EU budget for the future : proposal for a regulation on the European Globalisation Adjustment Fund (EGF).
Date: 2018-08-08
Institutions: Directorate-General for Employment, Social Affairs and Inclusion
Subjects: EU budget, EU financing, European Globalisation Adjustment Fund, distribution of EU funding, proposal (EU), regulation (EU)

#EUBudget

COM(2018)380 final

Proposal for a Regulation on 
the European Globalisation 
Adjustment Fund (EGF)

Neither the European Commission nor any person acting on behalf of the Commission is responsible  
for the use that might be made of the following information.

Luxembourg: Publications Office of the European Union, 2018

© European Union, 2018
Reuse is authorised provided the source is acknowledged.
The reuse policy of European Commission documents is regulated by Decision 2011/833/EU  
(OJ L 330, 14.12.2011, p. 39).

Print 
PDF 

ISBN 978-92-79-89880-8 
ISBN 978-92-79-89879-2 

doi:10.2767/056 
doi:10.2767/184277 

KE-03-18-096-EN-C
KE-03-18-096-EN-N

Part of the proposal of the Commission for the 2021-2027  
spending programmes
for the Instruments outside the ceiling

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the 
European Globalisation Adjustment Fund (EGF) (COM(2018) 380 final)

Annex to the proposal

p. 4

p. 50

Proposal for a Regulation  
of the European Parliament and 
of the Council on the European 

Globalisation Adjustment Fund (EGF) 1COM(2018) 380 final

EUROPEAN
COMMISSION

Brussels, 30.5.2018
COM(2018) 380 final

2018/0202 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Globalisation Adjustment Fund (EGF)

{SEC(2018) 273 final} - {SWD(2018) 289 final}

4

EXPLANATORY MEMORANDUM

1.

•

CONTEXT OF THE PROPOSAL

Reasons for and objectives

The  European  Globalisation  Adjustment  Fund  (EGF)  was 

initially  established  by 

Regulation (EC) No 1927/20061 for  the  programming  period  2007-2013.  It  was  set  up  to 

provide  the  Union  with  an  instrument  to  demonstrate  solidarity  with,  and  give  support  to, 

workers made redundant as a result of major structural changes in world trade patterns caused 

by globalisation and whose redundancies have a significant adverse impact on the regional or 

local  economy.  By  co-funding  active  labour  market  policy  measures,  the  EGF  aims  to 

facilitate the return to work of workers in areas, sectors, territories or labour markets suffering 

from the shock of serious economic disruption.

In  the  light  of  the  scale  and  speed  at  which  the  financial  and  economic  crisis  developed  in 

2008,  the  Commission,  in  its  European  Economic  Recovery  Plan2,  envisaged  revising 

Regulation (EC) No 1927/2006. Apart from some permanent changes based on the first years 

of EGF implementation, the main aim of this revision3 was to broaden the scope of the EGF 

from  1 May 2009  until  30 December 2011.  The  Commission  wanted  to  enable  the  EGF to 

demonstrate  Union  solidarity  and  provide  support  for  workers  made  redundant  as  a  direct 

consequence of the financial and economic crisis and to increase the co-funding rate from 50 

to 65 % to reduce the burden for Member States.

For  the  multiannual  financial  framework  2014-2020,  the  EGF’s  scope  was  extended  by 

Regulation (EU) No 1309/20134 of  the  European  Parliament  and  of  the  Council,  repealing 

Regulation (EC) No 1927/2006.  The  aim  was  to  cover  not  only  job  displacements  resulting 

from  a  serious  economic  disruption  caused  by  a  continuation  of  the  global  financial  and 

economic crisis addressed in Regulation (EC) No 546/2009 but to also cover any new global 

financial and economic  crisis. The EGF could therefore also offer assistance in the event of 

unexpected crises leading to a serious disruption of the local, regional or national economy. 

Such  unexpected  crises  could,  for  example,  include  a  major  recession  in  important  trading 

partners or a collapse of the financial system comparable to the one that occurred in 2008. To 

ensure that EGF support was available to workers whatever their contract of employment or 

employment  relationship,  the  notion  of  ‘workers’  was  expanded.  This  meant  that  it  was 

possible to include not only workers with contracts of employment of indefinite duration, as 

in  Regulation (EC) No 1927/2006,  but  also  workers  with  fixed-term  contracts,  temporary 

agency  workers,  owner-managers  of  micro  enterprises  and  self-employed  workers.  Also, 

Member States could, under certain circumstances, include in their EGF applications as many 

young people not in education, employment or training (NEETs) as dismissed workers. This 

was  in  the  light  of  the  high  level  of  youth  unemployment  and  the  fact  that  it  is  even  more 

difficult for young people not in education, employment or training to find a job when there 

are  major  disruptions  on  the  labour  market,  such  as  those  caused  by  a  major  restructuring 

The  prime  objective  of  this  proposal  is  to  ensure  that  the  EGF  continues  to  operate  beyond 

31 December 2020, without a temporal limitation to the period, as this is a special instrument 

beyond the multiannual financial framework ceilings.

