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/2011/014 RO/Nokia from Romania)
Date: 2012-10-19
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Romania, collective dismissal, commitment of expenditure, economic recession, employment aid, general budget (EU), payment appropriation, reintegration into working life, telecommunications industry

EUROPEAN 
COMMISSION 

Brussels, 19.10.2012  
COM(2012) 618 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/2011/014 RO/Nokia from Romania) 

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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  22  December  2011  Romania  submitted  application  EGF/2011/014  RO/Nokia  for  a 
financial contribution from the EGF, following redundancies in SC Nokia Romania SRL and 
one supplier in Romania. 

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

SUMMARY OF THE APPLICATION AND ANALYSIS 

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

EGF/2011/014 
Romania 
(a) 
SC Nokia Romania SRL 
1 
21.8.2011 – 21.12.2011 
8.12.2011 
22.12.2011 
1 904 
0 
1 904 

1 416 

4 346 200 
181 000 
4,00 
4 527 200 
2 942 680 

1. 

2. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  22  December  2011  and 
supplemented by additional information up to 22 August 2012. 

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

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

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Link  between  the  redundancies  and  major  structural  changes  in  world  trade  patterns 
due to globalisation 

3. 

4. 

5. 

6. 

7. 

8. 

In order to establish the link between the redundancies and major structural changes 
in world trade patterns due to globalisation, Romania argues that in the last several 
years there has been a general tendency in Europe for the IT sector to move to Asia. 
In  order  to  respond  to  the  challenges  of  the  markets,  the  headquarters  of  Nokia 
Corporation in Finland elaborated a strategy to move its production sites as close to 
the markets as possible4. 

The primary reason for the redundancies is the transfer of functions within the sector 
to third countries outside Europe. Assembly of mobile phones, previously carried out 
in  Cluj  and  Salo5,  has  been  offshored  to  Asia  (China,  South  Korea,  India  and 
Vietnam, where a new Nokia plant is under construction). Component manufacture 
and subcontracted production had already been transferred out of Europe. Following 
the direction already taken by production, both design and product development have 
been, or are being, offshored. 

Trade statistics for Nokia Corporation show6 that for the two years 2010 and 2011, 
net  sales  were  growing  in  China,  India,  Russia  and  Brazil  while  for  Europe  (apart 
from Germany) bigger markets including the UK and Spain were in decline. 

Statistics7 also show that the growth in sales of mobile services and devices volumes 
by geographic area is significantly higher in Greater China and Latin America, with a 
year on year change of 13 % and 21 % respectively, than in Europe, where the year 
on year change for 2010/2011 was – 2 %. 

The Romanian authorities quote the Nokia Corporation report for Q4 of 20118 where 
intentions  to  reduce  the  global  workforce  by  approximately  17 000  by  the  end  of 
2013 are expressed and the opening of a new production site near Hanoi in the north 
of Vietnam is planned. 

To date, the mobile phone sector has been the subject of several EGF applications, 
all of which based on trade related globalisation9.  

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

9. 

4 
5 
6 
7 
8 

9 

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

http://press.nokia.com/2011/09/29/nokia-continues-to-align-its-workforce-and-operations 
EGF/2012/006 FI/Nokia Salo 
http://www.nokia.com/global/about-nokia/investors/financials/reports/results---reports/ 
http://www.results.nokia.com/results/Nokia_results2011Q4e.pdf 
http://press.nokia.com/2012/01/26/nokia-q4-2011-net-sales-eur-10-0-billion-non-ifrs-eps-eur-0-06-
reported-eps-eur-0-29-nokia-2011-net-sales-eur-38-7-billion-non-ifrs-eps-eur-0-29-reported-eps-eur-0-
31/ 
Regular updates here : http://ec.europa.eu/social/BlobServlet?docId=4558&langId=en 

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10. 

The application cites 1 809 redundancies in SR Nokia Romania SRL and 95 in one 
supplier  during  the  four-month  reference  period  from  21  August  2011  to  21 
December 2011. All 1 904 of these redundancies were calculated in accordance with 
the  third  indent  of  the  second  paragraph  of  Article  2  of  Regulation  (EC)  No 
1927/2006.  The  Commission  has  received  confirmation  from  Romania  that  all  of 
these redundancies have meanwhile been effected. 

Explanation of the unforeseen nature of those redundancies 

11. 

12. 

