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/2012/023 IT/Antonio Merloni SpA from Italy)
Date: 2013-02-20
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, Italy, collective dismissal, commitment of expenditure, economic recession, employment aid, general budget (EU), household electrical appliance, payment appropriation, reintegration into working life

EUROPEAN 
COMMISSION 

Brussels, 20.2.2013  
COM(2013) 90 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/2012/023 IT/Antonio Merloni SpA from Italy)

EN 

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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 29 December 2011, Italy submitted application EGF/2011/023 IT/Antonio Merloni for a 
financial contribution from the EGF, following redundancies in Antonio Merloni SpA 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 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 targeted for support 
Expenditure for personalised services (EUR) 
Expenditure for implementing EGF3 (EUR) 
Expenditure for implementing EGF (%) 
Total budget (EUR) 
EGF contribution (65 %) (EUR) 

EGF/2011/023 
Italy 
(a) 
Antonio Merloni SpA 
0 
23.8.2011 – 23.12.2011 
29.3.2012 
29.12.2011 
1 517 
0 
1 517 
1 517 
7 451 972 
298 000 
3,84 
7 749 972 
5 037 482 

1. 

2. 

1 
2 
3 

The  application  was  presented  to  the  Commission  on  29  December  2011  and 
supplemented by additional information up to 4 September 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 or the global financial and economic crisis 

3. 

4. 

5. 

In order to establish the link between the redundancies and the global financial and 
economic  crisis,  Italy  argues  that  the  crisis  had  a  serious  impact  on  the  market  for 
domestic  appliances.  Available  data 4  confirms  the  significant  downturn  in  the 
manufacture  of  domestic  appliances,  mainly  due  to  the  decrease  in  exports  in 
particular  to  the  United States  (-30,5 %  in  2009  compared  with  2008)  and  Japan  (-
11,40 % during the same period). Production of domestic appliances fell in the EU-
27  for  three consecutive years  (2007  to  2009)  compared with the  relevant  previous 
year and slightly recovered only in 2010. 

Manufacture of domestic appliances - Industry production index 
(percentage change compared with the previous year) 

2006 

2007 

5,5 

4,0 

-3,1 

-1,4 

2008 

-8,8 

-13,8 

2009 

-17,6 

-24,2 

2010 

1,2 

-6,3 

EU27 

Italy 

Source: Eurostat 

Output  in  Italy  followed  the  same  negative  trend  as  the  EU-27  average  and  the 
downturn  for  exports  was  higher  than  the  EU-27  average.  Exports  to  the  United 
States fell by 44,59 % in 2009 compared with 2008 and to Japan by 29,87 %. In 2010 
the downward trend continued for Italian domestic appliances. 

To maintain its market share against competition from low labour cost countries such 
as  China  and  Turkey,  Antonio  Merloni  SpA,  the  fifth  largest  manufacturer  of 
appliances in the EU in 2002, changed its sales strategy and in 2006 started selling its 
products  directly  through  its  own  brands.  With  the  outbreak  of  the  global  financial 
and economic crisis, the company got into financial difficulties, which were further 
exacerbated by the sudden tightening of conditions for access to financial credit. In 
2007, with a turnover of almost EUR 900 million, Antonio Merloni faced debts and 
liabilities  of  about  EUR 500 million.  The  downturn  in  production,  which  had  been 
following  the  downward  trend  at  European  level,  combined  with  the  financial 
constraints,  resulted 
the  Ministry  of  Economic 
Development for admission to the administration proceedings for large firms in crisis 
and finally in the cessation of the business activities of Antonio Merloni SpA. A total 
of 2 217 workers were made redundant, of whom 700 were taken over by company 
QA  Group  SpA.  This  application  therefore  covers  the  1 517  workers  left  jobless 
through the closure of Antonio Merloni SpA. 

in  a  request  submitted 

to 

6. 

In  its  assessment  on  the  application  EGF/2009/010  LT/Snaigė  the  Commission  has 
already  stated  the  impact  of  the  economic  and  financial  crisis  on  the  enterprises 
operating in the manufacture of domestic appliances. 

