Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund (application from Belgium - EGF/2015/012 BE/Hainaut Machinery)
Date: 2016-05-04
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: Belgium, European Globalisation Adjustment Fund, Province of Hainault, collective dismissal, commitment of expenditure, distribution of EU funding, employment aid, financial aid, mechanical engineering, reintegration into working life

EUROPEAN 
COMMISSION 

Brussels, 4.5.2016  
COM(2016) 242 final 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund (application from 
Belgium - EGF/2015/012 BE/Hainaut Machinery) 

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EXPLANATORY MEMORANDUM 

1. 

1. 

2. 

3. 

CONTEXT OF THE PROPOSAL 

The  rules  applicable  to  financial  contributions  from  the  European  Globalisation 
Adjustment  Fund  (EGF)  are  laid  down  in  Regulation  (EU)  No  1309/2013  of  the 
European  Parliament  and  of  the  Council  of  17  December  2013  on  the  European 
Globalisation  Adjustment  Fund  (2014-2020)  and  repealing  Regulation  (EC)  No 
1927/20061 (the ‘EGF Regulation’). 

On  17  December  2015,  Belgium  submitted  application  EGF/2015/012  BE/Hainaut 
Machinery for a financial contribution from the EGF, following redundancies2 in the 
economic sector classified under the NACE Revision 2 Division 28 (Manufacture of 
machinery  and  equipment  n.e.c.)  in  the  NUTS  level  2  region  of  Hainaut  (BE32)  in 
Belgium. 

Following  its  assessment  of  this  application,  the  Commission  has  concluded,  in 
accordance with all applicable provisions of the EGF Regulation, that the conditions 
for awarding a financial contribution from the EGF are met.  

2. 

SUMMARY OF THE APPLICATION 

EGF application 

EGF/2015/012 BE/Hainaut Machinery 

Member State 
Region(s) concerned (NUTS3 level 2) 

Belgium 

Hainaut (BE32) 

Date of submission of the application 

17 December 2015 

Deadline for acknowledgement of receipt 
of the application 

31 December 2015 

Deadline for  request of additional 
information 

31 December 2015 

Deadline for provision of the additional 
information 

11 February 2016 

Deadline for the completion of the 
assessment 

5 May 2016 

Intervention criterion 

Article 4(2) of the EGF Regulation 

Number of enterprises concerned 

3 

Sector(s) of economic activity 
(NACE Revision 2 Division4) 

28  (Manufacture  of  machinery  and  equipment 
n.e.c) 

1 
2 
3 

OJ L 347, 20.12.2013, p. 855. 
Within the meaning of Article 3 of the EGF Regulation. 
Commission Regulation (EU) No 1046/2012 of 8 November 2012 implementing Regulation (EC) No 
1059/2003  of  the  European  Parliament  and  of  the  Council  on  the  establishment  of  a  common 
classification of territorial units for statistics (NUTS) as regards the transmission of the time series for 
the new regional breakdown (OJ L 310, 9.11.2012, p. 34). 

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Reference period 

25 December 2014 - 25 September 2015 

Total number of redundancies 

Total number of eligible targeted 
beneficiaries 

Total number of targeted beneficiaries 

Number of targeted young persons not in 
employment, education or training 
(NEETs) 

488 

488 

488 

300 

Budget for personalised services (EUR) 

2,972,669 

Budget for implementing EGF5 (EUR) 

Total budget (EUR) 

EGF contribution (60 %) (EUR) 

67,400 

3,040,069 

1,824,041 

3. 

ASSESSMENT OF THE APPLICATION 

3.1. 

Procedure 

4. 

Belgium  submitted  application  EGF/2015/012  BE/Hainaut  Machinery  on  17 
December  2015,  within  12  weeks  of  the  date  on  which  the  intervention  criteria  set 
out  in  Article  4  of  the  EGF  Regulation  were  met.  The  Commission  acknowledged 
receipt  of  the  application  within  the  deadline  of  two  weeks  from  the  date  of 
submission of the application and requested additional information from Belgium at 
the  same  time.  Such  additional  information  was  provided  within  six  weeks  of  the 
request. The deadline of 12 weeks of the receipt of the complete application within 
which the Commission should finalise its assessment of the application's compliance 
with the conditions for providing a financial contribution expires on 5 May 2016.  

