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 (EGF/2012/000 TA 2012 - Technical assistance at the initiative of the Commission)
Date: 2012-04-04
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, commitment of expenditure, economic recession, employment aid, technical cooperation

EUROPEAN COMMISSION 

Brussels, 4.4.2012  
COM(2012) 160 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 (EGF/2012/000 TA 2012 - Technical assistance at the initiative of 
the Commission) 

 
 
  
 
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. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 

EGF Reference no. 
European Commission 
Administrative expenditure: budget in EUR 
% administrative expenditure (ceiling: 0,35 %) 

EGF/2012/000 
Technical assistance 
1 120 000 
0.22 % 

According to Article 8(1) of Regulation (EC) No 1927/2006, the proportion corresponding to 
0.35 %  of  the  annual  maximum  amount  of  the  EGF  can  be  made  available  each  year  for 
technical assistance at the initiative of the Commission. 

Technical assistance to be funded and breakdown of its estimated costs 

1. 

2. 

3. 

The contribution will be used for expenditure mentioned in Articles 8(1) and (4) as 
well as 9(2) of Regulation (EC) No 1927/2006, as detailed hereunder. 

Monitoring: The Commission will collect the data on applications received and paid, 
and  the  measures  proposed  and  implemented,  and  it  will  update  and  print  the 
Statistical  Portrait  of  the  EGF  with  information  up  to  the  end  of  2012.  The  cost  is 
estimated at EUR 20 000. 

Information: The web site on the EGF3, which the Commission has set up within its 
Employment,  Social  Affairs  and  Inclusion  area,  and  which  it  is  maintaining  as 
required  under  Article  9(2)  of  Regulation  (EC)  No  1927/2006,  will  be  regularly 
updated  and  expanded,  with  each  new  element  also  being  translated  into  all  EU 
languages. Information folders will be printed, and the annual report of the EGF will 
be produced, translated, printed and distributed. General awareness of the EGF and 
its visibility will be enhanced, inter alia by the production of a video based on several 
EGF  cases  being  implemented  or  recently  closed.  The  EGF  will  be  covered  in 
various Commission publications and audio-visual activities. Costs for all these items 
are estimated at EUR 200 000. 

1 
2 
3 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 
http://ec.europa.eu/egf  

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2 

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4. 

5. 

6. 

7. 

Creation of a knowledge base: The Commission is continuing its work with a view to 
setting up standardised procedures for EGF applications and their processing, which 
will allow future applications to be simplified, their processing to be speeded up and 
reports  to  be  more  easily  extracted  for  varying  needs.  The  cost  is  estimated  at 
EUR 60 000. 

It will create and rationalise a database containing the facts and figures of EGF cases, 
including workers, measures and outcomes. The cost is estimated at EUR 60 000. 

The Commission will also be gathering data on the timelines of redundancies in the 
Member  States,  particularly  under  the  Council  Directive  98/59/EC  of  20  July  1998 
on  the  approximation  of  the  laws  of  the  Member  States  relating  to  collective 
redundancies4; this is estimated at EUR 60 000. 

Administrative  and  technical  support:  The  Expert  Group  of  Contact  Persons  of  the 
EGF,  with  one  member  from  each  Member  State,  will  be  holding  two  meetings, 
together estimated at EUR 70 000. 

In  addition,  the  Commission  will  be  organising  networking  and  the  exchange  of 
successful practices among the Member States, enabling participants with experience 
of EGF implementation to learn from and advise each other. This networking activity 
will include two seminars. The total cost is estimated at EUR 250 000. 

Evaluation: The Commission will start to prepare the final evaluation of the EGF by 
means of a contract  with an  external consultant evaluating EGF cases as and when 
they  are  closed  during  the  next  two  years,  and  focusing  on  management  systems, 
participants  in  the  measures,  and  outcomes.  The  cost  for  the  first  year  of  this 
preparatory evaluation is estimated at EUR 400 000, which will cover some 32 cases, 
to  be  evaluated  as  soon  as  final  reports  are  received  by  the  Commission.

4 

OJ L 225, 12.8.1998, p. 16. 

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Items 

Estimated 
number 

Estimated cost 
per item 
(in EUR) 

Total costs 
(in EUR) 

Monitoring  

1

20 000 

20 000

Information activities 

Various

Various 

200 000

Creation of a knowledge base 

Administrative and technical support: 
Meetings of the Expert Group of Contact 
Persons of the EGF 

Administrative and technical support: 
Networking on the implementation of the 
EGF 

3

2

60 000 

180 000

35 000 

70 000

Various

Various 

250 000

Evaluation: Preparatory case studies 

32

12 500 

400 000

Total estimated costs 

Financing 

1 120 000

8. 

9. 

10. 

11. 

The  total  annual  budget  available  for  the  EGF  is  EUR 500 million.  Article  8(1)  of 
Regulation  (EC)  No  1927/2006  states 
this  amount  (i.e. 
EUR 1 750 000)  can  be  made  available  each  year  for  technical  assistance  at  the 
initiative of the Commission. Currently, the full amount for 2012 remains available; 
nothing has yet been allocated to technical assistance.  

that  0,35 %  of 

The proposed contribution for technical assistance at the initiative of the Commission 
in 2012 is EUR 1 120 000. Following the mobilisation of this amount, the amount of 
EUR 630 000 potentially remains available in case of further need at a later stage in 
the year. 

Considering  the  maximum  possible  amount  of  a  contribution  from  the  EGF  in 
accordance with Article 8(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. 

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

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12. 

The Commission presents separately a transfer request in order to enter in the 2012 
budget  specific  commitment  appropriations,  as  required  in  Point  28  of  the 
Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations 

13. 

Appropriations  from  the  EGF  budget  line  will  be  used  to  cover  the  amount  of 
EUR 1 120 000 needed for technical assistance. 

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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 (EGF/2012/000 TA 2012 - Technical assistance at the initiative of 
the Commission) 

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  Inter-institutional  Agreement  of  17 May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management5, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20 December  2006  establishing  the  European  Globalisation  Adjustment  Fund6, 
and in particular Article 8(2) thereof, 

Having regard to the proposal from the Commission7, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional  support  to  redundant  workers  who  suffer  from  the  consequences  of  major 
structural  changes  in  world  trade  patterns  and  to  assist  them  with  their  reintegration 
into the labour market. 

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

Regulation (EC) No 1927/2006 provides that 0,35 % of the annual maximum amount 
can  be  made  available  each  year  for  technical  assistance  at  the  initiative  of  the 
Commission.  The  Commission  therefore  proposes  to  mobilise  an  amount  of 
EUR 1 120 000. 

(4) 

The EGF should, therefore, be mobilised in order to provide technical assistance at the 
initiative of the Commission. 

5 
6 
7 

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

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HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2012,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 1 120 000 in commitment and payment appropriations. 

Article 2 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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