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/2011/019 ES/Galicia Metal from Spain)
Date: 2012-08-09
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Galicia, Spain, budgetary discipline (EU), collective dismissal, commitment of expenditure, economic recession, metal product

EUROPEAN COMMISSION 

Brussels, 9.8.2012  
COM(2012) 451 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/2011/019 ES/Galicia Metal from Spain) 

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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  December  2011,  Spain  submitted  application  EGF/2011/019  ES/Galicia  Metal  for  a 
financial contribution from the EGF, following redundancies in 35 enterprises operating in the 
NACE Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery 
and equipment')3 in the NUTS II region of Galicia (ES11) in Spain. 

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 region 

NACE Revision 2 Division 

Reference period 
Starting date for the personalised services 
Application date 
Redundancies during the reference period 
Redundant workers expected to participate in the 
measures 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF4 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2011/019 
Spain 
(b) 
35 
Galicia (ES11) 
25 ('Manufacture of fabricated 
metal products, except 
machinery and equipment') 
23.3.2011 – 23.12.2011 
23.3.2012 
28.12.2011 
878 

450 

3 001 900 
120 000 
3,84 
3 121 900 
2 029 235 

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. 

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1. 

2. 

The  application  was  presented  to  the  Commission  on  28  December  2011  and 
supplemented by additional information up to 28 May 2012. 

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. 

6. 

5 
6 
7 

In order to establish the link between the redundancies and the global financial and 
economic crisis, Spain explains that the shipbuilding industry consists of three main 
areas  of  activity:  manufacture  of  other  transport  equipment  (NACE  Revision  2 
Division 30), repair and installation of machinery and equipment (NACE Revision 2 
Division  33)  and  manufacture  of  fabricated  metal  products,  except  machinery  and 
equipment  (NACE  Revision  2  Division  25).  The  enterprises  concerned  by  the 
application  are  manufacturers  of  fabricated  metal  products  which  operate  in  the 
shipbuilding  ancillary  industry.  Citing  data  from  the  Community  of  European 
Shipyards Association (CESA)5 and the Gerencia del Sector Naval (GSN)6, which is 
a body under the Spanish ministry of industry, the Spanish authorities argue that the 
global  financial  crisis  changed  several  of  the  conditions  and  expectations  for  the 
future  development  of  the  shipbuilding  market.  Order  books  of  European  yards 
decreased both in CGT7 and value terms as an effect of the global economic crisis. 
The  European  order  book  dropped  from  13,69  million  CGT  to  9,47  million  CGT 
between 2008 and 2009, and further to 6,39 million CGT in 2010. In September 2011 
the  order  book  was  of  5,95  million  CGT.  In  value  terms  the  European  order  book 
dropped from EUR 52 616 million to EUR 36 558 million between 2008 and 2009, 
and further to EUR 27 031 million in 2010. 

New orders, having fallen from 2 144 000 CGT to 561 000 CGT between 2008 and 
2009,  recovered  to  2 459 000  CGT  in  2010  and  fell  again  in  2011.  In  September 
2011 the new orders amounted to 1 402 000. All this is far from the pre-crisis level 
of 5 425 000 CGT in 2007. 

The  CESA  annual  reports  for  2009,  2010  and  2011  show  that  the  shipbuilding 
workforce  in  Europe  declined  by  23 %  over  the  past  three  years,  from  148 792 
workers 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 evolution of shipbuilding in Spain has followed the negative trend observed at 
European  level.  The  Spanish  order  book  dropped  from  1 052 805 CGT  to 
815 134 CGT  between  2008  and  2009,  and  further  to  549 963 CGT  in  2010.  In 
September  2011  the  order  book  was  of  282 339  CGT.  This  represents  an 
accumulated decline of 73,18 % compared with 2008.  

http://www.cesa.eu/links_downloads# (annual reports). 
http://www.gernaval.org/ (anual reports). 
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. 

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7. 

8. 

9. 

New  orders,  having  fallen  from  363 595  CGT  to  61 880  CGT  between  2008  and 
2009, recovered to 148 051 CGT in 2010 and fell again in 2011. In September 2011 
the new orders only amounted 9 477 CGT.  

