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/2017/006 ES/Galicia apparel
Date: 2017-11-28
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Galicia, Spain, clothing industry, commitment of expenditure, dismissal, employment aid, financial aid, general budget (EU), globalisation, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 28.11.2017  COM(2017) 686 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/2017/006 ES/Galicia apparel  
 
 
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 19 July 2017, Spain submitted an application EGF/2017/006 ES/Galicia apparel 
for a financial contribution from the EGF, following redundancies2 in the economic 
sector  classified  under  the  NACE  Revision  2  Division  14  (Manufacture  of  wearing 
apparel) in the NUTS level 2 region of Galicia (ES11) 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 

EGF/2017/006 ES/Galicia apparel 

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

Date of submission of the application 

Date of acknowledgement of receipt of the 
application 

Spain 
Galicia (ES11) 

19 July 2017 

19 July 2017 

Date of request for additional information 

2 August 2017 

Deadline for provision of the additional 
information 

13 September 2017 

Deadline for the completion of the assessment 

6 December 2017 

Intervention criterion 

Article 4(2) of the EGF Regulation 
derogating from the criteria of 
Article 4(1)(b) 

Number of enterprises concerned 

5 

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

Division 14 
(Manufacture of wearing apparel) 

Reference period (nine months): 

30 July 2016 – 30 April 2017 

Total number of redundancies 

303 

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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Total number of eligible beneficiaries 

303 

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

303 
1 140 000 
60 000 
1 200 000 
720 000 

ASSESSMENT OF THE APPLICATION 

Procedure 

4. 

Spain  submitted  application  EGF/2017/006 ES/Galicia  apparel  within  12  weeks  of 
the date on which the intervention criteria set out in Article 4 of the EGF Regulation 
were met, on 19 July 2017. The Commission acknowledged receipt of the application 
the  same  day,  and  requested  additional  information  from  Spain  on  2  August  2017. 
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 6 December 2017. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  303  workers  made  redundant  in  the  economic  sector 
classified  under  the  NACE  Revision  2  Division  14  (Manufacture  of  wearing 
apparel). The redundancies are located in the NUTS level 2 region of Galicia (ES11). 

Enterprises and number of dismissals within the reference period 

Caramelo S.A. 
Confecciones Deus S.L. 
Deus Creaciones S.L. 
Total no. of enterprises: 5 

97  Shivshi S.L. 
20  Viriato 
39 

Total no. of dismissals:  

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

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

41 
106 

303 

0 

303 

Intervention criteria 

6. 

7. 

5 

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 303 redundancies in the NUTS level 2 region of 
Galicia (ES11). 

The reference period of nine months for the application runs from 30 July 2016 to 30 
April 2017. 

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

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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 303. 

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

10. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Spain  argues  that  the  liberalisation  of 
trade  in  textiles  and  clothing  — following  the  expiry  of  the  World  Trade 
Organisation  Multifibre  Arrangement  at  the  end  of  2004 —  has  led  to  radical 
changes in the structure of world trade. According to EUROSTAT-Comext figures, 
in  2016 imports  of clothing  into the EU-28 increased by 37,9 %  compared to  2008 
and by 83,2 % compared to 2004. 

EU28 clothing imports and exports (million euro) 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

IMPORTS 

49 674,5 

54 379,5 

61 409,9 

64 479,0 

65 990,0 

63 735,6 

71 169,7 

EXPORTS 

14 929,5 

15 684,1 

17 095,7 

18 368,8 

19 159,5 

16 218,6 

17 346,2 

2011 

2012 

2013 

2014 

2015 

2016 

IMPORTS 

77 866,3 

75 008,4 

74 830,4 

82 016,8 

90 256,8 

91 002,5 

EXPORTS 

20 555,7 

22 857,5 

23 888,9 

24 990,4 

25 944,7 

26 149,1 

Source: Eurostat-Comext 

11. 

12. 

