Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Sweden – EGF/2016/002 SE/Ericsson
Date: 2016-09-05
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: East Middle Sweden, European Globalisation Adjustment Fund, South Sweden, Stockholm, Sweden, West Sweden, collective dismissal, commitment of expenditure, employment aid, information technology industry, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 5.9.2016  COM(2016) 554 final   Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Sweden – EGF/2016/002 SE/Ericsson  
 
EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

1. 

2. 

3. 

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 31 March 2016, Sweden submitted an application EGF/2016/002 SE/Ericsson for 
a  financial  contribution  from  the  EGF,  following  redundancies2  in  Ericsson  in 
Sweden. 

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.  

SUMMARY OF THE APPLICATION 

EGF application 

Member State 
Regions concerned (NUTS3 level 2) 

Date of submission of the application 

Receipt of translation 

Date of acknowledgement of receipt of the 
application 

EGF/2016/002 SE/Ericsson 

Sweden 
Stockholm (SE11),  
Östra Mellansverige (SE12), 
Sydsverige (SE22), 
Västsverige (SE23) 
31 March 2016 

18 April 2016 

31 March 2016 

Date of request for additional information 

2 May 2016 

Deadline for provision of the additional 
information 

13 June 2016 

Deadline for the completion of the assessment 

5 September 2016 

Intervention criterion 

Primary enterprise 

Article 4(1)(a) of the EGF Regulation 

Telefonaktiebolaget LM Ericsson 

Number of enterprises concerned 

1 

Sector(s) of economic activity 
(NACE Revision 2 Division)4 

Division NACE 2 Division 26 
(Manufacture of computer, electronic 
and optical products) 

1 
2 
3 

4 

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). 
OJ L 393, 30.12.2006, p. 1. 

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2 

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Number of subsidiaries, suppliers and 
downstream producers 

0+ 

Reference period (four months): 

11 September 2015 – 11 January 2016 

Number of redundancies during the reference 
period (a) 

Number of redundancies before or after the 
reference period (b) 

Total number of redundancies (a + b) 

Total number of eligible beneficiaries 

Total number of targeted beneficiaries 

Number of targeted young persons not in 
employment, education or training (NEETs) 
Budget for personalised services (EUR) 
Budget for implementing EGF5 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

ASSESSMENT OF THE APPLICATION 

Procedure 

1 244 

312 

1 556 

1 556 

918 

0 

6 161 480 
   435 051 
6 596 531 
3 957 918 

4. 

Sweden  submitted  application  EGF/2016/002 SE/Ericsson  within  12  weeks  of  the 
date  on  which  the  intervention  criteria  set  out  in  Article 4  of  the  EGF  Regulation 
were  met,  on  31 March 2016.  The  Commission  acknowledged  receipt  of  the 
application  on  the  same  date.  Within  two  weeks  of  the  date  on  which  the 
Commission was in possession of the translation of the application, on 2 May 2016, 
the  Commission  requested  additional  information  from  Sweden.  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 September 2016.  

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

relates 

in  Ericsson 
to  1 556  workers  made 
The  application 
(Telefonaktiebolaget  LM  Ericsson).  Ericsson  operates  primarily  in  the  economic 
sectors  classified  under  the  NACE  Revision  2  Division  26  (Manufacture  of 
computer,  electronic  and  optical  products)  and  62  (Computer  programming, 
consultancy  and  related  activities).  The  redundancies  made  by  Ericsson  are  mainly 
located in the NUTS level 2 regions of Stockholm (SE11) and Östra Mellansverige 
(SE12), but also in Sydsverige (SE22) and Västsverige (SE23). 

redundant 

Enterprises and number of dismissals within the reference period 

Ericsson 
Total no. of enterprises: 1 

Total no. of dismissals:  

1 556 

1 556 

5 

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:  

0 

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

1 556 

Intervention criteria 

6. 

7. 

8. 

Sweden submitted the application under the intervention criteria of Article 4(1)(a) of 
the EGF Regulation, which requires at least 500 workers being made redundant over 
a reference period of four months in an enterprise in a Member State. 

reference  period  of 

The 
11 September  2015 to 11 January 2016. 

four  months 

for 

the  application 

runs 

from 

The redundancies during the reference period are as follows: 

– 

1 244 workers made redundant in Ericsson. 

Calculation of redundancies and of cessation of activity 

9. 

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

– 

1 244 from the date on which the employer, in accordance with Article 3(1) of 
Council Directive 98/59/EC6, notified the competent public authority in writing 
of the projected collective redundancies. Sweden confirmed prior to the date of 
the  completion  of  the  assessment  by  the  Commission  that  these  1 244 
redundancies have actually been effected. 