3.2. 

Eligibility of the application 

3.2.1.  Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  488  workers  made  redundant  in  the  economic  sector 
classified under the NACE Revision 2 Division 28 (Manufacture of machinery and 
equipment n.e.c). The redundancies made by the enterprises are located in the NUTS 
level 2 region of Hainaut (BE32). 

Enterprises and number of dismissals within the reference period 

Carwall SA  

Caterpillar Belgium SA 

Doosan SA 
Total no. of enterprises: 3 

13

169

306

Total no. of dismissals:  

488 

4 
5 

OJ L 393, 30.12.2006, p. 1. 
In accordance with the fourth paragraph of Article 7 of Regulation (EU) No 1309/2013. 

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Enterprises and number of dismissals within the reference period 

Total no. of self-employed persons whose activity has ceased:  

Total no. of eligible workers and self-employed persons:  

0 

488 

3.2.2. 

Intervention criteria 

6. 

Belgium  submitted  the  application  under  the  intervention  criteria  of  Article  4(2) 
derogating from the criteria of Article 4(1) (b) of the EGF Regulation, which requires 
at least 500 workers being made redundant over a reference period of nine months in 
enterprises  operating  in  the  same  economic  sector  defined  at  NACE  Revision  2 
Division  and  located  in  one  region  or  two  contiguous  regions  defined  at  NUTS  2 
level  in  a  Member  State.  There  were  488  redundancies  in  the  NUTS  2  region  of 
Hainaut (B32). 

7. 

The reference period of nine months for the application runs from 25 December 2014 
to 25 September 2015. 

3.2.3.  Calculation of redundancies and of cessation of activity 

8. 

The redundancies during the reference period have been calculated as follows: 

– 

– 

– 

44  from  the  date  on  which  the  employer,  in  accordance  with  Article  3(1)  of 
Council Directive 98/59/EC, notified the competent public authority in writing 
of  the  projected  collective  redundancies. Belgium  confirmed  prior  to  the  date 
of  the  completion  of  the  assessment  by  the  Commission  that  these  44 
redundancies have actually been effected, 

438 from the date of the employer's individual notice to lay off or to terminate 
the contract of employment of the worker, 

6 from the date of the de facto termination of the contract of employment or its 
expiry, 

3.2.4.  Eligible beneficiaries 

9. 

The total number of eligible beneficiaries is 488. 

3.2.5.  Link between the redundancies and major structural changes in world trade patterns 

due to globalisation 

10. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Belgium  argues  that  Union  trade  in 
construction  machinery  has  undergone  serious  disruptions  in  recent  years.  This  has 
had a negative impact on the profitability in Europe of the three enterprises, which 
are all specialised in production of components and/or assemblage of machines used 
in the construction sector. The sector concerned by the proposal is characterised by 
having production units close to the market. Therefore, the three enterprises mainly 
produce for the European market. Due to declining public and private investments in 
infrastructure,  the  demand  for  the  products  produced  by  the  three  enterprises  has 
decreased  accordingly.  The  production  of  construction  engines  in  Europe  has 
dropped  from  212  028  units  in  2007  to  116  461  units  in  2014,  constituting  a 
production decline of 45.1 %6. The consequence has been a dramatic loss of market 
share for European producers.  Simultaneously, steel prices in Europe have increased 

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OFF-Highway Research, Annual Review and a Forecast to 2014, April 2010 

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significantly.  Declining  economies  of  scale  and  increasing  unit  costs  have  led  to  a 
loss of competitiveness for the European plants. This decline in competitiveness has 
led  to  the  delocalisation  to  third  countries  of  substantial  production  capacity  (in 
particular Asian plants have benefitted from this development). 

11. 

To  date,  the  Manufacture  of  machinery  and  equipment  n.e.c  sector  has  been  the 
subject of 14 EGF applications, eight  of which based on trade  related globalisation 
and six on the global financial and economic crisis. 

3.2.6.  Events giving rise to the redundancies and cessation of activity 

12. 

