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 France – EGF/2017/009 FR/Air France
Date: 2018-04-23
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, France, Ile-de-France, Provence-Alpes-Côte d'Azur, air transport, commitment of expenditure, dismissal, employment aid, general budget (EU), globalisation, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 23.4.2018 COM(2018) 230 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 France – EGF/2017/009 FR/Air France  
 
 
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 23 October 2017, France submitted an application EGF/2017/009 FR/Air France 
for a financial contribution from the EGF, following redundancies2 in Air France in 
France. 

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/2017/009 FR/Air France  

France 
Île-de-France (FR10) 
Provence-Alpes-Côte d'Azur (FR82)4 
23 October 2017 

6 November 2017 

Date on which the Commission was in 
possession of the translation of the application 

7 December 2017 

Date of request for additional information 

21 December 2017 

Deadline for provision of the additional 
information 

1 February 2018 

Deadline for the completion of the assessment 

26 April 2018 

Intervention criterion 

Primary enterprise 

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

Air France 

Number of enterprises concerned 

1 

Sector(s) of economic activity 
(NACE Revision 2 Division)5 

Division 51 (Air transport) 

1 
2 
3 

4 
5 

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). 
There are 15 regions concerned. The two regions mentioned concentrate 88 % of the redundancies.  
OJ L 393, 30.12.2006, p. 1. 

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Reference period (four months): 

1 April 2017 – 31 July 2017 

Number of redundancies during the reference 
period (a) 

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

Total number of redundancies (a + b) 

Total number of eligible beneficiaries 

Total number of targeted beneficiaries 

Number of targeted young persons not in 
employment, education or training (NEETs) 
Budget for personalised services (EUR) 
Budget for implementing EGF6 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

ASSESSMENT OF THE APPLICATION 

Procedure 

1 086 

772 

1 858 

1 858 

1 858 

0 

16 410 805 
80 000 
16 490 805 
9 894 483 

4. 

France submitted application EGF/2017/009 FR/ Air France within 12 weeks of the 
date  on  which  the  intervention  criteria  set  out  in  Article 4  of  the  EGF  Regulation 
were  met,  on  23  October  2017.  The  Commission  acknowledged  receipt  of  the 
application on 6 November 2017. The Commission requested additional information 
from France on 21 December 2017, within two weeks of the date on which it was in 
possession  of  the  translation  of  the  application.  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 26 April 2018.  

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  1 858  workers  made  redundant  in  Air  France.  This 
enterprise  operates  in  the  economic  sector  classified  under  the  NACE  Revision  2 
Division 51 (Air transport). The redundancies made by Air France are mainly [/a]> 
located  in  the  NUTS  level  2  regions  of  Île-de-France  (FR10)  and  Provence-Alpes-
Côte d'Azur (FR82). 

Intervention criteria 

6. 

France submitted the application under the intervention criteria of  Article 4(1)(a) of 
the EGF Regulation, which requires at least 500 workers being made redundant over 
a  reference  period  of  four  months  in  an  enterprise  in  a  Member  State,  including 
workers  made  redundant  by  suppliers  and  downstream  producers  and / or  self-
employed persons whose activity has ceased.  

6 

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

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7. 

The reference period of four months for the application runs from 1 April 2017 to 31 
July  2017.  The  redundancies  during  the  reference  period  are  1 086  workers  made 
redundant in Air France. 

Calculation of redundancies and of cessation of activity 

8. 

The 1086 redundancies during the reference period have been calculated as from the 
date  of  the  employer's  individual  notice7  to  lay  off  or  to  terminate  the  contract  of 
employment of the worker. 

Eligible beneficiaries 

9. 

In addition to the workers already referred to, the eligible beneficiaries include 772 
workers made redundant before or after the reference period of four months. These 
workers  were  all  made  redundant  after  the  general  announcement  of  the  projected 
redundancies  in  the  central  works  council  meeting  held  on  23  April  2015.  A  clear 
causal  link  can  be  established  with  the  event,  which  triggered  the  redundancies 
during the reference period. 

10. 

The total number of eligible beneficiaries is therefore 1 858. 

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

11. 

12. 

13. 