 Eligible beneficiaries 

10. 

In addition to the workers already referred to, the eligible beneficiaries include 312 
workers made redundant before or after the reference  period of four months. These 
workers  were  all  made  redundant  after  the  general  announcement  of  the  projected 
redundancies on 11 September 2015. A clear causal link can be established with the 
event  which  triggered  the  redundancies  during  the  reference  period.  The  Swedish 
authorities  declared  that  these  redundancies  were  all  part  of  the  same  redundancy 
procedure, but some redundancies were only announced after the end of the reference 
period. 

11. 

The total number of eligible beneficiaries is therefore 1 556. 

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

globalisation 

12. 

13. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Sweden  argues  that  the  redundancies 
occurred in the telecom hardware production business line of Ericsson. 

In  the  past  years,  Ericsson  has  concentrated  most  of  its  hardware  production  and 
development  facilities  in  Asia,  where  not  only  the  strongest  growth  markets  are 
located, but also equivalent quality can be delivered at lower costs. 

6 

Council  Directive  98/59/EC  of  20 July  1998  on  the  approximation  of  the  laws  of  the  Member  States 
relating to collective redundancies (OJ L 225, 12.8.1998, p. 16). 

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14. 

15. 

16. 

17. 

A  study  on  Outsourcing  in  Europe  conducted  by  Ernst  &  Young7  revealed  that 
outsourcing  production  and  development  activities  is  especially  prevalent  in  the  IT 
and telecommunication industries. Asia dominates as an outsourcing destination. 
According  to  data  published  by  Ericsson8,  the  company  has  gradually  been  cutting 
staff in Sweden (from 21 178 in 2005 to 17 858 in 2014) , but in the meantime been 
growing  tremendously  worldwide  (from  56 055  in  2005  to  118 055  in  2014),  India 
currently being the country with the largest number of employees. 

The  Swedish  trade  union  Unionen  states  that  Ericsson  is  still  hiring  in  Europe,  but 
only people with an entirely different set of skills. Employees with skills in hardware 
production and development are generally not reemployed by the company9. Most of 
the  company's  growth  nowadays  is  in  software  development.  Even  though  some 
software  development  is  done  in  Europe,  most  of  the  growth  in  this  sector  is  also 
happening in Asia10, where Ericsson is expanding its activities11. 

To  date,  the  NACE  2  Division  26  sector  has  been  the  subject  of  another  14  EGF 
applications,  11  of  which  based  on  trade  related  globalisation  and  3  on  the  global 
financial and economic crisis12. 

Events giving rise to the redundancies and cessation of activity 

18. 

19. 

20. 

The  events  giving  rise  to  these  redundancies  are  the  partial  or  entire  closure  of 
wireless  telecom  hardware  production  lines  at  various  Ericsson  sites  (Borås, 
Karlskrona,  Kista/Stockholm,  Kumla,  Linköping  and  Gothenburg)  in  Sweden,  and 
the closure of an entire plant in the city of Katrineholm. 

Facing stagnating  growth  and simultaneously facing harder competition with  Asian 
producers, Ericsson has been scaling down telecom hardware production, a process 
that  started  almost  two  decades  ago.  The  company  sold  its  entire  mobile  phone 
development  and  production  line to  competitor  Sony  in  February  2012. Ericsson is 
concentrating its remaining hardware production lines at production sites in Asia. 

In  the  first  six  months  of  2015,  Ericsson  successively  announced  the  loss  of  1 611 
jobs  at  seven  sites  in  Sweden.  As  some  of  the  job  holders  had  already  reached 
retirement  age,  they  are  not  counted  in  the  number  of  dismissals,  which  implies  a 
premature end of employment. Therefore, 1 556 workers made redundant have been 
reported  by  Sweden.  On  11 September 2015,  Ericsson  notified  the  Swedish 
authorities in writing of the projected collective redundancies. 

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

employment 

21. 