The  Romanian  authorities  argue  that  the  decision  on  the  delocalisation  of  Nokia 
production  and the  nature  of  the redundancies was unforeseen as the company was 
developing  steadily  in  the  period  2006  to  2010  with  the  numbers  of  employees 
growing  from  102  in  2006  to  1 552  in  2010  and  an  additional  800  individuals 
working  on  a  temporary  contract  basis.  Financial  indicators  for  the  same  period  as 
indicated  by  the  Romanian  authorities  based  on  data  from  the  Ministry  of  Public 
Finances  of  Romania10  show  that  for  the  period  indicated,  profit  grew  from 
approximately EUR 300 000 in 2006 to EUR 42,3 million in 2010. 

It  was  only  on  29  September  2011  that  in  a  press  release  the  Finnish  company 
announced that as foreseen in the company's strategy there has to be an ''adjustment 
of the production capacity and enhancement of production operations to better serve 
the global network of partner clients and suppliers''11. The presentation made by the 
company shows that this decision, leading to the dismissal of all personnel in Cluj, 
was a corporate decision and part of a global decision to expand in emerging markets 
outside the European Union. 

Identification of the dismissing enterprises and workers targeted for assistance 

13. 

The application relates to 1 904 redundancies of which 1 809 occurred in SC Nokia 
Romania  SLR  and  a  further  95  in  one  supplier,  i.e.  SC  Eurest  SRL.  Romania 
estimates that 1 416 workers will wish to benefit from the EGF measures. 

14. 

The break-down of the 1 416 targeted workers is as follows: 

Category 
Men 
Women 
EU citizens 
Non EU citizens 
15-24 years old 
25-54 years old 
55-64 years old 
> 64 years old 

Number
439
977
1 416
0
330
1 034
52
0

Percent 
31,00 
69,00 
100,00 
0,00 
23,31 
73,02 
3,67 
0,00 

15. 

The  Romanian  authorities  indicate  in  the  application  that  among  the  redundant 
workers there are five with a longstanding health problem or disability.  

10 
11 

www.mfinante.ro 
http://press.nokia.com/2011/09/29/nokia-continues-to-align-its-workforce-and-operations 

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16. 

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

Category 
Professionals 
Technicians and associate professionals 
Clerks 
Service workers and shop and market 
sales workers 
Plant and machine operators and 
assemblers 
Elementary occupations 

Number
30
248
119
6

963

50

Percent 
2,12 
17,51 
8,40 
0,42 

68,01 

3,53 

17. 

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

18. 

19. 

20. 

21. 

The  main  region  affected  by  the  decision  of  Nokia  Corporation  to  relocate 
production  in  Asia  is  the  metropolitan  area  of  Cluj-Napoca  and  more  broadly  the 
labour market of the NUTS III Cluj County. Cluj-Napoca currently produces 49 % of 
the  added  value  of  the  county.  The  main  activities  of  the  county  economy  are 
concentrated in the area of Cluj-Napoka: production, services, trade and construction, 
as well as agricultural activities, since the area is on the Transylvanian Plateau where 
climate conditions favour farming.  

The  capital  of  Cluj  County  is  the  municipality  of  Cluj-Napoca  surrounded  by  17 
communes  totalling  379 705  inhabitants.  The  metropolitan  area  of  Cluj-Napoca 
comprises the territory which is most affected by the decision of Nokia Corporation 
to  relocate  its  production,  as  most  of  the  dismissed  employees  live  in  the 
administrative metropolitan area. 

In  accordance  with  the  data  published  by  the  Regional  Directorate  of  Statistics  of 
Cluj  (end  of  2008)12  the  civil  population  employed  in  the  county,  including  the 
metropolitan  area  population,  is  distributed  as  per  CAEN  (Clasificarea  activitatilor 
din  economia  nationala)  national  classification  as  follows:  agriculture,  forestry  and 
fishing:  72 300  people;  industry:  76 000  people;  construction:  29 500  people;  and 
retail and wholesale trade: 52 100 people. 

The  main  stakeholder  is  the  municipality  of  Cluj-Napoca.  The  Transition  Centre 
''From JOB to Smart JOB" created to assist dismissed workers is to be established in 
the  municipality  of  Cluj-Napoca  as  the  transport  infrastructure  in  and  out  of  town 
serves all the localities of the affected area. 

12 

http://www.cluj.insse.ro/cmscluj/rw/resource/2010r_struct_pop_sectcaen_t_3_29.htm?download=true 

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

22. 

23. 

According to the Romanian authorities, the Labour Survey published by the Regional 
Directorate  of  Statistics  in  Cluj13  provides  data  that  in  the  IT  and  communications 
field  –  the  category  of  SC  Nokia  Romania  SRL  (manufacture  of  communication 
equipment, i.e. NACE Revision 2 class 26.30) – in 2008 there were 5 700 workers, 
of whom 1 255 worked with SC Nokia Romania SRL, i.e. 30 % of the total. In 2011, 
the  number  of  SC  Nokia  Romania  SRL  employees  reached  1 956  persons, 
approximately 40 % of the total working population in this field in the area. 

