Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on 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/2010/015 FR/Peugeot from France)
Date: 2012-08-21
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, France, budgetary discipline (EU), collective dismissal, commitment of expenditure, financial management, interinstitutional agreement, motor vehicle industry

EUROPEAN COMMISSION 

Brussels, 21.8.2012  
COM(2012) 461 final 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on 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/2010/015 FR/Peugeot from France) 

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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  5  May  2010,  France  submitted  application  EGF/2010/015 FR/Peugeot  for  a  financial 
contribution  from  the  EGF,  following  redundancies  at  two  branches  of  the  group  PSA 
Peugeot Citroën (Peugeot Citroën Automobiles and Sevelnord) in France. 

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 AND ANALYSIS OF THE APPLICATION  

Key data: 
FEM Reference no. 
Member State 
Article 2 
Primary enterprise 
Suppliers and downstream operators 
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/2010/015 
France 
a) 
PSA Peugeot Citroën 
0 
1.11.2009 – 28.2.2010 
1.1.2009 
5.5.2010 
649 
1 440 
2 089 
2 089 
18 352 056 
32 047 
0,17 
18 384 103 
11 949 666 

1. 

2. 

1 
2 
3 

The application was presented to the Commission on 5 May 2010 and supplemented 
by additional information up to 13 April 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 Article 3(3) of Regulation (EC) No 1927/2006. 

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2 

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

3. 

4. 

4 

5 

6 

7 
8 

In order to establish the link between the redundancies and the global financial and 
economic crisis, France argues that the increasingly bleak growth prospects and the 
tougher credit conditions the crisis has caused have given rise to fears among private 
individuals  concerning  the  safety  of  their  jobs  and  have  led  them  to  postpone 
purchasing  a  vehicle.  At  the  same  time,  given  the  deterioration  in  the  economic 
situation,  companies  have  on  the  whole  also  cut  down  on  investments  and, 
consequently,  on  renewals  of  their  fleet  of  vehicles.  Thus,  despite  the  temporary 
measures introduced by some Member States (for example, scrapping programmes), 
the  European  vehicle  market  – particularly  in  Western  Europe,  which  is  the  largest 
market for the group PSA Peugeot Citroën4 – collapsed suddenly in the second half 
of  2008,  with  a  10.7%  decrease  in  registrations  of  light  passenger  and  commercial 
vehicles in Europe (18 Western European countries) in the third quarter and a 17% 
decrease  in  the  fourth  quarter  of  2008,  in  relation  to  the  same  period  over  the 
previous  year.  The  fall  in  the  sales  of  vehicles  due  to  the  global  financial  and 
economic  crisis  has  directly  affected  the  economic  results  of  the  PSA  Peugeot 
Citroën  group,  which  registered  a  loss  of  EUR 344 million over  the  year  2008, 
whereas it was still making a profit (EUR 731 million) at the end of the first half of 
that year. 

In  order  to  overcome  this  economic  crisis,  the  PSA  Peugeot  Citroën  group  first 
dramatically  reduced  the  use  of  temporary  labour  and  introduced  temporary 
measures (e.g.: annualisation of working time, part-time unemployment) in order to 
reduce production while keeping its employees in a job. When it appeared that these 
arrangements would not be enough to allow it to cope with the drop in vehicle sales, 
PSA Peugeot Citroën chose to launch a call for voluntary redundancies. 

Furthermore,  in  response  to  previous  applications  concerning  the  motor  vehicle 
industry5 6,  the  Commission  has  already  recognised  that  the  industry  had  been 
particularly  hard  hit  by  the  financial  crisis  at  the  root  of  the  economic  slowdown, 
since 60 to 80% (depending on the Member State) of new vehicles sold in Europe are 
bought on credit7. In the second quarter of 2009, there was a 39.5% decrease in the 
total  number  of  vehicles  manufactured  in  the  European  Union,  compared  with  the 
previous  year.  The  crisis  had  a  severe  impact  on  the  major  European  car 
manufacturers and their suppliers8. 