The Galician shipbuilding sector represents 45 % of the Spanish shipbuilding sector. 
As a direct consequence of the decrease of new orders, the shipbuilding workforce in 
Galicia  declined  by  30 %  over  the  past  three  years,  from  10 000  workers  (3 500 
direct  jobs  and  6 500  jobs  in  the  ancillary  industry)  at  the  end  of  2008  to  7 000  in 
October 2011.  

In addition to the arguments presented by the Spanish authorities, those developed in 
previous  cases  related  to  shipbuilding  and  related  industries  (EGF/2010/001 
PL/H.  Cegielski-Poznan,  EGF/2010/025 
DK/Nordjylland,  EGF/2010/006 
DK/Odense Steel Shipyard and EGF/2011/008 DK/Odense Steel Shipyard8 ) remain 
valid. 

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

10. 

11. 

Spain  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. 

The  application  cites  878  redundancies  in  35  enterprises  operating  in  the  NACE 
Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery 
and  equipment')  in  the  NUTS  II  region  of  Galicia  (ES11)  during  the  nine-month 
reference  period  from  23  March  2011  to  23  December  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 

12. 

The Spanish authorities argue that the forecast at EU level about the recovery of the 
shipbuilding  sector  were  reasonably  optimistic.  These  positive  expectations  were 
fulfilled  in  2010  when  new  orders,  after  having  fallen  by  76 %  in  2009  compared 
with 2008, grew to exceed by 16 % the number of new orders in 2008. However the 
upward tendency unexpectedly reversed again in 2011 when new orders  contracted 
by 43 %. This new recession in the sector had been impossible to predict.  

Identification of the dismissing enterprises and workers targeted for assistance 

13. 

The application relates to 878 redundancies in the following 35 entreprises. 

Enterprises and number of dismissals 
20 

Aluminios Alca S.L. 
Ardagh Metal Packaging Iberica, SAU 
Baysega S.L. 
Bodeal SLU 

Inasus S.L. 
Industria de Ferralla El Casar S.L. 
Industrias Pesadas de Galicia 
Islas Montajes y Talleres 

72 
4 
43 

5 
7 
1 
68 

8 

Respectively COM(2010) 451, COM(2010) 631, COM(2011) 251 and COM(2012) 272. 

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Enterprises and number of dismissals 

Calderería  y  Estructuras  del  Noroeste 
SLU 

Cerceda Estructuras Metálicas, S.A. 

y  Transformaciones 

Clavimar Galicia S.L. 
Construcciones 
Navales, S.A. 
Cometal Laro 
CTM Montajes S.L. 
Dalp Ingeniería y Automatización, S.L. 
Demacar S.L. 
Elaborados Metálicos EMESA, S.L. 
Elaborados y Montajes S.A. 
Estampaciones Tácnicas de Galicia S.L. 
Ferralla Taboada, S.L.L. 
Formoso Estructuras metálicas, S.L. 
Hierros Santa Cruz Santiago, S.L. 
Total enterprises: 35 

1  Cabinas Betancar S.L. 

–  Mecanizados  Rodríguez 

13 

MRF 
Fernández S.L. 
2  Metal-Moaña S.L. 

67  Mintucal, S.L. 

5  Montajes Industriales Catisa 

85  Navaliber, S.L. 
3  Sumtec, S.L. 
7  Talleres Bastos Redondela, S.L. 
86  Talleres Hermida S.L. 

104  Talleres Navales Vinacal, S.A. 

1  Tuycalde S.L. 
1  Vallados y Enrejados del Noroeste, S.L. 

84  Xanela Arquitectura en Aluminio 
10 

Total dismissals: 878 

11 

30 

8 

29 

22 
16 
15 
5 
1 
14 
7 
11 
20 

14. 

All  the  redundant  workers  will  be  offered  the  possibility  to  participate  in  the 
measures.  However,  the  Spanish  authorities,  based  on  their  previous  experience  in 
managing EGF cases, estimate that about 450 workers will opt to participate in the 
EGF measures. 

15. 

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

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15-24 years old 
25-54 years old 
55-60 years old 
> 60 years old 

Number
825
53
878
0
18
808
35
17

16. 

