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 Spain – EGF/2016/004 ES/Comunidad Valenciana automotive
Date: 2016-11-08
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: Community of Valencia, European Globalisation Adjustment Fund, Spain, collective dismissal, commitment of expenditure, employment aid, financial aid, general budget (EU), motor vehicle industry, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 8.11.2016  COM(2016) 708 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 Spain – EGF/2016/004 ES/Comunidad Valenciana automotive  
 
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  21  June  2016,  Spain  submitted  an  application  EGF/2016/004 ES/Comunidad 
Valenciana  automotive  for  a  financial  contribution  from  the  EGF,  following 
redundancies2 in the economic sector classified under the NACE Revision 2 Division 
29  (Manufacture  of  motor  vehicles,  trailers  and  semi-trailers)  in  the  NUTS  level  2 
region of Comunidad Valenciana (ES52) in Spain. 

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 
Region(s) concerned (NUTS3 level 2) 

Date of submission of the application 

Date of acknowledgement of receipt of the 
application 

EGF/2016/004 ES/Comunidad 
Valenciana automotive 

Spain 
Comunidad Valenciana (ES52) 

21 June 2016 

21 June 2016 

Date of request for additional information 

5 July 2016 

Deadline for provision of the additional 
information 

16 August 2016 

Deadline for the completion of the assessment 

8 November 2016 

Intervention criterion 

Article 4(2) of the EGF Regulation 

Number of enterprises concerned 

29 

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

Division 29 (Manufacture of motor 
vehicles, trailers and semi-trailers) 

Reference period (nine months): 

30 June 2015 – 30 March 2016 

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 redundancies during the reference 
period 

Total number of eligible beneficiaries 

Total number of targeted beneficiaries 
Budget for personalised services (EUR) 
Budget for implementing EGF5 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

250 

250 

250 
1 334 000 
94 000 
1 428 000 
856 800 

ASSESSMENT OF THE APPLICATION 

Procedure 

4. 

Spain  submitted  application  EGF/2016/004 ES/Comunidad  Valenciana  automotive 
within 12 weeks of the date on which the intervention criteria set out in Article 4 of 
the  EGF  Regulation  were  met,  on  21  June  2016.  The  Commission  acknowledged 
receipt  of  the  application  on  the  same  date,  and  requested  additional  information 
from  Spain  on  5  July  2016.  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 8 November 2016. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  250  workers  made  redundant  in  the  economic  sector 
classified under the NACE Revision 2 Division 29 (Manufacture of motor vehicles, 
trailers  and  semi-trailers)  in  the  NUTS  level  2  region  of  Comunidad  Valenciana 
(ES52). 

Enterprises and number of dismissals within the reference period 

ANADIA FUNDICION 

AUTOMOVILES BLAM SL 

BENIMAR-OCARSA SA 

BERGE AUTOMOTIVE LOGISTICS SL 

BOSAL ESPAÑA SA 

BOSAL MADRID SL 

BOSAL VALENCIA SAU 

1 

1 

1 

1 

1 

1 

INDUSTRIAS DOLZ SA 

INDUSTRIAS DOLZ SL 

INDUSTRIAS OCHOA SL 

LEAR EUROPEAN HOLDING SLU 

MAGNA SEATING SPAIN SAU 

MODULAR LOGISTICA VALENCIANA SL 

215 

MUELLES Y BALLESTAS HISPANO 
ALEMANAS SL 

ELECTRO CASTELLAR SL 

ESTAMPACIONES METALICAS MOYMA 
SL 

FABRICACION MODULAR VALENCIANA 
SL 

FAURECIA AUTOMOTIVE EXTERIORES 
ESPAÑA SAU 

FAURECIA EMISSION CONTROL 
TECHNOLOGIES PAMPLONA 

2 

1 

1 

1 

1 

RADIADORES ORDOÑEZ SA 

SAS AUTOSYSTEMTECHNIK VALENCIA 
SLU 

SICAL SL 

SPANIA GTA TECNOMOTIVE SL 

STIL CONVERSION SL 

1 

1 

1 

1 

2 

1 

1 

2 

1 

1 

1 

1 

5 

In accordance with the fourth paragraph of Article 7 of Regulation (EU) No 1309/2013. 