OJ L 406, 30.12.2006, p. 1.

COM(2008) 800 final, 26.11.2008.

Regulation (EC) No 546/2009, OJ L 167, 29.6.2009, p. 26.

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 

1927/2006.

event.

1

2

3

4

EUROPEAN

COMMISSION

Brussels, 30.5.2018

COM(2018) 380 final

2018/0202 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Globalisation Adjustment Fund (EGF)

{SEC(2018) 273 final} - {SWD(2018) 289 final}

EXPLANATORY MEMORANDUM

1.

•

CONTEXT OF THE PROPOSAL

Reasons for and objectives

The  European  Globalisation  Adjustment  Fund  (EGF)  was 
initially  established  by 
Regulation (EC) No 1927/20061 for  the  programming  period  2007-2013.  It  was  set  up  to 
provide  the  Union  with  an  instrument  to  demonstrate  solidarity  with,  and  give  support  to, 
workers made redundant as a result of major structural changes in world trade patterns caused 
by globalisation and whose redundancies have a significant adverse impact on the regional or 
local  economy.  By  co-funding  active  labour  market  policy  measures,  the  EGF  aims  to 
facilitate the return to work of workers in areas, sectors, territories or labour markets suffering 
from the shock of serious economic disruption.

In  the  light  of  the  scale  and  speed  at  which  the  financial  and  economic  crisis  developed  in 
2008,  the  Commission,  in  its  European  Economic  Recovery  Plan2,  envisaged  revising 
Regulation (EC) No 1927/2006. Apart from some permanent changes based on the first years 
of EGF implementation, the main aim of this revision3 was to broaden the scope of the EGF 
from  1 May 2009  until  30 December 2011.  The  Commission  wanted  to  enable  the  EGF to 
demonstrate  Union  solidarity  and  provide  support  for  workers  made  redundant  as  a  direct 
consequence of the financial and economic crisis and to increase the co-funding rate from 50 
to 65 % to reduce the burden for Member States.

For  the  multiannual  financial  framework  2014-2020,  the  EGF’s  scope  was  extended  by 
Regulation (EU) No 1309/20134 of  the  European  Parliament  and  of  the  Council,  repealing 
Regulation (EC) No 1927/2006.  The  aim  was  to  cover  not  only  job  displacements  resulting 
from  a  serious  economic  disruption  caused  by  a  continuation  of  the  global  financial  and 
economic crisis addressed in Regulation (EC) No 546/2009 but to also cover any new global 
financial and economic  crisis. The EGF could therefore  also offer  assistance in the event of 
unexpected crises leading to a serious disruption of the local, regional or national economy. 
Such  unexpected  crises  could,  for  example,  include  a  major  recession  in  important  trading 
partners or a collapse of the financial system comparable to the one that occurred in 2008. To 
ensure that EGF support was available to workers whatever their contract of employment or 
employment  relationship,  the  notion  of  ‘workers’  was  expanded.  This  meant  that  it  was 
possible to include not only workers with contracts of employment of indefinite duration, as 
in  Regulation (EC) No 1927/2006,  but  also  workers  with  fixed-term  contracts,  temporary 
agency  workers,  owner-managers  of  micro  enterprises  and  self-employed  workers.  Also, 
Member States could, under certain circumstances, include in their EGF applications as many 
young people not in education, employment or training (NEETs) as dismissed workers. This 
was  in  the  light  of  the  high  level  of  youth  unemployment  and  the  fact  that  it  is  even  more 
difficult for young people not in education, employment or training to find a job when there 
are  major  disruptions  on  the  labour  market,  such  as  those  caused  by  a  major  restructuring 
event.

The  prime  objective  of  this  proposal  is  to  ensure  that  the  EGF  continues  to  operate  beyond 
31 December 2020, without a temporal limitation to the period, as this is a special instrument 
beyond the multiannual financial framework ceilings.

1

2

3

4

OJ L 406, 30.12.2006, p. 1.
COM(2008) 800 final, 26.11.2008.
Regulation (EC) No 546/2009, OJ L 167, 29.6.2009, p. 26.
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 
1927/2006.