7 
8 
9 
10 

In order to establish the link between the redundancies and major structural changes 
in  world trade patterns due to  globalisation, France argues that the international air 
transport sector has undergone serious economic disruption, in particular a decline of 
the  EU’s  market  share.  Over  the  period  2008-2015,  the  global  traffic,  measured  in 
revenue passenger-kilometres (RPK), increased by 5,3 % per year, as part of a trend 
of  long-term  growth  observed  since  1970.  However,  since  2008,  traffic  between 
Europe and the rest of the world has been growing more slowly than global traffic. 
Between  2008-2015  annual  growth  in  the  traffic  'Europe-Rest  of  the  World',  was 
3,4% which is 36 % lower than the average annual growth in world traffic8. 

Traffic  grew  by  region  as  follows:  between  Europe  and  North  America  it  grew  by 
1,4 %;  Europe-Central  America  and  South  America  by  3,4 %;  Europe-Africa  by 
2,9 %;  Europe-Asia  by  2,7 %;  and  Europe-Middle  East  by  11,2 %9.  The  major 
Middle  East  airlines  (Emirates,  Qatar  Airways  and  Etihad  Airways)  have  captured 
significant  long-haul  share  from  Europe's  network  carriers  by  providing  one-stop 
service  from  Europe  to  destinations  such  as  India,  Australia  and  Southeast  Asia, 
where the geographical advantage of Middle East carriers is greater. 

The most damaging effects of the globalization of air transport on the EU companies 
are to be attributed to the very strong increase in capacity of Emirates, Qatar Airways 
and  Etihad  Airways  which  continues  since  2012.  The  total  number  of  long-haul 
aircraft  of  the  three  carriers  mentioned  (the  long-haul  representing  almost  all  the 
fleets of these companies) tripled in 8 years, over the period 2005- 2013, from just 
over 100 aircraft to more than 300 in 2013, including an increasing number of very 
large  A380s10.  Between  2013  and  2017,  their  fleet  was  again  multiplied  by  1,5 

The supporting document will be the 'convention de rupture à l'amiable'. 
ICAO (www.icao.int) 
Current Market Outlook Boing 2016. 
The  Airbus  A380  is  a  double-deck,  wide-body,  four-engine  jet  airliner  manufactured  by  European 
manufacturer Airbus. It is the world's largest passenger airliner. It provides seating for 525 people in a 
typical three-class configuration or up to 853 people in an all-economy class configuration 

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(around 500 aircraft) and should exceed 700 aircraft by 2021 on the basis of orders 
from  April  2017;  having  thus  multiplied  the  fleet  2,33  times  over  the  period  2013-
2021. 

Emirates, Qatar and Etihad widebody11 pax fleetplan 
(historical + orders as from April 2017) 

Source: Chart produced by Air France from Ascend data12 

France argues that the massive orders made by Emirates, Qatar Airways and Etihad 
Airways  are  disconnected  from  the  fundamentals  of  air  transport.  Although  part  of 
the  strategy  of  these  enterprises  is  to  increase  their  ability  to  transport  passengers 
between  the  Middle  East  and  the  rest  of  the  world,  the  main  purpose  of  the  three 
carriers  is  to  significantly  increase  the  power  of  their  correspondence  system  on 
'long-haul'–'long-haul' flows to capture via their hubs in Dubai, Doha and Abu Dhabi 
a preponderant share of flows between Europe, Africa and the Americas on the one 
hand, and Asia and Oceania on the other, as well as between Europe and Africa. 

The European companies and their correspondence platforms have been particularly 
challenged,  both  on  flows  representing  the  largest  volumes  of  traffic  (e.g.  Europe-
Africa-Asia). 
Asia) 

high-growth 

particular 

flows, 

and 

on 

in 

14. 

15. 

11 

12 

A wide-body aircraft is a jet airliner with a fuselage wide enough to accommodate two passenger aisles, 
also known as twin-aisle aircraft, with seven or more seats abreast. 
Ascend provides aviation market information. http://ascend.flightglobal.com 

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Growth of airlines' offer between Europe and the Gulf (2004-2015) 
(%) 

Source: Chart produced by Air France from OAG13 data  

16. 

17. 

Qatar  and  the  United  Arab  Emirates  (UAE)  are  funneling  billions  of  dollars  in 
government  subsidies  to  their  state-owned  airlines,  distorting  the  international 
aviation  market  and  undermining  fair  competition.  Emirates,  Qatar  Airways  and 
Etihad  are  at  the  heart  of  the  development  strategy  of  their  shareholder  states, 
inclined  to  promote  rapid  growth  of  its  carriers  at  the  service  of  national 
development, this resulting in almost unlimited support. A study conducted by major 
US  air  companies  in  2015  (American  Airlines,  Delta,  United)14  has  estimated 
USD 42  billion  in  state  aid  was  received  by  Emirates,  Etihad,  and  Qatar  Airways 
between  2004  and  2014.  The  same  US  carriers,  in  a  letter  sent  to  the  Secretary  of 
State of the United States in February 201715, estimated that the aid received by the 
Gulf  companies  exceeds  USD 50  billion,  increasing  the  previous  estimate  by  an 
additional eight billion dollars. 

