Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2011/005 PT/Norte-Centro Automotive from Portugal)
Date: 2011-10-13
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Portugal, commercial vehicle, commitment of expenditure, dismissal, economic recession, globalisation, motor vehicle industry, reintegration into working life

EUROPEAN COMMISSION 

Brussels, 13.10.2011 
COM(2011) 664 final 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund in accordance with 
point 28 of the Interinstitutional Agreement of 17 May 2006 between the European 
Parliament, the Council and the Commission on budgetary discipline and sound 
financial management (application EGF/2011/005 PT/Norte-Centro Automotive from 
Portugal) 

 
 
  
 
EXPLANATORY MEMORANDUM 

Point  28  of  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management1  allows  for  the  mobilisation  of  the  European  Globalisation  Adjustment  Fund 
(EGF)  through  a  flexibility  mechanism,  within  the  annual  ceiling  of  EUR 500 million over 
and above the relevant headings of the financial framework. 

The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 
1927/2006  of  the  European  Parliament  and  of  the  Council  of  20  December  2006  on 
establishing the European Globalisation Adjustment Fund2. 

On 6 June 2011, Portugal submitted application EGF/2011/005 PT/Norte-Centro Automotive 
for  a  financial  contribution  from  the  EGF,  following  redundancies  in  three  enterprises 
operating in the NACE Revision 2 Division 29 ('Manufacture of motor vehicles, trailers and 
semi-trailers')3 in the NUTS II regions of Norte (PT11) and Centro (PT16) in Portugal. 

After  a  thorough  examination  of  this  application,  the  Commission  has  concluded  in 
accordance  with  Article  10  of  Regulation  (EC)  No  1927/2006  that  the  conditions  for  a 
financial contribution under this Regulation are met. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no. 
Member State 
Article 2 
Enterprises concerned 

NUTS II regions 

NACE Revision 2 Division 

Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundant workers targeted for support 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF4 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2011/005 
Portugal 
(b) 
3 
Norte (PT11) 
Centro (PT16)  
29 ('Manufacture of motor vehicles, trailers 
and semi-trailers') 
1.7.2010 – 1.4.2011 
1.7.2010 
6.6.2011 
726 
726 
2 241 100 
95 000 
4,07 
2 336 100 
1 518 465 

1 
2 
3 

4 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

EN 

1 

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1. 

2. 

The application was presented to the Commission on 6 June 2011 and supplemented 
by additional information up to 18 July 2011. 

The application meets the conditions for deploying the EGF as set out in Article 2(b) 
of  Regulation  (EC)  No  1927/2006,  and  was  submitted  within  the  deadline  of  10 
weeks referred to in Article 5 of that Regulation. 

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

3. 

4. 

5. 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  Portugal  argues  that  this  crisis  has  put  the  automotive  sector 
worldwide  under  particular  pressure.  The  Commission  has  already  recognised  that, 
as  some  60-80 %  (depending  on  the  Member  State)  of  new  cars  in  Europe  are 
purchased with the aid of credit, the financial crisis at the origin of the downturn hit 
the  automotive 
the  European 
industry  particularly  severely.  According 
Automobile Manufacturers Association (ACEA), demand for new motor vehicles in 
the  European  Union  decreased  in  2009  by  5,6 %  compared  to  2008  and  by  13,3 % 
compared  to  the  pre-crisis  year  2007.  The  EU  thus  followed  the  trend  noted  at 
worldwide  level  where  demand  for  new  motor  vehicles  dropped  by  5,6 %  in  2009 
compared to 2008. Faced with this drop in demand, manufacturers of motor vehicles 
reduced  their  production  even  more  drastically.  In  2009  the  production  of  motor 
vehicles in the EU decreased by 17 % compared to 2008 and by 23 % compared to 
2007. This downward trend continued in 2010. The production of motor vehicles in 
the EU in the first three quarters of 2010 was 14 % below that of the same period in 
2008. 

to 

The fall in demand for electrical equipment for cars, which followed the decline in 
car  manufacturing,  combined  with  the  impossibility  of  further  reducing  production 
costs  and/or  access  to  credit,  resulted  in  the  closure  of  Krombert  &  Schubert 
Portugal, Lda and the Lear production plant in Guarda. The closure of Leoni Wiring 
Systems Viana, Lda was due to the combination of a difficult economic situation due 
to the crisis and the relocation of the production plant to Morocco. 

