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/2011/026 IT/Emilia-Romagna Motorcycles from Italy) 
Date: 2012-10-19
Institutions: European Commission
Subjects: Emilia-Romagna, European Globalisation Adjustment Fund, Italy, collective dismissal, commitment of expenditure, cycle and motorcycle industry, economic recession, employment aid, general budget (EU), payment appropriation, reintegration into working life

EUROPEAN 
COMMISSION 

Brussels, 19.10.2012  
COM(2012) 616 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/2011/026 IT/Emilia-Romagna Motorcycles 
from Italy) 

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  30  December  2011,  Italy  submitted  application  EGF/2011/026 IT/Emilia-Romagna 
Motorcycles  for  a  financial  contribution  from  the  EGF,  following  redundancies  at  ten 
enterprises  operating  in  division  30  of  NACE  Revision  2  (Manufacture  of  other  transport 
equipment)3 in the NUTS II region of Emilia-Romagna (ITH5) in Italy. 

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: 

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 

EGF/2011/026 

Italy 

b) 

10 

Emilia - Romagna (ITH5) 

30 (Manufacture of other 
transport equipment) 

28.2.2011 – 28.11.2011 

1.3.2012 

30.12.2011 

512 

1 
2 
3 

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). 

EN 

2 

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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) 

502 

3 932 992 

157 000 

3,84 

4 089 992 

2 658 495 

1. 

2. 

The  application  was  presented  to  the  Commission  on  30 December  2011  and 
supplemented by additional information up to 10 September 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 between the redundancies and the financial and economic crisis 

3. 

In  order  to  demonstrate  the  link  between  the  redundancies  and  the  global  financial 
and  economic  crisis,  Italy  indicated  that  registrations  of  powered  two-wheelers  in 
Europe  (representative  of  domestic  demand)  have  fallen  considerably  (most 
significantly, a fall of 42 % for mopeds and 31 % for motorcycles between 2007 and 
2010)5.  

Registration of powered two-wheelers in the EU 

Mopeds 

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Motorcycles 

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901 425  

1 520 030  

876 102  

-3 % 

1 410 020  

-7 % 

-42 % 

-31 % 

740 970  

-15 % 

1 230 043  

-13 % 

523 397  

-29 % 

1 044 129  

-15 % 

2007 

2008 

2009 

2010 

4. 

4 
5 

Italy  made  the  point  that  the  manufacture  of  powered  two-wheelers  in  Europe  also 
fell  sharply  as  a  result  of  the  global  financial  and  economic  crisis,  in  particular 

In accordance with Article 3(3) of Regulation (EC) No 1927/2006. 
Source: ACEM (the Motorcycle Industry in Europe - http://www.acem.eu) Registrations and deliveries 
– Edition 2011. 

EN 

3 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
                                                 
between 2007 and 2009. According to statistics published by ACEM6, production by 
the main European powered two-wheeler manufacturers7 fell by 37 % between 2007 
and 2009 and by 25 % between 2008 and 2009. 

6 
7 

Source: ACEM (the Motorcycle Industry in Europe - http://www.acem.eu) Production – Edition 2011. 
Italy, Spain, France, Germany, Austria, United Kingdom, Czech Republic, Portugal and Sweden. 

EN 

4 

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Production of powered two-wheelers by country6 

5. 

The  Italian  authorities  also  mentioned  that  the  European  powered  two-wheeler 
industry  has  also  suffered  as  a  result  of  the  growth  in  exports  of  cycles  and 
motorcycles  by  manufacturers  based  in  Asia.  China  in  particular,  as  the  world's 
foremost exporter of cycles and motorcycles, accounting for 25 % of the market, and 
India,  which  is  gradually  catching  up  with  China,  are  now  the  world's  biggest 
manufacturers  (India's  share  of  the  global  export  market  rose  from  1 %  to  2.70 % 
between 2007 and 2010). The growing market share of these countries explains the 
overall  reduction  in  the  cycle  and  motorcycle  exports  of  most  European  producers 
(Germany and Spain were the exceptions between 2009 and 2010), with France and 
Italy particularly affected (Italy's share of the international export market has fallen 
by over 30 % in ten years). 

Export market share (cycles and motorcycles)8 

(cid:160) China (CN) (cid:160) Italy (IT) (cid:160) Germany (DE) (cid:160) Spain (ES) (cid:160) India (IN) (cid:160) France (FR) (cid:160) United Kingdom (UK). 