The  expected  impact  of  the  redundancies  on  the  local  and  regional  labour  markets 
differs  widely  from  region  to  region.  At  first  glance,  the  impact  might  seem 
neglectable,  especially  in  very  densely  populated  areas.  Generally  speaking, 

7 

8 

9 

10 
11 

12 

http://www.ey.com/Publication/vwLUAssets/Outsourcing_in_Europe_2013/$FILE/EY-outsourcing-
survey.pdf 
http://www.ericsson.com/thecompany/investors/financial_reports/2014/annual14/en/Otherinformation/ 
Tenyearsummary.html 
http://unionenopinion.se/analyser/varsel-pa-ericsson-och-sony-mobile-vad-hander-i-telekombranschen-
egentligen/ 
http://cio.idg.se/2.1782/1.630340/sa-sourcar-svenska-cio-er-2015 
http://www.forbes.com/sites/greatspeculations/2015/08/19/ericsson-can-overcome-challenges-in-the-
mobile-infrastructure-business/#77e6e5cb128d 
http://ec.europa.eu/social/BlobServlet?docId=4558&langId=en 

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22. 

23. 

however, all regions face the problem that a relatively large group of older workers 
with similar backgrounds is made redundant at the same point of time. Most of these 
workers do not possess the skills sought after on the local labour market. This skills 
mismatch  is  especially  visible  in  Kista,  the  town  with  the  highest  number  of 
redundancies (762 workers). Even though Kista is situated in the Greater Stockholm 
Area,  a  region  with  a  very  dynamic  economy,  low  unemployment  rates,  and  many 
available jobs, more than 400 workers made redundant were still unemployed at the 
time  of  submission  of  the  application  for  EGF  funding.  Up-  or  re-skilling  such  a 
large  number  of  older  workers  with  a  very  similar  background  is  the  greatest 
challenge  the  local  authorities  face.  In  certain  regions,  e.g.  in  Karlskrona,  larger 
number of newly arrived migrants put additional strain on the local labour market.  

Arbetsförmedlingen,  the  Swedish  PES,  has  conducted  an  analysis  of  the  labour 
market  situations  in  the  affected  regions,  and  discussed  the  needs  with  the  local 
authorities  and  the  unions.  As  a  result,  the  Swedish  government  decided  to  focus 
possible  EGF  assistance  especially  on  the  Kista,  Katrineholm  and  Kumla  sites,  as 
these  face  the  biggest  challenges.  However,  individualised  help  will  be  offered  to 
workers made redundant at the other sites as well.  

Both blue- and white-collar employees are affected by the redundancies. As concerns 
blue-collar workers, they face a labour market with rather low demand in traditional 
manufacturing  industries.  The  Swedish  PES  sees  potential  opportunities  for  these 
workers  in  the  public  or  private  sector  service  industries,  which  would,  however, 
require  major  retraining  efforts.  The  situation  is  slightly  different  for  white-collar 
workers. Most of these are engineers, specialised in the production and development 
of  telecom  hardware,  and  some  even  in  niches  that  are  unique  for  Ericsson.  There 
still is a high demand for engineers, also and especially in the IT-sector, primarily in 
programming  and  software  development.  Even  though  the  white-collar  staff  made 
redundant shows a high affinity with the IT-sector in general, most of these former 
Ericsson  employees  lack  the  skills  needed.  The  Swedish  PES  is  confident  that  a 
personalised package of training programmes and coaching will enable most of these 
redundant employees to find new jobs of high quality. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

24. 

The estimated number of redundant workers expected to participate in the measures 
is  918.  The  breakdown  of  these  workers  by  sex,  citizenship  and  age  group  is  as 
follows: 

Sex: 

Category 

Men: 

Women: 

Citizenship:  EU citizens: 

non-EU citizens: 

Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

Number of  
targeted beneficiaries 

643 

275 

(70,0 %) 

(30,0 %) 

918  (100,0 %) 

0 

0 

(0 %) 

(0 %) 

22 

(2,4 %) 

589 

(64,2 %) 

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55-64 years: 

over 64 years: 

307 

(33,4 %) 

0 

(0 %) 

Eligibility of the proposed actions 

25. 

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

A Counselling and Career Guidance: 

In-depth assessment and individual planning: This registration process includes 
a  survey  of  prior  experience  and  training,  and  is  speeded  up  for  EGF 
beneficiaries. It can include several individual and customised meetings, some 
of which may be with outplacement companies. 

Guidance  counselling:  Standard  activities  offered  by  Arbetsförmedlingen  will 
be  combined  with  EGF  measures  such  as  individual  support  in  direct  contact 
with  potential  employers,  motivational  meetings,  and  conferences  presenting 
the  labour  market  in  the  region.  This  will  be  especially  important  for  those 
targeted  workers  who  regard  their  educational  level  as  insufficient  for  the 
vacancies identified in the region. Both individual and group activities will be 
offered. 