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FAURECIA INTERIOR SYSTEMS SALC 
ESPAÑA SL 

FEU VERT IBERICA SA 

FORD ESPAÑA SL 

1 

1 

5 

TALENTO Y EXPERIENCIA SL 

TECNOVE SL 

1 

1 

Total no. of enterprises: 29 

Total no. of dismissals:  

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

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

250 

0 

250 

Intervention criteria 

6. 

Spain  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 250 redundancies in the NUTS level 2 region of 
Comunidad Valenciana (ES52)  

7. 

The reference period of nine months for the application runs from 30 June 2015 to 30 
March 2016. 

Calculation of redundancies and of cessation of activity 

8. 

All  the  redundancies  during  the  reference  period  have  been  calculated  as  from  the 
date of the de facto termination of the contract of employment or its expiry.  

Eligible beneficiaries 

9. 

The total number of eligible beneficiaries is 250. 

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

globalisation 

10. 

11. 

12. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Spain  argues  that  the  European 
automotive industry has lost significant market share within the past decade.  

In absolute terms, while the EU-27 faced a production decline for motor vehicles in 
2015  compared  with  2006  by  0,5  million  units  (from  18,7  million  units  in  2006  to 
18,2  in  2015)  or  -2,8 %,  global  production  increased  by  31,1 %  (from  69,2  million 
units in 2006 to 90,9 in 2015)6, notably in China as well as other South-East Asian 
economies. 

The graph below shows the decline in the EU market share for passenger cars from 
2000  until  2013.  The  EU  market  share  dropped  from  39,3 %  in  2000  to  22,3 %  in 
2013 representing a decline of 17 percentual points. 

6 

OICA data base 

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Passenger car production – International comparison (% share) – 2000-2013 

Units 

  EU 

  NAFTA 

  Japan 

  South Korea 

  BRIC 

Source: OICA 

13. 

14. 

15. 

In 2015 China is the biggest producer accounting for 26 % of world car production, 
while EU, the second biggest, accounts for 22 % of a global car production of 73,5 
million passenger cars7. This decrease in EU market share is part of a longer trend, as 
has  been  stated  by the Commission  in  its  assessments of previous EGF automotive 
cases based on trade related globalisation8. 

A  main  driving  force  behind  this  trend  is  the  geographical  shift  in  consumption 
linked to globalisation, in particular the rapid growth in demand on the Asian market 
from  which  EU  manufacturers  are  less  able  to  benefit,  being  traditionally  less  well 
positioned on these markets.  

The  European  car  industry  has  also  been  hit  by  the  decline  in  domestic  demand 
resulting  from  the  economic  and  financial  crisis.  Passenger  car  registrations  in  the 
EU  have  continually  declined  between  2008  and  2013.  Since  2014  the  trend  has 
reversed. However the total number registrations is still behind the levels reached in 
the years previous to the economic and financial crisis9. 

7 
8 
9 

ACEA The automobile Industry Pocket Guide 2016-2017 
See footnote no 10. 
ACEA The automobile Industry Pocket Guide 2016-2017 

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New passenger car registrations in the EU in million units, 
% change / 2004 – 2015 

16. 

17. 

10 

In Spain, the decline in car production triggered a reduction of both enterprises and 
jobs. Over the period 2008-2014 the number of automotive enterprises declined from 
901 to 806 (-10,5 %) and the jobs in the sector decreased from 164 038 to 135 997 
(-17 %). In Comunidad Valenciana 62 automotive enterprises stopped activities of a 
total of 187. This represents a decline of 33,16 %. 