4 

Eurostat, EU27 Trade since 1988 by SITC. 

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3 

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

7. 

8. 

Italy  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. 

The  application  cites  1 517  redundancies  in  Antonio  Merloni  SpA  during  the  four-
month  reference  period  from  23  August  2011  to  23  December  2011.  All  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 the confirmation required under the third indent of the second paragraph of 
Article 2 that this is the actual number of redundancies effected. 

Explanation of the unforeseen nature of those redundancies 

9. 

The  Italian  authorities  argue  that  the  financial  and  economic  crisis  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 manufacture of domestic appliances is concerned, 
with a sudden tightening of conditions for access to financial credit and a dramatic 
slowdown in new orders, was unprecedented in recent times. As a result of the crisis, 
economic  developments  since  2008  have  not  been  following  the  trends  of  previous 
years. The closure of Antonio Merloni SpA and the redundancies could not therefore 
have been foreseen or easily prevented. 

Identification of the dismissing enterprises and workers targeted for assistance 

10. 

The application relates to 1 517 redundancies in Antonio Merloni SpA. All of these 
workers are targeted for EGF co-funded measures. 

11. 

The break-down of the 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
1 063
454
1 450
67
0
1 322
193
2

Percent 
70,07 
29,93 
95,58 
4,42 
0,00 
87,15 
12,72 
0,13 

12. 

13. 

Of the targeted workers 71 are disabled or have longstanding health problems. 

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

Category 
Senior officials and managers 
Professionals 
Technicians and associate professionals 
Clerks 
Craft and related trade workers 

Number
8
14
23
50
72

Percent 
0,53 
0,92 
1,52 
3,30 
4,75 

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4 

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and  machine  operators 

Plant 
assemblers 
Elementary occupations 

and 

1 308

42

86,22 

2,76 

14. 

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

16. 

The territories concerned by the redundancies are the regions of Marche and Umbria 
and in particular the provinces of Ancona and Perugia, where the production plants 
of Antonio Merloni SpA were located. 

As  a  consequence  of  the  global  economic  and  financial  crisis,  the  number  of 
businesses active in both provinces has declined. There has been also a progressive 
tertiarisation leading to the contraction of agriculture, trade and industry. In Ancona 
agricultural enterprises decreased by 1,2 %, and now account for 18,8 % of the total 
number  of  active  businesses.  The  manufacturing  sector  has  remained  fairly  stable, 
while  the  number  of  firms  in  the  trade  sector  has  experienced  a  slight  increase 
(+0,3 %)  and  now  represents  26,4 %  of  the  total  number  of  businesses  in  the 
province. This share is, however, lower than the national average (27,2 %). All these 
figures  refer  to  2010  compared  with  the  previous  year.  In  Perugia  during  the  same 
period, the number of agricultural enterprises decreased by 0,9 %, but still accounts 
for  22,6 %  of  the  total  active  businesses  in  the  province.  The  manufacturing  sector 
also  slightly  decreased  (-0,6 %),  while  firms  in  the  trade  sector  increased  (+1,1 %) 
and  now  represent  23,4 %  of  the  total  businesses.  However,  as  it  is  the  case  for 
Ancona,  the  share  of  trade  businesses  as  a  percentage  of  all  businesses  in  the 
province (23,4 %) is lower than the national average. 

17. 

The  main  stakeholders  are  the  Regione  Umbria  and  Regione  Marche  and  in 
particular the Perugia and Ancona public authorities, as well as the following trade 
unions: FIM-CISL5, FIOM-CGIL6, UILM-UIL7, UGL metalmeccanici8 and RSU9. 

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

18. 