State  aid  and  benefits  granted  to  Emirates,  Qatar  Airways  and  Etihad  concern  the 
social  and  tax  system  (tax-free  environment:  no  corporate  tax,  no  social  security 
charges,  no  local  taxes,  etc.),  the  financing  of  aircraft  purchases  (states'  guarantees 
and  export  credit  facilities),  the  financing  of  airport  infrastructures  by  massive 
investments (EUR 6 800 million in Dubai, EUR 4 900 million in Doha), and some of 
the  lowest  airport  fees  in  the  world  (e.g.  comparing  the  airport  fees  and  charges  in 
2016 between Paris (CDG) and Dubai (DXB) for the landing of a B777-300, the ratio 
is 2,2 (EUR 16 766 in Paris / EUR 7 599 in Dubai)16. 

18. 

In  a  legal  framework  marked  by  a  heavy  trend  towards  the  liberalization  of  air 
services, 24 out of 28 EU Member States have signed agreements with Qatar and the 

13 

14 
15 
16 

OAG  is  an  air  travel  intelligence  company  that  provides  accurate  airline  schedules,  route  analysis, 
aviation analytics, flight tracking and flight data. www.oag.com 
http://www.openandfairskies.com/wp-content/themes/custom/media/White.Paper.pdf 
http://www.openandfairskies.com/wp-content/uploads/2017/02/Tillerson-Letter-020117.pdf 
Source:  Air  France's  airport  fees  and  taxes  service.  Based  on  fees  and  taxes  Air  France  paid  at  the 
airports concerned. 

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UAE, offering their carriers wide access to the European market. However, while the 
EU operates on the principle of prohibition of state aid which distorts or threatens to 
distort  competition  and  which  affects  trade  between  the  Member  States,  no  similar 
regulation  exists  in  the  Qatar  and  the  UAE,  as  illustrated  by  the  almost  unlimited 
state support so far. 

19. 

To date, the Air transport sector has been the subject of three EGF applications, all 
based on trade related globalisation17. 

Events giving rise to the redundancies and cessation of activity 

20. 

The  events  giving  rise  to  these  redundancies  are  the  massive  increase  in  the 
capacity18 of subsidized airlines based in countries with much better investment and 
production  conditions  has  resulted  in  a  sharp  decline  of  EU  companies  in  terms  of 
market  share.  Between  2008  and  2016,  the  evolution  of  the  market  shares  origin-
destination  between  Europe,  on  the  one  hand,  and  sub-Saharan  Africa,  the  Middle 
East and Asia, on the other hand, shows a regression of EU companies by nearly 10 
points  to  the  benefit  of  Emirates,  Qatar  Airways,  Etihad  and  Turkish  Airlines 
(although the latter has been flat since 2015 due to geopolitical context), as shown in 
the graph below.  

Market shares evolution on Subsaharian Africa, Middle East and Asia 
(2008-2016) 

  AFKL19 

  Other carriers 

  Total UE 

  GCC20 

  TK21 

Source: Chart produced by Air France from MIDT22 data 

21. 

17 

18 
19 
20 
21 
22 

As  already  outlined,  the  European  companies  and  their  correspondence  platforms 
have been particularly challenged on flows representing the largest volumes of traffic 
like  Africa-Asia.  Air  France, 
like  Europe-Asia  and  on  high-growth  flows 
traditionally well-established on most of these flows due to its Paris-CDG hub, has 

EGF/2017/009 FR/Air France (the case object of this proposal for decision), as well as, EGF/2013/014 
FR Air France, COM(2014) 701 and EGF/2015/004 IT Alitalia, COM(2015) 397. 
Available Seat Kilometres. 
Air France – KLM. 
Emirates, Qatar Airways and Etihad. 
Turkish Airlines. 
MIDT stands for Marketing Information Data Tapes. 

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been  particularly  exposed  to  these  diversions  of  traffic,  this  being  the  event  giving 
rise to the redundancies. 

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

22. 

23. 

24. 