The European market in the broad sense (30 countries) accounts for 74% of Peugeot sales and 80% of 
Citroën sales. 
COM(2011) 664 of 13.10.11, Proposal for a Decision of the European Parliament and of the Council on 
the mobilisation of the European Globalisation Adjustment Fund (application EGF/2011/005 PT/Norte-
Centro Automotive from Portugal). 
COM(2011)  420  of  11  July  2011,  Proposal  for  a  Decision  of  the  European  Parliament  and  of  the 
Council  on 
the  European  Globalisation  Adjustment  Fund  (application 
EGF/2009/019 FR/Renault from France). 
COM(2009) 104 of 25 February 2009, "Responding to the crisis in the European automotive industry". 
Directorate-General for Enterprise and Industry: "Impact of the economic crisis on the manufacturing 
and 
update" 
(http://ec.europa.eu/enterprise/newsroom/cf/itemshortdetail.cfm?lang=fr&tpa_id=0&item_id=3437). 

the  mobilisation  of 

industries – April 

construction 

2009 

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

5. 

6. 

France  submitted  this  application  under  the  intervention  criterion  of  Article  2(a)  of 
Regulation (EC) No 1927/2006, which makes a contribution from the EGT subject to 
at  least  500  redundancies  over  a  four-month  period  in  an  enterprise  in  a  Member 
State, including workers made redundant by its suppliers and downstream producers. 

The application cites 649 redundancies in PSA Peugeot Citroën over the four-month 
reference period between 1 November 2009 and 28 February 2010. The application 
also cites 1 440 other redundancies resulting from the same redundancy plan based 
on  voluntary  departures,  also  in  PSA  Peugeot  Citroën,  but  outside  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 

7. 

The French authorities state that the international financial crisis has led to a sudden 
collapse in prospects for vehicle production by PSA Peugeot Citroën. The group had 
thus  registered  an  acceleration  in  the  growth  of  its  sales  in  2007  (1.7%  in  the  first 
half  of  the  year  and  6.2%  in  the  second,  compared  with  the  same  period  in  the 
previous year). It therefore expected a comparable positive trend in 2008. However, 
the unexpected global financial and economic crisis and its repercussions completely 
extinguished group's prospects, with no time for it to prepare for this. 

Identification of the dismissing businesses and workers targeted for assistance 

8. 

The  application  covers  649  redundancies  in  two  branches  of  PSA  Peugeot  Citroën 
(Peugeot Citroën Automobiles and Sevelnord). 

Name of the businesses 

Number of redundancies during the 
reference period 

Peugeot Citroën Automobiles 
Sevelnord 
Total 

630
19
649

In accordance with Article 3(a)(b) of Regulation (EC) No 1927/2006, in addition to 
the  workers  made  redundant  during  the  reference  period,  1 440  workers  made 
redundant by the same companies before and after the period in question following 
the same redundancy plan based on voluntary departures are targeted for assistance. 
The  total  number  of  workers  who  can  benefit  from  the  coordinated  package  of 
personalised services thus amounts to 2 089. 

9. 

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

Category 
Male 
Female 
EU citizens 
Nationals of third countries 
15-24 years 
25-54 years 
55-64 years 

Number
1 623
466
2 028
61
13
1 208
868

Percentage 
77.69 
22.31 
97.08 
2.92 
0.62 
57.83 
41.55 

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4 

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> 64 years old 

0

0.00 

10. 

Among the workers in question, 108 (5.2%) suffer from a health problem or a long-
term disability. 

11. 

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

Category 
Senior managers 
Employees,  technicians  and  supervisors 
(ETAM) 
Workers 

Number
344
494

Percentage 
16.47 
23.65 

1 251

59.89 

12. 

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

13. 

14. 