8 

Source:  Available  data  on  trade  in  motorcycles  and  cycles  from  the  United  Nations  Conference  on 
Trade and Development (UNCTAD). 

EN 

5 

   EN 

 
 
 
                                                 
6. 

7. 

8. 

9. 

Italy  described  how  the  value  of  cycle  and  motorcycle  exports  declined  rapidly 
between 2008 and 2009 (a fall of 21.3 % for example between 2008 and 2009 for the 
EU and  25.9 % for  Italy)8. The slight recovery in exports in  2010  widened the gap 
between  the  'advanced'  countries  and  emerging  countries:  the  former  are  broadly 
returning  to  their  level  of  exports  prior  to  2008  (although  they  are  still  on  average 
20 %  down  on  2008),  the  latter  are  achieving  higher  levels  than  in  2008  (China 
increased its export value by 32.4 % between 2009 and 2010, and India by 35.8 %, 
whereas the EU's export value grew only 9.5 % during the same period). 

Italy, which is Europe's largest producer of powered two-wheelers, demonstrated that 
at national level, the production of motorcycles and mopeds, in which the region of 
Emilia Romagna is a major player (three of the companies covered in this application 
manufacture motorcycles under their own marque: Morini, Malaguti and Minarelli), 
has decreased (by 6 % between 2009 and 2010). The most significant reduction was 
in  the  total  production  of  powered  two-wheelers,  which  in  Italy  fell  from  641 000 
vehicles in 2008 to 448 100 in 2010 (-30 %)9. 

Italy  noted  that,  since  2006,  its  imports  of  spare  parts  for  motorcycles  and  mopeds 
(considering that seven of the companies covered in this application form part of the 
local  fabric  of  companies  specialising  in  the  manufacture  of  spare  parts  or 
components  for  powered  two-wheeler  industries)  have  been  higher  than  its  exports 
(which had never happened in the previous ten years)10. 

Lastly, the Italian authorities stated that the significant reduction in motorcycle and 
moped  registrations 
in  Europe  also  affected  Italy  (motorcycle  and  moped 
registrations fell 27 % between 2009 and 2010)11. 

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

10. 

11. 

Italy  submitted  this  application  under  the  intervention  criteria  of  Article 2(b)  of 
Regulation (EC) No 1927/2006, which makes a contribution from the EGT subject to 
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. 

The application cites 512 redundancies in ten enterprises operating in division 30 of 
NACE Revision 2 (Manufacture of other transport equipment) during the nine-month 
reference  period  between  28  February  2011  and  28  November  2011.  Of  these  512 
redundancies, 63 were calculated in accordance with the second indent of the second 
paragraph  of  Article  2  of  Regulation  (EC)  No 1927/2006,  and  449  with  the  third 
indent of the same paragraph.  

12. 

The  Commission  received  confirmation  on  19 July  2012  that  the  individuals 
recognised under the third indent of the second paragraph of Article 2 had been made 
redundant (esuberi). 

Explanation of the unforeseen nature of those redundancies 

9 
10 
11 

Source: Associazione Nazionale Ciclo Motociclo Accessori (ANCMA) - www.ancma.it. 
Source: ANCMA. 
Source: ACEM. 

EN 

6 

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13. 

The  financial  crisis  has  weighed  on  the  sector  since  2008,  and  mainly  benefited 
larger  manufacturers,  which  were  better  able  to  adapt  as  a  result  of  their  size  (for 
example  Ducati).  Italy  reported  that  the  situation  was  very  different  for  small  and 
medium-sized motorcycle and equipment manufacturers12, which have been directly 
affected by the fall in motorcycle demand (registrations) since 2008 and the drop in 
production since 2008. They tried to adapt their production to maintain their market 
share  (for  example  by  producing  four-stroke  engines  for  Motori  Minarelli,  or  by 
working  with  other  marques  for  Motori  Malaguti).  In  spite  of  their  efforts,  the  ten 
companies concerned by the Italian application had to make some of their employees 
redundant or close permanently in 2011. 

Identification of the dismissing businesses and workers targeted for assistance 

14. 

The application covers 512 redundancies in ten enterprises: 

Enterprises and number of redundancies 

ENGINES ENGINEERING 

6 

MOTORI 
S.P.A. 