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

Category 
Managers 
Physical,  mathematical  and  engineering 
science professionals 
Other professionals 
Clerks 
Heads of specialist working teams 
Welders and flame cutters 
Sheet-metal workers 
Assembler of metal structures 
Mechanics  and  fitters  of  electrical  and 
electronic equipment. 
Other craft and related trades workers 
Mobile plant operators 

Number
9
35

9
105
88
123
141
123
96

105
44

Percent
93,96
6,04
100,00
0,00
2,05
92,02
3,99
1,94

Percent
1
4

1
12
10
14
16
14
11

12
5

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17. 

In terms of educational level9, the break-down is as follows: 

Educational level 
Basic education  
(to end of compulsory education) 
Upper secondary education 
Tertiary education  
Uneducated or early school leavers 

Number

Percent

465

151
132
130

52,96

17,20
15,03
14,81

18. 

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

19. 

20. 

21. 

22. 

Galicia is the seventh region of Spain by area and the fifth by population. Located in 
the western tip of the Iberian Peninsula is bounded on the north and the west by the 
Atlantic  Ocean,  on  the  south  by  Portugal  and  on  the  east  by  Castilla  y  León  and 
Principado de Asturias. Galicia can be regarded as a small labour market due to its 
peripherical  location  and  difficult  access,  due  to  the  range  of  mountains  which 
separates this region from the rest of Spain, and its situation as a border region.  

Galicia  contributes  5,2 %  to  the  Spanish  GDP.  The  contribution  by  sector  to  the 
regional  GDP  is  as  follows:  service  sector  65,9 %,  industry  12,5 %,  construction 
12,2 %,  energy  4,9 %,  and  agriculture  and  fisheries  4,5 %.  The  business  model  in 
Galicia  is  characterised  by  a  high  presence  of  small  and  medium-sized  enterprises 
(98,6 % of enterprises have fewer than 100 workers). 

The  main  public  authority  concerned  is  the  Xunta  de  Galicia  (Galicia  autonomous 
government)  and  in  particular  the  'Conselleria  de  Traballo  e  Benestar'  (regional 
ministry  of  labour  and  welfare)  and  the  'Conselleria  de  Economia  e  Industria' 
(regional ministry of economy and industry). 

Stakeholders  include  ASIME10  (association  of  Galician  metal  companies);  CEG11 
(employers  confederation  of  Galicia);  FORMEGA12  (Galician  Foundation  for 
training,  skills  and  employment)  as  well  as  the  trade  unions  MCA-UGT13  Galicia, 
CCOO-Galicia14 and CIG15. 

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

23. 

The  redundancies  in  the  shipbuilding  ancillary  industry  will  further  exacerbate  the 
difficult  employment  situation  of  the  region.  In  Galicia  6 839  enterprises  out  of 
203 374  have  closed  down  since  2008  and  unemployment  has  consequently 

9 
10 
11 
12 
13 

14 
15 

Categories based on the International Standard Classification of Education (ISCED-97). 
Asociación de Industriales Metalúrgicos de Galicia (ASIME). 
Confederación de Empresarios de Galicia (CEG). 
Fundación Galega do Metal para a Formación, Cualificación e Emprego. 
Federación del Metal, Construcción y Afines de la Unión General de Trabajadores de Galicia (MCA-
UGT Galicia). 
Comisiones Obreras Galicia (CCOO Galicia). 
Confederación Intersindical Galega. 

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increased. The unemployment rate rose from 8 % at the end of 2008 to 17,25 % in 
Q3/2011.  The  economic  and  financial  crisis  and  its  consequences  seem  to  have  hit 
male  jobs  harder.  In  the  pre-crisis  years  female  unemployment  in  Galicia  was 
11,79 % while male unemployment was 6,26 %. However in Q3/2011 the difference 
between male and female unemployment was just of 2 %, as female unemployment 
was 18,18 % and male unemployment 16,32 %.  

24. 

