  redundancies  resulting  from  a  serious 
economic disruption when caused by an unexpected crisis comparable to the financial 
and economic crisis that hit the economy from 2008 onwards. 

In compliance with the Communication on 'A Budget for Europe 2020', the scope of 
the EGF should be broadened to facilitate the adaptation of farmers to a new market 
situation  resulting  from  international  trade  agreements  in  the  agricultural  sector  and 
leading  to  a  change  or  a  significant  adjustment  in  the  agricultural  activities  of  the 
affected  farmers  so  as  to  assist  them  to  become  structurally  more  competitive  or  to 
facilitate their transition to non-agricultural activities. 

In order to maintain the European nature of the EGF, an application for support should 
be triggered when the number of redundancies reaches a minimum threshold. In small 
labour  markets,  such  as  small  Member  States  or  remote  regions,  and  in  exceptional 
circumstances, applications may be submitted for a lower number of redundancies. As 
regards  farmers,  the  necessary  criteria  should  be  determined  by  the  Commission  in 
relation to the consequences of each trade agreement. 

Redundant workers should have equal access to the EGF independently of their type 
of  employment  contract  or  employment  relationship.  Therefore,  workers  with  fixed 
term  contracts  and  temporary  agency  workers  made  redundant  as  well  as  owner-
managers  of  micro,  small  and  medium-sized  enterprises  and  self-employed  workers 
who cease their activities and farmers  who change or adjust their activities  to a new 
market situation following trade agreements, should be regarded as redundant workers 
for the purposes of this Regulation. 

Regarding  farmers,  the  scope  of  the  EGF  should  include  beneficiaries  affected  by 
bilateral agreements concluded by the Union in accordance with Article XXIV of the 
GATT  or  multilateral  agreements  concluded  within  the  World  Trade  Organisation. 
This covers farmers changing or adjusting their previous agricultural activities within 
a period starting upon initialling of such trade agreements and ending three years after 
their full implementation. 

(4) 

(5) 

(6) 

(7) 

(8) 

20 
21 

COM(2011) 500 final, 29.6.2011. 
OJ L 167, 29.6.2009, p. 27. 

EN 

11 

   EN 

 
                                                 
(9) 

Financial  contributions  from  the  EGF  should  be  primarily  directed  at  active  labour 
market  measures  aimed  at  reintegrating redundant  workers  rapidly  into  employment, 
either within or outside their initial sector of activity, including the agricultural sector. 
The  inclusion  of  pecuniary  allowances  in  a  coordinated  package  of  personalised 
services should therefore be restricted. 

(10)  When  drawing  up  the  coordinated  package  of  active  labour  market  policy  measures, 
Member  States  should  favour  measures  that  will  significantly  contribute  to  the 
employability  of  the  redundant  workers.  Member  States  should  strive  towards  the 
reintegration  into  employment  or  new  activities  of  at  least  50 %  of  the  targeted 
workers within 12 months of the date of application. 

(11) 

(12) 

In order to support redundant workers effectively and rapidly, Member States should 
do  their  utmost  to  submit  complete  applications.  The  provision  of  supplementary 
information should be exceptional and limited in time. 

the  principle  of  sound  financial  management,  financial 
In  compliance  with 
contributions from the EGF should not replace support measures which are available 
for redundant workers within the Union's Structural Funds or other Union policies or 
programmes. 

(13)  Special provisions should be included for information and communication activities on 
EGF  cases  and  outcomes.  In  addition,  to  bring  about  greater  efficiency  in 
the 
communication 
communication activities undertaken at the initiative of the Commission, the resources 
allocated  to  communication  actions  under  this  Regulation  should  also  contribute  to 
covering the corporate communication of the political priorities of the Union provided 
that these are related to the general objectives of this Regulation. 

large  and  stronger  synergies  between 

the  public  at 

to 

(14) 

In  order  to  ensure  that  the  Union’s  expression  of  solidarity  with  workers  is  not 
hampered by a lack of Member State co-funding resources, the co-funding rate should 
be modulated, with a maximum 50 % contribution to the cost of the package and its 
implementation as the norm, and the possibility to raise this rate to up to 65 % in the 
case  of  applications  submitted  by  those  Member  States  on  the  territory  of  which  at 
least one region at NUTS II level is eligible under the "Convergence" objective of the 
Structural Funds.  

(15)  To  facilitate  the  implementation  of  this  Regulation,  expenditure  should  be  eligible 
either  from  the  date  on  which  a  Member  State  incurs  administrative  expenditure  for 
implementing  the  EGF  or  from  the  date  on  which  a  Member  State  starts  to  provide 
personalised services or, in the case of farmers, from the date set in a Commission act 
in accordance with Article 4(3). 

(16) 

In order to cover the needs arising during the final months of each year, it is necessary 
to ensure that at least one quarter of the annual maximum amount of the EGF remains 
available  on  1  September.  Financial  contributions  made  during  the  remainder  of  the 
year should be allocated taking into account the overall ceiling laid down for support 
to farmers in the Multiannual Financial Framework. 

(17)  The  Interinstitutional  Agreement  between  the  European  Parliament,  the  Council  and 
the  Commission  of  […………..]  on  cooperation  in  budgetary  matters  and  on  sound 

EN 

12 

   EN 

 
financial  management22  ('the  Interinstitutional  Agreement')  determines  the  budgetary 
framework of the EGF. 

(18) 

(19) 

In the interest of the redundant workers, the Member States and the Union institutions 
involved  in  the  EGF  decision-making  process  should  do  their  utmost  to  reduce 
processing time and simplify procedures. 

In order to enable continuous monitoring by the Commission of results obtained with 
EGF  assistance,  Member  States  should  submit  interim  and  final  reports  on  the 
implementation of the EGF. 

(20)  The Member States should remain responsible for the implementation of the financial 
contribution  and  for  the  management  and  control  of  the  actions  supported  by  Union 
funding,  in  accordance  with  Council  Regulation  (EC,  Euratom)  No  1605/2002  of  25 
June  2002  on  the  Financial  Regulation  applicable  to  the  general  budget  of  the 
European  Communities  ('the  Financial  Regulation')23.  The  Member  States  should 
justify the use made of the financial contribution received from the EGF. 