The arguments presented in previous cases5 concerning the automotive industry and 
in which the redundancies were a direct result of the crisis remain valid.  

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

6. 

5 

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

EGF/2010/002 Cataluña Automoción, COM(2010)453 final,  
EGF/2010/004 Wielkopolskie, COM(2010)616 final, 
EGF/2010/031 GM Belgium COM(2011)212 final, and 
EGF/2011/003 Arnsberg and Düsseldorf COM(2011)447 final. 

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7. 

The  application  cites  726  redundancies  in  three  enterprises  operating  in  the  NACE 
Revision 2 Division 29 ('Manufacture of motor vehicles, trailers and semi-trailers')6 
in  the  NUTS  II  regions  of  Norte  (PT11)  and  Centro  (PT16)  during  the  nine-month 
reference period from 1 July 2010 to 1 April 2011. All of these redundancies were 
calculated in accordance with the second indent of the second paragraph of Article 2 
of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

8. 

The Portuguese authorities argue that the suppliers had been put under pressure for 
some time by the motor vehicle manufacturers to reduce their margins. The sudden 
and  drastic  crisis  related  reduction  in  demand  for  motor  vehicles  in  2009,  which 
could  not  have  been  foreseen,  resulted  in  a  significant  reduction  in  production 
capacity utilisation. European manufacturers of automotive components, in order to 
reduce  production  costs,  chose  to  optimise  the  production  capacity  of  some  of  its 
plants, closing others. 

Identification of the dismissing enterprises and workers targeted for assistance 

9. 

The application relates to 726 redundancies in the following three enterprises: 

Enterprises and number of dismissals 

Leoni Wiring Systems Viana, Lda 

Kromberg & Schubert Portugal, Lda 

Delphi Automotive Systems – Portugal, S.A. 

332 

120 

274 

Total Enterprises: 3 

Total Dismissals: 726 

10. 

All  726  redundancies  will  be  targeted  for  assistance.  However  the  Portuguese 
authorities  -based  in  previous  experiences  managing  EGF  contributions-  estimate 
that about 500 workers will opt for EGF support. 

11. 

The break-down of the targeted workers is as follows: 

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15-24 years old 
25-54 years old7 
55-64 years old 
> 64 years old 

Number
248
478
726
0
3
709
14
0

Percent 
34,16 
65,84 
100,00 
0,00 
0,41 
97,66 
1,93 
0,00 

6 

7 

Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 
22,6 % (25 to 34 years old), 55 % (35 to 44 years old) and 20,1 % (45 to 54 years old). 

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12. 

13. 

Three of the workers have a longstanding health problem or disability. 

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

Category 
Managers 
Professionals 
Technicians and associated professionals 
Clerks 
Service workers  
Craft and related trade workers 
Plant and machine operators 
Elementary occupations 

Number
15
14
99
57
1
9
474
57

14. 

In terms of educational level, the break-down is as follows: 

Educational level 
Basic education8 
Secondary education 
Tertiary education  

Number
469
221
36

Percent 
2,07 
1,93 
13,64 
7,85 
0,13 
1,24 
65,29 
7,85 

Percent 
64,60 
30,44 
4,96 

15. 

In  accordance  with  Article  7  of  Regulation  (EC)  No  1927/2006,  Portugal  has 
confirmed  that  a  policy  of  equality  between  women  and  men  as  well  as  non-
discrimination has been applied, and will continue to apply, during the various stages 
of the implementation of and, in particular, in access to the EGF. 

Description of the territory concerned and its authorities and stakeholders 

16. 

17. 

18. 

8 

The Norte region is the most densely populated of the country, as well as being the 
region with the lowest per capita income and the highest rate of unemployment. The 
education  and  qualification  levels  of  the  population  are  low.  The  region  depends 
heavily upon industry, and finds its greatest strength in traditional industries such as 
textiles, clothing, footwear and cork, where it has been successful in export markets. 
Agriculture  is  strong  in  milk  and  wine  (particularly  Port  Wine)  and  forestry  is  a 
sector with potential for the future. 

The Centro region is more thinly populated, with an ageing population (ageing index 
of 153 % in 2009, outpacing the national average of 118 %). The region's industrial 
base is composed of a variety of traditional productive structures depending on cheap 
labour and lacking competitiveness. This, combined with the low level of education 
and  qualification  of  the  population  (about  46 %  of  the  workforce  has  six  or  fewer 
years  of  schooling)  may  explain  the  low  regional  productivity.  Unemployment  is 
low, mainly because of migration by the active population to urban areas or abroad. 