The  largest  number  of  redundancies  occurred  in  Ile-de-France  (76,2 %)  and  in 
Provence-Alpes-Côte  d'  Azur  — PACA —  (11,7 %).  The  expected  impact  in  both 
territories is linked to the difficulties of redeployment for workers aged 50+. This age 
bracket  represents  79 %  of  the  total  number  of  redundancies.  In  PACA  the 
difficulties are also related to the higher than national average number of job-seekers.  

Unemployment  levels  in  Ile-de-France,  tend  to  be  lower  than  the  levels  of 
metropolitan  France,  as  it  includes  the  region  of  Paris.  In  Q3 2017,  the 
unemployment  rate  was  8,4%23,  a  percentual  point  lower  than  the  average 
unemployment rate in France (9,4 %). However, the territory has issues related with 
long-term unemployment and job seekers aged 50+. The latest statistics24 show that 
in  Île-de-France  the  number  of  long-term  unemployed  (from  12  to  24  months) 
increased  by  19 480  people  (11 %)25  in  2017,  compared  to  the  previous  year.  The 
job-seekers who have been unemployed for at least one year represent 43,7 % of the 
total  number  of  job-seekers  in  the  region26.  In  addition,  the  number  of  job  seekers 
aged 50+ increased by 4,7% (5,6% for women) in the last quarter of 2017 compared 
to Q4 201627. 
On  the  other  hand,  in  PACA  the  unemployment  rate  was  11,1 %28,  almost  two 
percentage  points  higher  than  in  France.  In  this  region  the  number  of  job  seekers 
aged 50+ increased by 6% in Q3 2017 compared to the same quarter of 201629; and 
the  job-seekers  unemployed  for  at  least  12  months  increased  by  7 %  or  14 010 
persons over the same period30. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

25. 

All  1 858  redundant  workers  are  expected  to  participate  in  the  measures.  The 
breakdown of the workers by sex, citizenship and age group is as follows: 

Sex: 

Category 

Men: 

Women: 

Number of  
targeted beneficiaries 

974 

884 

(52,4 %) 

(47,6 %) 

Citizenship:  EU citizens: 

1 849 

(99,5 %) 

non-EU citizens: 

Age group: 

15-24 years: 

9 

0 

(0,5 %) 

(0,0 %) 

23 
24 
25 
26 
27 
28 
29 
30 

https://www.insee.fr/fr/statistiques/2012804#tableau-TCRD_025_tab1_regions2016 
Q4 2017 for île-de-France and Q3 2017 for PACA. 
http://idf.direccte.gouv.fr/sites/idf.direccte.gouv.fr/IMG/pdf/defm_12_2017_ile-de-france.pdf 
Ibid. 
Ibid. 
https://www.insee.fr/fr/statistiques/2012804#tableau-TCRD_025_tab1_regions2016 
http://paca.direccte.gouv.fr/sites/paca.direccte.gouv.fr/IMG/pdf/2018-01_-_synthese_paca.pdf 
Ibid. 

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25-29 years: 

30-54 years: 

55-64 years: 

0 

(0,0 %) 

661 

(35,6 %) 

1 196 

(64,4 %) 

over 64 years: 

1 

(0,0 %) 

Eligibility of the proposed actions 

26. 

The  measure  for  which  the  French  authorities  seek  EGF  co-funding  is  the 
redeployment  leave  ("congé  de  reclassement")31.  This  measure  is  intended  for 
workers  who,  at  the  time  of  their  voluntary  departure,  do  not  yet  have  any  precise 
plans  for  redeployment  and  wish  to  benefit,  over  a  period  which  can  extend  up  to 
twelve  months  and  under  certain  circumstances  up  to  15  months32,  from  retraining 
measures, advice, guidance or assistance to set up or take over a business, etc.  

27. 

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

– 

– 

– 

Advisory  services  and  vocational  guidance  for  workers.  The  workers  will  be 
accompanied and oriented towards their projects for redeployment as workers 
or self-employed persons. The participants will avail of job-to-job counselling 
and guidance, job search support, coaching, information on available training, 
promotion of entrepreneurship and advice on business start-up (this can include 
search for funding, help with a business plan, and other accompanying services 
towards entrepreneurship), etc. 

