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/2011/018 ES/País Vasco Productos metálicos from Spain)
Date: 2012-10-19
Institutions: European Commission
Subjects: Basque Country, European Globalisation Adjustment Fund, Spain, collective dismissal, commitment of expenditure, economic recession, employment aid, general budget (EU), iron and steel industry, payment appropriation, reintegration into working life

EUROPEAN 
COMMISSION 

Brussels, 19.10.2012  
COM(2012) 620 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/2011/018 ES/País Vasco Productos metálicos 
from Spain) 

{SWD(2012) 352 final} 

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EXPLANATORY MEMORANDUM 

Point  28  of  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management1  allows  for  the  mobilisation  of  the  European  Globalisation  Adjustment  Fund 
(EGF)  through  a  flexibility  mechanism,  within  the  annual  ceiling  of  EUR 500 million over 
and above the relevant headings of the financial framework. 

The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 
1927/2006  of  the  European  Parliament  and  of  the  Council  of  20  December  2006  on 
establishing the European Globalisation Adjustment Fund2. 

On 28 December 2011, Spain submitted application EGF/2011/018 ES/País Vasco Productos 
metálicos  for  a  financial  contribution  from  the  EGF,  following  redundancies  in  423 
enterprises operating in the NACE Revision 2 Division 25 (Manufacture of fabricated metal 
products, except machinery and equipment)3 in the NUTS II region of País Vasco (ES21) in 
Spain. 

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

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 
EGF Reference no. 
Member State 
Article 2 
Enterprises concerned 
NUTS II region 

NACE Revision 2 Division 

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

EGF/2011/018 
Spain 
(b) 
423 
País Vasco (ES21) 
25 (Manufacture of fabricated metal 
products, except machinery and 
equipment) 
22.1.2011 – 22.10.2011 
19.3.2012 
28.12.2011 
1 106 
500 
1 870 000 
129 300 
6,47 
1 999 300 
1 299 545 

1 
2 
3 

4 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406, 30.12.2006, p. 1. 
Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 
In accordance with the third paragraph of Article 3 of Regulation (EC) No 1927/2006. 

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1. 

2. 

The  application  was  presented  to  the  Commission  on  28  December  2011  and 
supplemented by additional information up to 5 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 the global financial and economic crisis 

3. 

4. 

5. 

5 

6 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  Spain  argues  that  the  metal  products  sector  is  a  key  provider  of 
inputs  to  a  wide  range  of  manufacturing  activities,  in  particular  the  shipbuilding, 
construction and automotive sectors. All of these were significantly impacted across 
the  European  Union  by  the  economic  crisis,  as  previously  recognised  by  the 
Commission5 and its services6. In addition the arguments presented in previous EGF 
applications related to these sectors remain valid7, in particular those put forward by 
the Commission on 9 August 2012 in the context of another EGF application from 
Spanish related to the same sector8. 

Spain  is  among  the  Member  States  most  seriously  affected  by  the  global  financial 
and economic crisis. Manufacturing in turn has been among the most affected sectors 
and the situation continues to deteriorate. 

Industry Production Index of Manufacturing (2005=100) 

EU-27 
Germany 
France 
Spain 

2006 
104.81 
105.83 
101.01 
105.38 

2007 
109.23
112.73
102.62
107.56

2008 
107.36
113.06
99.05
98.97

2009 

2010 

91.59
93.64
85.34
82.52

98.44 
104.57 
89.11 
83.03 

2011 
103.15
113.91
92.42
82.16

Source: Eurostat 

The  gloomy  industrial  prospects  resulting  from  the  global  financial  and  economic 
crisis  consequently  led  to  a  lower  demand  for,  and  production  of,  metal  and  metal 
products. In Spain the production of the metal sector as a whole decreased by 24,6 % 
and the production of metal products by 23,3 % in 2009 compared with the previous 
year.  As  shown  below,  while  both  areas  of  activities  started  to  recover  during  the 

COM(2009) 104 final  of  25.2.2009,  "Communication  from  the  Commission  on  "Responding  to  the 
crisis in the European automotive industry"". 
Eurostat – Statistics in focus 61/2011 on Industry, trade and services, "EU-27 Construction activity falls 
by 16 % from its pre-crisis high by the second quarter of 2011", 

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-11-061/EN/KS-SF-11-061-EN.PDF 
7 

For the shipbuilding industry, see: EGF/2010/006 PL/H. Cegielski-Poznan, EGF/2010/025 DK/Odense 
Steel Shipyard and EGF/2011/008 DK/Odense Steel Shipyard. 
For 
the  construction  sector,  see:  EGF/2011/006  ES/Comunidad  Valenciana  Construction, 
EGF/2011/009  NL/Gelderland  Construction  41,  EGF/2011/012  NL/Noord  Brabant-Zuid  Holland  and 
EGF/2011/017 ES/Aragón Construction. 
For  the  automotive  sector,  see:  EGF/2009/019  FR/Renault,  EGF/2010/002  ES/Cataluña  Automotive 
and 2011/003 DE/Arnsberg and Düsseldorf Automotive.  
COM(2012) 451 final of 9.8.2012, related to EGF/2011/019 ES/Galicia Metal. 