The  main  authorities  concerned  are  the  Instituto  do  Emprego  e  Formação 
Profissional  (IEFP, I.P.),  a  public  administration  institution  with  decentralised  job 
centres and vocational training centres; trade unions: STIMM, SINDEL and SIMA; 

In  Portugal,  basic  education/compulsory  schooling  is  nowadays  nine  years.  However,  the  number  of 
compulsory  years  of  formal  education  is  determined  in  accordance  with  date  of  birth  (born  until 
31 December 1966 = four years; born between 1 January 1967 and 31 December 1980 = six years and 
born after 1 January 1981 = nine years). 

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and  Associação  de  Fabricantes  para  a  Industria  Automóvel-AFIA  (the  Portuguese 
Association  of  Manufacturers  for  the  Automotive  Industry).  Other  relevant 
stakeholders  are  vocational  joint  training  centers  (centers  whose  management  is 
shared between IEPF, I.P and sector partners -- employer organisations and/or trade 
unions -- such as CINEL, CEPRA, INOVINTER and CEFOSAP). 

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

19. 

20. 

21. 

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

The  impact  at  local  level  of  these  redundancies  is  high  due  to  the  combination  of 
these factors, which together pose an unusual and difficult situation for the workers 
and the regions concerned. 

The two regions where these redundancies occurred have already been accepted for 
EGF support in a previous case, EGF/2009/001 PT/Norte-Centro. 

Co-ordinated  package  of  personalised  services  to  be  funded  and  a  breakdown  of  its 
estimated  costs,  including  its  complementarity  with  actions  funded  by  the  Structural 
Funds 

22. 

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

–  Information profiling and guidance: The information and profiling actions consist 
of updating all potential beneficiaries on the available measures, encouraging the 
workers  to  actively  participate  in  them,  providing  information  on  the  labour 
market,  as  well  as  defining  and  adjusting  their  respective  Personal  Employment 
Plans,  which  should  describe  the  measures  in  which  the  workers  intend  to 
participate. Information and profiling will be carried out by Job Centres and it is 
not  co-financed  by  the  EGF.  Guidance  will  include  actions  on  horizontal  issues 
such  as  motivation  to  work  and  motivation  for  training  and  retraining,  lifelong 
learning;  personal  development  and  self-steem  promotion;  and  coaching  on  job-
search.  Allowances  for  meals  and  transport  will  be  provided  within  strict  limits 
and conditions. 

–  Recognition,  validation  and  certification  of  competences:  With  the  help  of 
recognised  'Centros  de  Novas  Oportunidades  -  CNO'  (New  Opportunities 
Centres), the workers will identify the knowledge and skills acquired throughout 
their lives in formal and informal contexts. During individual and group sessions, 
together with professional trainers, they will prepare a portfolio that will contain 
the evidence of their learning process which will lead to the validation of school 
certification and/or vocational certification. 

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–  Vocational  Training:  The  workers  will  receive  the  training  most  appropriate  to 
their  educational  and  skills  levels,  helping  them  to  reintegrate  rapidly  into 
employment.  There  will  be  adult  training  courses  leading  to  double  certification 
(educational  and  vocational),  some  will  be  given  on  a  modular  basis  (flexible 
training  organised  in  short-term  training  units,  presented  in  the  training 
benchmarks  of  the  National  Qualifications  Catalogue)  and  some  will  be  specific 
training, suitable to the specific needs of the labour market. The training courses 
will  be  delivered  by  the  Vocational  Training  Centres  and  other  entities  of 
recognised  competence  identified  by  IEFP, IP9.  Allowances  for  training,  meals, 
transport, personal accident insurance and accommodation will be provided within 
strict limits and conditions. 

–  Grant for training at personal initiative: This will enable workers to participate in 
suitable  training  courses,  agreed  as  part  of  their  personal  employment  plans  and 
which  are  delivered  by  recognised  training  institutions.  They  will  be  given  the 
possibility  of  attending,  consecutively  or  simultaneously,  more  than  one  course. 
The  participants  of  this  form  of  training  will  be  offered  a  grant  of  up  to 
EUR 8 000 (covering both the expenses of the training and a training allowance) 
under strict conditions.  