Vocational  training.  The  workers  will  be  proposed  various  types  of  trainings 
which are tailored to their needs, as identified by the counsellors providing the 
advisory  services.  Particular  attention  will  be  paid  to  the  'parcours  encadrés' 
which  are  vocational  trainings  of  long  duration  on  jobs  in  demand.  Some 
examples  of  possible  vocational  trainings  are:  training  on  vines  and  wine 
(winemaker),  beekeeping,  food  and  beverage  services  CPA33,  baker  CPA, 
nurse  CPA,  training  towards  DAEFLE  (degree  of  proficiency  in  teaching 
French  as  a  foreign  language),  training  towards  qualification  certificate  for 
passenger drivers up to nine people, etc. 

Contribution  for  business  recovery  or  business  start-up.  Workers  who  start 
their  own  businesses  (business  recovery  or  start-up)  will  receive  up  to 
EUR 15 000  to  cover  setting-up  costs,  investment  in  assets  and  current 
expenditure. The contribution will be paid in various instalments once certain 
milestones  have  been  reached.  A  first  instalment  of  EUR 3 000  will  be  paid 

31 

32 

33 

As regards the redeployment leave (‘congé de reclassement’), Article L1233-71 of the French Labour 
Code provides that a company which employs more than one thousand people is required to propose the 
measures  set  out  therein  for  a  minimum  duration  of  four  months.  According  to  the  above-mentioned 
legislation, the period as from the fifth month is therefore optional and may be subject to a contribution 
from  the  EGF  in  accordance  with  Article  9(1)  of  Regulation  (EU)  No 1309/2013.  Air  France  has 
decided to propose this measure for a minimum period of six months and a maximum period of twelve 
months.  The  application  does  not  provide  for  any  contributions  for  the  first  four  months  of  the 
redeployment leave, which correspond to the minimum duration stipulated by law. 
Exceptionally, the workers following a ‘parcours encadré’ (i.e. vocational training of long duration on 
jobs in demand) can see their redeployment leave ‘congé de reclassement’ extended up to 15 months to 
cover the completion of the parcours encadré and additional three months of accompanied job-search. 
CPA stands for Certificate for professional aptitude 

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upon presentation of proof of setting up or taking over a business, such as the 
receipt of registration. A second and third instalment of EUR  6 000 each, upon 
presentation of the first and second VAT return on sales showing a minimum 
turnover of at least EUR 500 and EUR 1 000 respectively. The self-employed 
persons  (in  French  ‘auto-entrepreneurs’  or  ‘micro-entrepreneurs’)  and  sole 
proprietors  who  benefit  from  simplified  administrative,  tax  and  social 
obligations (‘entreprise individuelle avec toutes ses derogations’) will receive 
the second and a third instalment of EUR 6 000 upon presentation of the first 
and second statement of activity to the RSI34, indicating a turnover of at least 
EUR 200 and EUR 500 respectively with proof of payment of dues. 

– 

Job-search  allowance.  This  monthly  allowance,  paid  until  the  end  of  the 
redeployment  leave,  amounts  to  70 %  of  the  worker's  last  gross  salary.  This 
amount  is  calculated  based  on  the  assumption  of  the  workers'  full-time 
participation in active labour market measures; if participation is lower extent, 
the EGF will pay workers an allowance which is proportionate to their actual 
participation. 

–  Mobility  allowance.  The  targeted  worker  who  accepts  a  job,  involving  a 
change of residence of more than 100 km from the current place of residence, 
will receive a lump sum of EUR 3 000 to cover the necessary expenditure. This 
amount  will  be  increased  by  EUR 500  for  the  non-separated  spouse,  PACS 
partner35  or  domestic  partnership  ('concubinage')  and  additional  EUR 500  per 
child. 

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. 

France 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. 

28. 

29. 

Estimated budget 

30. 

The  estimated 
total  costs  are  EUR 16 490 805,  comprising  expenditure  for 
personalised  services  of  EUR 16 410 805  and  expenditure  for  preparatory, 
management, 
information  and  publicity,  control  and  reporting  activities  of 
EUR 80 000.  

31. 

The total financial contribution requested from the EGF is EUR 9 894 483 (60 % of 
costs).
total 

34 
35 

Régime Social des Indépendants (social scheme for self-employed persons). 
Partners  bound  by  a  civil  solidarity  pact  (pact  civil  de  solidarité  (PACS)).  PACS  partners  have 
reciprocal obligations. The PACS has also effects on social and wage rights, property, partner's housing 
and tax matters. 