To date, the Manufacture of motor vehicles, trailers and semi-trailers sector has been 
the subject of 23 EGF applications, 13 of which based on trade related globalisation 
and 10 on the global financial and economic crisis10. 

Based on trade related globalisation: EGF/2016/004 ES Comunidad Valenciana automotive industry, 
(the case object of this proposal for decision), as well as, EGF/2007/001 FR PSA suppliers. 
COM(2007) 415; EGF/2007/010 PT Lisboa Alentejo. COM(2008) 94; EGF/2008/002 ES Delphi. 
COM(2008) 547; EGF/2008/004 ES Castilla y León Aragón. COM(2009) 150; EGF/2009/013 DE 
Karmann. COM(2010) 007; EGF/2012/005 SE Saab, COM(2012) 622; EGF/2012/008 IT De Tomaso; 
COM(2013) 469; EGF/2013/006 PL Fiat Auto Poland, COM(2014) 699¸ EGF/2013/012 BE Ford Genk, 
COM(2014) 532; EGF/2014/006 FR PSA, COM(2014) 560; EGF/2015/003 BE Ford Genk, 
COM(2015) 336 and EGF/2015/009 SE Volvo Trucks, COM(2016) 61  
Based on the global financial and economic crisis: EGF/2009/007 SE Volvo, COM(2009) 602 
EGF/2009/009 AT Steiermark, COM(2009) 602; EGF/2009/019 FR Renault, COM(2011) 420; 
EGF/2010/002 ES Cataluña automotive, COM(2010) 453; EGF/2010/004 PL Wielkopolskie, 
COM(2010) 616; EGF/2010/015 FR Peugeot, COM(2012) 461; EGF/2010/031 BE General Motors 
Belgium, COM(2011) 212; EGF/2011/003 DE Arnsberg and Düsseldorf automotive, COM(2011) 447; 
EGF/2011/005 PT Norte-Centro automotive, COM(2011) 664; and EGF/2015/002 DE Adam Opel, 
COM(2015) 342. 

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Events giving rise to the redundancies and cessation of activity 

18. 

19. 

20. 

The  events  giving  rise  to  these  redundancies  are  the  bankruptcy  and  closure  of 
Bosal S.A., the enterprise which made redundant most of the workers concerned by 
this application. 

Bosal S.A. started operations in the town of Sagunto in 1986. Its core business was 
the manufacture of parts and accessories for motor vehicles (in particular automotive 
exhaust  systems,  catalytic  converters,  etc.).  Bosal  started  producing  mainly  for  the 
Spanish  automotive  market.  However,  production  was  diversified  later  and  the 
enterprise manufactured original components also for other automotive markets. 

Since  2012,  the  enterprise  has  been  in  difficulties  due  to  the  decline  in  vehicle 
production  in  the  EU.  To  adjust  production  capacity  to  demand  and  reduce  costs, 
Bosal  made  use  of  compulsory  reduced  work  schedules,  which  were  applied  to  all 
staff.  However,  these  measures  did  not  work  out  and  on  15  January  2015  the 
enterprise  declared  bankruptcy  and  was  put  under  special  administration.  In 
November  2015  Bosal  made  redundant  the  entire  workforce  (215  workers)  and 
entered in liquidation proceedings. 

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

employment 

21. 

In the 80s, the economy in Sagunto, the territory affected by the redundancies, was 
mainly linked to Altos Hornos del Mediterráneo (blast furnace). After its closure, the 
territory  was  declared  'Preferential  Reindustrialization  Area'  and  a  variety  of 
incentives  were  granted  to  new  businesses  settling  there.  A  majority  of  the 
enterprises  which  set  up  businesses  in  Sagunto  were  linked  to  the  automotive 
industry. Since 2008, due to the combined effect of the economic and financial crisis 
and  globalization  in  car  manufacture,  many  of  these  companies  have  closed  or 
reduced  strongly  their  activity,  this  resulting  in  reduced  working  time  and 
redundancies. The slowdown of the industrial activity has had a ripple effect in the 
economy  and  employment  of  Sagunto.  In  2015  compared  to  2007,  the  number  of 
unemployed  persons  in  Sagunto  increased  threefold,  from  2 778  persons  to  6 437. 
The 250 redundant workers concerned by this application will further aggravate the 
already fragile employment situation of the affected territory. 

