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 Finland – EGF/2016/008 FI/Nokia Network Systems
Date: 2017-04-07
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Finland, Oulu, Southern Finland, Western Finland, collective dismissal, commitment of expenditure, employment aid, financial aid, information technology industry, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 7.4.2017  COM(2017) 157 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 Finland – EGF/2016/008 FI/Nokia Network Systems  
 
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  22  November  2016,  Finland  submitted  an  application  EGF/2016/008 FI/Nokia 
Network Systems for a financial contribution from the EGF, following redundancies2 
in Nokia Oy (Nokia Network Systems) and 3 suppliers and dowstream producers in 
Finland. 

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) 

EGF/2016/008 FI/Nokia Network 
Systems 

Finland 

Helsinki-Uusimaa (Uusimaa) (FI1B), 
Länsi-Suomi (Pirkanmaa) (FI19) 
Pohjois- ja Itä-Suomi (Pohjois-
Pohjanmaa) (FI1D) 

Date of submission of the application 

22 November 2016 

Date of acknowledgement of receipt of the 
application 

22 November 2016 

Date of request for additional information 

2 December 2016 

Deadline for provision of the additional 
information 

13 January 2017 

Deadline for the completion of the assessment 

7 April 2017 

Intervention criterion 

Primary enterprise 

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

Nokia Oy (Nokia Network Systems) 

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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Number of enterprises concerned 

4 

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

Division 26 - Manufacture of 
computers, electronic and optical 
products  

Number of subsidiaries, suppliers and 
downstream producers 

3 

Reference period  

02 June 2016 – 02 October 2016 

Number of redundancies during the reference 
period (a) 

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

Total number of redundancies  

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 

945 

0 

945 

945 

821 

0 

4 154 000 
   249 000 
4 403 000 
2 641 800 

4. 

Finland  submitted  application  EGF/2016/008 FI/Nokia  Network  Systems  within  12 
weeks of the date on which the intervention criteria set out in Article 4 of the EGF 
Regulation were met, on 22 November 2016. The Commission acknowledged receipt 
of the application on the same day and requested additional information from Finland 
on 2 December 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  7 
April 2017.  

ELIGIBILITY OF THE APPLICATION 

Enterprises and beneficiaries concerned 

5. 

4 
5 

The application relates to 945 workers made redundant in Nokia Oy and 3 suppliers. 
The  primary  enterprise  operates  in  the  economic  sector  classified  under  the  NACE 
Revision 2 Division 26 (Manufacture of computer, electronic and optical products).  

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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6. 

Nokia Network Systems is a wholly owned subsidiary of Nokia Oy in Finland. Nokia 
Network Systems is a data networking and communications equipment company. 

Enterprises and number of dismissals within the reference period 

Nokia Oy 
Eilakaisla Oy 

940  Lionbridge Oy 

1  ManpowerGroup Solutions Oy 

1 
3 

Total no. of enterprises: 4 

Total no. of dismissals:  

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

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

945 

0 

945 

Intervention criteria 

7. 

8. 

9. 

Finland 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  a  Member  State,  including  workers  made 
redundant by suppliers and downstream producers.  

The reference period of four months for the application runs from 2 June 2016 to 2 
October 2016.  

The redundancies during the reference period are as follows: 

– 

– 

940 workers made redundant in Nokia Oy, 

5  workers  made  redundant  in  the  3  suppliers  and  dowstream  producers  of 
Nokia Oy. 

Calculation of redundancies and of cessation of activity 

10. 

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

– 

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

Eligible beneficiaries 

11. 

The total number of eligible beneficiaries is 945. 

Link between the redundancies and major structural changes in world trade patterns due to 
globalisation addressed in Regulation (EC) No 546/2009 

12. 

13. 

14. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation  addressed  in  Regulation  (EC)  No 
546/2009, Finland argues that the ICT sector is one of those industrial sectors most 
susceptible  to  changes  in  global  economy,  due  to  high  competition,  rapid 
technological progress and innovations, mergers, acquisitions and outsourcing.  