(21)  Since the objectives of this Regulation cannot be sufficiently achieved by the Member 
States and can therefore, by reason of their scale and effects, be better achieved at the 
Union  level,  the  Union  may  adopt  measures,  in  accordance  with  the  principle  of 
subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance 
with the principle of proportionality, as set out in that Article, this Regulation does not 
go beyond what is necessary in order to achieve those objectives, 

HAVE ADOPTED THIS REGULATION: 

Article 1 
Objectives 

This  Regulation  establishes  the  European  Globalisation  Adjustment  Fund  (EGF)  for  the 
period of the Multiannual Financial Framework from 1 January 2014 to 31 December 2020.  

The aim of the EGF shall be to contribute to economic growth and employment in the Union 
by enabling the Union to show solidarity towards workers made redundant as a result of major 
structural  changes  in  world  trade  patterns  due  to  globalisation,  trade  agreements  affecting 
agriculture,  or  an  unexpected  crisis,  and  to  provide  financial  support  for  their  rapid 
reintegration into employment, or for changing or adjusting their agricultural activities. 

Actions benefiting from financial contributions by the Fund pursuant to Article 2(a) and (b) 
shall  aim  to  ensure  that  a  minimum  of  50 %  of  workers  participating  in  these  actions  find 
stable employment within a year from the date of application. 

22 
23 

COM(2011) 403 final, 29.6.2011. 
OJ L  

EN 

13 

   EN 

 
                                                 
Article 2 
Scope 

This Regulation shall apply to applications by the Member States for financial contributions 
to be provided to: 

(a) 

(b) 

(c) 

workers  made  redundant  as  a  result  of  major  structural  changes  in  world  trade 
patterns due to globalisation, demonstrated, in particular, by a substantial increase in 
imports into the Union, a rapid decline of the Union market share in a given sector or 
a  delocalisation  of  activities  to  non-member  countries,  where  these  redundancies 
have a significant adverse impact on the local, regional or national economy; 

workers made redundant as a result of a serious disruption of the local, regional or 
national  economy  caused  by  an  unexpected  crisis,  provided  that  a  direct  and 
demonstrable link can be established between the redundancies and that crisis; 

workers  changing  or  adjusting  their  previous  agricultural  activities  during  a  period 
starting  upon  initialling  of  the  trade  agreement  by  the  Union  containing  trade 
liberalisation  measures  for  the  relevant  agricultural  sector  and  ending  three  years 
after  the  full  implementation  of  these  measures  and  provided  that  these  trade 
measures lead to a substantial increase in Union imports of an agricultural product or 
products  accompanied  by  a  significant  decrease  in  prices  of  such  products  at  the 
Union or, where relevant, the national or regional level. 

Article 3 
Definition  

For the purposes of this Regulation, the following definitions of a worker apply: 

(a) 

(b) 

(c) 

(d) 

'a worker' means workers with contracts of employment of indefinite duration whose 
employment contract or relationship is in accordance with Article 4; or 

'a worker' means fixed-term workers as defined in Council Directive 1999/70/EC24, 
whose employment contract or relationship is in accordance  with  Article  4(1)(a) or 
(b), and ends and is not renewed within the period set out in that point of Article 4; or 

'a  worker'  means  temporary  agency  workers  as  defined  in  Article  3  of  Directive 
2008/104/EC  of  the  European  Parliament  and  of  the  Council25,  whose  user 
undertaking  is  an  enterprise  in  accordance  with  Article  4(1)(a)  or  (b),  and  whose 
assignment to the user undertaking ends and is not renewed within the period set out 
in that point of Article 4; or 

'a worker' means owner-managers of micro, small and medium-sized enterprises and 
self-employed workers (including farmers) and all members of the household active 
in  the  business,  provided  that,  if  farmers,  they  were  already  producing  the  output 
affected by the relevant trade agreement before the measures concerning the specific 
sector were implemented. 

24 
25 

OJ L 175, 10.7.1999, p. 43. 
OJ L 327, 5.12.2008, p. 9. 

EN 

14 

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Article 4 
Intervention criteria 

1. 

A financial contribution from the EGF shall be provided where any of the conditions 
set out in points (a), (b) and (c) of Article 2 occur and result in: 

(a) 

(b) 

at least 500 workers being made redundant over a period of four months in an 
enterprise  in  a  Member  State,  including  workers  made  redundant  in  its 
suppliers or downstream producers; 

at  least  500  workers  being  made  redundant  over  a  period  of  nine  months, 
particularly  in  small  or  medium-sized  enterprises,  operating  in  one  economic 
sector defined at NACE Revision 2 division level and located in one region or 
two  contiguous  regions  defined  at  NUTS  II  level,  or  in  more  than  two 
contiguous  regions  defined  at  NUTS  II  level  provided  that  more  than  500 
workers are made redundant in two of the regions combined. 

In small labour markets or in exceptional circumstances, where duly substantiated by 
the  applicant  Member  State,  an  application  for  a  financial  contribution  under  this 
Article may be considered admissible even if the criteria laid down in points (a) or 
(b) of paragraph 1 are not entirely met, when redundancies have a serious impact on 
employment  and  the  local  economy.  The  Member  State  shall  specify  which  of  the 
intervention criteria set out in points (a) and (b) of paragraph 1 is not entirely met. 

As regards farmers, when, after a trade agreement is initialled and on the basis of the 
information,  data  and  analyses  available  to  it,  the  Commission  considers  that  the 
conditions  for  support  in  accordance  with  Article  2(c)  are  likely  to  be  met  for  a 
significant  number  of  farmers,  it  shall  adopt  delegated  acts  in  accordance  with 
Article  24  designating  the  eligible  sectors  or  products,  defining  the  affected 
geographical  areas  where  appropriate,  setting  a  maximum  amount  for  potential 
support at Union level, setting reference periods and eligibility conditions for farmers 
and  eligibility  dates  for  expenditure  as  well  as  establishing  the  deadline  by  which 
applications must be submitted and, if necessary, the content of these applications in 
accordance with Article 8(2). 