5

To  ensure  that  the  EGF  remains  a  valid  European-level  instrument,  an  application  for  EGF 
support for  workers can  be triggered when  the number  of  redundancies  reaches  a  minimum 
threshold. Experience with the functioning of Regulation (EU) No 1309/2013 has shown that 
a  threshold  of  250  redundancies  within  a  given  reference  period  is  advisable,  in  particular 
when it is possible to submit applications for a lower number of redundancies in small labour 
markets or under exceptional circumstances. The threshold of 250 is lower than the threshold 
for the 2014-2020 programming period. This is because there is a general trend of fewer very 
large scale redundancies and because  the dismissal of  250 workers usually  has  a  significant 
impact  in  most  regions.  This  is  also  to  acknowledge  the  fact  that  in  many  Member  States, 
most workers are employed by small and medium-sized enterprises (SMEs).
On  17 November 2017,  the European Pillar  of  Social  Rights5 was  jointly  proclaimed  by  the 
European Parliament, the Council and the Commission as a response to social challenges in 
Europe.  Taking  into  account  the  changing  realities  of  the  world  of  work,  the  EU  has  to  be 
ready  for  the  current  and  future  challenges  of  globalisation  and  digitisation.  This  means 
making growth more inclusive and improving employment and social policies. The principles 
of the European Pillar of Social Rights will act as an overarching guiding framework for the 
European Globalisation Adjustment Fund (EGF) and will allow the Union to put the relevant 
principles into practice for major restructuring events.

At Union level, the European Semester of economic policy coordination is the framework to 
identify national reform priorities and monitor their implementation. Member States develop 
their  own  national  multiannual  investment  strategies  in  support  of  those  reform  priorities. 
Those strategies should be presented alongside the yearly National Reform Programmes as a 
way to outline and coordinate priority investment projects to be supported by national and/or 
Union  funding.  They  should  also  serve  to  use  Union  funding  in  a  coherent  manner  and  to 
maximise  the  added  value  of  the  financial  support  to  be  received  notably  from  the 
programmes  supported  by  the  Union  under  the  European  Regional  Development  Fund,  the 
Cohesion fund, the European Social Fund, the European Maritime and Fisheries Fund and the 
European  Agricultural  Fund  for  Rural  Development,  the  European  Investment  Stabilisation 
Function and InvestEU, where relevant.

Nowadays'  globalised  world  is  characterised  by  an  ever  increasing  interconnectedness  and 
interdependence  of  world  markets.  Due  to  the  interplay  and  mutual  effects  of  open  trade, 
technological  change  or  other  factors  like  the  transition  to  a  low  carbon  economy,  it  is 
increasingly  difficult  to  single  out  a  specific  factor  that  causes  job  displacements. 
Paradoxically,  due  to  these  most  recent  trends  in  globalisation,  an  unchanged  EGF  would 
probably  see  fewer  applications  and  uptake. The  fact  that  the incidence  of  very  large-scale 
restructuring  cases  (involving  more  than  500  redundancies)  has  been  considerably  less  over 
the  past  decade  would  very  likely  further  impact  the  uptake  of  the  fund. Therefore,  in  the 
future,  the  EGF  will  only  be  mobilised  when  a  restructuring  event  has  a  significant  impact, 
which is defined by the minimum threshold of 250 displaced workers mentioned above. 

Despite  the  still  high  levels  of  youth  unemployment,  experience  has  shown  that  other 
instruments could be more suitable for providing assistance to NEETs, notably the European 
Social  Fund.  Tying  assistance  to  young  people  to  an  EGF  application  could  be  regarded  as 
fostering inequity, as it would exclude most of the young people in need.

The  focus  of  the  EGF  is  on  active  labour  market  measures  aimed  at  rapidly  bringing 
dismissed  workers  back  into  stable  employment.  Like  Regulation (EU) No 1309/2013,  this 
proposal provides that the EGF financially  contributes  to  a  package  of active  labour  market 
measures.  These  measures  will  primarily  aim  at  providing  tailor  - made  support  to  help 

5

https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-
pillar-social-rights_en.

6

reintegration  into  the  labour  market,  increasing  the  emphasis  on  acquisition  of  digital  skills 

and  supporting  mobility  whenever  relevant.  The  EGF  cannot contribute  to  the  funding  of 

passive  measures.  Allowances  may  only  be  included  if  they  are  designed  as  incentives  to 

make it easier for dismissed workers to participate in active labour market policy measures. In 

order to ensure a reasonable balance between genuinely active labour market policy measures 

and ‘activated’ allowances, the share of allowances in a coordinated package of active labour 

market measures is capped.

