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 (EGF/2013/000 TA 2013 - Technical assistance at the initiative of the Commission)
Date: 2013-05-15
Institutions: European Commission
Subjects: European Globalisation Adjustment Fund, commitment of expenditure, economic recession, general budget (EU), payment appropriation

EUROPEAN 
COMMISSION 

Brussels, 15.5.2013  
COM(2013) 291 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 (EGF/2013/000 TA 2013 - Technical assistance at the initiative of 
the Commission) 

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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. 

SUMMARY OF THE APPLICATION AND ANALYSIS 

Key data: 

EGF Reference no. 
European Commission 
Administrative expenditure: budget in EUR 
% administrative expenditure (ceiling: 0,35 %) 

EGF/2013/000 
Technical assistance 
750 000 
0.15 % 

According to Article 8(1) of Regulation (EC) No 1927/2006, the proportion corresponding to 
0.35 %  of  the  annual  maximum  amount  of  the  EGF  can  be  made  available  each  year  for 
technical assistance at the initiative of the Commission. 

Technical assistance to be funded and breakdown of its estimated costs 

1. 

2. 

3. 

The contribution will be used for expenditure mentioned in Articles 8(1) and (4) as 
well as 9(2) of Regulation (EC) No 1927/2006, as detailed hereunder. 

Monitoring:  The  Commission  will  continue  to  collect  the  data  on  applications 
received  and  paid,  and  the  measures  proposed  and  implemented,  and  it  will  update 
the Statistical Portrait of the EGF with information up to the end of 2013. Building 
on  the  preparatory  work  of  recent  years,  this  can  be  done  with  the  Commission's 
normal administrative resources. 

Information: The web site on the EGF3, which the Commission has set up within its 
Employment,  Social  Affairs  and  Inclusion  area,  and  which  it  is  maintaining  as 
required  under  Article  9(2)  of  Regulation  (EC)  No  1927/2006,  will  be  regularly 
updated  and  expanded,  with  each  new  element  also  being  translated  into  all  EU 
languages. Information on the new EGF Regulation will be produced, and the annual 
report  of  the  EGF  will  be  produced,  translated,  printed  and  distributed.  General 
awareness of the EGF and its visibility will be encouraged. The EGF will be covered 
in  various  Commission  publications  and  audio-visual  activities.  Costs  for  all  these 
items are estimated at EUR 80 000. 

1 
2 
3 

OJ C 139, 14.6.2006, p. 1. 
OJ L 406 of 30.12.2006, p. 1. 
http://ec.europa.eu/egf  

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4. 

5. 

6. 

7. 

Creation of a knowledge base: The Commission is continuing its work with a view to 
setting  up  an  electronic  application  form  and  standardised  procedures  for  EGF 
applications,  which  will  allow  applications  under  the  new  Regulation  to  be 
simplified, their processing to be speeded up and reports to be more easily extracted 
for varying needs. Standardisation of final report forms is also continuing, with the 
objective of easing the administrative burden of the Member States. 

It will improve its database containing the facts and figures of EGF cases, including 
workers, measures and outcomes. 

The cost for these items is estimated at EUR 80 000. 

Administrative  and  technical  support:  The  Expert  Group  of  Contact  Persons  of  the 
EGF,  with  one  member  from  each  Member  State,  will  be  holding  two  meetings, 
together estimated at EUR 70 000. 

In  addition,  the  Commission  will  be  organising  networking  among  the  Member 
States.  The  priority  event  within  this  networking  activity  will  be  a  seminar  for 
practitioners on the implementation of the EGF, using the experience gathered under 
the current Regulation (2007 - 2013) to prepare the ground for the new one (2014 - 
2020). The cost of these items is estimated at EUR 120 000. 

Evaluation: The Commission will conduct the final phase of the ex-post evaluation 
of  the  EGF  (2007-2013)  by  means  of  a  contract  with  an  external  consultant 
evaluating EGF cases as and when they are closed, and focusing on the impact of the 
EGF  and  its  added  value  during  the  current  period.  The  cost  for  this  evaluation  is 
estimated at EUR 400 000. 

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Items 

Monitoring  

Information activities 

Creation of a knowledge base 

Administrative and technical support: 
Meetings of the Expert Group of Contact 
Persons of the EGF 

Administrative and technical support: 
Networking on the implementation of the 
EGF 

Estimated 
number 

Estimated cost 
per item 
(in EUR) 

Total costs 
(in EUR) 

Various

Various

2

Various 

Various 

35 000 

0

80 000

80 000

70 000

Various

Various 

120 000

Ex-post evaluation for 2007-2013 

1

400 000 

400 000

Total estimated costs 

Financing 

750 000

8. 

9. 

10. 

11. 

The  total  annual  budget  available  for  the  EGF  is  EUR 500 million.  Article  8(1)  of 
Regulation  (EC)  No  1927/2006  states 
this  amount  (i.e. 
EUR 1 750 000)  can  be  made  available  each  year  for  technical  assistance  at  the 
initiative of the Commission. Currently, the full amount for 2013 remains available; 
nothing has yet been allocated to technical assistance.  

that  0,35 %  of 

The  proposed  contribution  for  technical  assistance  at  the  initiative  of  the 
Commission in 2013 is EUR 750 000. Following the mobilisation of this amount, a 
further EUR 1 000 000 potentially remains available in case of need at a later stage 
in the year. 

Considering  the  maximum  possible  amount  of  a  contribution  from  the  EGF  in 
accordance with Article 8(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. 

By  presenting  this  proposal  to  mobilise  the  EGF,  the  Commission  initiates  the 
simplified  trialogue  procedure,  as  required  by  Point  28  of  the  Inter-institutional 
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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12. 

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 

13. 

Appropriations  from  the  EGF  budget  line  will  be  used  to  cover  the  amount  of 
EUR 750 000 needed for technical assistance. 

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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 (EGF/2013/000 TA 2013 - Technical assistance at the initiative of 
the Commission) 

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  Inter-institutional  Agreement  of  17 May  2006  between  the  European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline  and  sound  financial 
management4, 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  Fund5, 
and in particular Article 8(2) thereof, 

Having regard to the proposal from the Commission6, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
additional  support  to  redundant  workers  who  suffer  from  the  consequences  of  major 
structural  changes  in  world  trade  patterns  and  to  assist  them  with  their  reintegration 
into the labour market. 

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

Regulation (EC) No 1927/2006 provides that 0,35 % of the annual maximum amount 
can  be  made  available  each  year  for  technical  assistance  at  the  initiative  of  the 
Commission.  The  Commission  therefore  proposes  to  mobilise  an  amount  of 
EUR 750 000. 

(4) 

The EGF should, therefore, be mobilised in order to provide technical assistance at the 
initiative of the Commission. 

4 
5 
6 

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

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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 750 000 
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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