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Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR) 

Estimated total 
costs 
(EUR)36  

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

Advisory services and vocational guidance 
for workers 
(orientation professionelle, services de 
reclassement) 

Vocational training 
(formation) 

Contribution for business recovery or 
business start-up 
(aides à la creation d'entreprise)  

1 485 

1 951 

2 897 150 

363 

2 562 

929 873 

456 

15 000 

6 840 000 

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

– 

10 667 023 

(65 %) 

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

Job-search allowance  
(allocation de congé de reclassement)  

Mobility allowance 
(aides à la mobilité geographique) 

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) 

1 750 

3 188 

5 579 622 

57 

2 880 

164 160 

– 

– 

– 

– 

– 

– 

– 

– 

5 743 782 

(35 %) 

0 

0 

0 

80 000 

80 000 

(0,49 %) 

16 490 805 

9 894 483 

32. 

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. France confirmed that these actions are conditional 

36 

Totals do not tally due to rounding. 

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11 

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on  the  active  participation  of  the  targeted  beneficiaries  in  job-search  or  training 
activities. 

33. 

France 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 

34. 

35. 

France started providing the personalised services to the targeted beneficiaries on 19 
May  2015.  The  expenditure  on  the  actions  is  therefore  eligible  for  a  financial 
contribution from the EGF from 19 May 2015 to 23 October 2019. 

France started incurring the administrative expenditure to implement the EGF on 23 
October  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 23 October 2017 to 23 April 2020. 

Complementarity with actions funded by national or Union funds 

36. 

37. 

The source of national pre-financing or co-funding is Air France. 

The  French  authorities  did  not  indicate  how  the  measures  described  above  are 
complementary  with  actions  funded  by  the  Structural  Funds.  However,  they 
confirmed that the measures described above receiving a financial contribution from 
the  EGF  will  not  also  receive  financial  contributions  from  national  funds  or  other 
Union  financial  instruments.  France  explained  that  there  is  no  public  intervention 
foreseen in support of former Air France workers. Since Air France is a company in 
bonis  (i.e.  not  in  liquidation)  employing  1 000  employees  or  more,  it  is  the 
employer's responsibility to  pay the full costs of accompanying  measures  to  ensure 
the redeployment of employees laid off (see footnote nº31 on redeployment leave, in 
paragraph 26). 

Procedures  for  consulting  the  targeted  beneficiaries  or  their  representatives  or  the  social 
partners as well as local and regional authorities 

38. 

France has indicated that the co-ordinated package of personalised services has been 
drawn up in consultation with the representatives of the targeted beneficiaries and the 
social partners. On 10 February 2015, Air France and the trade unions agreed on the 
Perform  2020  plan  for  voluntary  departures  of  ground  staff  in  2015.  Various 
meetings with the Central Works Council (Comité Central d'Entreprise) were held in 
2015  and  Q1 2016  on  the  Perform  2020  plan  in  relation  to  voluntary  departures  of 
cabin crew and ground staff in 2015 and 2016. 

Management and control systems 

39. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  France  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  by  the  Délégation 
générale  à  l’emploi  et  à  la  formation  professionnelle  (DGEFP)  of  the  Ministry  of 
Labour, Employment, Vocational Training and Social Dialogue, in particular by the 
unit  Fonds  national  de  l'emploi  (DGEFP  -  MFNE).  The  payments  will  be  made 
within  the  DGEFP  by  the  unit  Affaires  financières  (DGEFP  -  MAFI).  The  unit 
Organisation  des  contrôles  (DGEFP  -MOC)  provides  administrative  and  financial 
control in connection with the audit authority. The Commission interministérielle de 
coordination des contrôles (CICC) is the French audit authority for the EGF. 

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Commitments provided by the Member State concerned 

40. 

France 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, 

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

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

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

BUDGETARY IMPLICATION 

Budgetary proposal 

41. 

42. 

43. 

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 2014-202037. 

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 9 894 483, 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 management38. 

Related acts 

44. 

45. 

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 9 894 483. 

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. 

37 
38 

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 France – EGF/2017/009 FR/Air France 

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 1927/200639, 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 management40, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

39 
40 
41 

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 1311/201341. 

laid  down 

On 23 October 2017, France submitted an application to mobilise the EGF, in respect 
of  redundancies  in  Air  France  in  France.  It  was  supplemented  by  additional 
(EU) 
information  provided 
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. 

in  accordance  with  Article 8(3)  of  Regulation 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 9 894 483 in respect of the application submitted by France. 

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). 

EN 

14 

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HAVE ADOPTED THIS DECISION:  

Article 1 

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 9 894 483 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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15 

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