The main supplier is China with an increase of 245 % of its imports into the EU-28 
in  2016  compared  to  2004  (from  EUR 13  billion  to  EUR 31,8),  followed  by 
Bangladesh whose imports into the EU increased fourfold (from EUR 3,8 billion to 
EUR 15,3). 

Over  the  same  period,  EU28  exports  grew  as  well,  although  at  a  lesser  extent. 
Clothing  exports  increased  by  28,3 %  in  2016  compared  to  2008  and  by  75,1 % 
compared  to  2004.  This  resulting  in  an  increasing  negative  EU  trade  balance  in 
clothing. 

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EU28 trade balance in clothing 

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

-10000

-20000

-30000

-40000

-50000

-60000

-70000

Source: Eurostat-Comext 

13. 

To date, the Manufacture of wearing apparel sector has been the subject of five EGF 
applications,  three  of  which  based  on  trade  related  globalisation  and  two  on  the 
global  financial  and  economic  crisis6.  This  is  the  second  application  concerning 
redundant workers in SME's operating in the clothing sector in Galicia. 

Events giving rise to the redundancies and cessation of activity 

14. 

The increase of imports into the EU put a downward pressure on prices which had a 
negative effect on the financial position of enterprises in the textiles sector in the EU 
and  triggered  a  general  trend  in  the  textiles  and  clothing  industry  to  off-shore 
production to lower cost countries outside the EU, such as Morocco, Tunisia, China 
and  various  Asian  countries7.  In  Galicia,  this  has  resulted  in  a  constant  decrease  in 
the  number  of  clothing  companies  (-26 %  over  the  period  2010-2016)  and  thus  in 
redundancies. 

6 

7 

Based on trade related globalisation: EGF/2017/006 ES/Galicia apparel (the case object of this proposal 
for  decision),  as  well  as,  EGF/2007/008 MT  Textiles,  COM(2008) 94  and  EGF/2010/003 ES  Galicia 
textile, COM(2010) 437. Based on the global financial and economic crisis: EGF/2009/018 LT Wearing 
apparel, COM(2010) 56 and EGF/2010/014 SI Mura, COM(2010) 582. 
Source: Cointega, the textile fashion cluster of Galicia (www.cointega.com). 

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Clothing enterprises (NACE 14) in Galicia 

Source: Instituto Gallego de Estadística (IGE). 

Explanation of the exceptional circumstances underlying the admissibility of the application 
and expected impact of the redundancies as regards the local economy and employment. 

15. 

16. 

17. 

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.  

The  population  in  Galicia  concentrates  mainly  on  the  major  economic  poles  of  the 
region,  the  coastal  zones  between  Ferrol  and  A  Coruña  (Northwest)  and  between 
Villagarcía,  Pontevedra  and  Vigo  (Southwest);  whilst  the  inland  territories  face 
depopulation issues and lack of jobs. In 2016, there were 13 375 people less living in 
Galicia than in 2000, and yet there were 1 260 empty i.e. abandoned sites (towns or 
other population units) more than in 2000, as people move and concentrate near the 
economic poles. In addition, since 2010, demographic evolution in Galicia has been 
negative  (with  an  annual  decrease  of  around  2,3%)  as  a  consequence  of  the 
emigration of young people and the rising number of deaths in relation to births. 
The  territory  affected  by  the  redundancies  is  Ordes/Órdenes8,  an  inland  territory 
where  the  clothing  enterprises  (most  of  them  SMEs  and  cooperatives)  are  the 
economic driver.  

Ordes/Órdenes' geographical location 

8 

Name of the territory in Galician and Spanish. 

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18. 

19. 

Highly dependent of the clothing industry, Ordes has been suffering from the decline 
in  the  number  of  clothing  enterprises  resulting  from  end  of  activities  or  production 
off-shore, which has been following the increase in imports of wearing apparel into 
the EU. Over the period 2008-2014 the number of enterprises of more than 6 workers 
has declined by 40 %. Along with the decline in the number of clothing enterprises 
the  GDP  per  capita  of  Ordes  has  been  decreasing  from  EUR 17 057  in  2010  to 
EUR 15 883 in 2014. Unemployment in the manufacturing sector in Ordes increased 
by  40 %  over  the  period  December  2016  -  April  2017,  when  a  majority  of  the 
redundancies -object of this application- occurred. 