The  EGF  will  remain  one  of  the  special  instruments  that  allow  the  Union  to  react  to 

unforeseen circumstances and is therefore being placed outside the budgetary ceilings of the 

multiannual financial framework. However, its effectiveness has suffered from the length and 

procedural requirements of the decision-making process. Shortening as much as possible the 

time between the notice of the dismissals and the actual payment of possible EGF assistance 

and  simplifying  the  procedures  should  be  a  common  concern  for  all  parties  involved  in  the 

EGF  process:  Member  States  should  strive  to  submit  a  complete  application  as  soon  as 

possible  once  the  relevant  criteria  are  met;  the  Commission  should  assess  and  decide  on 

eligibility soon after a complete application is submitted, and the budgetary authority should 

swiftly take its decision on deploying the EGF funding.

As  applications  will  be  based  entirely  on  whether  or  not  the  restructuring  event  has  a 

significant impact, defined by a threshold of 250 displaced workers, there will no longer be 

the  extensive  application  requirements  of  the  current  and  former  programming  periods  that 

often  prevented  Member  States  from  applying.  Therefore,  the  administrative  burden  on  the 

Member  State  will  be  reduced  when  it  applies  and  on  the  Commission  when  it  checks 

eligibility. This will make deciding on a contribution much easier and faster.

Experience in the implementation of the fund has shown that Member States only ask for its 

mobilisation in case of true emergency situations. Even though the threshold currently is 500 

displaced workers, applications range widely, from 108 to 6120 workers  who lost their jobs 

within the reference period.6 In order to mitigate the risks of a potentially higher number of 

EGF  applications,  the  EGF  will  operate  under  a  higher  annual  maximum  amount7 and  the 

reference period will also be shortened from nine to six months (in the framework of sectoral 

applications). Even  though a higher uptake of the fund is expected and intended by removing 

obstacles  to  its  use,  there  does  not  seem  to  be  a  risk  of  an  excessive  use  of  the  fund  by 

Member States.

To  cover  the  needs  arising  at  the  beginning  of  the  year,  the  Commission  will  continue  to 

propose within the annual budgetary procedure a minimum amount in payment appropriations 

for the relevant budgetary line.

Assistance from the EGF will be in addition to the efforts of the Member States at national, 

regional and local level. For reasons of sound financial management, the EGF cannot replace 

measures  that  are  already  covered  by  Union  funds  and  programmes  included  in  the 

multiannual financial  framework.  Nor  can  the  EGF’s  financial  contribution  replace  national 

measures  or  replace  measures  that  are  the  responsibility  of  dismissing  companies  under 

national law or collective agreements.

6

7

The threshold was initially 1000 displaced jobs in the 2007-2013 funding period. The lower threshold of 

500  displaced  jobs  did  not  create  a  big  increase  in  applications  in  the  2014-2020  funding  period. 

However,  several  applications  used  the  exceptional  circumstance  clause,  basing  an  application  on  a 

lower  number  of  dismissed  workers,  as  these  dismissals  had  a  significant  impact  on  the region 

concerned.

The  up-take  of  an  emergency  relief  fund  depends  on  the  number  of  emergencies,  which  are  hard  to 

predict. Should a severe economic downturn lead to a full uptake, possible consequences would need to 

be discussed at the time of the multiannual financial framework review.

To  ensure  that  the  EGF  remains  a  valid  European-level  instrument,  an  application  for  EGF 

support  for  workers  can  be  triggered  when  the  number of  redundancies  reaches a minimum 

threshold. Experience with the functioning of Regulation (EU) No 1309/2013 has shown that 

a  threshold  of  250  redundancies  within  a  given  reference  period  is  advisable,  in  particular 

when it is possible to submit applications for a lower number of redundancies in small labour 

markets or under exceptional circumstances. The threshold of 250 is lower than the threshold 

for the 2014-2020 programming period. This is because there is a general trend of fewer very 

large  scale  redundancies  and  because  the dismissal of  250 workers usually  has  a significant 

impact  in  most  regions.  This  is  also  to  acknowledge  the  fact  that  in  many  Member  States, 

most workers are employed by small and medium-sized enterprises (SMEs).

On  17 November 2017,  the  European Pillar  of  Social  Rights5 was  jointly proclaimed  by  the 

European Parliament, the Council and the Commission as a response to social challenges in 

Europe.  Taking  into  account  the  changing  realities  of  the  world  of  work,  the  EU  has  to  be 

ready  for  the  current  and  future  challenges  of  globalisation  and  digitisation.  This  means 

making growth more inclusive and improving employment and social policies. The principles 

of the European Pillar of Social Rights will act as an overarching guiding framework for the 

European Globalisation Adjustment Fund (EGF) and will allow the Union to put the relevant 

principles into practice for major restructuring events.