The  primary  event  giving  rise  to  these  redundancies  is  the  announcement  by 
Caterpillar Belgium S.A. on 23 February 2013 to enter into a collective redundancy 
procedure  at  its  production  plant  located  in  Gosselies.  The  majority  of  the  1399 
workers  concerned  were  the  subjects  of  a  first  EGF  application  involving 
redundancies  at  the  enterprise.  The  current  proposal  includes  the  remaining  169 
workers at the site.  Carwall S.A., a principal supplier of cabs for Caterpillar Belgium 
S.A., witnessed a falling demand for its products, mainly due to fewer orders coming 
from  Caterpillar,  and  was  forced  to  scale  down  production  accordingly.  The  third 
enterprise  concerned  by  this  proposal,  Doosan  S.A.,  produces  excavators.  Falling 
demand  for  its  products  in  Europe  led  to  the  decision  to  close  a  production  plant 
located  in  Frameries  and  supply  the  European  market  from  its  production  sites  in 
South Korea.   

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

economy and employment 

13. 

The impact of the redundancies on the local and regional economy and employment 
is expected to be significant. Hainaut is facing a difficult labour market situation with 
an  employment  rate  of  52,7 %  (9,2  percentage  points  lower  than  the  national 
average) and an unemployment rate of 14,5 % (5,9 percentage points higher than the 
national  average7).    The  manufacturing  industries  in  particular  have  suffered  in  the 
Hainaut region, with a drop in employment within the sector of 15,3 % between 2007 
and 2012 in the Charleroi area alone. This situation is rendered even more difficult 
by the fact that the whole manufacturing sector has been downscaling production in 
Wallonia,  with  1 236  job  losses  in  2013  and  1 878  job  losses  in  2014.  The  Public 
Employment Service in the area has also recorded a significant drop in job offers of 
13  %  since  2012.  The  labour  market  in  the  Hainaut  region  is  furthermore 
characterised by a high proportion of underqualified labour (a bit more than half the 
job  seekers  in  Hainaut  lack  upper  secondary  qualifications).  The  downscaling  of 
production within the whole manufacturing sector will make it difficult for the target 
group  of  this  application  to  find  similar  employment  and  upskilling  efforts  will 
definitely be needed. 

3.2.8.  Explanation  of  the  exceptional  circumstances  underlying  the  admissibility  of  the 

application 

14. 

Belgium  argues  that,  despite  the  fact  that  fewer  than  500  redundancies  occurred 
within  the  nine-month  reference  period,  this  application  should  nevertheless  be 
assimilated  to  an  application  under  Article 4(1)(b)  of  the  EGF  Regulation  due  to 
exceptional  circumstances  having  a  serious  impact  on  employment  and  the  local, 
regional or national economy. Other workers from one of the enterprises concerned 

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SPF Economie, Classes moyennes et Energie, Enquête sur les forces de travail, 2015 

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by  this  application,  namely  Caterpillar  Belgium  S.A.,  were  the  targets  of  an  earlier 
application  (EGF/2014/011  BE/Caterpillar),  which  is  currently  being  implemented. 
The current application is considered a follow up application to the first application 
linked to mass redundancies at Caterpillar Belgium S.A, since it is part of the same 
collective redundancy procedure.  The three enterprises concerned by this application 
are  important  players  within  the  region  in  the  field  of  manufacture  of  construction 
engines, providing 72 % of the jobs within this area. Moreover, 12,3 % of the labour 
force  in  the  region  concerned  work  in  manufacturing,  which  has  seen  a  decline  in 
employment  by  8  percentage  points  since  2007.  The  exceptional  circumstances 
surrounding  this  case  have  been  reinforced  by  reference  to  the  unfavorable  labour 
market situation in the region, demonstrated by its lower than average employment 
rates,  high  proportion  of  unqualified  labour  and  high  levels  of  long-term 
unemployment, which stands at 39,0 % of overall unemployment in Hainaut Region. 

3.3. 

Targeted beneficiaries and proposed actions 

3.3.1.  Targeted beneficiaries 

15. 

The estimated number of redundant workers expected to participate in the measures 
is 488. The breakdown of these  by sex, citizenship and age group is as follows: 

Category 

Number of targeted 
beneficiaries 

Sex: 

Citizenship: 

Age group: 

Men: 

Women: 

EU citizens: 

non-EU citizens: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

over 64 years: 

460 

28 

485 

3 

29 

33 

251 

175 

0 

(94.3 %)

(5.7 %)

(99.4 %)

(0.6 %)

(5.9 %)

(6.8 %)

(51.4 %)

(35.9 %)

(0.0 %)

16. 