The redundancies are expected to put an enormous strain on the territory. The impact 
of the layoffs is linked to the difficulties of redeployment, due to the scarcity of jobs, 
since the territory is away from the major industrial centers; to the low educational 
background of the dismissed workers; to their vocational skills developed in a sector 
now  in  decline;  and  to  the  high  number  of  job  seekers.  The  unemployed  in  the 
manufacturing  industry  account  for  34,6 %  (43,7 %  if  we  refer  to  female 
unemployment) of the total unemployed in Ordes. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

20. 

All  303  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 

50  (16,50 %) 

253  (83,50 %) 

298  (98,35 %) 

5 

2 

(1,65 %) 

(0,66 %) 

13 

(4,29 %) 

217  (71,62 %) 

71  (23,43 %) 

0 

(00,0 %) 

Eligibility of the proposed actions 

21. 

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

–  Welcome  sessions  and  preparatory  workshops:  The  welcome  sessions  is  the 
first  measure  to  be  offered  to  all  targeted  beneficiaries  and  includes  general 
information  on  available  counselling  and  training  programmes;  and  on 
allowances  and  incentives.  This  also  includes  the  profiling  of  the  participant 
workers.  At  preparatory  workshops,  more  in-depth  information  will  be 
provided  on  redeployment,  sectors  which  require  licensing  or  certificates  of 
professional competence, certification of competencies and soft skills acquired 
in work situations; and how to complete compulsory education. 

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– 

– 

– 

– 

– 

Occupational  guidance  towards  dependent  employment  or  self-employment 
will be provided throughout the implementation period. 

include 

Training.  This  will 
training  on  key  competencies,  horizontal 
competencies,  vocational  training  such  as  training  to  higher-value-added 
occupations  within  the  clothing  sector  (unlike  production  other  areas  such  as 
design, distribution, brand management or logistics have not been off-shored), 
geriatric care and social and health care for dependents, warehousing, monitor 
in leisure and recreation, as well as preparation for tests towards recognition of 
skills  acquired  through  work  experience/recognition  of  prior  learning  and 
training towards entrepreneurship. 

Intensive  job-search  assistance,  including  active  research  of  the  local  and 
regional  employment  opportunities  (also  for  self-employed  persons)  and  job-
matching. 

Tutoring  after  reintegration 
into 
employment  will  be  guided  during  the  first  months  to  prevent  possible 
problems arising in their new jobs. 

into  work.  The  workers  reintegrated 

Incentives.  There  will  be  a  variety  of  incentives.  (1) Participation  incentive. 
The workers who take part in the measures and follow the agreed pathway to 
reintegration  will  receive  up  to  EUR 400  (one  pay-off  or  into  instalments). 
(2) Contribution  to  commuting  expenses.  EUR 3  per  day  when  commuting 
within  the  same  town  and  EUR 0,19/kilometre  for  inter-towns  commuting. 
(3) Contribution to the expenses for carers of dependent persons. Workers 
with caring responsibilities (children, elderly or disabled persons) will receive 
EUR 159  per  day  of  participation  in  the  measures.  This  aims  to  cover  the 
additional costs faced by the participants with caring responsibilities in order to 
avail  themselves  of  training  or  other  measures.  (4) Income  compensation. 
Those reintegrating into employment as self-employed persons will receive an 
income compensation of EUR 200 monthly, over a six months period. 

22. 

23. 

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 

24. 

The  estimated 
personalised  services  of  EUR 1 140 000  and  expenditure 
management, 
EUR 60 000. 

total  costs  are  EUR 1 200 000,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

25. 

The  total  financial  contribution  requested  from  the  EGF  is  EUR 720 000  (60 %  of 
total costs). 