MALAGUTI 

150 

F. FABBRI ACCESSORI 

5  MOTORI MINARELLI 

GALVANOTECNICA & PM 

MASIERO 
CAMBI 

ANTONIO 

43 

16 

PAIOLI COMPONENTS 

PAIOLI MECCANICA 

19 

6 

51 

MOTO MORINI S.P.A. 

38 

VERLICCHI NINO E FIGLI  178 

Total enterprises: 10 

Total redundancies: 512 

15. 

16. 

Italy  also  stated  that  three  of  the  ten  enterprises  concerned  had  not  permanently 
closed or made all their employees redundant (Engines Engineering, Motori Minelli 
and F. Fabbri Accessori). 

The  512  people  made  redundant  during  the  reference  period  are  eligible  for 
assistance in accordance with Article 3(a) of Regulation (EC) No 1927/2006. Of the 
512  workers  made  redundant,  the  502  who  have  not  yet  found  alternative 
employment are targeted for assistance.  

17. 

The breakdown 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
294
208
481
21
2
416
82

Percentage 
58.6 
41.4 
95.8 
4.2 
0.4 
82.9 
16.3 

12 

This  application  concerns  10  small  and  medium-sized  enterprises  with  an  average  of  92  employees 
(minimum six, maximum 363). 

EN 

7 

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18. 

19. 

20. 

Category 
> 64 years old 

Number
2

Percentage 
0.4 

None of the workers in question suffer from a long-term health problem or disability. 

In terms of professional categories, the breakdown is as follows: 

Category 
 Associate professionals 

Clerical staff 

Number
11
200

Percentage 
2.2 
39.8 

and  machine  operators 

Plant 
assemblers 

and 

291

58.0 

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

Description of the territory concerned and its authorities and stakeholders 

The territory covered by the application is the NUTS II region of Emilia-Romagna, a 
province in northeast Italy which had 4 432 418 inhabitants on 1 January 2011 and a 
population  density  of  197.49  inhabitants  per  square  kilometre  (close  to  the  Italian 
average of 200 inhabitants per square kilometre).  

The  Italian  authorities  made  the  point  that  the  population  of  Emilia-Romagna  was 
falling  faster  than  the  Italian  average  (the  natural  growth  rate  is  much  lower  than 
Italy's: -1.3 % compared to -0.4 % at national level in 201013). 

Emilia-Romagna  is  also  a  region  where  population  ageing  is  more  significant  than 
the  Italian  average  (the  number  of  people  over  the  age  of  65  living  there  was  two 
points  higher  than  the  Italian  average  in  2011,  while  the  percentage  of  people 
between 0 and 14 years old, at 13.3 %, was below the national average of 14 %)14. 

The  Italian  authorities  described  the  Emilia-Romagna  region  as  having  a  viable 
economy  (the  wealth  it  created  in  2009  corresponded  to  8.7 %  of  Italian  GDP,  its 
GDP per inhabitant was EUR 30 493, above the national average of EUR 25 237)15 
which on average suffered more than other regions as a result of the economic and 
financial crisis. 

Italy reported that between 2008 and 2009, the GDP per capita of Emilia-Romagna 
fell on average more than the national average (-4.89 %, against -3.6 %) and that the 
GDP also fell more sharply (-3.7 %) compared to the national trend (-3 %). 

Emilia-Romagna  is  still  the  third  largest  Italian  region  in  terms  of  exports  and  the 
fourth largest for imports. However, in 2010, Emilia-Romagna's exports to the rest of 
the  world  fell  10.8 %  in  comparison  to  2008.  Although  Emilia-Romagna  had  a 

21. 

22. 

23. 

24. 

25. 

26. 

13 

ISTAT 

Source: 
Institute 
(Italian 
http://demo.istat.it/altridati/indicatori/index.html#tabreg. 
Source: ISTAT - Table 6 in http://demo.istat.it/altridati/indicatori/index.html#tabreg. 
Source: Bank of Italy, Regional economies, the economy of Emilia-Romagna – 2011:  

14 
15 
http://www.bancaditalia.it/pubblicazioni/econo/ecore/2011/analisi_s_r/1131_emilia. 

Statistics) 

National 

of 

- 

Table 

3 

in 

EN 

8 

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27. 

28. 

positive  trade  balance  between  2008  and  2010,  its  trade  surplus  decreased 
significantly over the same period, by 16.5 %. 