Additionally, Belgium will provide personalised services co-financed by the EGF to 
up to 300  young people  from the Hainaut Region not in employment,  education or 
training (NEETs) under the age of 25 on the date of submission of the application, 
given  that  488  of  the  redundancies  referred  to  in  paragraph  15  occur  in  the  NUTS 
level  2  Region  of  Hainaut  (B32),  which  is  eligible  under  the  Youth  Employment 
Initiative. 

17. 

The  total  estimated  number  of  targeted  beneficiaries  expected  to  participate  in  the 
measures, including NEETs, is therefore 788. 

3.3.2.  Eligibility of the proposed actions 

18. 

The personalised services to be provided to redundant workers and NEETs consist of 
the following actions:  

– 

Support/Guidance/Integration:  This  set  of  services  builds  upon  the  standard 
activities carried out by the Redeployment Units. The services will be provided 

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– 

– 

– 

– 

by  a  team  of  specialised  FOREM8  staff  in  partnership  with  organisations 
representing  former  workers  to  encourage  participants  to  take  part  in  the 
measures  and  to  help  them  with  administrative  procedures.  To  facilitate 
contacts  between  the  workers,  the  services  are  provided  jointly  to  all  the 
redundant  workers  at  dedicated  premises.  The  services  cover  three  types  of 
activity: (i) collective information on job-search techniques (writing a CV and 
application  letter,  using  web  resources,  etc.),  (ii)  individual  interviews  with  a 
FOREM adviser (skills audit, career pathway, guidance on training, etc.); (iii) 
free  and  open  access  to  job-search  tools  (IT  equipment  with  an  internet 
connection, telephone, specialised documentation, etc.).  

Facilitating  job-search:  FOREM  will  carry  out  specific  activities  to  help 
workers  in  their  job-search  and  to  overcome  difficulties  in  the  redeployment 
process.  This  includes  meetings  between  the  redundant  workers  and  potential 
employers (job matching), company visits, meetings with recruiters to prepare 
for job interviews, and exchanges of experience with other workers who have 
already retrained or have found a job after a collective redundancy. 

Integrated Training: A range of specific training courses will be provided either 
by FOREM or by the Centres de competences or IFAPME9. As an initial step, 
FOREM staff will help each participant to define their work-related goals and 
guide  them  towards  one  of  the  training  modules  on  offer.  At  the  end  of  each 
training module, the new skills can be assessed and documented. Depending on 
the type of training and the field of competences, participants will be awarded 
either  a  formal  certification  of  skills  (i.e.  a  certificate  of  competence),  a 
certificate of attendance (for competences or occupations for which no formal 
certification  exists)  or  a  validation  of  skills  (for  skills  and  competences 
acquired outside formal training courses).  

Support  for  enterprise  creation:  Workers  who  are  considering  setting  up  their 
own businesses will receive guidance and support throughout the process. This 
support includes two main activities: (i) collective information sessions to raise 
awareness  on  business  creation  opportunities,  provide  information  on  legal 
aspects  and  measures  to  support  business  creation;  (ii)  individual  interviews 
with  interested  workers  to  review  their  plans  and  put  them  in  contact  with 
business support organisations and service providers.  

Support for collective projects: Workers who might be considering setting up a 
‘social enterprise’ together as a group will receive guidance and support from a 
specialised  consultancy  and  from  the  Redeployment  Unit.  This  support 
includes  information  and  awareness-raising  sessions  on  business  creation  and 
basic management skills, as well as advice on setting up the undertaking (e.g. 
drawing up a business plan, drafting legal statutes, marketing, etc.). A support 
the  employer 
committee,  which  brings 
organisations, trade unions and FOREM, assesses the application and decides 
whether to award a grant. Each worker involved in the project may receive a 
grant of EUR 5 000 (funds being pooled together for all workers taking part). 
The  grants  can  be  used  to  cover  the  purchase  of  equipment,  merchandise, 

together  representatives  from 

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The Walloon Public Employment Service 
IFAPME  (Institut  wallon  de  Formation  en  Alternance  et  des  indépendants  et  Petites  et  Moyennes 
Entreprises)  is  a  public  training  institute  that  provides  work-linked  dual  training  in  the  form  of 
apprenticeships and specific courses for SME managers. 