9 

EUR 20 per day when the number of dependent persons are two or more 

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Actions 

Estimated 
number of 
participants 

Estimated 
cost per 
participant 
(EUR)10 

Estimated 
total costs 
(EUR)11  

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

Welcome sessions and preparatory 
workshops 
(Acogida y medidas de sensibilización) 

Occupational guidance 
(Programa de orientación) 

Training 
(Programa de formación)  

Intensive job-search assistance 
(Apoyo a la recolocación) 

Tutoring after reintegration into work 
(Seguimiento en el empleo)  

303 

212 

212 

100 

95 

187 

583 

56 628 

123 598 

2 514 

533 030 

1 978 

197 836 

224 

21 308 

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

– 

932 400 

(81,79 %) 

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

Incentives 
(Programa de incentivos)  

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) 

212 

979 

207 600 

– 

– 

– 

– 

– 

– 

– 

– 

207 600 

(18,21 %) 

0 

48 000 

3 000 

9 000 

60 000 

(5,00 %) 

1 200 000 

720 000 

10 

11 

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. 

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26. 

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. 

Period of eligibility of expenditure 

27. 

28. 

Spain  started  providing  the  personalised  services  to  the  targeted  beneficiaries  on 
4 September  2017.  The  expenditure  on  the  actions  will  therefore  be  eligible  for  a 
financial contribution from the EGF from 4 September 2017 to 4 September 2019. 

Spain  started incurring the administrative  expenditure  to implement the EGF on 21 
August  2017.  The  expenditure  for  preparatory,  management,  information  and 
publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 21 August 2017 to 4 March 2020.  

Complementarity with actions funded by national or Union funds 

29. 

30. 

The  source  of  national  pre-financing  or  co-funding  are  funds  of  the  autonomous 
region Galicia. 

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 

31. 

Spain has indicated that the co-ordinated package of personalised services has been 
drawn  up  in  consultation  with  the  social  partners.  On  a  first  meeting  held  on  28 
September  2017,  they  were  informed  about  the  application  submitted  for  EGF  co-
funding  in  support  of  workers  made  redundant  in  the  wearing  apparel  sector  in 
Galicia. On the occasion, they were also invited to participate in round tables where 
the measures to be provided were discussed. The round tables took place on various 
dates in  October. Since the social partners had actively participated in  the previous 
cases  submitted  by  the  Galician  authorities,  as  implementing  bodies,  they  are 
knowledgeable  about  the  added  value  of  the  EGF  co-funded  measures  and  they 
committed to the case.  

Management and control systems 

32. 

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  ESF.  The  Xunta  de  Galicia  will  be  the 
intermediate body for the managing authority12. 

Commitments provided by the Member State concerned 

33. 

Spain has provided all necessary assurances regarding the following:  

12 

Xunta  de  Galicia  and  in  particular  the  Consellería  de  Facenda  –  Dirección  General  de  política 
financiera,  tesoro  y  fondos  europeos  /  Servicio  de  inspección  y  control  de  fondos  comunitarios  in 
cooperation  with  the  Consellería  de  Economía,  Emprego  e  Industria  –  Secretaría    Xeral  de 
Emprego / Subdirección  Xeral  de  Relacións  Laborais  will  be  the  intermediate  body  for  the  managing 
authority. 

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– 

– 

– 

– 

– 

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 aids. 

BUDGETARY IMPLICATION 

Budgetary proposal 

34. 

35. 

36. 

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. 

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 720 000, 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 

37. 

38. 

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 720 000. 

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. 

13 
14 

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/2017/006 ES/Galicia apparel 

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) 

15 
16 
17 

18 

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  19  July  2017,  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  14 
(Manufacture  of  wearing  apparel)  in  the  Nomenclature  of  Territorial  Units  for 
Statistics ('NUTS')18 level 2 region of Galicia (ES11) 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 economy. 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 720 000 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 2018, the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 720 000 in commitment 
and payment appropriations. 

Article 1 

Article 2 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

  

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

EN 

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