Traditionally  the  major  economic  sectors  in  Galicia  have  been  fisheries  along  with 
automotive,  textile,  natural  stone  (mining  and  quarrying  of  slate  and  granite)  and 
shipyards.  However,  given  the  impact  of  the  crisis  on  construction  related  sectors 
like natural stone and traditional sectors such as textiles or the automotive industry, 
the perspectives for future reintegration into employment of the dismissed workers in 
this territory do not seem very encouraging.  

25. 

Futhermore,  following  mass  redundancies  in  the  textile  sector  in  Galicia,  Spain 
submitted  an  application  for  a  financial  contribution  from  the  EGF  for  these 
workers16 in February 2010. 

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 

26. 

All the following measures combine to form a co-ordinated package of personalised 
services aimed at re-integrating the workers into the labour market: 

Preparatory activities 

–  Information  and  welcome  session:  The  first  measure  provided  to  all  participants 
concerns  a  general  presentation  on  the  EGF  measures,  information  on  available 
training programmes, on skills and training requirements, and an initial profiling 
of the workers. 

–  Preparatory  workshops:  As  part  of  the  preparatory  activities  there  will  be  four 
workshops:  (1) Change  management:  aimed  at  helping  the  workers  in  the 
bereavement process after losing their jobs and preparing them to face the future 
with  more  self-esteem.  (2) Recognition  and  certification  of  prior  experience: 
Participants will be informed of the advantages of having an official attestation of 
skills  and  knowledge  covering  the  activities  carried  out  during  working  life  and 
encouraged  to  participate  in  the  attestation  procedure.  (3) Back  to  school: 
Participants  will  be  informed  about  the  labour  market  requirements  regarding 
compulsory  education;  how  to  get  the  compulsory  education  certificate  (ESO 
certificate17) and what are the measures, within the EGF co-financed package, that 
to 
could  help 
entrepreneurship: this workshop will be focused on promoting business initiatives 
for  self-employment.  Around  280  workers,  70  per  workshop,  will  participate  in 
this measure. 

the  ESO  certificate. 

(4) Introduction 

to  obtain 

them 

16 
17 

COM(2010) 437 final. 
Título de graduado en educación secundaria obligatoria para personas mayores de dieciocho años. 

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Guidance 

–  Occupational  guidance:  This  comprises  the  profiling  of  the  workers,  the 
identification  and  preparation  of  personalised  re-integration  itineraries  for  the 
workers targeted for assistance. On the basis of these pathways individual workers 
are  advised  on  how  to  improve  their  occupational  capacities  and  thus  enhance 
their opportunities for access to the labour market.  

–  Accompaniment  towards  business  creation  or  self-employment:  The  participants 
who during the profiling phase show an interest in becoming self-employed will 
be guided through the various steps towards business creation or self-employment. 
This  aims  to  develop,  produce  and  guide  viable  business  or  self-employment 
projects. 

Training 

–  Training  towards  ESO  certification.  The  aim  of  this  measure  is  to  train 
participants  to  pass  tests  to  obtain  the  certification  of  Graduate  in  Secondary 
Education, for people over eighteen. 

–  Training  on  job  search  techniques:  The  workers  will  be  coached  on  active  job-
search, networking, personal marketing, etc. This measure will aim to improve the 
self-knowledge  and  social  skills  of  the  participants  and  to  reinforce  their  self-
esteem. 

–  Training  on  horizontal  skills:  This  measure  aims  to  train  workers  in  key 
competences for lifelong learning18 such as communication in the mother tongue; 
communication in foreign languages; digital competence, etc. Participants will be 
given  the  opportunity  to  follow  one  or  more  of  these  training  courses  of  short 
duration.  

–  Training  in  vocational  skills:  The  participants  will  be  trained  in  job-skills 
currently  in  demand.  The  training  courses  will  be  oriented  towards  certifiable 
training  activities  referenced  in  the  national  catalogue  of  job  qualifications  and 
designed to cater for the identified needs of local enterprises. 

–  Training  for  skills  upgrading:  The  workers  with  the  best  perspectives  to  be 
reintegrated  into  employment  in  the  same  sector  will  be  trained  to  reinforce  or 
upgrade existing skills. The training will be focused in particular on the skills in 
demand due to technological advances in the metalworking industry. 