Where  owner-managers  of  micro,  small  and  medium-sized  enterprises  and  self-
employed workers change or, in the case of farmers, adjust their previous activities, 
such  situations  shall  be  considered  as  redundancies  for  the  purposes  of  this 
Regulation. 

2. 

3. 

4. 

Article 5 
Calculation of redundancies 

For  the  purposes  of  calculating  the  number  of  redundancies  provided  for  in  Article  4(1),  a 
redundancy shall be counted: 

(a) 

for workers with contracts of employment of indefinite duration or for workers with 
a fixed term contract that comes to an end before its expiry, from: 

(1) 

 the  date  of  the  employer's  individual  notice  to  lay  off  or  to  terminate  the 
contract of employment of the worker; or 

EN 

15 

   EN 

 
(2) 

(3) 

 the  date  of  the  de  facto  termination  of  the  contract  of  employment  before  its 
expiry; or 

 the  date  on  which  the  employer,  in  accordance  with  Article  3(1)  of  Council 
Directive 98/59/EC26, notifies the competent public authority in writing of the 
projected collective redundancies; in this case the applicant Member State shall 
provide  the  Commission  with  additional  information  on  the  actual  number  of 
redundancies effected according to Article 4(1), prior to the completion of the 
assessment by the Commission. 

(b) 

for fixed term workers and for temporary agency workers, from either: 

(1) 

the date of the de facto termination of the contract of employment, or 

(2) 

 the end of the assignment to the user undertaking, or 

(3) 

 the date at which they become unemployed. 

(c) 

For  owner-managers  of  micro,  small  and  medium-sized  enterprises  and  self-
employed workers (including farmers), the redundancy shall be counted either from 
the  date  of  cessation  of  the  activities  caused  by  any  of  the  conditions  set  out  in 
Article  2,  and  determined  in  accordance  with  national  law  or  administrative 
provisions,  or  from  the  date  specified  by  the  Commission  in  the  delegated  act 
adopted in accordance with the Article 4(3). 

For  each  enterprise  or  self-employed  worker  covered  by  an  application  the  Member  State 
shall specify how the redundancies are being counted. 

Article 6 
Eligible workers 

The  applicant  Member  State  may  provide  personalised  services  co-financed  by  the  EGF  to 
affected workers, who may include: 

(a) 

(b) 

(c) 

all  workers  being  made  redundant  in  accordance  with  Article  5,  within  the  period 
provided for in Article 4(1), (2) or (3), 

workers  being  made  redundant  before  or  after  the  period  provided  for  in  Article 
4(1)(a)  or  (2),  in  cases  where  an  application  under  Article  4(2)  derogates  from  the 
criteria set out in Article 4(1)(a), 

farmers  changing  or  adjusting  their  previous  agricultural  activities  following  the 
initialling by the Union of a trade agreement referred to in the delegated act taken in 
accordance with Article 4(3). 

The  workers  referred  to  in  point  (b)  are  considered  eligible,  provided  that  they  were  made 
redundant  after  the  general  announcement  of  the  projected  redundancies  and  that  a  clear 

26 

OJ L 225, 12.8.1998, p. 16. 

EN 

16 

   EN 

 
                                                 
causal  link  can  be  established  with  the  event  which  triggered  the  redundancies  during  the 
reference period. 

Article 7 
Eligible actions 

1. 

A  financial  contribution  may  be  made  for  active  labour  market  measures  that  form 
part of a coordinated package of personalised services, designed to facilitate the re-
integration  of  the  targeted  redundant  workers  into  employment  or  self-employment 
or,  in  the  case  of  farmers,  to  change  or  adjust  their  previous  activities.  The 
coordinated package of personalised services may include in particular: 

(a) 

(b) 

job-search  assistance,  occupational  guidance,  advisory  services,  mentoring, 
outplacement assistance, entrepreneurship promotion, aid for self-employment 
and  business  start-up  or  for  changing  or  adjusting  activity  (including 
investments in physical assets), co-operation activities, tailor-made training and 
re-training,  including  information  and  communication  technology  skills  and 
certification of acquired experience; 

special  time-limited  measures,  such  as  job-search  allowances,  employers' 
recruitment incentives, mobility allowances, subsistence or training allowances 
(including allowances for carers or farm relief services), all of which limited to 
the  duration  of  the  documented  active  job  search  or  life-long  learning  or 
training activities; 

(c)  measures to stimulate in particular disadvantaged or older workers to remain in 

or return to the labour market. 

The  costs  of  the  measures  under  (b)  may  not  exceed  50 %  of  the  total  costs  of  the 
coordinated package of personalised services listed in this paragraph. 

The cost of investments in physical assets for self-employment and business start-up 
or for changing or adjusting activity may not exceed EUR 35 000. 

2. 

The  following  measures  shall  not  be  eligible  for  a  financial  contribution  from  the 
EGF: 

(a) 

special  time-limited  measures  as  listed  in  paragraph  1  (b)  which  are  not 
conditional upon the active participation of the targeted workers in job-search 
or training activities; 

(b) 

actions which are the responsibility of enterprises by virtue of national law or 
collective agreements. 

3. 

At the initiative of the applicant Member State, a financial contribution may be made 
for  the  preparatory,  management,  information  and  publicity,  control  and  reporting 
activities. 

EN 

17 

   EN 

 
Article 8 
Applications 

1. 

The Member State shall submit a complete application to the Commission within a 
period of 12 weeks from the date on which the criteria set in Article 4(1) or (2) are 
met or, where applicable, before the deadline set by the Commission in accordance 
with Article 4(3). In exceptional and duly justified circumstances the application may 
be supplemented with additional information by the applicant Member State within 
six  months  from  the  date  of  application,  following  which  the  Commission  shall 
assess  the  application  on  the  basis  of  the  available  information.  The  Commission 
shall complete its assessment of the application within twelve weeks of the date of 
receipt  of  a  complete  application  or  (in  the  case  of  an  incomplete  application)  six 
months after the date of the initial application, whichever is the earlier. 