8 

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first  quarter  of  2011,  this  eventually  proved  to  be  an  unsustainable  trend  and  the 
production of both sectors declined significantly again in the second half of the year. 

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Variation of industrial production in Spain 

Metal9 
Metal products10 

2009 

2010 

-24,6 
-23,3 

0,4
-6,4

Q1/2011  Q2/2011  Q3/2011  Q4/2011 
-9,6
-10,2

-2,7 
-1,0 

-2,8
-1,3

2,9
7,4

Source: INE (Instituto Nacional de Estadística) and Confemetal 

6. 

The  decrease  of  production  in  the  sector  of  metal  products  had  consequences  for 
employment. Spain thus lost more than 180 000 jobs in the metal sector in 2009 and 
a  further  60 000  jobs  in  2010,  which  represented  approximately  15 %  of  total 
employment of the sector. 

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

7. 

8. 

Spain  submitted  this  application  under  the  intervention  criteria  of  Article  2(b)  of 
Regulation  (EC)  No  1927/2006,  which  requires  at  least  500  redundancies  over  a 
nine-month period in enterprises operating in the same NACE Revision 2 Division in 
one region or two contiguous regions at NUTS II level in a Member State. 

The application cites 1 106 redundancies in 423 enterprises operating in the NACE 
Revision 2 Division 25 ('Manufacture of fabricated metal products, except machinery 
and equipment')11 in the NUTS II region of País Vasco (ES21) during the nine-month 
reference  period  from  22  January  2011  to  22  October  2011.  All  of  these 
redundancies  were  calculated  in  accordance  with  the  second  indent  of  the  second 
paragraph of Article 2 of Regulation (EC) No 1927/2006. 

Explanation of the unforeseen nature of those redundancies 

9. 

The  Spanish  authorities  argue  that  the  financial  and  economic  crisis  has  led  to  a 
sudden  collapse  of  the  world  economy  with  an  enormous  impact  on  many  sectors. 
The nature of the recession as far as the metal products sector is concerned, with a 
dramatic  slowdown  in  new  orders  from  other  sectors  affected  by  the  economic 
downturn,  was  unprecedented  in  recent  times.  As  a  result  of  the  crisis,  economic 
developments  since  2008  have  not  been  following  the  consistent  increase  in 
employment  experienced  over  the  previous  years  in  the  metalworking  industry. 
Between  2000  and  2006,  employment  in  this  sector  had  risen  by  8 %  (or  300 000 
jobs)12  whereas  it  decreased  by  almost  15 %  over  the  period  2009-2010.  The 
redundancies in the metal products sector could not therefore have been foreseen or 
easily prevented. 

Identification of the dismissing enterprises and workers targeted for assistance 

9 

10 

11 

12 

Production  measured  on  the  basis  of  the  indicator  of  metal  production  (or  IPIMET  for  Indicador  de 
Producción del Metal) calculated by the Spanish confederation of the metal sector (Confemetal). 
Defined  as  the  NACE  Revision  2  Division  25  ('Manufacture  of  fabricated  metal  products,  except 
machinery and equipment'). 
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). 
Publication "Spotlight on Europe's "invisible sector" – The metalworking and metal articles industries", 
European Commission, DG Enterprise and Industry. 

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10. 

The  application  relates  to  1 106  redundancies  in  423  enterprises  operating  in  the 
NACE  Revision  2  Division  25  (Manufacture  of  fabricated  metal  products,  except 
machinery and equipment) in the NUTS II region of País Vasco (ES21). The full list 
of  enterprises  mentioned  in  this  application  is  attached  in  the  Commission  Staff 
Working Paper accompanying this Proposal. 

All  the  redundant  workers  will  be  offered  the  possibility  to  participate  in  the 
measures.  However,  the  Spanish  authorities,  based  on  their  previous  experience  in 
managing EGF cases, estimate that about 500 workers will opt to participate in the 
EGF measures. 

11. 