In  the  pre-crisis  years,  both  Ancona  and  Perugia  provinces  had  an  unemployment 
rate  lower  than  the  national  average.  In  2009  unemployment  increased  by  40 % 
compared  with  the  previous  year  while  in  2010  the  unemployment  rate  remained 
stable in Perugia and decreased in Ancona mainly due to the fall in the activity rate 
rather than an increase in employment. In 2009 compared with the previous year, the 
regional  GDP  decreased  by  about  3 %  and  the  turnover  of  industry  contracted  by 
14,6 % in Marche and by 16,4 % in Umbria. This contraction resulted in an increase 

5 
6 
7 
8 
9 

Federazione Italiana Metalmeccanici – Confederazione Italiana Sindacato Lavoratori. 
Federazione Impiegati e Operai Metallurgici. 
Unione Italiana lavoratori Metalmeccanici – Confederazione General Italiana del Lavoro. 
Unione Generale del Lavoro Metalmeccanici. 
Rappresentanza Sindacale Unitaria. 

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in  hours  of  CIG10 in  manufacturing  sectors  by  368 %  in  Marche  and  by  444 %  in 
Umbria.  The  1 517  redundancies  of  Antonio  Merloni  SpA  covered  by  this 
application further aggravated the situation.  

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 

19. 

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

–  Occupational guidance: A series of structured interviews and targeted instruments 
such as skills analysis and employability profile to identify areas where workers 
can  improve  their  skills  and  be  supported  in  defining  their  occupational 
objectives. 

–  Job-search assistance: This includes the development of a personalised strategy of 
self-promotion and job-search actions. Workers are helped to apply for jobs with 
interested firms and are supported through the selection process and, if necessary, 
with specific training to help them take up job offers with the relevant firms. 

–  Entrepreneurship  promotion:  Coaching  support  for  redundant  workers  with 

entrepreneurial ideas in planning new business activities. 

–  Vocational training and skills upgrade: The redundant workers receive a training 
voucher  of  an  average  value  of  EUR 1 300  to  spend  on  their  training  pathway. 
The voucher can be spent in a qualified training institution or in a firm where the 
redundant worker is being re-trained after being hired or in a firm providing on-
the-job training. The voucher is strictly linked to each worker's agreed pathway of 
reintegration.  

–  Guidance  for  over  50-year-olds:  This  is  intended  to  provide  specific  support  to 
workers aged over 50 years, to encourage them to remain in the labour market. 

–  Job-search  allowance:  For  each  day  they  participate  in  the  EGF  measures,  the 
workers will receive an allowance equivalent to one day of the Italian subsistence 
allowance 'CIGS'. 

–  Hiring benefit: This payment benefits the redundant workers by facilitating their 
re-employment under permanent contracts in a different company. The relatively 
large  amount  of  EUR 5 000  per  worker,  paid  to  the  new  employer  towards  the 
recruitment  of  the  most  disadvantaged and poorly  educated workers, reflects the 
investment required by the new employer in re-training them and preparing them 
for their new tasks. 

10 

CIG  is  a  scheme  under  Italian  law,  consisting  of  a  financial  benefit  paid  by  Istituto  Nazionale  della 
Previdenza Sociale-INPS (National Institute of the Social Security) in favor of workers suspended from 
undertaking the work performance or working reduced hours. 

EN 

6 

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–  Contribution  to  commuting  expenses:  The  workers  participating  in  the  measures 
will receive  up to  EUR 300 as  a  contribution to their travel expenses when they 
have to commute for a distance longer than 25 km to the town where the measures 
take place. 

–  Contribution to the expenses for change of residence: Those workers who accept a 
job  involving  a  change  of  residence  will  receive  a  mobility  allowance  of 
EUR 5 000 to cover the necessary expenditure. The allowance shall be paid as a 
one-off contribution upon presentation of proof of the expenditure incurred. 

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  Italian  authorities  are  active  labour 
market measures within the eligible actions defined by Article 3 of Regulation (EC) 
No 1927/2006. The Italian authorities estimate the total costs at EUR 7 749 972, of 
which  the  expenditure  for  personalised  services  at  EUR 7 451 972  and  the 
expenditure for implementing the EGF at EUR 298 000 (3,84 % of the total amount). 
The total contribution requested from the EGF is EUR 5 037 482 (65 % of the total 
costs). 