–  Training  in  entrepreneurship  and  business  management:  This  course  targets  30 
workers and aims at providing participants with the basic skills to manage a small 
business.  This  will  cover  elements  such  as  planning,  carrying  out  feasibility 
studies, preparation of business plans and raising finance. 

18 

Recommendation  of  the  European  Parliament  and  of  the  Council  of  18  December  2006  on  Key 
Competences for Lifelong Learning. OJ L394/10, 30.12.2006. 

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Accompanying measures 

–  Intensive  job-search  assistance:  This  will  involve  an  intensive  employment 
searching  (including  active  research  of  the  local  and  regional  employment 
opportunities) and the matching of available jobs with the job seekers. This will 
include  the  possibility  of  being  accompanied  by  a  counsellor  during  the  job 
interview.  

–  Tutoring after reintegration into work: This will prevent possible problems arising 
in the new jobs: the workers reintegrated into employment will be guided during 
the first months in their new jobs as employees or self-employed. 

–  Accompaniment  towards  certification  of  prior  experience.  This  covers  the 
evaluation of prior knowledge and experience of each individual worker as well as 
the identification of areas where further training is required.  

–  Self-employment opportunities search assistance. The workers willing to make a 
fresh  start  as  self-employed  will  be  offered  this  service  which  includes  active 
research of the local and regional self-employment opportunities and the matching 
of available opportunities with the candidates. 

–  On-the-job training: Participants will be trained in new vocational skills by tutors 
provided by the enterprises participating in the measure. They will be also given 
the opportunity of gaining some experience through an apprentice scheme for one 
to three months . 

Incentives 

–  Job-search allowance: The workers completing the agreed pathway to reinsertion 
will receive an allowance of EUR 400. The allowance will be divided into several 
instalments to be paid once the participant reaches relevant milestones of his/her 
personalised pathway. 

–  Contribution to commuting expenses: Workers participating in the measures will 

receive up to EUR 180 as a contribution to their commuting expenses. 

–  Outplacement incentives: A wage subsidy of EUR 200 per month for a maximum 
of  six  months  will  be  paid  to  those  workers  who  return  to  employment  as 
employees  or  self-employed.  The  subsidy  is  designed  to  encourage  their  quick 
reintegration  into  the  labour  market  and  to  stimulate  workers,  particularly  those 
who are older, to remain in the labour market. 

–  Assistance  for  carers  of  dependent  persons:  Workers  with  dependent  persons 
(children,  elderly  or  disabled  persons)  will  receive  50 %  of  their  monthly 
caretaker  expenses  up  to  EUR 300,  conditional  upon  their  participation  in  the 
measures. This aims to cover the additional costs faced by the workers with caring 
responsibilities in order to avail of training or other measures. 

–  On-the-job training allowance: The participants in the on-the-job training measure 

will receive EUR 300 per month while participating in the measure. 

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27. 

28. 

Actions 

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

The  personalised  services  presented  by  the  Spanish  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Spanish authorities estimate the total costs at EUR 3 121 900, of 
which  the  expenditure  for  personalised  services  at  EUR 3 001 900  and  the 
expenditure for implementing the EGF at EUR 120 000 (3,84 % of the total amount). 
The total contribution requested from the EGF is EUR 2 029 235 (65 % of the total 
costs). 

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 and welcome session 
(Acogida y diagnóstico inicial) 

Preparatory workshops 
(Medidas de sensibilización) 

Occupational guidance 
(Orientación laboral por cuenta agena) 

Accompaniment towards business creation or 
self-employment 
(Orientación laboral para el autoempleo)  

Training towards ESO certification 
(Formación en competencias básicas).  