Motivation  coaching  and  career  planning:  The  EGF  beneficiaries  will  have 
access  to  experts  in  cognitive  therapy  to  strengthen  their  motivation. 
Furthermore,  a  series  of  conferences  will  be  organised.  During  these 
conferences,  beneficiaries  will  be 
labour  market 
developments  and  are  invited  to  discuss  the  professional  hard  and  soft  skills 
needed.  Aim  of  these  conferences  is  to  provide  the  motivation  needed  to 
overcome  the  challenges  of  the  job  market.  These  measures  are  open  to  all 
targeted  beneficiaries,  with  special  emphasis  on  participants  aged  50  and 
above. 

informed  on 

latest 

B Sheltered and supported employment and rehabilitation measures: 

These  measures  target  beneficiaries  with  health  conditions  or  impairments. 
Such  measures  can  comprise  the  evaluation  of  an  individual's  work-capacity, 
measures  to  build-up  or  re-inforce  an  individual's  work-capacity  or  the 
purchase of and training on assistive devices required to overcome workplace 
challenges. 

C Education and training: 

The Swedish PES offers a range of courses for specific target groups. On top of 
these, tailor made courses will be made available to EGF beneficiaries. These 
include academic courses and other highly specialized courses of a duration of 
12  months  or  longer.  Furthermore,  individual  support  will  be  offered  to 
participants  with  learning  disabilities  (it  is  estimated  that  about  5 %  of 
beneficiaries  participating  in  education  and  training  measures  will  require 
special assistance). Special effort will be undertaken to break traditional gender 
barriers  and  to  motivate  e.g.  the  male  beneficiaries  to  find  jobs  in  the  health 
care sector. Preparatory courses for those envisaging business creations will be 
given  by  external  experts  providing  advice  to  future  entrepreneurs.  In  the 
context of the  principle of life-long learning,  participants in EGF co-financed 

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measures  will  also  be  offered  the  opportunity  to  get  competencies  acquired 
through formal and informal learning officially validated. 

Internship  programmes  will  be  organised  offering  the  possibility  to  combine 
practical training with some of the formal education programmes. A close co-
operation is planned with the Swedish employer organization for the IT-sector. 

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D Job search allowances: 

This is provided to the beneficiaries taking part in any of the active measures 
described above. The level of the allowance depends on individual factors and 
varies according to the duration of the measures. There are three different types 
of  allowances,  one  for  people  taking  part  in  the  general  measures,  one  for 
people  in  internship  programmes,  and  one  for  people  taking  part  in 
rehabilitation  measures.  The  budgets  for  these  allowances  include  the 
reimbursement  of  travel  expenses  for  beneficiaries  whose  job-search  related 
travel expenses exceed SEK 600 (equivalent to about EUR 64) per month. 

26. 

27. 

28. 

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. 

Sweden has provided the required information on actions that are mandatory for the 
enterprise 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. 

The  proposed  measures  will  contribute  to  a  sustainable  economic  development. 
According  to  the  Swedish  Environmental  Code,  Arbetsförmedlingen  is  obliged  to 
include  environmental  concerns  in  its  calls  for  tender  and  its  own  actions.  The 
measures  offered  are  thus  in  line  with  the  Swedish  Environmental  Code  and 
contribute to the 16 Swedish Environmental Quality Objectives. 

Estimated budget 

29. 

The  estimated 
personalised  services  of  EUR 6 161 480  and  expenditure 
management, 
EUR 435 051. 

total  costs  are  EUR 6 596 531,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

30. 

The total financial contribution requested from the EGF is EUR 3 957 918 (60 % of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(rounded) 
(EUR) 

Estimated total 
costs 
(EUR)  

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

Counselling and Career Guidance (Jobbcoachning 
och ärendehantering) 

Sheltered  and 
supported  employment  and 
rehabilitation measures (Skyddad och understödd 
sysselsättning och rehabilitering) 

Education 
omskolning) 

and 

training 

(Utbildning 

och 

918 

1 202 

1 103 545 

20 

12 555 

251 108 

463 

5 868 

2 716 884 

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

– 

4 071 537 

(66,08 %) 

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

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Allowance  for  participants  in  labour  market 
(Utbildningsinsatser  AUB, 
training  activities 
aktivitetsstöd) 

102 

11 904 

1 214 194 

for  participants 
Allowances 
placement programmes (Praktik, aktivitetsstöd)  

internship 

in 

Allowances  for  participants 
in  rehabilitation 
programme  "Introduction  to  work"  (Introduktion 
till arbete KA, aktivitetsstöd) 

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

 Actions under Article 7(4) of the EGF Regulation 

Preparatory activities 

Management 

Information and publicity 

Control and reporting 

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

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

80 

10 

8 183 

654 660 

22 109 

221 089 

– 

– 

– 

– 

– 

– 

– 

– 

2 089 943 

(33,92 %) 

0 

362 387 

21 498 

51 166 

435 051 

(6,6 %) 

6 596 531 

3 957 918 

31. 

