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/2011/008 DK/Odense Steel Shipyard from Denmark)
Date: 2012-06-04
Institutions: European Commission
Subjects: Denmark, European Globalisation Adjustment Fund, collective dismissal, commitment of expenditure, economic recession, employment aid, reintegration into working life, shipbuilding

EUROPEAN COMMISSION 

Brussels, 4.6.2012  
COM(2012) 272 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/2011/008 DK/Odense Steel Shipyard from 
Denmark) 

EN 

   EN 

 
 
 
 
  
 
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  28  October  2011,  Denmark  submitted  application  EGF/2011/008  DK/Odense  Steel 
Shipyard 2 for a financial contribution from the EGF, following redundancies in Odense Steel 
Shipyard in Denmark. 

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

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no. 
Member State 
Article 2 
Primary enterprise 
Suppliers and downstream producers 
Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundancies before and after the reference period 
Total eligible redundancies 
Redundant workers targeted for support 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF3 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2011/008 
Denmark 
(a) 
Odense Steel Shipyard 
4 
01.05.2011 - 31.08.2011 
31.10.2011 
28.10.2011 
585 
396 
981 
550 
9 487 675 
443 255 
4,5 
9 930 930 
6 455 104 

1. 

2. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  28  October  2011  and 
supplemented by additional information up to 8 March 2012. 

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

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

EN 

2 

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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. 

6. 

4 

5 

6 
7 
8 
9 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Denmark argues that shipyards in Europe over the last decades have 
been  losing  substantial  market  shares  to  Asia.  The  global  financial  and  economic 
crisis then further affected the global shipbuilding market, such that, according to the 
Community  of  European  Shipyards'  Associations  (CESA),  the  European  orderbook 
dropped  from  13,692 million CGT4  to  9,470 million CGT  between  2008  and  2009, 
and  further  to  6,394  million  CGT  in  2010.  New  orders,  having  fallen  from  2,114 
million CGT to 561 million CGT between 2008 and 2009, recovered to 2,459 million 
CGT in 2010, still less than half of the pre-crisis level of 5,425 million CGT in 2007. 

In  its  annual  report  for  2010-20115,  published  in  Brusels  in  August  2011,  CESA 
writes : "The coming two years will remain very difficult for the industry. Only a few 
yards  have  been  able  to  secure  healthy  orderbooks  for  2012  and  beyond. 
Consequently, the employment impact resulting from the demand collapse from 2008 
and 2009 will hit the European shipbuilding industry mainly in 2011 and 2012". 

The CESA annual report shows that the shipbuilding workforce in Europe declined 
by  23 %  over  the  past  three  years,  from  148 792  in  2007  to  114 491  in  2010.  The 
workforce  on  new  buildings  dropped  even  more  sharply,  by  33 %,  from  93 832  in 
2007 to 62 854 in 2010. 

The  decision  to  close  Odense  Steel  Shipyard  was  taken  on  10  August  2009,  and  a 
programme  was  agreed  with  all  employees  regarding  the  ships  that  would  still  be 
finished  at  the  yard  and  thus,  the  timing  of  the  redundancies  required.  A  first 
application for EGF funding in support of the first wave of 1 356 redundant workers 
was  made  by  the  Danish  authorities  on  6  October  2010  and,  following  approval  of 
the Commission's proposal6 by the Council and the European Parliament, the funds 
were paid out on 2 August 2011. It was understood at the time of the first application 
that a second would follow, to take care of the later and final wave of redundancies, 
also including the workers made redundant by some of the suppliers to the shipyard. 

This  is  the  fourth  EGF  case  in  the  shipbuilding  sector.  The  arguments  presented  in 
the  three  previous  cases  (EGF/2010/001  DK/Nordjylland7,  EGF/2010/006  PL/H. 
Cegielski-Poznan8 and EGF/2010/025 DK/Odense Steel Shipyard9) remain valid.  

Compensated Gross Tonnage (CGT) is an indicator of the amount of work that is necessary to build a 
given ship and is calculated by multiplying the tonnage of a ship by a coefficient, which is determined 
according to type and size of a particular ship 
(http://en.wikipedia.org/wiki/Compensated_gross_tonnage) 
http://www.cesa.eu/presentation/publication/CESA_AR_2010_2011/pdf/CESA%20AR%202010-
2011.pdf  
COM(2011)251 final 
COM(2010)451 final 
COM(2010)631 final 
COM(2011)251 final 

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

7. 