–  Support  for  self-placement:  This  is  a  grant  awarded  to  workers  who,  during  the 
implementation  period  of  the  EGF  personalised  package  of  measures,  find 
themselves a new full time job. The amount varies depending on the length of the 
contract offered, and can be increased if the new workplace is more than 100 km 
from the location of the worker's residence. 

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

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

–  Support  to  business  creation:  Upon  completion  of  the  entrepreneurship  training 
and  preparation,  the  workers  will  be  helped  with  a  non-reimbursable  subsidy  of 
EUR 20 000  for  each  job  created,  including  that  of  the  promoter,  up  to  a 

9 

'Instituto do Emprego e Formação Profissional-IEFP, IP' (The Institute of Employment and Vocational 
Training)  is  the  national  public  employment  service  and  aims  to  promote  the  creation  and  quality  of 
employment and tackle unemployment through the implementation of active employment policies and 
training. 

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maximum of three. The jobs created should be filled by other EGF beneficiaries, 
or by unemployed persons registered in the job centres of the region, and should 
be full-time for a minimum duration of two years. 

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

23. 

24. 

The expenditure for implementing the EGF, which is included in the application in 
accordance  with  Article  3  of  Regulation  (EC)  No  1927/2006,  covers  preparatory, 
management and control activities as well as information and publicity. 

The  personalised  services  presented  by  the  Portuguese  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Portuguese authorities estimate the total costs of these services at 
EUR 2 241 100  and  the  expenditure  for  implementing  the  EGF  at  EUR 95 000 
(4,24 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 1 518 465 (65 % of the total costs). 

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Actions 

Estimated 
number of 
workers 
targeted 

Estimated 
cost per 
worker 
targeted 
(EUR) 

Total costs 
(EGF and 
national 
cofinancing) 
(EUR) 

Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) 

Information, profiling and guidance10 
(Orientação profissional) 

Recognition, validation and certification of 
competences 
(RVCC) 

Vocational Training 
(Formação profissional) 

100

40

165 

16 500

640 

25 600

100

6 000 

600 000

Grant for training at personal initiative 
(Subsidio à formação por iniciativa individual) 

75

4 000 

300 000

Support for self-placement 
(Apoio à auto-colocação) 

Hiring incentive 
(Apoio à contratação) 

Entrepreneurial support 
(Apoio à criação do proprio emprego ou 
empresa - formação e apoio técnico ao 
projecto) 

Support to business creation 
(Apoio à criação da empresa) 

Integration plan 
(Planos de integração) 

100

1 100 

110 000

60

50

35

75

2 400 

144 000

2 100 

105 000

20 000 

700 000

3 200 

240 000

Sub total personalised services 

2 241 100

10 

The measure will be offered to all 726 redundant workers. However the information and profiling part 
of  the  measure  will  be  carried  out  by  Job  Centres  and  will  not  be  co-financed  by  the  EGF.  The  100 
participants  budgeted  are  those  who  will  be  receiving  allowances  for  meals  and  transport  or 
participating in more specialised guidance sessions. 

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

Preparatory activities 

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

2 000

90 000

2 000

1 000

95 000

2 336 100

1 518 465

25. 

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

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

26. 

Portugal started the personalised services to the affected workers included in the co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  1  July  2010.  This  date 
therefore represents the beginning of the period of eligibility for any assistance that 
might be awarded from the EGF. 

Procedures for consulting the social partners 

27. 

The  EGF  application  was  presented  to  the  meeting  of  the  IEFP, I.P.  Board  of 
Directors  on  21  June  2011  The  IEFP, I.P,  which  is  the  Managing  and  Paying 
Authority for the EGF in Portugal, is itself a tripartite body (government, employers' 
and workers' representatives). 

28. 

The Portuguese authorities confirmed that the requirements laid down in national and 
EU legislation concerning collective redundancies have been complied with. 

Information  on  actions  that  are  mandatory  by  virtue  of  national  law  or  pursuant  to 
collective agreements 

29. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
Portuguese authorities in their application: 

•  confirmed that the financial contribution from the EGF does not replace measures 
which are the responsibility of companies by virtue of national law or collective 
agreements; 

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•  demonstrated that the actions provide support for individual workers and are not 

to be used for restructuring companies or sectors; 

•  confirmed  that  the  eligible  actions  referred  to  above  do  not  receive  assistance 

from other EU financial instruments. 