2. 

The application shall include the following information: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

a  reasoned  analysis  of  the  link  between  the  redundancies  and  the  major 
structural changes in world trade patterns, or the serious disruption of the local, 
regional  or  national  economy  caused  by  an  unexpected  crisis,  or  the  new 
market  situation  in  the  agricultural  sector  in  the  Member  State  and  resulting 
from  the  effects  of  a  trade  agreement  initialled  by  the  European  Union  in 
accordance  with  Article  XXIV  of  the  GATT  or  a  multilateral  agreement 
initialled within the World Trade Organisation as per Article 2(c). This analysis 
shall be based on statistical and other information at the most appropriate level 
to demonstrate the fulfilment of the intervention criteria set out in Article 4; 

an assessment of the number of redundancies in accordance with Article 5, and 
an explanation of the events giving rise to those redundancies; 

the identification, where applicable, of the dismissing enterprises, suppliers or 
downstream producers, sectors, and the categories of targeted workers; 

the  expected  impact  of  the  redundancies  as  regards  the  local,  regional  or 
national economy and employment; 

the estimated budget for each of the components of the coordinated package of 
personalised services in support of the targeted workers; 

the  dates  on  which  the  personalised  services  to  the  affected  workers  and  the 
activities  to  implement  EGF,  as  set  out  in  Article  7(1)  and  (3)  respectively, 
were started or are planned to be started; 

the  procedures  followed  for  consulting  the  social  partners  or  other  relevant 
organisations as applicable; 

a  statement  of  compliance  of  the  requested  EGF  support  with  the  procedural 
and  material  Union  rules  on  state  aid  as  well  as  a  statement  that  the 
personalised  services  do  not  replace  measures  that  are  the  responsibility  of 
companies by virtue of national law or collective agreements; 

(i) 

the sources of national co-funding; 

EN 

18 

   EN 

 
3. 

1. 

2. 

3. 

4. 

(j) 

if applicable, any further requirements which may have been laid down in the 
delegated act taken in accordance with Article 4(3). 

On  the  basis  of  the  information  provided  for  in  paragraph  2  and  any  additional 
information submitted by the applicant Member State within the period provided for 
in paragraph 1, the Commission shall assess, in consultation with the Member State 
concerned, whether the conditions for making a financial contribution are met. 

Article 9 
Complementarity, compliance and coordination 

Support  for  redundant  workers  shall  complement  actions  of  the  Member  States  at 
national, regional and local level. 

The financial contribution shall be limited to what is necessary to provide solidarity 
and  support  for  individual  redundant  workers.  The  activities  supported  by  the  EGF 
shall comply with Union and national law, including state aid rules. 

In  accordance  with  their  respective  responsibilities,  the  Commission  and  the 
applicant  Member  State  shall  ensure  the  coordination  of  the  assistance  from  Union 
Funds. 

The  applicant  Member  State  shall  ensure  that  the  specific  actions  receiving  a 
financial  contribution  shall  not  also  receive  assistance  from  other  Union  financial 
instruments. 

Article 10 
Equality between men and women and non-discrimination 

The Commission and the Member States shall ensure that equality between men and women 
and  the  integration  of  the  gender  perspective  are  promoted  during  the  various  stages  of  the 
implementation  of  the  financial  contribution.  The  Commission  and  the  Member  State  shall 
take  appropriate  steps  to  prevent  any  discrimination  based  on  sex,  racial  or  ethnic  origin, 
religion  or  belief,  disability,  age,  sexual  orientation  and  type  of  contract  of  employment  or 
employment relationship in access to and during the various stages of the implementation of 
the financial contribution. 

Article 11 
Technical assistance at the initiative of the Commission 

1. 

At  the  initiative  of  the  Commission,  subject  to  a  ceiling  of  0,5 %  of  the  annual 
maximum  amount  of  the  EGF,  the  EGF  may  be  used  to  finance  the  preparation, 
monitoring,  data  gathering  and  creation  of  a  knowledge  base  relevant  to  the 
implementation  of  the  EGF.  It  may  also  be  used  to  finance  administrative  and 
technical support, information and communication activities, as well as audit, control 
and evaluation activities necessary to implement this Regulation. 

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2. 

3. 

4. 

1. 

2. 

3. 

4. 

1. 

Subject  to  the  ceiling  set  out  in  paragraph  1,  the  budgetary  authority  shall  make 
available an amount for technical assistance at the start of each year on the basis of a 
proposal from the Commission. 

The tasks set out in paragraph 1 shall be performed in accordance with the Financial 
Regulation,  as  well  as  the  implementing  rules  applicable  to  this  form  of 
implementation of the budget. 

The Commission's technical assistance shall include the provision of information and 
guidance  to  the  Member  States  for  using,  monitoring  and  evaluating  the  EGF.  The 
Commission  may  also  provide  information  on  using  the  EGF  to  the  European  and 
national social partners. 

Article 12 
Information, communication and publicity 

The  applicant  Member  State  shall  provide  information  on  and  publicise  the  funded 
actions.  The  information  shall  be  addressed  to  the  targeted  workers,  local  and 
regional  authorities,  social  partners,  the  media  and  the  general  public.  It  shall 
highlight  the  role  of  the  Union  and  ensure  that  the  contribution  from  the  EGF  is 
visible. 

The  Commission  shall  set  up  an  Internet  site,  available  in  all  Union  languages,  to 
provide  information  on  the  EGF,  guidance  on  the  submission  of  applications,  and 
information  on  accepted  and  rejected  applications,  highlighting  the  role  of  the 
budgetary authority. 

The Commission shall implement information and communication activities on EGF 
cases and outcomes. 

The  resources  allocated  to  communication  actions  under  this  Regulation  shall  also 
contribute to covering the corporate communication of the political priorities of the 
Union provided that these are related to the general objectives of this Regulation. 