8. 

Denmark submitted this application under the intervention criteria of Article 2(a) of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
four-month  period  in  an  enterprise  in  a  Member  State,  including  workers  made 
redundant in its suppliers and downstream producers. 

The  application  cites  509  redundancies  in  Odense  Steel  Shipyard  during  the 
reference period from 1 May 2011 to 31 August 2011 as well as a further eight from 
G4S (the security company operating the main gate at OSS), 67 from YIT (providing 
maintenance services for the equipment and machines at the yard and installing the 
electrical  systems  on  the  ships  built  there),  and  one  from  BM  Steel  Construction 
(specialists  helping  with  the  building  of  navy  vessels),  making  a  total  of  585 
redundancies from Odense Steel Shipyard and its suppliers. In addition, 396 workers 
from these four companies as well as Persolit (another provider of maintenance and 
electrical systems) were made redundant before and after the reference period. All of 
these redundancies were calculated in accordance with the first indent of the second 
paragraph of Article 2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

9. 

The  Danish  authorities  argue  that  the  closure  of  the  shipyard  and  the  resulting 
redundancies  could  not  have  been  foreseen.  The  shipyard  owners  invested  heavily 
into  the  yard  until  2009;  this  would  not  have  happened  if  the  closure  had  been 
expected. It must be noted that this is one of the biggest and most modern shipyards 
in  Europe,  holding  records  such  as  that  of  having  built  (in  2006-2008)  the  biggest 
container ships in the world, Emma Maersk and her seven E-class sisters. The yard 
has been known for consistently designing and building innovative vessels that apply 
the newest technology in design and equipment.  

Demonstration of the redundancies and identification of the dismissing enterprises 

10. 

The  application  relates  to  981  redundancies  in  total  in  Odense  Steel  Shipyard  and 
four  of  its  suppiers.  Following  observations  made  during  the  current  Odense  Steel 
Shipyard  implementation,  the  applicant  Member  State  concluded  that  around  55  to 
60 % of the workers affected (estimated at 550) would wish to benefit from the EGF 
measures, while the other workers would either find new employment themselves or 
decide to retire from the labour force. 

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 old 
55-64 years old 
> 64 years old 

Number 
531 
19 
550 
0 
25 
431 
94 
0 

Percent
96,5
3,5
100,0
0,0
4,5
78,4
17,1
0,0

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12. 

There are no workers with longstanding health problems or disabilities among either 
the affected or the targeted workers. 

13. 

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

Category 
Legislators, senior officials and managers 
Professionals 
Technicians and associated professionals 
Clerks 
Service workers and shop and market sales workers 
Craft and related trade workers 
Elementary occupations 

Number 
4 
18 
376 
12 
66 
4 
70 

Percent
0,7
3,3
68,4
2,2
12,0
0,7
12,7

14. 

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

Description of the territory concerned and its authorities and stakeholders 

15. 

16. 

17. 

Odense is Denmark's third largest city with almost 200 000 inhabitants. The city is in 
the  centre  of  the  island  of  Funen,  where  the  total  population  is  close  to  500 000. 
Funen  is  the  eastern  part  of  the  region  of  Southern  Denmark,  which  has  a  total  of 
1 200 000 inhabitants.  The  infrastructure  of  both  Funen  and  the  region  is  well 
developed and the working population increasingly commutes to work outside their 
home towns. In the case of the Odense Steel Shipyard workers, however, commuting 
cannot  be  seen  as  the  solution  to  their  employment  problem,  as  there  are  few 
employment  opportunities  for  workers  elsewhere  on  the  island  and  no  labour 
shortage  in  Denmark  as  a  whole  in  the  metallurgical  sector.  Major  efforts  will 
therefore have to be made to prepare the redundant workers for new jobs. 

Odense  has  access  to  the  sea  via  a  canal  and  the  Odense  Fjord,  on  which  Odense 
Steel  Shipyard  is  located  in  the  small  town  of  Munkebo  (5 500 inhabitants). 
Munkebo is part of Kerteminde Municipality, forming the northeast part of Funen. 