Explanation of the exceptional circumstances underlying the admissibility of the application 

22. 

23. 

11 

Spain 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.  To  this  end,  they  cite  the  fact  that  250  jobs  lost  in  Sagunto  is  a 
large  number  in  the  circumstances  of  this  small-town  and  rural  area  which  has 
severely suffered the consequences of the economic and financial crisis, along with 
the  effects  of  globalisation,  on  sectors  like  automotive  of  great  importance  for  the 
economy of the territory. Although employment has shown signs of recovery in the 
last year, unemployment rate in Comunidad Valenciana is still at 21,8 %11. 

Data affiliation to social security show a decline by 15 % (-296 952 persons) in the 
number  of  people  employed  in  Comunidad  Valenciana  in  2015  compared  to  2008, 

EPA Q2 2016. http://www.datosmacro.com/paro-epa/espana-comunidades-autonomas/valencia 

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24. 

25. 

26. 

27. 

while  in  Sagunto  the  number  of  people  employed  declined  by  28,5 %  (-5 939 
persons)  i.e.  a  difference  of  13,5  percentage  points  compared  to  the  values  of  the 
region12. 

Citing  Eurostat  unemployment  data  of  towns  with  population  similar  to  Sagunto, 
Spain  argues  that  only  towns  located  in  ultra-peripheral  territories  (such  as  Le 
Tampon-Reunion:  26,8 %)  or  which  have  been  the  subject  of  several  EGF  cases 
(Central Macedonia-Greece: 28,7 %), have unemployment rates exceeding Sagunto's 
(25,8 %). 

Comunidad  Valenciana  is  one  of  the  EU  regions  hit  hardest  by  the  effects  of  the 
economic and financial crisis and globalization. Since 2009 Spain has submitted nine 
EGF applications13 in support of workers made redundant in this region, in a variety 
of sectors. In total 1 560 enterprises, mostly SME's, were concerned by almost 7 600 
redundancies.  Furthermore,  Sagunto  and  its  county  Camp  de  Morvedre  are  still 
struggling  with  the  effects  of  the  mass  redundancies  for  which  an  EGF  application 
was submitted and approved in 201414.  

Due  to  the  economic  situation  of  recent  years  leading  to  the  closure  of  a  large 
number  of  businesses,  industrial  sites  in  the  territory  are  mainly  unoccupied.  There 
have been no recent plant openings in the area which might provide new employment 
opportunities for the workers. To reverse this trend, Sagunto has been included in the 
regional government's action plan aimed at the industrial revival of the territory. Four 
million euro are budgeted for this purpose in 2016 budget. 

Almost 20 % of the population in Sagunto are elderly persons and 5,8 % are over 80 
years.  Among  unemployed  people  long  term  unemployed  represent  38,5 %  whilst 
long-term unemployed  persons in the age group over 45 rises up to 58,7 %. Of the 
redundant workers concerned by this application, 71 % are over 45 years old, 78 % 
had been employed by the same enterprise for at least 15 continuous years and 50 % 
has no educational qualifications, which made them highly vulnerable in a context of 
jobs scarcity. In addition, the 2014 census shows that Sagunto has dependency ratio 
by 53,7 %, which is higher than the EU-28 average of 51,8 %15. 