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publicity, consultancy, training, etc. The consultancy will administer the grants 
and  report  to  FOREM  on  the  use  of  expenditure  (invoices  and  supporting 
documentation).  

– 

Allowances: Job-search and training allowances will also be made available to 
participants. 

The personalised services which are to be provided to NEETs are based on a similar approach 
as described above and consist of the following actions:  

–  Mobilisation and Guidance: A detailed profiling will allow the youth either to 
embark  directly  on  further  education/training  or  to  follow  a  special  induction 
session designed to promote self-confidence and explore interests.  

– 

– 

– 

Training:  A  range  of  specific  training  courses  will  be  provided  either  by 
FOREM or by the Centres de competences or IFAPME. 

Personalised  upskilling:  A  personalised  upskilling  pathway  will  be  designed 
for each NEET participating in this measure.  

Allowances: Job-search, training and mobility allowances will also be offered 
to participants. 

The  proposed  actions,  here  described,  constitute  active  labour  market  measures 
within the eligible actions set out in Article 7 of the EGF Regulation. These actions 
do not substitute passive social protection measures. 

The  Belgian  authorities  have  provided  the  required  information  on  actions  that  are 
mandatory  for  the  enterprises  concerned  by  virtue  of  national  law  or  pursuant  to 
collective  agreements.  They  have  confirmed  that  a  financial  contribution  from  the 
EGF will not replace such actions. 

19. 

20. 

3.3.3.  Estimated budget 

21. 

The  estimated  total  costs  are  EUR  3,040,069,  comprising  expenditure  for 
personalised  services  of  EUR  2,972,669  and  expenditure  for  preparation, 
management,  information  and  publicity,  control  and  reporting  activities  of  EUR 
67,400. 

22. 

The total financial contribution requested from the EGF is EUR 1,824,041 (60 % of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR10) 

Estimated total 
costs(EUR)  

Personalised services (Actions under Article 7(1)(a) and (c) of the EGF Regulation) 

 Redeployment (Reconversion): 
Support/Guidance/Integration 
(Accompagnement/Orientation/Insertion)

Facilitating job-search 
(Dynamisation de la recherche 
d'emploi) 

488 

2,849 

1,390,089 

200 

163 

32,500 

10 

Approximations based on the number of participants and total costs. 

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 Training (Formation) 
Integrated training (Formations 
intégrées) 

Promotion of entrepreneurship (Aide 
à la creation d'emploi) 

Support for enterprise creation 
(Autocreation d'emploi individuelle) 

 Awareness raising collective 
projects (Sensibilisation aux projets 
collectifs)  

 Grants for collective projects 
(Bourses de création de projets 
collectifs)  

 NEETS: Mobilisation and 
Guidance 
(Mobilisation/accompagnement)  

NEETS: Integrated training 
(Formations intégrées) 

NEETS: Personalised upskilling 
(Remédiation et mise à niveau) 

200 

594 

118,850 

300 

117 

35,000 

300 

160 

47,868 

10 

5,000 

50,000 

300 

100 

50 

3,350 

1,004,896 

850 

85,000 

1,300 

65,000 

Sub-total (a):
Percentage of the package of 
personalised services: 

– 

2,829,203 

(95.17 %) 

Allowances and incentives (Actions under Article 7(1)(b) of the EGF Regulation) 

 Job-search allowance (Allocations 
de recherche d'emploi)  

 Training allowance (Allocations de 
formation)  

 NEETS: Job-search allowance 
(allocations recherche d'emploi)  

 NEETS: Mobility Allowance 
(allocations de mobilité)  

 NEETS: Training allowance 
(allocations de formation)  

 Personalised upskilling allowance 
(Allocations remédiation)  

488 

200 

150 

150 

100 

50 

153 

62 

125 

125 

125 

125 

Sub-total (b):
Percentage of the package of 

– 

74,844 

12,372 

18,750 

18,750 

12,500 

6,250 

143,466 

(4.83 %) 

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personalised services:

 Actions under Article 7(4) of the EGF Regulation 

1. Preparation activities 

2. Management 

3. Information and publicity 

4. Control and reporting 

Sub-total (c):
Percentage of the total costs:

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

– 

– 

– 

– 

– 

– 

– 

1,500 

8,000 

45,000 

12,900 

67,400 

(2.22 %) 

3,040,069 

1,824,041 

23. 