The  documentation  on  the  collective  redundancy  submitted  by  Nokia  Corporation, 
lists the people to be dismissed as coming from the following areas: 694 persons – 
rural  area  of  the  metropolitan  area  of  Cluj-Napoca,  235  persons  –  municipality  of 
Cluj-Napoca;  212  persons  –  municipality  of  Gherla;  386  persons  –  municipality  of 
Dej; and finally 282 persons from counties other than Cluj. 

24. 

Consequently,  Nokia  Corporation's  decision  is  mostly  affecting  the  county  of  Cluj, 
and particularly the metropolitan area of Cluj-Napoca itself. 

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 

25. 

All the following measures proposed by the Romanian authorities combine to form a 
co-ordinated  package  of  personalised  services  which  aims  at  re-integrating  the 
redundant workers into employment: 

–  Pre-dismissal  services:  The  services  to  be  provided  under  this  measure  include 
presentation  of  the  legal  provisions  on  worker  protection,  presentation  of  the 
insured  persons'  rights  and  obligations,  presentation  of  the  benefits  and 
opportunities  offered  by  EGF,  presentation  of  the  services  available  for  the 
workers, presentation of existing vacancies, presentation of actions organized on 
the  labour  market  for  employment  purposes:  job  fairs,  financial  incentives,  ESF 
financed  projects  and  those  of  the  County  Agency  for  Workforce  Occupancy 
(abbreviated AJOFM) Cluj. 

–  Registration of the workers as job seekers in the Transition Centre ''From JOB to 
Smart JOB": This measure covers the filling in of the registration form to identify 
the persons' needs, the validation of the workers' status and establishing the flow 
scheme within the activities of the Centre, the personal status of the workers at the 
time of registration in the Centre. 

The  work  plan  includes:  determining  the  initial  profile  of  the  worker,  filling  in  the 
registration  sheet,  working  out  the  suggested  pathway,  deciding  on  the  Centre 
activities to be covered, agreeing on the desired results, including the final status of 
the worker. The objective is to achieve a positive attitude towards society, awareness 
of  his  /  her  self-worth  and  the  wish  to  find  another  job,  leading  to  success  in 
obtaining a new job through the activities which he / she will have performed. 

13 

http://www.cluj.insse.ro/cmscluj/rw/pages/index.ro.do 

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–  Information, Counselling and Vocational Guidance: This activity is based on the 
personal  development  principle  and  involves  encouraging  autonomy  and  the 
increase  of  motivation  level  of  the  person  in  crisis.  It  consists  of  preparing 
individual action plans or a counselling chart for each individual and determining 
the flow scheme within the Centre, informing the individual on the labour market, 
legislation,  and  vocational  training  opportunities,  employment  opportunities; 
careers counselling: identification of purposes, psychological evaluation, making 
people  aware  in  order  to  make  working  life  decisions,  determining  possible 
options,  choosing  the  best  solutions;  presentation  of  methods  and  techniques  to 
identify  a  job  position;  presentation  of  ways  to  approach  a  potential  employer; 
presentation of ways to behave before and after the interview; recommendations 
for  other  Centre  activities:  training  programmes,  consultancy  and  assistance  in 
starting-up an independent activity or initiating a business.  

–  Mobility  allowances:  These  will  be  offered  to  those  who  have  managed  to  start 
their own business or to get a job with the new workplace more than 50 km way 
from  their  fixed  residence.  This  allowance  is  paid  to  the  worker  once,  upon 
presentation of the necessary supporting documents. 

–  Transport  allowances:  This  consists  in  the  reimbursement  of  expenses  incurred 
when  a  worker  needs  to  travel  to  participate  in  the  activities  carried  out  by  the 
Centre and when actively in search for a job. 

–  Job-search  allowances:  This  service  consists  in  a  sum  granted  to  workers  who 
follow at least two activities in the Centre, participate in selections organized by 
the  employer  for  recruitment  purposes,  and  prepare  back-up  plans  in  case  of 
failure in an interview. 

–  Training:  This  activity  will  comprise  registering  for  a  course  as  a  result  of  the 
vocational  counselling  received;  establishing  a  course  group  (minimum  7, 
maximum  28  people  per  group);  deploying  the  activity  of  the  training  course; 
course  monitoring  and  coordination  activities  (partial  testing),  six-monthly 
monitoring and follow-up of the trainee. 