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.  Sweden  confirmed  that  these  actions  are 
conditional  on  the  active  participation  of  the  targeted  beneficiaries  in  job-search  or 
training activities. 

Period of eligibility of expenditure 

32. 

33. 

Sweden  started  providing  the  personalised  services  to  the  targeted  beneficiaries  on 
1 October 2015.  The  expenditure  on  the  actions  will  therefore  be  eligible  for  a 
financial contribution from the EGF from 1 October 2015 to 31 March 2018. 

Sweden  started  incurring  the  administrative  expenditure  to  implement  the  EGF  on 
1 October 2015.  The  expenditure  for  preparatory,  management,  information  and 
publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 1 October 2015 to 30 September 2018.  

Complementarity with actions funded by national or Union funds 

34. 

35. 

The source of national pre-financing or co-funding is the Arbetsförmedlingen budget. 
Ericsson or one of the social security organisations might also contribute to certain 
project initiatives, replacing some of the Arbetsförmedlingen funds. 

Sweden  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. 

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Procedures  for  consulting  the  targeted  beneficiaries  or  their  representatives  or  the  social 

partners as well as local and regional authorities 

36. 

local  public  actors.  After 

Sweden has indicated that the co-ordinated package of personalised services has been 
drawn up in consultation with the targeted beneficiaries and their representatives as 
the  redundancies, 
well  as 
Arbetsförmedlingen  met  with  representatives  of  Ericsson,  local  authorities,  the 
various  unions  as  well  as  the  outplacement  agencies  at  all the  company’s  sites  that 
were  subject  to  the  collective  redundancy  procedures.  At  all  sites,  workshops  were 
held with local union representatives in order to discuss a possible EGF application 
and to identify the appropriate package of measures to be offered. 

the  notification  of 

Management and control systems 

37. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Sweden  has  notified  the 
Commission that the financial contribution will be managed by Arbetsförmedlingen 
which  is  formally  appointed  as  the  managing  and  paying  authority.  The  project 
accounts  will  be  examined  by  the  Internal  Audit  Unit,  which  is  a  separate  body 
attached  to  the  board  of  Arbetsförmedlingen.  Its  task  is  to  examine  the  internal 
control  and  verification  process  at  PES  and  suggest  improvements,  as  well  as 
providing  advice  and  support  for  the  Board  and  the  Director  General.  Project 
auditing will take place on a regular basis. 

Commitments provided by the Member State concerned 

38. 

Sweden 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, 

Ericsson,  which  has  continued  its  activities  after  the  lay-offs,  has  complied 
with  its  legal  obligations  governing  the  redundancies  and  provided  for  its 
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 

39. 

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 2014-202013. 

13 

OJ L 347, 20.12.2013, p. 884. 

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11 

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40. 

41. 

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 3 957 918, 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 management14. 

Related acts 

42. 

43. 

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 3 957 918. 

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. 

14 

OJ C 373, 20.12.2013, p. 1. 

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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 following an 
application from Sweden – EGF/2016/002 SE/Ericsson 

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 1927/200615, 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 management16, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

15 
16 
17 

The  European  Globalisation  Adjustment  Fund  (EGF)  aims  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, 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  is  not  to  exceed  a  maximum  annual  amount  of  EUR 150  million  (2011 
in  Article 12  of  Council  Regulation  (EU,  Euratom) 
prices),  as 
No 1311/201317. 

laid  down 

On 31 March 2016, Sweden submitted an application to mobilise the EGF, in respect 
of  redundancies  in  Ericsson  (Telefonaktiebolaget  LM  Ericsson)  in  Sweden.  It  was 
supplemented  by  additional  information  provided  in  accordance  with  Article 8(3)  of 
Regulation  (EU)  No 1309/2013.  That  application  complies  with  the  requirements  for 
determining  a  financial  contribution  from  the  EGF  as  laid  down  in  Article 13  of 
Regulation (EU) No  1309/2013. 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 3 957 918 in respect of the application submitted by Sweden. 

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

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). 

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HAVE ADOPTED THIS DECISION:  

Article 1 

For the general budget of the Union for the financial year 2016, the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 3 957 918 in commitment 
and payment appropriations. 

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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