The costs of the actions identified in the table above as actions under Article 7(1)(b) 
of  the  EGF  Regulation  do  not  exceed  35  %  of  the  total  costs  for  the  coordinated 
package  of  personalised  services.  Belgium  confirmed  that  these  actions  are 
conditional  on  the  active  participation  of  the  targeted  beneficiaries  in  job-search  or 
training activities. 

24. 

Belgium confirmed that the costs of investments for self-employment, business start-
ups and employee take-overs will not exceed EUR 15 000 per beneficiary. 

3.3.4.  Period of eligibility of expenditure 

25. 

26. 

Belgium started providing the personalised services to the targeted beneficiaries on 1 
January  2015.  The  expenditure  on  the  actions  referred  to  in  paragraph  22  shall 
therefore be eligible for a financial contribution from the EGF from 1 January 2015 
to  17  December  2017,  with  the  exception  of  expenditure  on  education  or  training 
courses the duration of which is two years or more, which will be eligible until 17 
June 2018. 

Belgium started incurring the administrative expenditure to implement the EGF on 1 
January  2015.  The  expenditure  for  preparation,  management,  information  and 
publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 1 January 2015 to 17 June 2018.  

3.3.5.  Complementarity with actions funded by national or Union funds 

27. 

28. 

The  sources  of  national  pre-financing  or  co-funding  are  the  Walloon  Public 
Employment Service (FOREM) and the Region of Wallonia. 

Belgium  has  confirmed  that  the  measures  described  above  receiving  a  financial 
contribution  from  the  EGF  will  not  also  receive  financial  contributions  from  other 
Union financial instruments. 

3.3.6.  Procedures  for  consulting  the  targeted  beneficiaries  or  their  representatives  or  the 

social partners as well as local and regional authorities 

29. 

Belgium  has  indicated  that  the  co-ordinated  package  of  personalised  services  has 
been  drawn  up  in  consultation  with  all  stakeholders  including  social  partners, 
enterprises and the public employment services.  Through  a Monitoring Committee, 
those stakeholders will closely follow the implementation of the proposed measures. 

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3.4.  Management and control systems 

30. 

3.5. 

31. 

4. 

4.1. 

32. 

33. 

34. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Belgium  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  and  controlled  by  the 
same bodies which are responsible for the European Social Fund (ESF). 

Commitments provided by the Member State concerned 

Belgium has provided all necessary assurances regarding the following:  

– 

– 

– 

– 

– 

– 

the principles of equality of treatment and non-discrimination will be respected 
in the access to the proposed actions and their implementation, 

the  requirements  laid  down  in  national  and  EU  legislation  concerning 
collective redundancies have been complied with, 

the dismissing  enterprises, which have continued their  activities  after  the lay-
offs,  have  complied  with  their  legal  obligations  governing  the  redundancies 
and provided for their workers accordingly, 

the proposed actions will not receive financial support from other Union funds 
or financial instruments and any double financing will be prevented, 

the  proposed  actions  will  be  complementary  with  actions  funded  by  the 
Structural Funds, 

the  financial  contribution  from  the  EGF  will  comply  with  the  procedural  and 
material Union rules on State aid. 

BUDGETARY IMPLICATION 

Budgetary Proposal 

The  EGF  shall  not  exceed  a  maximum  annual  amount  of  EUR  150  million  (2011 
prices),  as  laid  down  in  Article  12  of  Council  Regulation  (EU,  Euratom)  No 
1311/2013 of 2 December 2013 laying down the multiannual financial framework for 
the years 2014-202011. 

Having examined the application in respect of the conditions set out in Article 13(1) 
of  the  EGF  Regulation,  and  having  taken  into  account  the  number  of  targeted 
beneficiaries, the proposed actions and the estimated costs, the Commission proposes 
to mobilise the EGF for the amount of EUR 1 824 041, representing 60 % of the total 
costs  of  the  proposed  actions,  in  order  to  provide  a  financial  contribution  for  the 
application. 