Article 13 
Determination of financial contribution 

The Commission shall, on the basis of the assessment carried out in accordance with 
Article  8(3),  particularly  taking  into  account  the  number  of  targeted  workers,  the 
proposed actions and the estimated costs, evaluate and propose as quickly as possible 
the amount of a financial contribution, if any, that may be made within the limits of 
the  resources  available.  The  amount  may  not  exceed  50 %  of  the  total  of  the 
estimated  costs  referred  to  in  Article  8(2)(e)  or  65 %  of  these  costs  in  the  case  of 
applications  submitted  by  a  Member  State  on  the  territory  of  which  at  least  one 
region  at  NUTS  II  level  is  eligible  under  the  "Convergence"  objective  of  the 
Structural  Funds.  The  Commission,  in  its  assessment  of  such  cases,  will  decide 
whether the 65 % co-funding rate is justified. 

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2. 

3. 

Where on the basis of the assessment carried out in accordance with Article 8(3) the 
Commission has concluded that the conditions for a financial contribution under this 
Regulation are met, it shall immediately initiate the procedure set out in Article 15. 

Where on the basis of the assessment carried out in accordance with Article 8(3) the 
Commission  has  concluded  that  the  conditions  for  a  financial  contribution  are  not 
met, it shall notify the applicant Member State as soon as possible. 

Article 14 
Eligibility of expenditure 

Expenditure  shall  be  eligible  for  a  financial  contribution  from  the  dates  set  out  in  Article 
8(2)(h) on which the Member State starts the personalised services to the targeted workers or 
the administrative expenditure to implement the EGF in accordance with Article 7(1) and (3) 
respectively. In the case of farmers, expenditure shall be eligible for a contribution from the 
date set in the delegated act taken in accordance with Article 4(3). 

Article 15 
Budget procedure 

1. 

2. 

3. 

4. 

The  arrangements  for  the  EGF  shall  comply  with  point  13  of  the  Interinstitutional 
Agreement. 

The appropriations concerning the EGF shall be entered in the general budget of the 
European Union as a provision. 

Where the Commission has concluded that the conditions for mobilising the EGF are 
met, it shall submit a proposal to deploy it. The Decision to deploy the EGF shall be 
taken jointly by the two arms of the budgetary authority. The Council shall act by a 
qualified  majority  and  the  European  Parliament  shall  act  by  a  majority  of  its 
component members and three fifths of the votes cast. 

At the same time as it presents the proposal for a Decision  to deploy the EGF,  the 
Commission shall present to the two arms of the budgetary authority a proposal for a 
transfer to the relevant budgetary lines. In case of disagreement a trialogue procedure 
shall be initiated. 

Transfers  related  to  the  EGF  shall  be  made  in  accordance  with  the  Financial 
Regulation. 

Jointly  with  the  proposal  for  a  Decision  to  deploy  the  EGF  the  Commission  shall 
adopt  a  Decision  on  a  financial  contribution,  by  means  of  an  implementing  act, 
which shall enter into force on the date at which the budgetary authority adopts the 
Decision to deploy the EGF. 

5. 

A proposal pursuant to paragraph 3 shall include the following: 

(a) 

the  assessment  carried  out  in  accordance  with  Article  8(3),  together  with  a 
summary of the information on which that assessment is based; 

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(b) 

evidence that the criteria laid down in Articles 4 and 9 are met; and 

(c) 

the reasons justifying the amounts proposed. 

6. 

On 1 September each year, at least one quarter of the annual maximum amount of the 
EGF shall remain available in order to cover needs arising until the end of the year. 

1. 

2. 

3. 

4. 

5. 

Article 16 
Payment and use of the financial contribution 

Following the entry into force of a Decision on a financial contribution in accordance 
with  Article  15(4)  the  Commission  shall  pay  the  financial  contribution  to  the 
Member  State  in  form  of  a  pre-financing  of  at  least  50 %  of  the  Union's  financial 
contribution  to  the  Member  State,  in  principle  within  15  days,  followed  where 
necessary  in  form  of  intermediate  and  final  payments.  The  pre-financing  shall  be 
cleared  when  the  financial  contribution  is  wound  up  in  accordance  with  Article 
18(3). 

This  financial  contribution  shall  be  implemented  within  the  framework  of  shared 
management  between  the  Member  States  and  the  Commission,  in  accordance  with 
the Financial Regulation. 

Detailed terms of financing, in particular the rate of pre-financing and the modalities 
of  intermediate  and  final  payments  shall  be  determined  by  the  Commission  in  the 
Decision on a financial contribution referred to in Article 15(4). 

Intermediate payments shall be made in order to reimburse the expenditure incurred 
by the Member States in carrying out the eligible actions, subject to presentation to 
the  Commission  of  a  declaration  of  expenditure  signed  by  a  representative  of  an 
accredited public body pursuant to Article 21.  

The Member State shall carry out the eligible actions set out in Article 6 as soon as 
possible,  but  not  later  than  24  months  after  the  date  of  the  application,  pursuant  to 
Article 8(1). 

When carrying out the actions contained in the package of personalised services the 
Member  State  may  submit  to  the  Commission  a  proposal  to  amend  the  actions 
included  by  adding  other  eligible  actions  listed  in  Article  7(1)(a)  and  (c),  provided 
that those amendments are duly justified and the total does not exceed the financial 
contribution  pursuant  to  paragraph  1.  The  Commission  shall  assess  the  proposed 
revisions and, if it agrees, shall notify the Member State accordingly. 

6. 

Expenditure  pursuant  to  Article  7(3)  shall  be  eligible  until  the  deadline  for 
submission of the report. 

Article 17 
Use of the euro 

Applications, decisions on financial contributions and reports under this Regulation, as well 
as any other related documents, shall express all amounts in euro. 

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1. 

2. 

3. 

1. 

Article 18 
Interim and final report and closure 

No later than 15 months after the date of the application pursuant to Article 8(1) or 
by the date laid down in the delegated act taken in accordance with Article 4(3) the 
Member  State  shall  present  an  interim  report  to  the  Commission  on  the 
implementation  of  the  financial  contribution,  including  on  the  funding,  timing  and 
type of actions already carried out and on the rate of reintegration into employment 
or new activities achieved 12 months after the date of the application. 