In  2008,  the  total  workforce  in  Odense  and  Kerteminde  was  109 000 people.  The 
direct  losses  at  Odense  Steel  Shipyard  covered  by  the  two  applications  therefore 
amount  to  around  2 %  of  the  workforce.  It  is  estimated  that  the  indirect  job  losses 
will be as heavy as the direct ones, so that the shipyard closure is regarded as a major 
crisis in the regional economy. 

The  educational  standard  of  the  employed  workforce  in  Kerteminde  is  below  both 
the  national  average  and  the  average  in  Funen.  In  2008,  about  27,3 %  of  the 
workforce 
the 
in  Kerteminde  had  received  some  further  education,  while 
corresponding figure for Funen was 33 % and the national average was 34,8 %. 

18. 

Both  the  municipalities  of  Odense  and  Kerteminde  are  closely  involved  in  this 
application, which they have supported from the outset.  

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

19. 

20. 

The general employment situation deteriorated sharply in Denmark during 2009 and 
2010.  Unemployment  rose  from  a  record  low  of  3,4 %  for  the  year  2008  to  a  new 
high of 7,6 % in 2010 (source: Eurostat10). 

The  industrial  structure  of  Kerteminde  is  characterised  by  a  high  share  of 
employment in manufacturing, particularly in metallurgy. Many jobs in this industry 
have  already  been  lost  to  other  countries  with  lower  wages.  The  shipyard  workers 
being  dismissed  have  a  high  technical  expertise  which  is  difficult  to  apply  in  other 
industries in Funen or even the whole of Denmark. Many of them have worked in the 
shipyard all their lives and their parents may have worked there too. 

In  addition,  the  shipyard  is  being  wound  down  in  stages,  with  groups  of  workers 
being  dismissed  as  the  final  ship  orders  are  completed.  The  previous  wave  of 
redundancies,  preceding  this  cohort,  is  currently  aspiring  to  the  potentially  suitable 
new jobs being created. Without significant retraining, it will be even harder for this 
second wave of redundant workers to find new employment. 

21. 

Since  the  announcement  of  the  closure  in  August  2009,  a  consortium  of  local, 
regional  and  national  stakeholders  has  discussed  and  formulated  a  strategy  for  new 
growth opportunities in the region. It is this strategy that is taking shape now and is 
guiding the choice of measures in the application. 

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. 

23. 

The Region of South Denmark is, on the one hand, defining and designing measures 
which  can  be  taken  under  the  Lisbon  goals  with  the  objective  of  strong  European 
competitiveness. The regional Growth Forum uses both ESF and ERDF funding, as 
well  as  national  labour  market  assistance  to  achieve  these  long-term  goals  of 
promoting new growth industries in the area. 

In  order  to  help  these  immediate  redundancies,  however,  more  specific  activities 
need to be undertaken. These include education, training, employment incentives and 
support for entrepreneurship. The target group of workers are already highly skilled, 
but  in  a  field  where  the  outlook  for  future  employment  looks  bleak.  Hence,  the 
measures  proposed  for  them  will  be  somewhat  more  costly  than  would  be  the  case 
for  other  workers  in  mass  layoffs,  which  often  concern  people  with  relatively  low 
skills. 

–  Basic course and clarification: It is estimated that this will be taken up by some 
55 % of all the redundant workers, who constitute the group of targeted workers. 
The course will  run over an  average period of four weeks and will contain both 
group-based  teaching  and  additional  one-to-one  counselling.  The  objective  is  to 
help the workers to understand their own situation and to acquire the motivation to 
accept  a  complete  reorientation,  to  understand  the  opportunities  open  in  the 

10 

http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do?dvsc=9  

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region, to identify their own competencies, to identify opportunities of interest to 
them,  and  to  decide  on  further  measures  they  wish  to  take.  This  measure  will 
involve  much  more  intensive  and  personalised  counselling  than  the  Job  Centres 
are normally able to provide. 

–  Vocational  training  and  general  education:  It  is  estimated  that  this  too  will  be 
taken  up  by  all  the  targeted  workers,  opting  for  various  fields  of  education  and 
retraining.  Some  of  the  workers  may  need  to  reinforce  their  general  education 
before they can benefit from the training options. 

– 

– 

– 

– 

– 

The  first  of  these  options  will  be  in  Energy  Technology,  involving 
power  generation,  energy  storage,  energy  infrastructure  and  energy 
efficiency -- the emphasis being on green energy in these areas. This is 
a new training area which was not provided by the Job Centres before 
the first application for Odense Steel Shipyard. 