The break-down of the affected 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
930
176
1 080
26
23
746
333
4

Percent 
84,09 
15,91 
97,65 
2,35 
2,08 
67,45 
30,11 
0,36 

12. 

13. 

These figures include 29 workers with a longstanding health problem or disability. 

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

Category 
Managers 
Professionals 
Technicians and associate professionals 
Clerical support workers 
Craft and related trades workers 
Plant and machine operators 
Personal  services  workers  and  unskilled 
workers 

Number
5
12
85
133
272
267
332

Percent 
0,45 
1,08 
7,69 
12,03 
24,59 
24,14 
30,02 

14. 

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

Description of the territory concerned and its authorities and stakeholders 

15. 

The  territory  concerned  by  the  redundancies  is  within  the  NUTS  II  region  of  País 
Vasco which is composed of the provinces of Álava, Guipúzcoa and Vizcaya. This 
region is located in northern Spain and is surrounded by the regions of Navarra on its 
eastern border, La Rioja on its southern border, and Cantabria and Castilla y León on 
its western border. Compared with the Spanish average, the region of País Vasco is a 
small,  highly-populated  region:  it  covers  only  1,4 %  (7 234  km²)  of  the  Spanish 
territory, but accounted for 4,8 % (2,2 million) of the inhabitants of Spain in 2011. 

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16. 

17. 

All three provinces of the region of País Vasco were affected by the redundancies in 
the  metal  products  sector,  but  to  a  different  extent;  Vizcaya  accounted  for  57 %  of 
the total number of redundancies, Guipúzcoa 30 %, and Álava 13%. 

The  main  stakeholders  are  the  autonomous  government  of  País  Vasco  (Gobierno 
Vasco),  in  particular:  the  Regional  Ministry  of  Industry,  Innovation,  Tourism  and 
Trade;  the  Regional  Vice-Ministry  of  Industry  and  Energy;  the  Directorate  of 
Administration  and  Industrial  Security;  the  Regional  Ministry  of  Employment  and 
Social  Affairs;  the  Regional  Vice-Ministry  of  Planning  and  Employment;  and  the 
Employment Service of País Vasco. In addition to these public stakeholders, are also 
involved:  the  FVEM  (Federación  Vizcaína  de  Empresas  del  Metal);  the  ADEGI 
(Asociación  de  Empresarios  de  Gipuzkoa);  and  the  SEA  (Sindicato  Empresarial 
Alavés). 

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

18. 

19. 

20. 

According  to  Eustat  (Instituto  Vasco  de  Estadística),  the  metal  sector  amounted  to 
EUR 10 billion (or 18 %) of the total added value of the region of País Vasco. It also 
employed  almost  162 000  workers  in  June  2010,  representing  16 %  of  the  total 
employment in the region. Forty percent of these workers operated in the sub-sector 
of  metal  products  alone.  Therefore,  when  the  global  financial  and  economic  crisis 
had  its  negative  impact  on  the  sector  of  metal  products,  its  consequences  on 
employment were severe in País Vasco. 

In absolute figures, it is estimated that the region of País Vasco has lost 31 000 jobs 
in the industrial sector since the third quarter of 2008. In all three provinces of País 
Vasco,  the  rate  of  unemployment  has  at  least  doubled  between  2008  and  2011,  as 
detailed below: 

Rate of unemployment in País Vasco 

2008 

2009 

2010 

2011 

Álava 
Guipúzcoa 
Vizcaya 
País Vasco 

2,7
3,3
4,3
3,8

9,9
6,5
8,6
8,1

10,0 
7,4 
10,0 
9,2 

6,9
7,5
13,5
10,6
Source: Eustat 

Since  this  application  for  EGF  funding,  the  economic  situation  of  Spain  has 
continued  to  deteriorate:  according  to  Eurostat,  its  national  unemployment  rate 
reached 25,1 % in July 2012, i.e. more than twice the EU-27 average and almost ten 
percent-points above the second highest national unemployment rate within the EU 
(Portugal, with 15,7 %). In addition, as explained in point 16 above, the majority of 
the redundancies concerned with this application took place in Vizcaya, which is the 
province of País Vasco  with the highest unemployment rate. For these reasons,  the 
employment prospects of  the workers dismissed from the metal products sector are 
not encouraging. 

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 

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21. 

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

–  Prospection:  This  activity  consists  in  establishing  the  redundant  workers'  profile 
and  gathering  knowledge  on  the  metal  products  sector  in  order  to  adapt  the 
package of measures provided to the redundant workers. It aims at: understanding 
the  profiles  and  skills  looked  for  by  the  enterprises  operating  in  this  sector, 
identifying  the  other  sectors  –  be  they  linked  to  metal  products  or  not  –  which 
could offer job opportunities to the target group, and creating a labour exchange. 