In  the  ICT  sector  outsourcing  of  component  manufacturing  and  in  general 
manufacturing processes was the response of European manufacturers to the growing 
need of gaining a competitive advantage in a fast changing competition, mostly from 
East Asia.  

East  Asian  competitors  have  so  far  used  low  margins  as  a  source  of  competitive 
advantage.  Now  they  are  reinvesting  their  profits  into  research  and  development. 
East  Asian  rivals  are  entering  the  market  aggressively  and  pushing  European 
companies into an even more difficult position. 

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15. 

16. 

17. 

18. 

The  sector  has  been  hit  by  falling  prices  and  lower  demand  from  telecom  carriers. 
This has not stopped Chinese firms from continuing to enter the markets in Europe6.  

The life-cycle of products and related software solutions is very short. The product- 
and/or  software-related  know-how  and  education  required  in  the  field  become 
outdated rapidly.  

The  competition  between  employees  from  the  EU  and  from  outside  the  EU  is 
intensive.  The  employees  in  the  European  ICT  sector  are  ageing  and  less  educated 
than  their  American  and  Asian  counterparts.  Finnish  ICT  professionals  are  facing 
increasingly global competition compared to employees in any other sector. 

To  date,  the  `Manufacture  of  computer,  electronic  and  optical  products`  sector  has 
been  the  subject  of  15  EGF  applications,  12  of  which  based  on  trade  related 
globalisation  and  3  on  the  global  financial  and  economic  crisis.  Three  applications 
from the 15 were submitted by Finland7. 

Events giving rise to the redundancies and cessation of activity  

19. 

20. 

21. 

22. 

23. 

24. 

6 

7 

8 

The Finnish ICT sector can be characterised in the last two years by high number of 
recruitments and  major  lay-offs at the same time. There is  a significant  pressure to 
maintain the competitiveness of products.  

The IT networks business has witnessed some important trends in recent years. There 
is an increased need for efficiency and for wider scope of services.  

On average, the technology industry counted 326 000 employees in  2008. By 2015 
the  industry  employed  289 000  persons8.  Within  the  industry,  the  number  of 
employees in ICT sector increased from 52 000 (2008) to 60 000 (2015). During this 
period many jobs disappeared and many others were created in ICT.  

In  recent  years  Nokia  Oy  established  a  joint  venture  with  Siemens  for  network 
technologies, agreed on selling some of its businesses to Microsoft and merged with 
Alcatel,  in  order  to  compete  with  bigger  rivals  in  the  network  communication 
business. In 2016 Nokia Oy reported on reductions in personnel. Nokia Oy is aiming 
at €900 million in annual reduction in operational costs by the end of 2018. At the 
same time, Nokia was taking action to transfer its resources towards technologies of 
the future.  

Nokia  Oy`s  worldwide  transformation  programme,  including  the  reductions  in 
personnel,  is  needed  in  order  to  be  able  to  compete  with  East  Asian  rivals.  The 
related reductions in personnel are estimated to be completed by the end of 2018.  

The persons who became unemployed from Nokia Oy in 2016 are highly (40%) and 
medium qualified (60%). They worked in programming and designing. 

http://www.telecomlead.com/telecom-equipment/revenue-analysis-shows-huawei-big-vs-ericsson-
nokia-68634 
EGF/2007/003 DE/BenQ, EGF/2007/004 FI/Perlos, EGF/2009/002 DE/Nokia, EGF/2009/008 IE/Dell, 
EGF/2009/023  PT/Quimonda,  EGF/2010/008  AT/AT&S,  EGF/2010/011  NL/NXP  Semiconductors, 
EGF/2011/013  DK/Flextronics,  EGF/2011/014  RO/Nokia,  EGF/2011/025 
IT/Lombardia, 
EGF/2012/006  FI/Nokia  Salo,  EGF/2012/007  IT/VDC  Technologies,  EGF/2013/001  FI/Nokia, 
EGF/2014/014 DE/Aleo Solar, EGF/2016/002 SE/Ericson 
http://teknologiateollisuus.fi/sites/default/files/file_attachments/personnel.pdf 

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

Uusimaa 

25. 

26. 

27. 

28. 

29. 

30. 