Estimated 
number of 
workers 
targeted 

Estimated 
cost per 
worker 
targeted 
(EUR) 

Total costs 
(EGF and 
national 
cofinancing) 
(EUR) 

20. 

21. 

Actions 

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

Occupational guidance 
(Orientamento professionale) 

Job-search assistance 
(Assistenza alla ricerca attiva) 

Entrepreneurship promotion 
(Assistenza all'autoimprenditorialità) 

Vocational training and skills upgrade 
(Voucher formativo) 

Guidance for over-50s 
(Misure spechifiche di stimolo per lavoratori 
muri) 

Job-search allowance 
(Indennita per la ricerca attiva) 

Hiring benefit 
(Bonus assunzionali) 

1 517

36 

54 612

1 517

180 

273 060

280

240 

67 200

1 011

1 300 

1 314 300

280

210 

58 800

1 517

2 000 

3 034 000

400

5 000 

2 000 000

EN 

7 

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Contribution to commuting expenses 
(Contributo per la mobilità formativa) 

Contribution to the expenses for change of 
residence 
(Bonus per la mobilità territoriale) 

500

100

300 

150 000

5 000 

500 000

Sub total personalised services 

7 451 972

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 

Total estimated costs 

EGF contribution (65 % of total costs) 

30 000

125 000

36 000

107 000

298 000

7 749 972

5 037 482

22. 

Italy  confirms  that  the  measures  described  above  are  complementary  with  actions 
funded by the Structural Funds. According to the Italian authorities, the absence of 
double  funding  is  ensured  by  a  permanent  coordination  between  the  institutional 
actors responsible for planning and managing the financial resources of the Structural 
Funds and the EGF. 

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

23. 

Italy  started  the  personalised  services  to  the  affected  workers  included  in  the  co-
ordinated  package  proposed  for  co-financing  to  the  EGF  on  29  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 

24. 

The possibility of making use of the EGF support was incorporated into the 'Accordo 
di  Programma',  an  agreement  signed  in  2010  by  the  Ministry  of  Economic 
Development  and  Emilia  Romagna,  Marche  and  Umbria  regions  and  subsequently 
agreed by the social partners. In November 2011 the social partners were consulted 
on  the  coordinated  package  of  EGF  co-financed  measures.  Furthermore  the 
implementation  of  the  EGF  measures  will  be  monitored  by  the  'Accordo  di 
Programma' coordination group. 

25. 

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

EN 

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

26. 

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

27. 

Italy has notified the Commission that the financial contribution will be managed and 
controlled  by  the  same  bodies  that  manage  and  control  the  ESF.  The  regions  of 
Marche and Umbria will be the intermediate bodies for the managing authority. 

Financing 

28. 

29. 

30. 

31. 

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  EGF)  is  EUR 5 037 482,  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  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. 

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32. 

The Commission presents separately a transfer request in order to enter in the 2013 
budget  specific  commitment  appropriations,  as  required  in  Point  28  of  the 
Interinstitutional Agreement of 17 May 2006. 

Source of payment appropriations  

33. 

Appropriations  from  the  EGF  budget  line  will  be  used  to  cover  the  amount  of 
EUR 5 037 482 needed for the present application. 

EN 

10 

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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/2012/023 IT/Antonio Merloni SpA 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 
management11, and in particular point 28 thereof, 

Having  regard  to  Regulation  (EC)  No  1927/2006  of  the  European  Parliament  and  of  the 
Council  of  20  December  2006  establishing  the  European  Globalisation  Adjustment  Fund12, 
and in particular Article 12(3) thereof, 

Having regard to the proposal from the European Commission13, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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

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

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

Italy submitted an application to mobilise the EGF, in respect of redundancies in the 
enterprise  Antonio  Merloni  SpA,  on  29  December  2011  and  supplemented  it  by 
additional  information  up  to  4  September  2012.  This  application  complies  with  the 

11 
12 
13 

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

EN 

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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 5 037 482. 

(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  2013,  the  European 
Globalisation  Adjustment  Fund  (EGF)  shall  be  mobilised  to  provide  the  sum  of 
EUR 5 037 482 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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