In addition, the interim report shall contain information on: 

(a) 

(b) 

a  description  of  the  coordinated  package  of  personalised  services  and  related 
expenditure, including how it complements actions funded by other national or 
Union  Funds  as  well  as  information  on  actions  that  are  mandatory  for  the 
enterprises  concerned  by  virtue  of  national  law  or  pursuant  to  collective 
agreements; 

a description of the actions taken and planned by the national, regional or local 
authorities, Union Funds, social partners and enterprises, including an estimate 
of how these contribute to the reintegration of the workers into employment or 
new activities. 

No later than six months after the expiry of the period specified in Article 16(4) the 
Member State shall present a final report to the Commission on the implementation 
of the financial contribution, including information on the type of actions and main 
outcomes,  the  characteristics  of  the  targeted  workers  and  their  employment  status, 
together with a statement justifying the expenditure and indicating whenever possible 
the complementarity of actions with those funded by the ESF. 

No  later  than  six  months  after  the  Commission  has  received  all  the  information 
required under paragraph 2, it shall wind up the financial contribution by determining 
the  final  amount  of  the  financial  contribution  and,  if  any,  the  balance  due  by  the 
Member State in accordance with Article 22. 

Article 19 
Biennial report 

By  1  August  of  every  second  year  year,  and  for  the  first  time  in  2015,  the 
Commission  shall  present  to  the  European  Parliament  and  to  the  Council  a 
quantitative  and  qualitative  report  on  the  activities  under  this  Regulation  and 
Regulation 1927/2006 in the previous two years. The report shall focus mainly on the 
results  achieved  by  the  EGF  and  shall  in  particular  contain  information  relating  to 
applications  submitted,  decisions  adopted,  actions 
their 
complementarity  with  actions  funded  by  other  Union  Funds,  notably  the  European 
Social  Fund  (ESF)  and  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD),  and  the  winding-up  of  financial  contributions  made.  It  should  also 
document  those  applications  that  have  been  rejected  or  reduced  owing  to  a  lack  of 
sufficient appropriations or to non-eligibility. 

including 

funded, 

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2. 

1. 

2. 

1. 

The report shall be transmitted for information to the European Economic and Social 
Committee, the Committee of the Regions and the social partners. 

Article 20 
Evaluation 

The  Commission  shall  carry  out  at  its  own  initiative  and  in  close  cooperation  with 
the Member States: 

(a)  by 30 June 2018, a mid-term evaluation of the effectiveness and sustainability 

of the results obtained; 

(b)  by  31  December  2022,  an  ex-post  evaluation  with  the  assistance  of  external 

experts, to measure the impact of the EGF and its added value. 

The  results  of  the  evaluation  shall  be  transmitted,  for  information,  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee,  the 
Committee of the Regions and the social partners. 

Article 21 
Management and financial control 

Without  prejudice  to  the  Commission's  responsibility  for  implementing  the  general 
budget  of  the  European  Union,  Member  States  shall  take  responsibility  in  the  first 
instance  for  the  management  of  actions  supported  by  the  EGF  and  the  financial 
control of the actions. To that end, the measures they take shall include: 

(a)  verifying that management and control arrangements have been set up and are 
being implemented in such a way as to ensure that Union funds are being used 
efficiently  and  correctly,  in  accordance  with  the  principles  of  sound  financial 
management; 

(b)  verifying that the financed actions have been properly carried out; 

(c) 

ensuring that expenditure funded is based on verifiable supporting documents, 
and is correct and regular; 

(d)  preventing,  detecting  and  correcting  irregularities  as  defined  in  [Regulation 
(EU)  No  .../...  of  the  European  Parliament  and  of  the  Council  of  ...  on  laying 
down  general  provisions  on  the  European  Regional  Development  Fund,  the 
European Social Fund and the Cohesion Fund and repealing Regulation (EC) 
No.  1083/2006]  on  the  Structural  Funds  and  recovering  amounts  unduly  paid 
together  with  interest  on  late  payments  where  appropriate.  They  shall  notify 
any such irregularities to the Commission, and keep the Commission informed 
of the progress of administrative and legal proceedings. 

2. 

Member  States  shall  accredit  bodies  responsible  for  the  proper  management  and 
control  of  the  actions  supported  by  the  EGF  in  accordance  with  Article  56  of  the 
Financial Regulation and with the criteria and procedures laid down in the General 
Regulation  on  the  Structural  Funds.  By  1  February  of  the  following  financial  year, 

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24 

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3. 

4. 

5. 

1. 

2. 

3. 

4. 

these accredited bodies shall provide the Commission with the information set out in 
Article 56(5) of the Financial Regulation. 

The Member State shall make the financial corrections required where an irregularity 
is ascertained. The corrections made by the Member State shall consist in cancelling 
all or part of the financial contribution. The Member State shall recover any amount 
lost as a result of an irregularity detected, repay it to the Commission and, where the 
amount  is  not  repaid  by  the  relevant  Member  State  in  the  time  allowed,  default 
interest shall be due. 

The Commission, in its responsibility for the implementation of the general budget of 
the  European  Union,  shall  take  every  step  necessary  to  verify  that  the  actions 
financed  are  carried  out  in  accordance  with  the  principles  of  sound  and  efficient 
financial  management.  It  is  the  responsibility  of  the  applicant  Member  State  to 
ensure  that  it  has  smoothly  functioning  management  and  control  systems.  The 
Commission shall satisfy itself that such systems are in place. 

To that end, without prejudice to the powers of the Court of Auditors or the checks 
carried  out  by  the  Member  State  in  accordance  with  national  laws,  regulations  and 
administrative  provisions,  Commission  officials  or  servants  may  carry  out  on-the-
spot  checks,  including  sample  checks,  on  the  actions  financed  by  the  EGF  with  a 
minimum  of  one  working  day's  notice.  The  Commission  shall  give  notice  to  the 
applicant  Member  State  with  a  view  to  obtaining  all  the  assistance  necessary. 
Officials or servants of the Member State concerned may take part in such checks. 

The Member State shall ensure that all supporting documents regarding expenditure 
incurred  are  kept  available  for  the  Commission  and  the  Court  of  Auditors  for  a 
period of three years following the winding-up of the financial contribution received 
from the EGF. 