The  redundancies  targeted  by  this  application  affect  ten  regions  in  France,  most  of 
which  are  situated  in  the  northern  half  of  the  territory.  However,  these  voluntary 
departures affect more specifically Brittany (32% of voluntary redundancies), Ile-de-
France (25%) and Franche-Comté (13%). 

The competent authority is the Ministry of Labour, Employment and Health, and in 
particular  the  General  Delegation  for  Employment  and  Vocational  Training.  The 
other  local  stakeholders  are  the  Directors-General  for  Enterprises,  Competition, 
Consumer Affairs, Labour and Employment and their territorial units. PSA Peugeot 
Citroën itself is also a major player and will coordinate the measures. 

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

15. 

PSA Peugeot Citroën's voluntary redundancy plan mainly affects the following four 
French regions, by order of importance: 

– 

– 

– 

Brittany  (1 473  redundancies):  the  Rennes  site  is  located  in  an  employment 
zone with an unemployment rate which is lower than the national average (7% 
and  9.3%  respectively  in  2011),  but  where  PSA  Peugeot  Citroën  is  the  main 
employer; 

Franche-Comté  (803 redundancies): the Sochaux and Vesoul sites  are located 
in an employment zone with an unemployment rate (12.2% in 2011) which is 
significantly  higher  than  the  national  average.  This  territory,  which  has 
historically been a location for industry in general and the vehicle industry in 
particular, has been severely affected by the economic crisis; 

Île-de-France (515 targeted workers): the Île-de-France sites are located in an 
employment  zone  where  the  unemployment  level  (8.4%  in  2011)  tends  to  be 
lower than that of metropolitan France, but where employment in the industrial 
sector is dwindling faster than in other French regions. For instance, between 

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– 

– 

1999  and  2008,  industrial  jobs  in  Île-de-France  fell  by  2.5%  per  year  on 
average, compared with 1.4% in the rest of France9; 

Alsace  (428  redundancies):  the  Mulhouse  site  is  located  in  an  employment 
zone which is highly affected by unemployment (11.5% in 2011). This territory 
is  suffering  from  a  rapid  decline  in  industrial  employment  (- 4.7%  between 
2003 and 2007). PSA Peugeot Citroën is the main employer in the region; 

Lorraine  (400  redundancies):  the  Metz  and  Tremery  sites  are  located  in  an 
employment  zone  whose  unemployment  level  (10.5%  in  2011)  is  higher  than 
the  national  average.  This  territory  revolves  essentially  around  the  tertiary 
sector,  but  is  affected  by  the  persistent  decline  in  industrial  employment  (-
 1.76% between 2003 and 2007). With its two sites, PSA Peugeot Citroën is the 
biggest private employer in the region. 

16. 

17. 

PSA  Peugeot  Citroën's  voluntary  redundancies  plan  has  also  affected,  albeit  to  a 
lesser extent, the regions of Nord/Pas-de-Calais (142 workers targeted), Picardy (50 
workers  targeted),  Lower  Normandy  (37  workers  targeted),  Auvergne  (16  workers 
targeted) and the Centre (3 workers targeted). 

With more than one thousand workers, the subsidiary Peugeot Citroën Automobiles 
of  the  group  PSA  Peugeot  Citroën  is  required  to  contribute  to  the  revitalisation  of 
these regions, pursuant to Article L1233-84 of the Labour Code. This means that the 
company  will  contribute  to  the  creation  of  new  activities  and  new  jobs,  so  as  to 
attenuate the effects of redundancies in these regions. 

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 

18. 