Emilia-Romagna also suffered from the national decline in the number of companies 
in  business  and  the  drop  in  the  number  of  companies  established  (80 483  new 
enterprises were established in Italy in 2008, compared to 77 443 in 2011). 

(Regione  Emilia-Romagna), 

the  National  Association  of 

The main authorities and stakeholders are the Italian Ministry of Labour and Social 
Policy  (Ministero  del  Lavoro  e  delle  Politiche  Sociali),  the  Region  of  Emilia-
Italian 
Romagna 
Municipalities  (ANCI  -  Associazione  Nazionale  Comuni  Italiani),  the  Union  of 
Italian  Provinces  (UPI:  Unione  delle  Province  d'Italia),  the  local  sections  of  the 
National Confederations of Crafts and Small and Medium-Sized Enterprises (CNA: 
Confederazione  Nazionale  dell'Artigianato  e  della  Piccola  e  Media  Impresa 
Regionale  dell'Emilia-Romagna  and  Confartigianato  Bologna),  cooperative 
organisations  and  social  enterprises  (Confcooperative  and  Legacoop  Emilia-
Romagna ),  an  organisation  representing  manufacturing  and  service  enterprises  in 
Italy (Confindustria), employers' organisations (Unindustria Bologna and Unionapi), 
and  unions:  CGIL  (Confederazione  Generale  Italiana  del  Lavoro),  CISL 
(Confederazione  Italiana  Sindacati  dei  Lavoratori),  FIM  (Federazione  Italiana 
Metalmeccanici), FIOM (Federazione Impiegati Operai Metallurgici), UIL (Unione 
Italiana del Lavoro) and UILM (Unione Italiana Lavoratori Metalmeccanici). 

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

29. 

30. 

31. 

16 

The redundancies in the powered two-wheeler sector occurred in the context of the 
national and regional economy’s shift towards services (the manufacturing industry 
now accounts for only 11.6 % of jobs in the region) The Italian authorities made the 
point  that  enterprises  will  have  to  specialise  in  processes  and  components  which 
combine  innovation  and  skilled  labour  if  they  are  to  continue  producing  powered 
two-wheelers.  They  consider  that  there  is  no  longer  scope  for  local  production  of 
lower-end  and  mid-range  scooters  and  mopeds  and  that  the  development  of 
enterprises specialising in accessories and spare parts can no longer depend solely on 
traditional local marques such as Ducati.  

The Italian authorities specified that the powered two-wheeler sector employs about 
4 000  people,  without  taking  into  account  the  spare  parts  and  equipment 
manufacturers  associated  with  them  but  which  are  often  classified  in  other  NACE 
Revision 2 categories. They estimate that 1 382 people are affected by the crisis in 
this  sector  and  expect  further  redundancies  to  occur  in  related  sectors  employing 
thousands of people16. 

The  Italian  authorities  also  stressed  the  decline  in  the  employment  situation  in 
Emilia-Romagna, with an employment rate that has fallen by about three percentage 
points  between  2008  and  2010  (from  70.2 %  to  67.4 %).  The  unemployment  rate, 
while among the lowest in Italy, has been rising steadily in the region (from 3.2 % in 
2008 to 5.8 % in 2010) and particularly affects young people in the 15-24 age group, 

Italy  referred  in  particular  to  these  NACE  Revision  2  divisions:  24  (Metallurgy),  25  (Manufacture  of 
fabricated metal products, except machinery and equipment), 26 (Manufacture of computer, electronic 
and  optical  products),  27  (Manufacture  of  electrical  equipment),  28  (Manufacture  of  machinery  and 
equipment n.e.c.) and 29 (Automobile industry). 

EN 

9 

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where  the  unemployment  figure  rose  by  more  than  11  percentage  points  between 
2008 and 2010 (from 11 % to 22.3 %). 

32. 

Lastly, Italy emphasised that, at this time of crisis for the region, extensive use was 
being made of assistance measures providing an income to employees of enterprises 
in  difficulty  in  place  of  wages  (such  as  the  CIGS:  Cassa  Integrazione  Guadagni 
Straordinaria) (CIGS hours increased 14-fold in the region between 2008 and 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 

33. 