–  Internship allowances: This service consists in an allowance for participating in an 
internship  of  two  to  four  weeks  organised  by  potential  future  employers.  These 
internships  will  be  organised  specifically  for  workers  who  had  similar  positions 
within Nokia but lack the particular practical abilities or experience. 

–  Financial assistance for training programme certification: Upon successful course 
finalization a certificate of acquired skills is to be issued within the legal deadline. 
Financial support will be granted to participants who have successfully graduated 
by certification the courses of a vocational training programme. 

–  Entrepreneurship  promotion:  Through  counselling  and  financial  assistance  for 
initiating an independent activity or for a business start-up, the following series of 
activities  are  proposed:  establishing  work  groups  according  to  the  identified 
characteristics  and  needs:  independent  activity  groups  (authorized  freelancers, 
individual  enterprises,  family  associations),  groups  to  initiate  a  business; 
individual  counselling  –  mainly  technical  assistance  in  establishing  a  company, 
presentation of related legal background, preparation of memorandum and articles 

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of  association,  determining  the  object  of  activity,  registering  the  legal  person  or 
the  natural  person,  executing  contracts,  legalizing  documents;  working-out  a 
business plan; entrepreneurial group training: modules on management, marketing 
and selling techniques, legislation, accounting and basic bookkeeping issues; case 
studies:  business  examples  in  various  activity  fields,  initiation  and  development 
phases, monitoring activities. 

–  Financial assistance for initiating independent activities: This consists in financial 
help to begin an independent activity or a business. This amount of approximately 
EUR 1 800  per  person  will  be  necessary  for  the  purchase  of  the  equipment 
required to start the independent activity or new business (i.e. the so-called "start-
up tool kit" so important at the time of embarking on a new activity). 

–  Mentoring  and  post-hiring  support:  This  service  aims  at  facilitating  integration 
and adaptation to the conditions of a new job. Activities will be carried out for no 
more than six months and will be tailored to suit newly employed workers. 

–  Financial assistance for persons with children: Personalized financial support will 
be granted to workers who are sole earners in single parent families with children 
and also workers who have children they cannot supervise during the activities in 
the project, including during hiring interviews. The purpose of this assistance is to 
give  workers  the  possibility  to  pay  for  the  services  of  private  kindergartens  or 
baby  sitter  services  taking  care  of  children  during  their  parents'  activities  in  the 
Centre.  This  personalized  assistance  will  involve  subcontracting  services  from 
kindergartens  or  specialised  firms.  Vouchers  will  be  issued  during  the  transition 
period  to  the  assisted  workers  who  will  in  turn  make  them  available  to  the 
suppliers willing to provide the services needed by the worker. The vouchers will 
be reimbursed to the supplier by the Centre. 

26. 

27. 

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 and control activities as well as information and publicity.  

The  personalised  services  presented  by  the  Romanian  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Romanian authorities estimate the total costs at EUR 4 527 200, 
of  which  the  expenditure  for  personalised  services  at  EUR 4 346 200  and  the 
expenditure for implementing the EGF at EUR 181 000 (4,00 % of the total amount). 
The total contribution requested from the EGF is EUR 2 942 680 (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) 

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

Pre-dismissal services 

Registration of workers 

Information, Counselling and Vocational 
Guidance 

Mobility allowances 

Transport allowances 

Job-search allowances 

Training 

Internship allowances 

Financial assistance for training programme 
certification 

Entrepreneurship promotion 

Financial assistance for initiating independent 
activities 

Mentoring and post-hiring support 

Financial assistance for persons with children 

Sub total personalised services 

1 416

1 416

1 416

40

1 000

800

1 000

150

850

150

150

1 416

150 

120 

10 

169 920

14 160

1 100 

1 557 600

580 

100 

200 

800 

23 200

100 000

160 000

800 000

1 000 

150 000

200 

170 000

700 

105 000

1 800 

270 000

520 

600 

736 320

90 000

4 346 200

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

Preparatory activities 

Management 

Information and publicity 

Control activities 

Sub total expenditure for implementing EGF 

131 000

15 000

20 000

15 000

181 000

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Total estimated costs 

EGF contribution (65 % of total costs) 

4 527 200

2 942 680

28. 

29. 

30. 

Romania  confirms  that  the  measures  described  above  are  complementary  with 
actions funded by the Structural Funds and that due measures are in place to prevent 
double financing with other EU instruments.  