In Uusimaa, the general economic conditions in the major sectors are declining and 
industries have reduced their personnel during the past three months9. The total sales 
turnover of companies in the information and communications sector was in a 2,5 per 
cent downturn in the first quarter of 201610.  

In  2012–2016,  the  extensive  lay-offs  in  the  Espoo,  Helsinki  and  Vantaa  area  have 
mostly concerned the electronics and software industries (6 000 employees were laid 
off  in  the  given  period).  Smaller  businesses  and  subcontractors  have  also  laid 
personnel off. 

Nokia Oy is the largest ICT company in Finland. In 2014, there were 730 new and 
759  closed  ICT  sector  companies  in  Uusimaa.  The  same  year,  the  number  of  ICT 
enterprises in Uusimaa was 7 114 (that is 51% of the national total).  

The  employees  dismissed  by  Nokia  Oy  in  Uusimaa  are  mostly  highly  and  medium 
qualified persons; half of them are older than 50 years. They are in programming and 
designing. Their professional skills are in many cases out of date. 

The situation in Uusimaa is difficult for highly educated engineers and for employees 
over 50.  
Unemployment  of  the  highly  educated  is  overall  at  a  high  level11;  and  they  are  not 
exclusively employees with technological qualification. Office workers, accountants 
and payroll clerks are also in the unemployment statistics in Uusimaa. 

Pirkanmaa 

31. 

32. 

33. 

Measured by turnover, the manufacturing industry is the largest economic sector in 
Pirkanmaa; with the technology industry (48%), forest industry (25%), and chemical, 
rubber and plastic industry (18%) as the main fields12.  

In  September  2016  the  number  of  unemployed  job  seekers  registered  at  the 
Pirkanmaa Employment and Economic Development Office was 36 186, which was 
1%  more  than  the  year  before13.  The  unemployment  rate  in  Pirkanmaa  has  been 
above the national average for long. 

The  main  reason  for  the  persistently  high  unemployment  rate  in  recent  years is  the 
crisis of export driven and manufacturing industry-based activities in the region, as 
well as the drastic structural changes, especially in the ICT sector. In 2015 major ICT 
companies in Pirkanmaa have laid off more than 1 000 employees. 

34. 

The  structural  problems  now  faced  in  Pirkanmaa  are  reflected  in  increased 
unemployment  among  the  highly  educated,  which  more  than  doubled  in  the  2012-

9 

10 
11

12 

13 

https://ek.fi/en/current/2016/05/04/ek-business-tendency-survey-general-business-outlookwill-remain-
rather-weak 
http://www.stat.fi/til/ntp/2016/01/ntp_2016_01_2016-06-03_tie_001_en.html 

http://www.akava.fi/tyoelama/akavalaiset_tyoelamassa/tyottomyystilastot/1._korkeasti_koulut

ettujen_tyottomyys 
http://pirkanmaantalous.fi/innovaatiotilannekuva/situational-picture-of-innovation-2016-new-scale-
new-competences 
http://www.temtyollisyyskatsaus.fi/graph/tkat/tkat.aspx?lang=en&ely=04# 

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2016.  By  mid-2016  about  33%  of  the  unemployed  persons  with  academic  degrees 
have been unemployed for more than a year, without any breaks14. 

Pohjois-Pohjanmaa 

35. 

36. 

37. 

38. 

39. 

40. 

Unemployment rate is still high in the North Ostrobothnia region. The proportion of 
unemployed job seekers has stayed above the national average. At the end of April 
2016 the unemployment rate in the whole country was 13.0%, in North Ostrobothnia 
14,3% and in Oulu 16,1%.15 

Most  of  the  ICT  sector  in  North  Ostrobothnia  is  located  in  the  Oulu  region.  The 
challenging  business  environment  and  efforts  by  companies  to  streamline  their 
operations over the past years have led to drastic layoffs.  

The number of employees has fallen considerably from the figures at the end of the 
past  decade  in  this  region.  Because  of  cuts  and  savings  the  public  sector  cannot 
employ  as  many  people  as  it  used  to.  The  prolonged  economic  recession  and 
structural change within the field have led to longer periods of unemployment.  