The  second  will  be  in  Construction  and  Landscaping,  for  which  there 
are  already  large  public  commitments  to  be  implemented  in  coming 
years.  The  course  will  include  specific  learning  in  energy  efficient 
building.  These  are  innovative  training  measures  which  depart  from 
what is available in the area. 

The third will be in Robotics, an area of strong growth, where Denmark 
is  successful  at  international  level.  The  main  focus  areas  will  be 
industrial production, play and learning, and biological production. This 
is not currently provided by Job Centres, but could be taken on by them 
in future, if this scheme works well. 

The fourth will be in Welfare Technology, the development of which is 
already  centred  around  Odense.  The  demand  for  public  welfare  in 
hospitals and healthcare services is expected to increase in future. The 
main focus will be a general introduction to technology and a practical 
upgrading  of  skills.  This  course  too  is  not  currently  provided  by  Job 
Centres, but may offer good employment opportunities in the future. 

The fifth is General Education, which may be a prerequisite for many of 
the  redundant  workers  so  as  to  enable  them  to  take  up  the  training 
offered. It is estimated that a quarter of the total target group will take 
up this measure, which is scheduled to last for an average of 22 weeks 
per  person.  While  this  is  being  offered  by  Job  Centres,  they  are 
currently  flooded  with  demand  from  unemployed  workers  and  not 
always able to cope. 

–  Attract and retain the youth / higher education: This will guide the young workers 
to return to education, provide support and fund training costs for up to one year. 
The support provided here goes beyond that which is normally available from Job 
Centres. 

–  Employment  Incentives  --  Teaching  in  Enterprises:  This  will  help  the  redundant 
worker  in  transition  to  new  employment,  by  facilitating  learning  and  adjustment 
for  both  the  employer  and  the  new  employee.  It  will  most  often  take  place  in 

EN 

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addition  to  one  of  the  other  measures  preparing  the  worker  for  a  new  job.  In 
practical terms, it will be a course given to new employees at one to three days per 
week and over a period of six to ten weeks. It will greatly facilitate the decision 
for  new  employers  to  take  on  the  redundant  workers,  as  they  will  be  helped  to 
adapt to their new workplace more quickly. 

–  Incentives to start a new business: Entrepreneurship in Denmark is at a low level, 
but increasing, and is particularly low in the two municipalities most affected. The 
workshops  planned  will  help  these  workers  to  develop  ideas  and  creativity,  the 
screening  of  ideas  will  help  them  to  focus  on  the  best  cases  for  further 
development, an entrepreneurship course of six weeks' duration will enable those 
who  decide  to  go  down  this  route  to  focus  on  how  a  business  is  run;  a  small 
number will then be helped with advice on how to develop a product and with the 
necessary  market  analysis.  These  new  entrepreneurs  will  receive  guidance  and 
coaching  in  the  early  start-up  phase,  and  mentoring  by  means  of  a  number  of 
sessions  during  the  first  year.  Those  who  successfully  start  businesses  will  be 
helped  with  marketing  and  public  relations,  including  branding.  Entrepreneurs 
who fulfil stringent conditions can apply for a loan. It is estimated that some ten 
applicants will participate in these measures, and that one of them will qualify for 
the final stage of support by means of a loan. 

–  In  addition  to  these  measures,  Denmark  proposes  a  subsistence  allowance  of 
EUR 103  per  worker  per  day  of  active  involvement  in  training  or  other  relevant 
measures. 

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,  information  and  publicity  as  well  as  control  activities.  All  partners 
involved  in  the  measures  are  committed  to  communicating  the  EGF  support  being 
provided. An EGF Secretariat has been set up under the Odense Municipality, and is 
co-financed  by  the  Municipality  of  Kerteminde  and  the  Region  of  Southern 
Denmark.  This  secretariat  will  be  in  regular  contact  with  the  workers  and  will 
maintain  and  update  the  relevant  web  site11.  A  conference  is  planned  for  the  two 
Odense Steel  Shipyard cases  together, which will serve as a closing conference for 
the first case12 and a mid-term conference for the second application. 