The  proposed  decision  to  mobilise  the  EGF  will  be  taken  jointly  by  the  European 
Parliament  and  the  Council,  as  laid  down  in  point  13  of  the  Interinstitutional 
Agreement of 2 December 2013 between the European Parliament, the Council and 
the Commission on budgetary discipline, on cooperation in budgetary matters and on 
sound financial management12. 

11 
12 

OJ L 347, 20.12.2013, p. 884. 
OJ C 373, 20.12.2013, p. 1. 

EN 

11 

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4.2. 

35. 

36. 

Related acts 

At the same time as it presents this proposal for a decision to mobilise the EGF, the 
Commission will present to the European Parliament and to the Council a proposal 
for a transfer to the relevant budgetary line for the amount of EUR 1 824 041. 

At the same time as it adopts this proposal for a decision to mobilise the EGF, the 
Commission  will  adopt  a  decision  on  a  financial  contribution,  by  means  of  an 
implementing  act,  which  will  enter  into  force  on  the  date  at  which  the  European 
Parliament and the Council adopt the proposed decision to mobilise the EGF. 

EN 

12 

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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 (application from 
Belgium - EGF/2015/012 BE/Hainaut Machinery) 

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  Regulation  (EU)  No  1309/2013  of  the  European  Parliament  and  of  the 
Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) 
and repealing Regulation (EC) No 1927/200613, and in particular Article 15(4) thereof, 

Having regard to the Interinstitutional Agreement of 2 December 2013 between the European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on  cooperation  in 
budgetary matters and on sound financial management14, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Globalisation  Adjustment  Fund  (EGF)  was  established  to  provide 
support  for  workers  made  redundant  and  self-employed  persons  whose  activity  has 
ceased  as  a  result  of  major  structural  changes  in  world  trade  patterns  due  to 
globalisation, as a result of a continuation of the global financial and economic crisis 
addressed  in  Regulation  (EC)  No  546/2009  of  the  European  Parliament  and  of  the 
Council, or as a result of a new global financial and economic crisis, and to assist them 
with their reintegration into the labour market. 

The  EGF  shall  not  exceed  a  maximum  annual  amount  of  EUR  150  million  (2011 
prices),  as  laid  down  in  Article  12  of  Council  Regulation  (EU,  Euratom)  No 
1311/201315. 

On  17  December  2015,  Belgium  submitted  application  EGF/2015/012  BE/Hainaut 
Machinery  for  a  financial  contribution  from  the  EGF,  following  redundancies  in  the 
economic sector classified under the NACE Revision 2 Division 28 (Manufacture of 
machinery  and  equipment  n.e.c)  in  the  NUTS    level  2  region  of  Hainaut  (BE32)  in 
Belgium.  It  was  supplemented  by additional information pursuant to Article 8(3) of 
Regulation  (EU)  No  1309/2013.  The  application  complies  with  the  requirements  for 
determining  a  financial  contribution  from  the  EGF  in  accordance  with  Article  13  of 
Regulation (EU) No 1309/2013.  

(4) 

In  accordance  with  Article  6(2)  of  Regulation  (EU)  No  1309/2013,  Belgium  has 
decided  to  provide  personalised  services  co-financed  by  the  EGF  also  to  300  young 
persons not in employment, education or training (NEETs). 

13 
14 
15 

OJ L 347, 20.12.2013, p. 855. 
OJ C 373, 20.12.2013, p. 1. 
Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for 
the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 

EN 

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(5) 

(6) 

(7) 

In  accordance  with  Article  4(2)  of  Regulation  (EU)  No  1309/2013,  the  application 
from Belgium is considered admissible since the redundancies have a serious impact 
on employment and the local, regional and national economy. 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 1 824 041 in respect of the application submitted by Belgium, 

In  order  to  minimise  the  time  taken  to  mobilise  the  EGF,  this  decision  should  apply 
from the date of its adoption, 

HAVE ADOPTED THIS DECISION:  

For  the  general  budget  of  the  European  Union  for  the  financial  year  2016,  the  European 
Globalisation Adjustment Fund shall be mobilised to provide the sum of EUR 1 824 041 in 
commitment and payment appropriations. 

Article 1 

Article 2 

This Decision shall enter into force on the day of its publication in the Official Journal of the 
European Union. It shall apply from [the date of its adoption]∗. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

∗  

Date to be inserted by the Parliament before the publication in OJ. 

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