The  aim  of  the  voluntary  redundancy  plan  launched  by  PSA  Peugeot  Citroën  on 
1 January 2009 was to help the 5 100 workers covered by this plan. Until 31 March 
2010, each of these workers could choose one of the following options: 

1) 

2) 

The professional or personal project: this project is intended for workers who 
already  have  plans  for  redeployment  (e.g.  those  who  already  have  a 
prospective future sector of professional activity or employer), but who need 
temporary  support  (from  one  to  three  months)  in  order  to  achieve  this 
objective.  This  support  takes  the  form  in  particular  of  advice,  training  or 
assistance  to  set  up  or  take  over  a  company.  One  hundred  and  thirteen 
workers have opted for the professional or personal project; 

Le  "congé  de  reclassement"  (redeployment  leave):  this  measure  is  for 
workers who do not yet have any precise plans for redeployment at the time 
of their voluntary departure and who wish to benefit, over a period which can 
extend  to  nine  months,  from  retraining  measures,  advice,  guidance  or 

9 

EN 

"Industrie  francilienne:  des  emplois  plus  qualifiés  et  moins  industriels"  ("Industry  in  Île-de-France: 
more 
2011, 
INSEE, 
http://www.insee.fr/fr/insee_regions/idf/themes/alapage/alap378/alap378.pdf  

December 

industrial 

qualified 

jobs", 

less 

and 

6 

   EN 

 
                                                 
assistance  to  set  up  or  take  over  a business.  One  thousand  one  hundred  and 
sixty-nine workers chose the placement leave; 

Setting up or taking over a business: this measure is for workers whose plans 
for redeployment involve setting up or taking over a business, without them 
needing  any  support  in  the  process.  Six  hundred  and  seven  workers  have 
chosen to set up or take over a business; 

Voluntary retirement; 

Assistance upon return to country of origin; 

Support for internal mobility; 

Support for extended leave. 

3) 

4) 

5) 

6) 

7) 

The  purpose  of  the  application  for  an  EGF  contribution  is  to  help  a  total  of  2 089 
workers  who  have  opted  for  the  first  three  measures  described  above,  i.e.  the 
professional  or  personal  project  (113  workers),  the  redeployment  leave  (1 369 
workers) and setting up or taking over a business (607 workers). 

As  regards  the  redeployment  leave,  Article  L1233-71  of  the  Labour  Code  provides 
that a company which employs more than one thousand people is required to propose 
the measures set out therein for a minimum duration of four months and a maximum 
duration  of  nine  months.  According  to  the  above-mentioned  legislation,  the  period 
between  the  fifth  and  ninth  month  is  therefore  optional  and  may  be  subject  to  a 
contribution from the EGF in accordance with Article 6(1) of the Regulation creating 
the Fund. PSA Peugeot Citroën has decided to propose this measure for a maximum 
period  of  nine  months,  depending  on  the  post  occupied  by  the  worker,  his/her 
seniority  and  place  of  employment.  The  application  does  not  provide  for  any 
contributions  for  "congé  de  reclassement"  for  the  first  four  months  of  the 
programme, which correspond to the minimum duration stipulated by law, and also 
excludes all the periods during which workers are still covered by their redundancy 
notice period. 

19. 

The  proposed  measures  are  set  out  below.  Together,  they  constitute  a  coordinated 
package of personalised services intended to allow the professional reintegration of 
the 2 089 workers concerned. 

–  Employment Mobility Units: These units, of which there are 24, give guidance on 
jobseeking and training, offer access to actual training courses and provide advice 
on  setting  up  businesses  (e.g.  finding  financing,  drafting  a  development  plan, 
introduction to management, etc.). The units are made up of PSA Peugeot Citroën 
employees, supported by external staff from consultancy practices. Their activities 
are  coordinated  and  run  by  a  central  unit.  They  offer  their  services  to  all  the 
employees for which EGF support is intended. 

–  Training for the "congé de reclassement": Workers who have opted for the congé 
de reclassement receive training which is tailored to their needs, as identified by 
the  Employment  Mobility  Unit  (e.g.  IT  support,  English  lessons,  etc.).  These 
training  courses  may  be  longer  than  the  nine  months  of  congé  de  reclassement 

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7 

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provided  for  if  they  are  part  of  the  training  pathway  adopted  with  the 
redeployment unit. 