Article 22 
Reimbursement of financial contribution 

In cases where the amount of the actual cost of an action is less than the estimated 
amount  quoted  pursuant  to  Article  15,  the  Commission  shall  adopt  a  Decision,  by 
means  of  an  implementing  act,  requiring  the  Member  State  to  reimburse  the 
corresponding amount of the financial contribution received. 

Where the Member State fails to comply with the obligations stated in the Decision 
on  a  financial  contribution,  the  Commission  shall  take  the  necessary  steps  by 
adopting a Decision, by means of an implementing act, to require the Member State 
to reimburse all or part of the financial contribution received. 

Prior  to  the  adoption  of  a  decision  under  paragraphs  1  or  2,  the  Commission  shall 
conduct a suitable examination of the case and shall, in particular, allow the Member 
State a specified period of time in which to submit its comments. 

If,  after  completing  the  necessary  verifications,  the  Commission  concludes  that  a 
Member State is not complying with its obligations under Article 21(1), it shall, if no 
agreement has been reached and the Member State has not made the corrections in a 
period  set  by  the  Commission,  and  taking  account  of  any  comments  made  by  the 

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Member State, decide within three months from the end of the period referred to in 
paragraph 3 to make the financial corrections required by cancelling all or part of the 
contribution of the EGF to the action in question. Any amount lost as a result of an 
irregularity  detected  shall be  recovered  and,  where  the  amount  is  not  repaid  by  the 
applicant Member State in the time allowed, default interest shall be due. 

Article 23 
Financial management of support to farmers 

By  way  of  derogation  from  Articles  21  and  22,  support  for  farmers  shall  be  managed  and 
controlled  in  accordance  with  Regulation  (EC)  No…………  on  the  financing,  management 
and monitoring of the common agricultural policy.  

Article 24 
Exercise of the delegation 

1. 

2. 

3. 

4. 

5. 

The powers to adopt delegated acts are conferred on the Commission subject to the 
conditions laid down in this Article.  

The  delegations  of  power  referred  to  in  this  Regulation  shall  be  conferred  for  an 
indeterminate period of time from the date of entry into force of this Regulation. 

The delegations of power referred to in Article 4 may be revoked at any time by the 
European Parliament or by the Council. 

A decision of revocation shall put an end to the delegation of the power specified in 
that decision. It shall take effect the day following the publication of the decision in 
the Official Journal of the European Union or at a later date specified therein. It shall 
not affect the validity of any delegated acts already in force. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A  delegated  act  adopted  pursuant  to  Article  4(3)  shall  enter  into  force  only  if  no 
objection  has  been  expressed  either  by  the  European  Parliament  or  the  Council 
within a period of 2 months of notification of that act to the European Parliament and 
the Council or if, before the expiry of that period, the European Parliament and the 
Council  have  both  informed  the Commission  that  they  will  not  object.  That  period 
shall  be  extended  by  2  months  at  the  initiative  of  the  European Parliament  or  the 
Council. 

Article 25 
Repeal 

Regulation (EC) No 1927/2006 is repealed with effect from 1 January 2014. 

It shall continue to apply for applications submitted up to 31 December 2013. 

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Article 26 
Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

It shall apply to all applications submitted between 1 January 2014 and 31 December 2020. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the  European 
Globalisation Adjustment Fund 2014 - 2020 

1.2. 

Policy area(s) concerned in the ABM/ABB structure27  

ABB  Activity:  European  Globalisation  Adjustment  Fund  as  included  in  DG  EMPL  2010 
Management Plan 

1.3. 

Nature of the proposal/initiative  

(cid:133) The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action28  

X The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

The  proposal  falls  under  the  "Communication  on  a  Budget  for  Europe  2020"  containing  the 
Multiannual Financial Framework 2014 - 2020. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific  objective  no.1:  Maintain  participation  in  the  labour  market  of  workers  made 
redundant as a result of changes in world trade patterns and unexpected crises. 

Specific  objective  no  2:  Including  fixed-term  workers  and  temporary  agency  workers  in  the 
scope of the EGF. 

Specific  objective  no.  3:  Including  owner-managers  of  micro,  small  and  medium-sized 
enterprises and self-employed workers (including farmers).  

ABM/ABB activity(ies) concerned: European Globalisation Adjustment Fund (EGF) 

27 
28 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The proposal will enable the European Union to continue its support through the EGF at a co-
funding rate of 50 % for active labour market measures for workers made redundant as a result 
of trade related globalisation and unexpected crises. This rate may be increased to 65 % in the 
case of Member States on the territory of which at least one region at NUTS II level is eligible 
under  the  "Convergence"  objective  of  the  Structural  Funds.  The  eligible  population  is 
expanded to include fixed-term workers, temporary agency workers and the owner-managers 
of micro, small and medium-sized enterprises and self-employed workers (including farmers). 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

- Number of applications for EGF support received 

- Number of redundant workers targeted for EGF assistance 

-  Number  of  redundant  workers  reintegrated  into  employment  following  EGF  supported 
measures 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund 
must  be  reviewed  by  the  end  of  2013.  The  review,  which  is  carried  out  by  means  of  the 
proposed Regulation, enables the Fund to continue for the period of the Multiannual Financial 
Framework 2014 - 2020, to enlarge its scope to include additional eligible populations, and to 
amend some technical details in order to improve its functioning. 

1.5.2.  Added value of Union involvement 

Union  involvement  through  the  EGF  makes  it  possible  to  complement  national  means 
available  for  the  re-integration  of  workers  made  redundant  as  a  consequence  of  trade 
globalisation  or  unexpected  crises.  Experience  achieved  so  far  with  the  EGF  indicates  that 
Union involvement makes it possible to provide more tailor-made support, for a longer period 
of time, often involving measures that could not have been provided without the involvement 
of the EGF. 

1.5.3.  Lessons learned from similar experiences in the past 

See the experience gained under Regulation (EC) No 1927/2006 as set out in the explanatory 
Memorandum. 

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1.5.4.  Coherence and possible synergy with other relevant instruments 

The EGF is coherent and offers a synergy with the European Social Fund. 