Management and control systems  

30. 

Portugal has notified the Commission that the financial contribution will be managed 
and controlled by Instituto do Emprego e Formação Profissional, I.P. (IEFP, I.P.), the 
public  employment  service.  The  overall  management  will  be  carried  out  by  the 
Employment  Department, while the operational management will be carried out by 
the  Norte  and  Centro  regional  Delegations  of  the  IEFP, I.P.  The  overall  financial 
management will be taken on by the Financial and Management Control Department. 
The  approval  and  payment  of  aids  will  be  the  responsibility  of  the  Regional 
Delegations  of  the  Norte  and  Centro  regions.  The  job  centres  and  partner  entities, 
namely  the  vocational  joint  training  centres  will  be  carrying  out  most  of  the  active 
measures. Portugal has confirmed that the principle of separation of functions among 
and within the relevant entities will be respected. 

31. 

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

Financing 

32. 

33. 

34. 

35. 

On  the  basis  of  the  application  from  Portugal,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 1 518 465,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Portugal. 

Considering the maximum possible amount of a financial contribution from the EGF 
under  Article  10(1)  of  Regulation  (EC)  No  1927/2006,  as  well  as  the  scope  for 
reallocating  appropriations,  the  Commission  proposes  to  mobilise  the  EGF  for  the 
total  amount  referred  to  above,  to  be  allocated  under  heading  1a  of  the  financial 
framework. 

The  proposed  amount  of  financial  contribution  will  leave  more  than  25 %  of  the 
maximum annual amount earmarked for the EGF available for allocations during the 
last  four  months  of  the  year,  as  required  by  Article  12(6)  of  Regulation  (EC)  No 
1927/2006. 

By  presenting  this  proposal  to  mobilise  the  EGF,  the  Commission  initiates  the 
simplified  trialogue  procedure,  as  required  by  Point  28  of  the  Interinstitutional 
Agreement of 17 May 2006, with a view to securing the agreement of the two arms 
of the budgetary authority on the need to use the EGF and the amount required. The 
Commission invites the first of the two arms of the budgetary authority that reaches 
agreement on the draft mobilisation proposal, at appropriate political level, to inform 
the other arm and the Commission of its intentions. In case of disagreement by either 

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of  the  two  arms  of  the  budgetary  authority,  a  formal  trialogue  meeting  will  be 
convened. 

36. 

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

Source of payment appropriations  

37. 

A  reinforcement  of  the  payment  appropriations  on  the  EGF  budget  line  will  be 
requested through the Global Transfer. Appropriations from this budget line will be 
used to cover the amount of EUR 1 518 465 needed for the present application. 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund in accordance with 
point 28 of the Interinstitutional Agreement of 17 May 2006 between the European 
Parliament, the Council and the Commission on budgetary discipline and sound 
financial management (application EGF/2011/005 PT/Norte-Centro Automotive from 
Portugal) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having  regard  to  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management11, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20  December  2006  establishing  the  European  Globalisation  Adjustment  Fund12, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission13, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional support for workers made redundant as a result of major structural changes 
in world trade patterns due to globalisation and to assist them with their reintegration 
into the labour market. 

The scope of the EGF was broadened for applications submitted from 1 May 2009 to 
include support for workers made  redundant  as a direct result of the global financial 
and economic crisis. 

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF 
within the annual ceiling of EUR 500 million. 

Portugal submitted an application to mobilise the EGF, in respect of redundancies in 3 
enterprises  operating  in  the  NACE  Revision  2  Division  29  ('Manufacture  of  motor 
vehicles, trailers and semi-trailers') in the NUTS II regions of Norte (PT11) and Centro 

11 
12 
13 

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

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(PT16), on 6 June 2011 and supplemented it by additional information up to 18 July 
2011.  This  application  complies  with  the  requirements  for  determining  the  financial 
contributions  as  laid  down  in  Article  10  of  Regulation (EC) No 1927/2006.  The 
Commission, therefore, proposes to mobilise an amount of EUR 1 518 465. 

(5) 

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

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2011,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 1 518 465 in commitment and payment appropriations. 

Article 2 

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

Done at [Brussels/Strasbourg], 

For the European Parliament 
The President 

For the Council 
The President 

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