The  personalised  services  presented  by  the  Danish  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No  1927/2006.  The  Danish  authorities  estimate  the  total  costs  of  these  services  at 
EUR 9 487 675  and  the  expenditure  for  implementing  the  EGF  at  EUR 443 255 
(4,5 %  of  the  total  amount).  The  total  contribution  requested  from  the  EGF  is 
EUR 6 455 104 (65 % of the total costs). 

24. 

25. 

11 
12 

www.odense.dk/lindoglobaliseringsfonden  
EGF/2010/025 DK/Odense Steel Shipyard 

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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) 

Basic course and clarification 

Vocational training in energy technology 

Vocational training in construction and 
landscaping 

Vocational training in robotics 

Vocational training in welfare technology 

General education 

Attract and retain in higher education 

Teaching in enterprises 

Stimulating entrepreneurship 

Screening of ideas 

Entrepreneurship course 

Course in product development 

Market analysis and feasibility study 

Business start-up cases 

Mentoring 

Advertisement and branding 

Start-up loan 

Subsistence allowance (per diem) 

550

110

85

44

38

138

110

110

28

14

8

4

2

2

2

2

1

(days) 
33 530

1 611 

885 906

13 423 

1 476 510

5 369 

456 376

10 067 

442 953

12 081 

459 060

7 973 

1 100 295

6 711 

3 221 

268 

134 

5 638 

3 758 

4 027 

5 638 

1 342 

4 027 

738 255

354 362

7 517

1 879

45 101

15 034

8 054

11 275

2 685

8 054

26 846 

26 846

103 

3 447 514

Sub total personalised services 

9 487 675

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

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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) 

0

308 456

67 953

66 846

443 255

9 930 930

6 455 104

* The totals do not entirely tally due to conversion from DKK and rounding. 

26. 

27. 

Denmark  confirms  that  the  measures  described  above  are  complementary  with 
actions  funded  by  the  Structural  Funds  and  that  all  double  financing  will  be 
prevented. 

The former employers, Odense Steel Shipyard, organised a jobs fair in the autumn of 
2010, at which information was provided on job opportunities and on EGF-financed 
activities.  A  number  of  jobs  in  Trondheim  and  other  Norwegian  locations  were 
offered to the skilled workers. 

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

28. 

Denmark started the personalised services to the affected workers included in the co-
ordinated  package  proposed for co-financing to the EGF on 31 October 2011. 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 

29. 

The Region of Southern Denmark, and the Municipalities of Odense and Kerteminde 
prepared  the  application  together.  This  work  has  involved  a  number  of  social 
partners,  professional  organisations,  unions  and  educational  institutions.  Joint 
meetings  have  been  held,  at  which  detailed  strategies  for  growth  and  extraordinary 
actions in the transition plan were discussed and designed by the parties. 

30. 

The Danish 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 

31. 

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

EN 

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

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

to be used for restructuring companies or sectors; 

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

from other EU financial instruments. 

Management and control systems  

32. 

Denmark  has  notified  the  Commission  that  the  financial  contribution  will  be 
managed and controlled by the same bodies as the European Social Fund, which also 
has  the  Danish  Enterprise  and  Construction  Authority  as  Managing  Authority.  The 
Certifying Authority will be vested in a different department of the same body. The 
Auditing  Authority  will  be  the  EU  Controllerfunction  in  the  Danish  Enterprise  and 
Construction Authority.  

Financing 

33. 

34. 

35. 

36. 

On  the  basis  of  the  application  from  Denmark,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  is  EUR 6 455 104, 
representing 65 % of the total cost. The Commission's proposed allocation under the 
Fund is based on the information made available by Denmark. 

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

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

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

37. 

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. 

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Source of payment appropriations  

38. 

As the 2012 budget includes payment appropriations of EUR 50 000 000 on budget 
line 04.0501 "European Globalisation Adjustment Fund (EGF)", this budget line will 
be used to cover the amount of EUR 6 455 104 needed for this application. 

EN 

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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/2011/008 DK/Odense Steel Shipyard from 
Denmark) 

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 
management13, 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  Fund14, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the Commission15, 

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 
30 December 2011 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. 

Denmark submitted an application to mobilise the EGF, in respect of redundancies in 
the  enterprise  Odense  Steel  Shipyard,  on  28  October  2011  and  supplemented  it  by 
additional  information  up  to  8  March  2012.  This  application  complies  with  the 

13 
14 
15 

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

EN 

13 

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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 6 455 104. 

(5) 

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

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 6 455 104 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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