The Nokia Oy layoffs have further aggravated the unemployment problem in the ICT 
sector  in  Oulu,  where  the  situation  was  bad  even  before  that.  Oulu  is  remotely 
located; there are no other cities nearby, with alternative jobs. 

The situation is particularly challenging in the region for ICT project managers and 
assembly  staff.  They  have  been  unemployed  for  a  long  time,  so  their  expertise  has 
become outdated.  

In the Oulu region there are employment opportunities in new growth sectors. Many 
of  the  dismissed  employees  have  solid  competence  in  design  and  product 
development,  which  could  be  utilised  in  the  ICT  sector  or  sectors  developing  ICT 
applications. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

41. 

The estimated number of redundant workers expected to participate in the measures 
is  821.  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 

608 

213 

(74,0 %) 

(26,0 %) 

800 

(97,4 %) 

21 

6 

12 

(2,6 %) 

(0,7 %) 

(1,5 %) 

632 

(77,0 %) 

14 
15 

http://www.temtyollisyyskatsaus.fi/graph/tkat/tkat.aspx?lang=en&ely=04# 
http://www.elykeskus.fi/documents/10191/14617851/Tkat_en_huhtikuu_2016.pdf/7338d392-14e3-
4fe5-846f-5d0bfd136734 

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55-64 years: 

over 64 years: 

167 

(20,3 %) 

4 

(0,5 %) 

(*): To avoid too many decimals, the figures are rounded. 

Eligibility of the proposed actions 

42. 

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

– 

Coaching measures and other preparatory measures 

Job seeking training is to provide the participants with more information about 
the  labour  market,  to  help  them  in  charting  their  own  possibilities,  and  to 
improve  and  bring  up  to  date  their  job-seeking  skills.  Job  coaching:  this 
measure  is  to  support  and  guide  the  jobseeker  in  seeking  employment  and  in 
on-the-job training. It will provide guidance to the jobseeker for finding a job.  

Career  coaching:  this  measure  is  aiming  at  jobseekers  that  need  functional, 
intensive and long term support in their career planning. It will be based mainly 
on group-based activities. 

Expert  assessments:  this  measure  is  to  assess  the  job-seekers`  situation  and 
need for services. A so-called profile game will be also organised to help the 
jobseekers to identify their own areas of competence. 

– 

– 

– 

Employment and business services 

The  jobseekers  will  be  provided  with  information,  counselling  and  expert 
services  of  planning  their  re-employment.  The  EURES  network  service  will 
also be used, to pass foreign job advertisements to jobseekers. Training will be 
provided through vocational training and training to support entrepreneurship. 
The  courses  offered  are  classified  mostly  as  specialised  trainings,  including 
diplomas.  

– 

– 

Start-up  grants  are  to  promote  the  creation  of  business  activity  and  self-
employment  of  individual  persons.  The  purpose  of  the  start-up  grant  is  to 
ensure  an  income  for  an  aspiring  entrepreneur  during  the  estimated  time 
required to launch and establish a full-time business. 

Pay subsidy will be available for the redundant workers to support employment 
in  a  new  job  or  an  apprenticeship,  by  reducing  the  new  employer’s  payroll 
costs for a limited time period. The pay subsidy is between 30 and 50 % of the 
worker's payroll costs for a limited period (6-24 months). 

– 

Allowances for travel, overnight and removal costs 

A job-seeker may be granted an allowance for travel and accommodation costs 
incurred for job-seeking, or travel and accommodation costs for participation in 
training measures and compensation for removal expenses. 

43. 

44. 

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. 

Finland has provided the required information on actions that are mandatory for the 
enterprise concerned by virtue of national law or pursuant to  collective agreements. 

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They have confirmed that a financial contribution from the EGF will not replace such 
actions. 

Estimated budget 

45. 

The  estimated 
personalised  services  of  EUR 4 154 000  and  expenditure 
management, 
EUR 249 000. 

total  costs  are  EUR 4 403 000,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

46. 