–  Guidance:  This  service  consists  in  a  range  of  activities  contributing  to  the 

reintegration of the targeted workers into employment, in particular: 

– 

– 

Establishing a personalised diagnosis of the targeted workers' individual 
profile and needs in order to set up their pathway to employment. It is 
on the basis of this measure that the opportunity and the content of the 
subsequent measures will be determined. 

Increasing  the  targeted  workers'  self-confidence  and  motivation  (e.g. 
setting up their occupational objectives, developing their strengths and 
filling  their  gaps,  providing  them  with  examples  of  positive  attitudes 
towards job-search, etc.). 

–  Training:  This  activity  aims  at  providing  the  targeted  workers  with  the  abilities 
and skills necessary to achieve their reintegration into employment. Based on the 
outcome  of  the  "Prospection"  and  "Guidance"  actions  described  above,  the 
training activities will be of a two-fold nature: 

– 

– 

Occupational  training,  to  develop  skills  according  to  the  targeted 
workers' profiles and plans. 

Horizontal  training,  to  develop  socio-professional  abilities  that  are 
common to all types of occupations. 

–  Outplacement assistance: This activity consists in mentoring the targeted workers 
– individually and/or in groups – so that they improve their ability to look for a 
job, for example through the provision of job-search techniques, advice to write a 
curriculum  vitae  and  to  make  the  most  of  their  social  networks.  It  also  includes 
assistance towards the recognition of prior learning and experience. 

–  Entrepreneurship: This activity aims at providing information on the opportunities 
offered by entrepreneurship and self-employment and, for those targeted workers 
interested, in helping them to set up a business. 

–  Training  grant:  All  the  targeted  workers  participating  in  training  will  receive  a 
financial contribution of EUR 250 in the form of a direct and single instalment. 

–  Traineeship  grant:  All  the  targeted  workers  participating  in  a  workplace 
traineeship will receive a financial contribution of EUR 250 in the form of a direct 
and single instalment. 

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–  Support  for  carers:  This  service  consists  in  providing  financial  support  to  the 
targeted workers who – in particular because of their caring responsibilities (e.g. 
children, elderly or disabled persons) – face additional costs to avail of training or 
other  measures.  The  amount  of  the  financial  contribution  granted  will  be 
determined on the basis of the beneficiary's personal situation and in any case will 
be limited to EUR 800. 

The expenditure for implementing the EGF, which is included in the application in 
accordance  with  Article  3  of  Regulation  (EC)  No  1927/2006,  covers  the 
management, control as well as the publicity and information activities related to the 
application.  The  information  activities  consist  in  particular  in:  press  releases  and 
conferences; disseminating information on the implementation of the project through 
two  websites,  a  newsletter,  an  e-learning  platform,  blogs  and  social  networks;  a 
closure  event  to  present  the  results  achieved.  This  comprehensive  package  of 
information  and  publicity  activities  explains  the  somewhat  higher  proportion  of 
expenditure for implementing EGF. 

The  personalised  services  presented  by  the  Spanish  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Spanish authorities estimate the total costs at EUR 1 999 300, of 
which  the  expenditure  for  personalised  services  at  EUR 1 870 000  and  the 
expenditure for implementing the EGF at EUR 129 300 (6,47 % of the total amount). 
The total contribution requested from the EGF is EUR 1 299 545 (65 % of the total 
costs). 

Estimated 
number of 
workers 
targeted 

Estimated 
cost per 
worker 
targeted 
(EUR) 

Total costs 
(EGF and 
national 
cofinancing) 
(EUR) 

22. 

23. 

Actions 

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

Prospection (Prospección) 

Guidance (Servicio de orientaciíon) 

Training (Formación) 

Outplacement assistance (Inserción) 

Entrepreneurship (Emprendimiento) 

Training grant (Beca de formación) 

Traineeship grant (Beca de prácticas) 

Conciliation support (Servicio de conciliacíon) 

Sub total personalised services 

500

500

500

250

300

500

300

125

534,00 

267 000

436,00 

218 000

1 914,00 

957 000

310,00 

168,33 

77 500

50 500

250,00 

125 000

250,00 

75 000

800,00 

100 000

1 870 000

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

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1927/2006) 

Management 

Control 

Information and publicity 

Sub total expenditure for implementing EGF 

Total estimated costs 

EGF contribution (65 % of total costs) 

46 950

15 000

67 350

129 300

1 999 300

1 299 545

24. 