–  Training for the professional or personal project: Workers who have opted for the 
professional  or  personal  project  receive  training  tailored  to  their  plans  (e.g. 
carpentry, ergonomic methodology, decorative painting, etc.). 

–  Training for setting up or taking over a business: Workers who have chosen to set 
up or take over a business receive training tailored to their plans (e.g. accounting 
support, business management training, etc.). 

–  Allowance  provided  under  the  congé  de  reclassement:  this  monthly  allowance, 
paid until the end of the congé de reclassement, amounts to 65% of the worker's 
last salary. This amount is calculated based on the assumption of the workers' full-
time participation in active labour market measures; if participation is to a lesser 
extent,  the  EGF  will  pay  workers  an  allowance  which  is  proportionate  to  their 
actual participation. 

–  Support for setting up a business: this measure is offered to both workers who opt 
for  the  professional  or  personal  project  and  those  who  choose  the  congé  de 
reclassement. Depending on the needs of the workers concerned, it comprises: 

– 

– 

– 

– 

a  EUR 6 000  premium  paid  in  two  instalments  (the  first  half  upon 
presentation of proof of setting up or taking over a business; the balance 
upon presentation of evidence that the company is still engaged in real 
activity six months after its registration); 

a  local  employment  allowance  of  EUR 2 000,  paid  if  the  business 
creation or takeover takes place in the job catchment area of the initial 
place of assignment of the employee who has left PSA Peugeot Citroën; 

a  job  support  allowance  of  EUR 1 000 per  full-time  job  created,  for  a 
maximum of two jobs created; 

a zero-rate reimbursable loan of EUR 15 000. The cost of this measure 
alone  is  estimated  to  be  EUR 2 900.  It  corresponds  to  the  application 
fees and interest for the loan as passed on to the company by the credit 
establishment concerned. 

20. 

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 and control measures. 

The information activities proposed by France comprise the publication of a number 
of  articles  on  the  application  for  an  EGF  contribution  in  the  media  of  the  PSA 
Peugeot Citroën group and on the human resources intranet, as well as the provision 
of posters to advertise the Fund in the group's establishments. Furthermore, posters 
and  leaflets  produced  by  the  Commission  concerning  the  EGF  support  have  been 
disseminated  to  the  local  information  points  and  within  the  Employment  Mobility 
Units.  France's  proposal  also  provides  for  an  external  communication  following 
approval of the application by the Commission. 

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8 

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Furthermore, the French authorities have  explained  that  only  modest  amounts  were 
provided  for  the  management  control  measures  because  they  had  not  counted  the 
activities which they were in any case obliged to perform in the general running of 
the State. 

21. 

The  personalised  services  presented  by  the  French  authorities  are  active  labour 
market  measures  coming  under  the  eligible  actions  defined  by  Article  3  of 
Regulation (EC) No  1927/2006.  The  French  authorities  evaluate  the  total  cost  of 
these services at EUR 18 352 056 and the expenditure for implementing the EGF at 
EUR 32 047 (0.17% of the total amount). The total contribution requested from the 
EGF is EUR 11 949 666 (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)10 

Personalised services (Article 3(1) of Regulation (EC) No 1927/2006) 

Employment Mobility Units: 

2 089

981.43

Training for congé de reclassement 

Training for the professional or 
personal project  

Training for setting up or taking over a 
business 

Allowance provided under the congé 
de reclassement  

700

68

3 684.59

3 131.38

2 050 206

2 579 213

212 934

304

3 634.12

1 104 773

1 080

5 105.18

5 513 593

Support for setting up a business 

924

7 458.16

Sub total for "personalised services" 

6 891 337

18 352 056

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

Preparation and monitoring 

Organisation, monitoring and 
traceability of the data 

Sub-total of expenditure for 
implementing the EGF 

Total estimated costs 

EGF contribution (65% of total cost) 

17 047

15 000

32 047

18 384 103

11 949 666

22. 