12 
13 

14 
15 

Instituto Nacional de la Seguridad Social. 
EGF/2009/014 ES Comunidad Valenciana ceramics, COM(2010) 216;  
EGF/2010/005 ES Comunidad Valenciana natural stone COM(2010) 617;  
EGF/2010/009 ES Comunidad Valenciana textil, COM(2010) 613;  
EGF/2011/006 ES Comunidad Valenciana construcción, COM(2012) 53;  
EGF/2011/020 ES Comunidad Valenciana footwear, COM(2012) 204 ; 
EGF/2013/004 ES Comunidad Valenciana building materials, COM(2013) 635; 
EGF/2013/008 ES Comunidad Valenciana textil, COM(2014) 45; 
EGF/2014/004 ES Comunidad Valenciana metal, COM(2014) 515 
EGF/2016/004 ES Comunidad Valenciana automotive industry, (the case object of this proposal for 
decision). 
EGF/2014/004 ES Comunidad Valenciana metal, COM(2014) 515. 
http://ec.europa.eu/eurostat/statistics-explained/index.php/Population_structure_and_ageing 

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Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

28. 

All  the  redundant  workers  are  expected  to  participate  in  the  measures.  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: 

55-64 years: 

over 64 years: 

Number of  
targeted beneficiaries 

241 

(96,4 %) 

9 

(3,6 %) 

249 

(99,6 %) 

1 

0 

1 

(0,4 %) 

(0,0 %) 

(0,4 %) 

191 

(76,4 %) 

58 

(23,2 %) 

0 

(0,0 %) 

Eligibility of the proposed actions 

29. 

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

–  Welcome and information sessions: This is the first measure to be offered to all 
information  sessions  and 
includes:  (1) general 
redundant  workers  and 
individual  information  sessions  on  skills  and  training  requirements;  on 
available  counselling  and  training  programmes;  and  on  allowances  and 
incentives; (2) enrolment procedure. 

– 

– 

– 

Occupational  guidance:  This  involves  the  profiling  of  the  participant  workers 
and  the  design  of  the  customised  reintegration  pathway;  workshops  on 
entrepreneurship and job-search techniques; and counselling and follow-up of 
implementation  period.  The 
the  personalised  support 
participants  can  avail  of  tutoring  services  also  after  their  reintegration  into 
employment. 

throughout 

the 

Job  placement:  This  will  involve  an  intensive  and  proactive  search  for  local 
and  regional  employment  opportunities  by  the  job  placement  facilitators  and 
subsequent job-matching. This measure is aimed to complement the individual 
job-search of the beneficiaries. 

Training:  The  training  measures  will  include  a  variety  of  training  courses 
grouped  into  vocational  training  and  training  in  transversal  skills.  Vocational 
training will focus on vocational licensing, such as that required for passenger 
transport CPC16, and on sectors or areas where opportunities exist or will arise, 
such  as  the  food  sector  (food  safety,  HACCP17,  etc.),  cooking,  occupational 

16 
17 

Certificate of professional competence (CPC) 
Hazard analysis critical control point (HACCP). 

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– 

– 

– 

– 

– 

– 

– 

– 

risk  prevention  and  quality  control  and  environmental  standards  (ISO  900118, 
ISO  1400019,  EFQM20,  etc.),  HVAC21  projects,  maintenance  of  industrial 
equipment, etc. The offer of training in transversal skills will include training 
in  a  variety  of  skills  that  contribute  to  better  job  performance  such  as  ICT, 
foreign languages, business management, etc.  

Promotion of entrepreneurship: This measure seeks to assist dismissed workers 
who  envisage  creating  their  own  business  covering  elements  such  as 
development  of  a  business  idea,  planning,  carrying  out  feasibility  studies, 
raising  finance,  etc.;  personalized  tutoring  will  be  made  available  during  the 
whole  process  of  starting  the  business  as  well  as  support  regarding 
administrative requirements. The participants can avail of tutoring services also 
after the start-up of their business. 