Training on job search techniques 
(Formación para la activación laboral) 

Training on horizontal skills 
(Formación transversal) 

Training in vocational skills 
(Formación para la recualificación profesional 
fuera del sector) 

Training for skills upgrading 
(Formación de especialización dentro del sector) 

Training in entrepreneurship and business 
management 

450

280

400

50

90 

40 500

180 

50 400

600 

240 000

800 

40 000

50

3 600 

180 000

250

400 

100 000

150

1 800 

270 000

180

2 400 

432 000

80

30

3 600 

288 000

2 400 

72 000

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(Formación en autoempleo) 

Intensive job-search assistance 
(Apoyo a la recolocación) 

Tutoring after reintegration into work 
(Seguimiento en el empleo) 

Accompaniment towards certification of prior 
experience 
(Dispositivo de acreditación de certificaciones) 

Self-employment opportunities search assistance 
(Búsqueda de oportunidades de negocio) 

On-the-job training 
(Prácticas en empresas) 

Job-search allowance 
(Incentivo a la participación activa) 

Contribution to commuting expenses 
(Beca de desplazamiento) 

Outplacement incentives 
(Incentivo para la reinserción laboral) 

350

1 600 

560 000

180

150

300 

54 000

300 

45 000

30

3 000 

90 000

100

300

400

300 

30 000

400 

120 000

180 

72 000

150

1 200 

180 000

Assistance for carers of dependent persons 
(Incentivo para la conciliación) 

40

1 200 

48 000

On-the-job training allowance 
(Beca para periodos de prácticas en empresas) 

100

900 

90 000

Sub total personalised services 

3 001 900

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

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

66 000

22 000

32 000

120 000

3 121 900

2 029 235

EN 

11 

   EN 

 
 
 
 
 
 
 
 
29. 

Spain  confirms  that  the  measures  described  above  are  complementary  with  actions 
funded  by  the  Structural  Funds  and  that  measures  are  in  place  to  prevent  double 
funding. 

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

30. 

Spain  started  the  personalised  services  to  the  affected  workers  included  in  the  co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  23  March  2012.  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 

31. 

The  package  of  measures  aimed  at  the  reintegration  into  employment  of  workers 
made  redundant  in  enterprises  manufacturing  fabricated  metal  products,  except 
machinery  and  equipment,  in  Galicia  was  planned  in  collaboration  with  the 
committee  no 2  of  Social  Dialogue  in  Galicia  which  is  the  committee  in  charge  of 
supporting  measures  for  the  shipbuilding  industry  in  Galicia.  Social  Dialogue  in 
Galicia is a trialogue between the trade unions UGT, CCOO and CIG, the employers' 
association  CEG  and  the  Xunta  de  Galicia.  The  sub-committee  shipbuilding  within 
Social  Dialogue  in  Galicia  will  be  monitoring  the  implementation  of  the  measures 
and its results. 

32. 

The  Spanish  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 

33. 

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

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

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

to be used for restructuring companies or sectors; 

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

from other EU financial instruments. 

Management and control systems  

34. 

Spain  has  notified  the  Commission  that  the  financial  contribution  will  be  managed 
and controlled by the same bodies that manage and control the European Social Fund 
(ESF)  funding  in  Spain.  The  Xunta  de  Galicia  and  in  particular  the  Consellería  de 
Facenda  –  Dirección  Xeral  de  Planificación  e  Fondos  in  cooperation  with  the 
Consellería de Traballo e Benestar - Dirección Xeral de Relacións Laborais will be 
the intermediate body for the managing authority. 

EN 

12 

   EN 

 
Financing 

35. 

36. 

37. 

38. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 2 029 235,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Spain. 

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. 

39. 

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  

40. 

Appropriations  from  the  EGF  budget  line  will  be  used  to  cover  the  amount  of 
EUR 2 029 235 needed for the present application. 

EN 

13 

   EN 

 
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/2011/019 ES/Galicia Metal from Spain) 

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 
management19, 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  Fund20, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission21, 

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. 

Spain submitted an application to mobilise the EGF, in respect of 878 redundancies in 
35  enterprises  operating  in  the  NACE  Revision  2  Division  25  ('Manufacture  of 
fabricated metal products, except machinery and equipment') in the NUTS II region of 
Galicia (ES11), on 28 December 2011 and supplemented it by additional information 
up to 28 May 2012. This application complies with the requirements for determining 
of 
the 

contributions 

in  Article 

financial 

down 

laid 

10 

as 

19 
20 
21 

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

EN 

14 

   EN 

 
                                                 
Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 2 029 235. 

(5) 

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

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 2 029 235 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 

EN 

15 

   EN