The total financial contribution requested from the EGF is EUR 2 641 800 (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) 

Coaching  measures  and  other  preparatory 
measures (Valmennukset ja muut valmentavat 
toimenpiteet) 

200 

1 200 

240 000 

Employment 
(Työllisyys- ja yrityspalvelut) 

and 

business 

services 

733 

621 

455 000 

Training (Koulutus) 

420 

6 500 

2 730 000 

Start-up grant (Starttiraha) 

Expert assessments (Asiantuntija-arvioinnit) 

15 

30 

9 000 

135 000 

1 333 

40 000 

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

– 

3 600 000 

(86,66 %) 

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

Pay subsidy (Palkkatuki) 

60 

9 000 

540 000 

Allowances for travel, overnight and removal 
(Liikkuvuusavustus)  

100 

140 

14 000 

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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) 

– 

– 

– 

– 

– 

– 

– 

– 

554 000 

(13,34 %) 

9 000 

161 000 

59 000 

20 000 

249 000 

(5,66 %) 

4 403 000 

2 641 800 

(*) To avoid decimals, the estimated costs per worker have been rounded. However the rounding has no impact 
on the total cost of each measure. 

47. 

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

48. 

Finland 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 

49. 

50. 

Finland started providing the personalised services to the targeted beneficiaries on 2 
June  2016.  The  expenditure  on  the actions  will therefore  be  eligible  for  a  financial 
contribution from the EGF from 2 June 2016 to 22 November 2018. 

Finland started incurring the administrative expenditure to implement the EGF on 2 
June 2016. The expenditure for preparatory, management, information and publicity, 
control and reporting activities shall therefore be eligible for a financial contribution 
from the EGF from 2 June 2016 to 22 May 2019.  

Complementarity with actions funded by national or Union funds 

51. 

The source of national pre-financing or co-funding is the public employment services 
item  in  the  administrative  branch  of  the  Ministry  of  Economic  Affairs  and 
Employment  (MEE).  Some  services  will  also  be  funded  from  the  operating 
expenditure  of  the  Centres  for  Economic  Development,  Transport  and  the 
Environment  (ELY  Centres)  and  the  Employment  and  Economic  Development 
Offices  (TE  Offices).  Technical  support  tasks  will  be  funded  from  the  operating 
expenditure of the MEE and the ELY Centres. 

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52. 

Finland  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 

53. 

54. 

Finland has indicated that the co-ordinated package of personalised services has been 
drawn up in consultation with the stakeholders. The MEE has convened a group that 
addresses the redundancies in Nokia and participates in the preparation of the EGF 
application.  

This working group includes representatives from the ELY Centres and TE offices of 
Uusimaa,  Pirkanmaa  and  Pohjois-Pohjanmaa.  Other  representatives  are  Nokia  Oy, 
Technology  Industries  of  Finland,  Trade  Union  Pro  and  the  Union  of  Professional 
Engineers in Finland.  

Management and control systems 

55. 

56. 

57. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Finland  has  notified  the 
Commission that the financial contribution will be managed by MEE, which acts as 
managing and certifying authority for EGF and as an intermediate body distributing 
EGF  funds.  The  management  functions  for  EGF  have  been  assigned  to  the 
Employment and Entrepreneurship Department.  

The certifying functions are within the  Human  Resources  and Administration Unit. 
Payments to beneficiaries are executed via the regional ELY Centres and TE Offices.  

With  regard  to  auditing,  the  responsible  body  is  the  independent  Internal  Auditing 
Unit, operating under the Permanent Secretary of the MEE. 

Commitments provided by the Member State concerned 

58. 

Finland 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. 

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BUDGETARY IMPLICATION 

Budgetary proposal 

59. 

60. 

61. 

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 2014-202016. 

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   2 641 800,  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 management17. 

Related acts 

62. 

63. 

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 2 641 800. 

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. 

16 
17 

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 Finland – EGF/2016/008 FI/Nokia Network Systems 

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 1927/200618, 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 management19, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

18 
19 
20 

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 1311/201320. 

laid  down 

On  22  November  2016,  Finland  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 26 (Manufacture of computer, electronic and optical products) in Finland. 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 2 641 800 in respect of the application submitted by Finland. 

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  of  2  December  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 2017, the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 2 641 800 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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