Spain  confirms  that  the  measures  described  above  are  complementary  with  actions 
funded  by  the  Structural  Funds,  for  example  the  F.I.P.  plan  (Plan  de  Formación  e 
Inserción  Profesional)  and  the  F.P.O.  plan  (Plan  de  formación  Profesional 
Ocupacional) which are co-financed by the European Social Fund (ESF). Both plans 
aim at improving, increasing and updating qualifications and are targeted at around 
10 % of the workers eligible for EGF assistance before the application was submitted 
to  the  Commission.  The  Spanish  authorities  have  confirmed  that  measures  are  in 
place to prevent double funding. 

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

25. 

Spain  started  the  personalised  services  to  the  affected  workers  included  in  the  co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  19  March  2012.  This 
date therefore represents the beginning of the period of eligibility for any assistance 
that might be awarded from the EGF. 

Procedures for consulting the social partners 

26. 

27. 

Several  contacts  and  meetings  were  held  between  the  autonomous  government  of 
País Vasco (in particular the Regional Ministry of Industry, Innovation, Tourism and 
Trade and the Regional Ministry of Employment and Social Affairs) and associations 
representing the employers operating in the metal sector products. Those associations 
were  the  FVEM  (Federación  Vizcaína  de  Empresas  del  Metal);  the  ADEGI 
(Asociación  de  Empresarios  de  Gipuzkoa);  and  the  SEA  (Sindicato  Empresarial 
Alavés).  The  consultation  related  to  the  submission  of  an  EGF  application  and  the 
personalised services to be provided to the redundant workers. 

In addition, the regional government, the entrepreneurial associations and the social 
partners  have  formed  a  committee  responsible  for  the  co-ordination,  management 
and  implementation  of  the  project.  The  most  representative  trade  unions  of  País 
Vasco  will  be  informed  of  the  progress  made  during  the  implementation  of  the 
project through the regional employment services and their board. 

28. 

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

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

29. 

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

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

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

to be used for restructuring companies or sectors; 

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

from other EU financial instruments. 

Management and control systems  

30. 

Spain  has  notified  the  Commission  that  the  financial  contribution  will  be  managed 
and  controlled  by  the  same  bodies  that  manage  and  control  the  ESF.  Thus  the 
managing and control authority responsible for the EGF is the Directorate for Labour 
Activation  (Dirección  de  Activación  Laboral)  within  the  employment  services  of 
País Vasco (Servicio Vasco de Empleo), which is also in charge of the management 
of the ESF Operational Programme for País Vasco. 

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Financing 

31. 

32. 

33. 

34. 

On the basis of the application from Spain, the proposed contribution from the EGF 
to  the  coordinated  package  of  personalised  services  (including  expenditure  to 
implement  EGF)  is  EUR 1 299 545,  representing  65 %  of  the  total  cost.  The 
Commission's proposed allocation under the Fund is based on the information made 
available by Spain. 

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

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

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

35. 

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  

36. 

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 1 299 545 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/2011/018 ES/País Vasco Productos metálicos 
from Spain) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having  regard  to  the  Interinstitutional  Agreement  of  17  May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management13, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20  December  2006  establishing  the  European  Globalisation  Adjustment  Fund14, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission15, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional support for workers made redundant as a result of major structural changes 
in world trade patterns due to globalisation and to assist them with their reintegration 
into the labour market. 

The scope of the EGF was broadened for applications submitted from 1 May 2009 to 
30 December 2011 to include support for workers made redundant as a direct result of 
the global financial and economic crisis. 

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF 
within the annual ceiling of EUR 500 million. 

Spain submitted an application to mobilise the EGF, in respect of redundancies in 423 
enterprises operating in the NACE Revision 2 Division 25 ('Manufacture of fabricated 
metal  products,  except  machinery  and  equipment')  in  the  NUTS  II  region  of  País 
Vasco  (ES21),  on  28  December  2011  and  supplemented  it  by  additional  information 

13 
14 
15 

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

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up  to  5  September  2012.  This  application  complies  with  the  requirements  for 
in  Article  10  of 
determining 
Regulation (EC) No 1927/2006.  The  Commission,  therefore,  proposes  to  mobilise  an 
amount of EUR 1 299 545. 

financial  contributions  as 

laid  down 

the 

(5) 

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

HAVE ADOPTED THIS DECISION: 

Article 1 

For  the  general  budget  of  the  European  Union  for  the  financial  year  2012,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 1 299 545 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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