The  proposed  measures  set  out  below  constitute  a  coordinated  package  of 
personalised  services  intended  to  allow  the  occupational  reintegration  of  the 
502 workers concerned. The people targeted will be given the opportunity to choose 
the measures they want to participate in, according to the chronological sequence of 
the  measures.  This  sequence  is  composed  of  basic  minimum  services  aimed  at  all 
targeted  workers  (such  as  career  guidance,  active  job  search  assistance  and 
training/retraining)  combined  with  specific  services  aimed  at  certain  workers 
(outplacement  assistance  and  promotion  of  entrepreneurship).  Some  of  the  workers 
targeted will also receive an allowance (for active job-seeking) if they participate in 
the proposed measures. 

–  Career guidance 

This  measure  consists  of  a  series  of  structured  interviews  (individually  or  in 
groups)  to  facilitate  workers'  personal  awareness  to  enable  them  to  identify 
their areas of interest, personal abilities and skills to improve, and to establish a 
personal record. This service will be offered to the 502 workers targeted. 

–  Active job search assistance: 

This measure aims to encourage workers to develop a personal self-promotion 
strategy  using  practical  job-searching  techniques  (looking  for  jobs,  preparing 
for  a  job  interview,  writing  a  CV  and  covering  letter)  in  the  context  of  the 
employment  available  locally  and,  if  necessary,  accompanying  the  worker  as 
far  as  the  job  interview.  This  service  will  be  offered  to  the  502  workers 
targeted. 

–  Training and re-training: 

This  measure available  to  400 workers consists of a training  voucher with an 
average  value  of  EUR 4 000  to  be  used  strictly  within  the  framework  of  the 
training pathway identified for each worker (which nonetheless allows a certain 
leeway  for  workers  to  identify  their  own  needs  in  terms  of  training,  work 
placements, career guidance, etc.). 

–  Outplacement assistance : 

This  specific  incentive  will  cover  the  260  most  disadvantaged  workers,  who 
will be eligible to receive assistance with outplacements and placements within 
a public or private enterprise. A bonus of EUR 5 000 will be paid to companies 

EN 

10 

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or  services  whose  assistance  enables  a  worker  to  find  a  permanent  job  at  the 
end of the period17.  

–  Promotion of entrepreneurship:  

This  measure  consists  of  a  personalised  service  to  assist  workers  (in 
accordance with their skills and possible use of their professional experience) 
with a view to understanding how to run a business and self-employment. This 
activity will take the form of a mentoring group to analyse the constraints and 
opportunities of  self-employment and  entrepreneurship (such as drawing up a 
business  plan,  start-up,  etc.).  The  Italian  authorities  estimate  that  this  service 
will be offered to 61 of the workers targeted. 

–  Active job-seeking allowance:  

This measure, which will cover 216 of the workers targeted, will be paid in the 
form of a monthly allowance of EUR 500 on average, over a maximum period 
of  five  months,  to  workers  actively  participating  in  EGF  measures,  in 
proportion to the number of days per month of effective participation in EGF 
measures.  Payment  of  this  allowance  will  be  strictly  linked  to  the  worker's 
commitment  to  actively  participating  in  the  process  of  reintegration  into  the 
labour market. 

34. 

35. 

The  expenditure  for  mobilising  the  EGF,  which  is  included  in  the  application  in 
accordance  with  Article  3  of  Regulation  (EC)  No  1927/2006,  covers  preparatory, 
monitoring, information and publicity and control measures. 

The  personalised  services  presented  by  the  Italian  authorities  are  active  labour 
market  measures  coming  under  the  eligible  actions  defined  by  Article  3  of 
Regulation (EC) No 1927/2006. The Italian authorities evaluate the total cost of these 
services  at  EUR 4 089 992,  of  which  EUR 3 932 992  for  personalised  services  and 
EUR 157 000  (3.84 %  of  the  total  amount)  for  expenditure  for  implementing  the 
EGF. The total contribution requested from the EGF is EUR 2 658 495 (65 % of the 
total costs). 

17 

The bonus will be paid only if it is not already due under the legislation to support regional policies to 
promote employment. 