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1.6. 

Duration and financial impact  

–  X Proposal/initiative of limited duration  

–  X  Proposal/initiative in effect from 1 January 2014 to 31 December 2020 

–  (cid:133)  Financial impact from YYYY to YYYY  

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) envisaged29  

(cid:133) Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies  

–  (cid:133)  bodies set up by the Communities30  

–  (cid:133)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation  

X Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

29 

30 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

EN 

32 

   EN 

 
                                                 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Article  19  of  the  proposed  Regulation  requires  the  Commission  to  present  each  year  to  the 
European  Parliament  and  the  Council  a  quantitative  and  qualitative  report  on  the  activities 
carried  out  under  this  Regulation  in  the  previous  two  years.  This  report  contains  i.a.  the 
Commission's observations on the monitoring activities during the years under consideration. 

In  accordance  with  Article  20  of  the  proposed  Regulation,  the  Commission  will  carry  out 
before the end of June 2018, in close cooperation with Member States, a mid-term evaluation 
of the effectiveness and sustainability of the results obtained under the EGF. By 31 December 
2022, the Commission is required to carry out, with the assistance of external experts, an ex-
post evaluation in order to measure the impact of the EGF and its added value. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The risks are those related to shared management of Community Funds.  

2.2.2.  Control method(s) envisaged  

The requirements applicable to management and financial control are laid down in Article 20 
of the proposed Regulation. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

The measures to prevent, detect and correct irregularities are laid down in Article 20(1)(d) and 
in Article 20(2) of the proposed Regulation. 

EN 

33 

   EN 

 
3. 

3.1. 

Heading of 
multiannual 
financial 
framework 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

DA/NDA 
(31) 

from 
EFTA32 
countries 

from 
candidate 
countries33 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

04.0501 
Adjustment Fund 

European  Globalisation 

n.a. 

04.010414  European  Globalisation 
Adjustment  Fund  –  Expenditure  on 
administrative management 

40.0243  Reserve  for  the  European 
Globalisation Adjustment Fund 

•  New budget lines requested  

DA 

NO 

NO 

NO 

NO 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

n.a. 

A  new  budget  line  will  be  requested 
for implementation of part of the EGF 
by DG AGRI 

[DA…] 

/NO 

/NO 

/NO 

/NO 

31 
32 
33 

DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

34 

   EN 

 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

Number 

EUR million (to 3 decimal places) 

DG: EMPL 

(cid:121) Operational appropriations PM 

Number of budget line 

Number of budget line 

Appropriations 
of 
 from the envelop of specific programs35  
Number of budget line 

an 

administrative 

TOTAL appropriations 
for DG EMPL 

Year 
201434 

Year 
2015 

TOTAL 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

nature 

financed 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

34 
35 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct 
research. 

35 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelop of specific programs  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADING EMPL 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelop of specific programs  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

36 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017-
2020 

TOTAL 

1.271 

1.271 

1.271 

0.140 

0.140 

0.140 

1.411 

1.411 

1.411 

1.271 per 
year 
0.140 per 
year 
1.411 per 
year 

8.897 

0.98 

9.877 

DG: EMPL + AGRI 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

TOTAL 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

Year 
N36 

Year 
N+1 

TOTAL 

EUR million (to 3 decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

36 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

37 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations  

–  X  The proposal/initiative does not require the use of operational appropriations  

–  (cid:133)  The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
2014 

Year 
2015-2020 

… enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

TOTAL 

Commitment appropriations in EUR million (to 3 decimal places) 

Cost 

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

  Cost 

r
e
b
m
u
N

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Total 
numbe
r of 
ouputs 

Total  
cost 

Indicate 
objectives and 
outputs  

Avera
ge 
cost  
of the 
ouput 

(cid:216) 

r
e
b
m
u
N

f

Type 
of 
output
37 

- Output 

- Output 

SPECIFIC OBJECTIVE No 138… 

- Output 

Sub-total for specific objective N°1 

SPECIFIC OBJECTIVE No 2… 

- Output 

Sub-total for specific objective N°2 

TOTAL COST 

37 
38 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.4.2. "Specific objective(s)…". 

EN 

38 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  ⌦ The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
2014 39 

Year 
2015 

Years 2016-2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

1.271 

1.271 

1.271 per year 

8.897 

0.14 

0.14 

0.14 per year 

0.98 

1.411 

1.411 

1.411 per year 

9.877 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 540 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

39 
40 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

39 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

–  (cid:133)  The proposal/initiative does not require the use of human resources  

–  X  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2014 

Year 
2015 

Same for years 2016 to 
2020 

04 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

9 

9 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

04 01 02 01 (CA, INT, SNE from the "global 
envelope") 

2 

2 

XX 01 02 02 (CA, INT, JED, LA and SNE in 
the delegations) 

XX 01 04 yy 41 

- at Headquarters42 

- in delegations  

XX 01 05 02 (CA, INT, SNE - Indirect 
research) 

10 01 05 02 (CA, INT, SNE - Direct research) 

Other budget lines (specify) 

TOTAL 

Ditto 

11 

11 

11 

XX is the policy area or budget title concerned. 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the 
allocation already granted for managing this action and/or redeployed within the DG, 
complemented as the case may be by any additional allocation that might be granted 
to the managing DG in the framework of the annual allocation procedure in the light 
of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

41 
42 

Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

40 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

–  X  Proposal/initiative is compatible the current multiannual financial framework. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

N/A 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision 

of the multiannual financial framework43. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

N/A 

3.2.5.  Third-party contributions  

–  X The proposal/initiative does not provide for co-financing by third parties  

–  The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
cofinanced  

43 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

41 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  X  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

(cid:133) 

(cid:133) 

on own resources  

on miscellaneous revenue  

EUR million (to 3 decimal places) 

Appropriation
s available for 
the ongoing 
budget 
exercise 

Budget revenue line: 

Article …………. 

Year 
2012 

Year 
2013 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

N/A 

Specify the method for calculating the impact on revenue. 

N/A 

EN 

42 

   EN