The  Romanian  authorities  have  signed  a  framework  protocol  which  allows  cross-
checking of the data bases of the Ministry of Labour, Family and Social Protection, 
the  Managing  Authority  of  the  ESF  co-financed  Sectoral  Operational  Programme 
''Human  Resources  Development''  (SOPHRD)  as  well  as  the  National  Agency  for 
Employment in order to avoid double financing of activities under the ESF and the 
EGF. The obligations of the employer with regard to collective redundancies and the 
relevant  activities  will  also  be  cross-checked  so  that  they  are  excluded  from  the 
personalised package provided with the help of EGF co-financing. 

The  National  Agency  for  Employment  has  drafted  Procedure  Guidelines  for  the 
management  of  the  contribution  from  the  EGF;  these  are  designed  for  the  staff 
managing the EGF assistance and in compliance with the management of other EU 
financing. 

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

31. 

Romania started the personalised services to the affected workers included in the co-
ordinated package proposed for co-financing to the EGF on 8 December 2011. This 
date therefore represents the beginning of the period of eligibility for any assistance 
that might be awarded from the EGF. 

Procedures for consulting the social partners 

32. 

The  Romanian  authorities  have  reported  that  procedures  for  consulting  the  social 
partners on the proposed coordinated package of personalised services included two 
meetings held in October 2011. One was held in Cluj with the representatives of the 
unions,  employers'  organisations  and  public  institutions  and  a  second  one  at  the 
headquarters of the Managing Authority during which the involvement of the social 
partners  in  the  process  of  preparing  the  request  for  mobilisation  of  the  EGF  in  the 
Nokia case at national level was agreed. 

33. 

The Romanian 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 

34. 

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

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

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

to be used for restructuring companies or sectors; 

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

from other EU financial instruments. 

Management and control systems  

35. 

36. 

37. 

Romania  has  notified  the  Commission  that  the  financial  contribution  will  be 
managed  by  the  National  Agency  for  Employment  which  was  designated  to  be  the 
national  authority  responsible  for  the  management  of  funds  provided  to  Romania 
through the EGF. A governmental decision No 1086/2010 setting up the institutional 
framework  for  the  co-ordination  and  management  of  the  financial  assistance 
provided for Romania from the EGF was taken to that effect. 

The Romanian authorities have also notified the Commission that a special Manual 
of procedures has been drafted and approved by the Minister of Labour, Family and 
Social  Protection  specifically  for  the  management  of  funds  provided  to  Romania 
through the EGF. The manual describes the way the EGF is to be managed the inter-
service relations and responsibilities of the different services and ensures compliance 
with the general principles for management of the EGF as well as with the relevant 
legal framework. 

Romania  informed  the  Commission  that  by  Romanian  law  No  200/2010,  in 
compliance  with  the  provisions  under  Article  62  of  Council  Regulation  (EC) 
No1083/2006,  the  Auditing  Authority  attached to the Romanian  Court  of Accounts 
was appointed as the audit authority for the EGF.  

Financing 

38. 

39. 

40. 

On  the  basis  of  the  application  from  Romania,  the  proposed  contribution  from  the 
EGF  to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 2 942 680,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Romania. 

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. 

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41. 

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. 

42. 

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  

43. 

The amount of payment appropriations initially entered on the budget line 04 05 01 
in 2012 will be fully consumed after the adoption by the two arms of the budgetary 
authority  of  the  proposals  submitted  to  date  for  mobilising  the  EGF  and  therefore 
insufficient to cover the amount needed for the present application. A reinforcement 
of  the  payment  appropriations  of  the  EGF  budget  line  will  be  requested  either 
through a transfer, in case a source of available appropriations can be identified, or 
an Amending budget. Appropriations from this budget line will be used to cover the 
amount of EUR 2 942 680 needed for the present application. 

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Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund in accordance with 
point 28 of the Interinstitutional Agreement of 17 May 2006 between the European 
Parliament, the Council and the Commission on budgetary discipline and sound 
financial management (application EGF/2011/014 RO/Nokia from Romania) 

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 
management14, 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  Fund15, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission16, 

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. 

Romania submitted an application to mobilise the EGF, in respect of redundancies in 
the  enterprise  SC  Nokia  Romania  SRL  and  one  supplier,  on  22  December  2011  and 
supplemented  it  by  additional  information  up  to  22  August  2012.  This  application 
complies  with  the  requirements  for  determining  the  financial  contributions  as  laid 
down  in  Article  10  of  Regulation (EC) No 1927/2006.  The  Commission,  therefore, 
proposes to mobilise an amount of EUR 2 942 680. 

14 
15 
16 

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

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(5) 

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

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 2 942 680 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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