Contribution to business start-up: The workers who set up their own businesses 
will receive up to EUR 15 000 as a contribution to cover setting-up costs. One 
of the major difficulties that entrepreneurs face when starting up a business is 
access to funding. This measure aims to promote entrepreneurship through this 
financial support. 

Participation allowance: The participants, after reaching the agreed milestones 
of their pathway to reinsertion, will receive a single allowance of EUR 600. 

Contribution  to  commuting  expenses:  Workers  participating  in  the  measures 
will receive a contribution to their commuting expenses. The final amount will 
be  calculated  according  to  the  actual  days  of  participation  and  the  distance 
commuted.  It  is  estimated  that  on  average  the  participants  could  receive 
EUR 300. 

Assistance  for  carers  of  dependent  persons:  Workers  with  dependent  persons 
(children, old or disable persons) will receive a contribution to their expenses 
for  carers,  conditional  upon  their  participation  in  the  measures.  This  aims  to 
cover the additional costs faced by the workers with caring responsibilities in 
order to avail of training or other measures. 

Contribution  to  the  expenses  for  change  of  residence:  Those  workers  who 
accept  a  job  involving  a  change  of  residence  will  receive  a  lump  sum  of 
EUR 3 000 to cover the necessary expenditure. 

Contribution to the Internet flat rate. The workers who do not have Internet at 
home  and  install  it,  in  order  to  avail  of  training  or  other  measures  on  digital 
platforms, will receive up to 75 % of the monthly flat rate cost. 

Hiring  benefit.  This  payment  benefits  the  redundant  workers  by  facilitating 
their  re-employment  under  fix-term  or  permanent  contracts  in  a  different 
enterprise. For re-employment under permanent contracts the hiring enterprise 
will receive EUR 3 000 per worker while for re-employment under fixed-term 
contracts  of  at  least  12  months,  the  hiring  enterprise  will  receive  EUR 1 000 
per worker. 

18 
19 
20 
21 

ISO 9001 sets out the requirements of a quality management system. 
The ISO 14000 family addresses various aspects of environmental management. 
EFQM quality model defined by the European Foundation for Quality Management 
Heating, ventilation and air conditioning (HVAC) 

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30. 

31. 

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. 

Spain  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. 

Estimated budget 

32. 

The  estimated 
personalised  services  of  EUR 1 334 000  and  expenditure 
management, 
EUR 94 000. 

total  costs  are  EUR 1 428 000,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

33. 

The  total  financial  contribution  requested  from  the  EGF  is  EUR 856 800  (60 %  of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR) 
(*) 

Estimated total 
costs 
(EUR) 
(**)  

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

Welcome and information sessions 
(acción de acogida) 

Occupational guidance 
(orientación, asesoramiento laboral e 
itinerario personalizado de inserción) 

Job placement 
(job placement)  

Training 
(formación) 

Promotion of entrepreneurship 
(emprendimiento)  

Contribution to business start-up 
(incentivo para establecimiento de negocio)  

250 

250 

250 

230 

30 

16 

204 

51 000 

408 

102 000 

476 

119 000 

2 000 

460 000 

2 000 

60 000 

13 400 

214 400 

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

– 

1 006 400 

(75,44 %) 

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

Participation allowance 
(incentivo para participar)  

Contribution to commuting expenses 
(incentivo para desplazamiento) 

170 

50 

600 

102 000 

300 

15 000 

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Assistance for carers of dependent persons 
(Incentivos que remuevan obstáculos que 
impidan la participación)   

Contribution to the expenses for change of 
residence 
(incentivo por traslado) 

Contribution to the Internet flat rate 
(incentivo para disponer de accesso a 
Internet en el domicilio)  

Hiring benefit 
(incentivo empleadores)  

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

 Actions under Article 7(4) of the EGF Regulation 

1. Preparatory 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) 

50 

5 

1 500 

75 000 

3 000 

15 000 

150 

404 

60 600 

25 

2 400 

60 000 

– 

– 

– 

– 

– 

– 

– 

– 

327 600 

(24,56 %) 

0 

90 000 

4 000 

0 

94 000 

(6,58 %) 

1 428 000 

856 800 

(*) To  avoid  decimals,  the  estimated  costs  per  worker  have  been  rounded.  However  the 
rounding has no impact on the total cost of each measure which remains as in the application 
submitted by Spain. 