France  confirms  the  complementarity  of  the  measures  described  above  with  the 
actions  financed  by  the  Structural  Funds  and  guarantees  the  absence  of  double 
financing,  since  they  are  not  eligible  for  any  other  aid  from  either  the  European 
Union or the French State. An agreement between the French State and PSA Peugeot 
Citroën confirms the obligation to guarantee the absence of double financing. 

10 

The totals do not tally since they have been rounded up. 

EN 

10 

   EN 

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

23. 

France  started  to  provide  the  workers  concerned  with  the  personalised  services 
included  in  the  coordinated  package  proposed  for  cofinancing  by  the  EGF  on 
1 January  2009,  the  date  on  which  these  workers  started  to  benefit  from  all  the 
measures set out in the voluntary redundancy plan. This date therefore represents the 
beginning  of  the  period  of  eligibility  for  any  assistance  which  might  be  awarded 
under the EGF. 

Procedures for consulting the social partners 

24. 

On 2 December 2008, the Central Works Council held an extraordinary meeting in 
order to discuss the planned call for voluntary departures envisaged by PSA Peugeot 
Citroën. The Central Works Council then met on several occasions in the course of 
2009, in particular in order to assess the implementation of this call and its outcome. 
The application for a contribution from the EGF was announced at an extraordinary 
meeting  of  the  Central  Works  Council  on  20  April  2010.  Furthermore,  the  trade 
unions have been kept regularly informed about the measures taken.  

25. 

The French 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 

26. 

As regards the criteria contained in Article 6 of Regulation (EC) No 1927/2006, the 
French 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  

27. 

France informed the Commission that the financial contribution would be managed 
by  the  Mission  du  Fonds  national  de  l’emploi  (FNE,  National  Employment  Fund) 
within the Délégation générale à l’emploi et à la formation professionnelle (DGEFP, 
General  Delegation  for  Employment  and  Vocational  Training)  of  the  Ministry  of 
Labour, Employment and Health. The payments will be managed by the Mission du 
Financement,  du  Budget  et  du  Dialogue  de  Gestion  (MFBDG,  Mission  for 
Financing, Budget and Management Dialogue) within the Department for Financing, 
Dialogue and Management Control of the same Ministry. Audits and controls will be 
carried  out  by  the  Mission  Organisation  des  Contrôles  (MOC,  Mission  for  the 
Organisation  of  Controls)  within  the  Sous-Direction  Politiques  de  Formation  et  du 
Contrôle (Subdirectorate for Training and Monitoring Policies) of the same Ministry. 

EN 

11 

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Certification  will  be provided by the Pôle de Certification (Certification Centre) of 
the Directorate-General for Finances. 

Funding 

28. 

29. 

30. 

31. 

On the basis of the application from France, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  the  EGF)  is  EUR 11 949 666,  representing  65%  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by France. 

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 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 on the amount required. 
The Commission invites the first of the two arms of the budgetary authority to reach 
an  agreement  on  the  draft  mobilisation  proposal,  at  appropriate  political  level,  to 
inform  the  other  arm  and  the  Commission  of  its  intentions.  In  the  event  of 
disagreement by either of the two arms of the budgetary authority, a formal trialogue 
meeting will be convened. 

32. 

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  

33. 

Appropriations  from  the  EGF  budget  line  will  be  used  to  cover  the  amount  of 
EUR 11 949 666 needed for the present application. 

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12 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on 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/2010/015 FR/Peugeot from France) 

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 
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. 

France submitted an application to mobilise the EGF, in respect of redundancies in the 
PSA  Peugeot  Citroën  group  in  France  on  5  May  2010  and  supplemented  it  by 
additional  information,  the  last  of  which  was  supplied  on  13  April  2012.  This 
application complies with the requirements for determining the financial contributions 

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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13 

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set  out  in  Article  10  of  Regulation  (EC)  No  1927/2006.  The  Commission  therefore 
proposes to mobilise an amount of EUR 11 949 666. 

(5) 

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

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 11 949 666 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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