EN 

11 

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Measures 

Estimated 
number of 
workers 
targeted 

Estimated 
cost per 
worker 
targeted 
(EUR) 

Total costs (EGF and 
national cofinancing) 
(EUR) 

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

Career guidance 

Active job search assistance 

Training and re-training 

Outplacement assistance 

Promotion of entrepreneurship 

Job-seeking allowance 

Sub-total for personalised services 

502

502

400

260

61

216

186

310

4 000

5 000

4 000

2 500

93 372

155 620

1 600 000

1 300 000

244 000

540 000

3 932 992

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

Preparation 

Monitoring 

Information and publicity 

Control measures 

Sub-total of expenditure for 
implementing the EGF 

Estimated total cost 

EGF contribution (65% of total cost) 

7 000

80 000

10 000

60 000

157 000

4 089 992

2 658 495

36. 

Italy  confirms  that  the  measures  described  above  are  complementary  with  actions 
funded  by  the  Structural  Funds  and  guarantees  there  will  be  no  double  financing. 
Continuous monitoring of the measures financed by the ESF and the EGF for similar 
objectives  or  workers  will  prevent  any  overlap  between  the  ESF  (or  any  other  EU 
instrument or programme) and the measures financed by the EGF. 

EN 

12 

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Date on which the personalised services to the workers concerned started or are due to 
start 

37. 

Italy started to provide the personalised services included in the coordinated package 
proposed  for  cofinancing  by  the  EGF  to  the  workers  concerned  on  1  March  2012. 
This  date  therefore  represents  the  beginning  of  the  period  of  eligibility  for  any 
assistance which might be granted under the EGF. 

Procedures for consulting the social partners 

38. 

39. 

The application for an EGF contribution was discussed with the authorities and other 
stakeholders listed in  point  28  at meetings on 12 October 2011, 14 December 2011 
and 16 January 2012.  

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

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

40. 

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

41. 

42. 

Italy informed the Commission that the financial contribution would be managed as 
follows: the Ministerio del Lavoro e delle Politiche Sociali – Direzione Generale per 
le Politiche Attive e Passive del Lavoro (MLPS – DG PAPL) will be the managing, 
certifying  and  audit  authority  (with  MLPS  –  DG  PAPL  Ufficio  A  as  managing 
authority;  MLPS  –  DG  PAPL  Ufficio  B  as  certifying  authority  and  MLPS  –  DG 
PAPL  Ufficio  C  as  audit  authority).  The  region  of  Emilia-Romagna  (Direzione 
Generale  Cultura  Formazione  e  Lavoro)  will  be  the  managing  authority's 
intermediate body. 

The Italian authorities stated that they would implement the management and control 
system for the EGF adopted by the Italian Ministry of Labour and Social Policy (see 
document ref No 40/0002218 of 29 September 2011) and the operational manual for 
the  managing,  certifying  and  audit  authority  (see  document  ref  No  40/0005840  of 
26 October 2011). 

EN 

13 

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Funding 

43. 

44. 

45. 

46. 

On the basis of the application from Italy, the proposed contribution from the EGF to 
the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  the  EGF)  is  EUR 2 658 495,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Italy. 

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  that 
reaches 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. 

47. 

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  

48. 

49. 

50. 

The amount of payment appropriations initially entered under budget line 04 05 01 
will  be  fully  consumed  once  the  budgetary  authority  adopts  the  proposals  already 
presented  for  the  mobilisation  of  the  EGF  and  therefore  insufficient  to  cover  the 
amount needed for this application. 

A  transfer  of  EUR 1 160 745  from  the  European  Progress  Microfinance  Facility 
budget line will be used to cover part of the amount required for this application. 

The  additional  amount  of  EUR 1 497 750  required  for  this  application  will  be 
covered by an additional appropriation requested in Amending Budget No 6. 

EN 

14 

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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/2011/026 IT/Emilia-Romagna Motorcycles 
from Italy) 

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 
management18, 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  Fund19, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission20, 

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. 

Italy submitted an application to mobilise the EGF, in respect of redundancies in ten 
enterprises  operating  in  division  30  of  NACE  Revision  2  (Manufacture  of  other 
transport  equipment)  in  the  NUTS  II  region  of  Emilia-Romagna  (ITH5)  in  Italy  on 
30 December  2011  and  supplemented  it  by  additional  information,  the  last  of  which 
was supplied on 10 September 2012. This application complies with the requirements 
for determining the financial contributions set out in Article 10 of Regulation (EC) No 

18 
19 
20 

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

EN 

15 

   EN 

 
                                                 
1927/2006.  The  Commission 
EUR 2 658 495. 

therefore  proposes 

to  mobilise  an  amount  of 

(5) 

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

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 2 658 495 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 

16 

   EN