(**) Totals do not tally due to rounding. 

34. 

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

35. 

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

Period of eligibility of expenditure 

36. 

37. 

Spain started providing the personalised services to the targeted beneficiaries on 20 
September  2016.  The  expenditure  on  the  actions  will  therefore  be  eligible  for  a 
financial contribution from the EGF from 20 September 2016 to 20 September 2018. 

Spain  started  incurring  the  administrative  expenditure  to  implement  the  EGF  on  1 
October  2015.  The  expenditure  for  preparatory,  management,  information  and 

EN 

12 

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publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 1 October 2015 to 20 March 2019.  

Complementarity with actions funded by national or Union funds 

38. 

39. 

The  source  of  national  pre-financing  or  co-funding  is  public  funding  from  the 
SERVEF22 (public labour offices of the autonomous government). 

Spain  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. 

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

partners as well as local and regional authorities 

40. 

41. 

Spain has indicated that the co-ordinated package of personalised services has been 
drawn  up  in  consultation  with  the  workers  representatives,  the  social  partners,  the 
relevant employer's association and the local (Sagunto) authorities. 

Concerned about the  vulnerable situation  of the workers after  the  announcement of 
the  enterprise  closure,  the  representatives  of  the  former  workers  of  Bosal  (the 
enterprise  which  made  redundant  a  majority  of  the  workers  concerned  by  this 
application) informed SERVEF about their willingness to support an application for 
EGF funding. In a meeting on 1 October 2015, it was decided to apply for assistance 
from the EGF. In  subsequent meetings  the measures  to  be offered to  workers were 
defined along with their schedule. 

Management and control systems 

42. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Spain  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  and  controlled  by  the 
same bodies that manage and control the European Social Fund (ESF) in Spain. The 
Dirección General de Financiación y Fondos Europeos will be the intermediate body 
for the managing authority. 

Commitments provided by the Member State concerned 

43. 

Spain 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, 

22 

Servicio Valenciano de Empleo y Formación de la Generalitat Valenciana (SERVEF). 

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13 

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– 

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

BUDGETARY IMPLICATION 

Budgetary proposal 

44. 

45. 

46. 

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 2014-202023. 

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 856 800, 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 management24. 

Related acts 

47. 

48. 

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 856 800. 

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. 

23 
24 

OJ L 347, 20.12.2013, p. 884. 
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 Spain – EGF/2016/004 ES/Comunidad Valenciana automotive 

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 1927/200625, 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 management26, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

25 
26 
27 

28 

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 1311/201327. 

laid  down 

On 21 June  2016, Spain  submitted an application to  mobilise the EGF, in  respect of 
redundancies  in  the  economic  sector  classified  under  the  Statistical  classification  of 
economic  activities  in  the  European  Community  ('NACE')  Revision  2  Division  29 
(Manufacture  of  motor  vehicles,  trailers  and  semi-trailers)  in  the  Nomenclature  of 
Territorial  Units  for  Statistics  ('NUTS')28  level  2  region  of  Comunidad  Valenciana 
(ES52)  in  Spain.  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. 

OJ L 347, 20.12.2013, p. 855. 
OJ C 373, 20.12.2013, p. 1. 
Council  Regulation  (EU,  Euratom)  No 1311/2013  of  2  December  2013  laying  down  the  multiannual 
financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 
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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(4) 

(5) 

(6) 

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

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 856 800 in respect of the application submitted by Spain. 

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 Union for the financial year 2016, the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 856 800 in commitment 
and payment appropriations. 

Article 1 

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]. 

Article 2 

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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