At Union level, the European Semester of economic policy coordination is the framework to 

identify national reform priorities and monitor their implementation. Member States develop 

their  own  national  multiannual  investment  strategies  in  support  of  those  reform  priorities. 

Those strategies should be presented alongside the yearly National Reform Programmes as a 

way to outline and coordinate priority investment projects to be supported by national and/or 

Union  funding.  They  should  also  serve  to  use  Union  funding  in  a  coherent  manner  and  to 

maximise  the  added  value  of  the  financial  support  to  be  received  notably  from  the 

programmes  supported  by  the  Union  under  the  European  Regional  Development  Fund,  the 

Cohesion fund, the European Social Fund, the European Maritime and Fisheries Fund and the 

European  Agricultural  Fund  for  Rural  Development,  the  European  Investment  Stabilisation 

Function and InvestEU, where relevant.

Nowadays'  globalised  world  is  characterised  by  an  ever  increasing  interconnectedness  and 

interdependence  of  world  markets.  Due  to  the  interplay  and  mutual  effects  of  open  trade, 

technological  change  or  other  factors  like  the  transition  to  a  low  carbon  economy,  it  is 

increasingly  difficult  to  single  out  a  specific  factor  that  causes  job  displacements. 

Paradoxically,  due  to  these  most  recent  trends  in  globalisation,  an  unchanged  EGF  would 

probably  see  fewer  applications  and  uptake. The  fact  that  the incidence  of  very  large-scale 

restructuring  cases  (involving  more  than  500  redundancies)  has  been  considerably  less  over 

the  past  decade  would  very  likely  further  impact  the  uptake  of  the  fund. Therefore,  in  the 

future,  the  EGF  will  only  be  mobilised  when  a  restructuring  event  has  a  significant  impact, 

which is defined by the minimum threshold of 250 displaced workers mentioned above. 

Despite  the  still  high  levels  of  youth  unemployment,  experience  has  shown  that  other 

instruments could be more suitable for providing assistance to NEETs, notably the European 

Social  Fund.  Tying  assistance  to  young  people  to  an  EGF  application  could  be  regarded  as 

fostering inequity, as it would exclude most of the young people in need.

The  focus  of  the  EGF  is  on  active  labour  market  measures  aimed  at  rapidly  bringing 

dismissed  workers  back  into  stable  employment.  Like  Regulation (EU) No 1309/2013,  this 

proposal provides  that  the EGF financially  contributes to a package of active labour market 

measures.  These  measures  will  primarily  aim  at  providing  tailor  - made  support  to  help 

5

https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-

pillar-social-rights_en.

reintegration  into  the  labour  market,  increasing  the  emphasis  on  acquisition  of  digital  skills 
and  supporting  mobility  whenever  relevant.  The  EGF  cannot contribute  to  the  funding  of 
passive  measures.  Allowances  may  only  be  included  if  they  are  designed  as  incentives  to 
make it easier for dismissed workers to participate in active labour market policy measures. In 
order to ensure a reasonable balance between genuinely active labour market policy measures 
and ‘activated’ allowances, the share of allowances in a coordinated package of active labour 
market measures is capped.

The  EGF  will  remain  one  of  the  special  instruments  that  allow  the  Union  to  react  to 
unforeseen circumstances and is therefore being placed outside the budgetary ceilings of the 
multiannual financial framework. However, its effectiveness has suffered from the length and 
procedural requirements of the decision-making process. Shortening as much as possible the 
time between the notice of the dismissals and the actual payment of possible EGF assistance 
and  simplifying  the  procedures  should  be  a  common  concern  for  all  parties  involved  in  the 
EGF  process:  Member  States  should  strive  to  submit  a  complete  application  as  soon  as 
possible  once  the  relevant  criteria  are  met;  the  Commission  should  assess  and  decide  on 
eligibility soon after a complete application is submitted, and the budgetary authority should 
swiftly take its decision on deploying the EGF funding.

As  applications  will  be  based  entirely  on  whether  or  not  the  restructuring  event  has  a 
significant impact, defined by a threshold of 250 displaced workers, there will no longer be 
the  extensive  application  requirements  of  the  current  and  former  programming  periods  that 
often  prevented  Member  States  from  applying.  Therefore,  the  administrative  burden  on  the 
Member  State  will  be  reduced  when  it  applies  and  on  the  Commission  when  it  checks 
eligibility. This will make deciding on a contribution much easier and faster.

Experience in the implementation of the fund has shown that Member States only ask for its 
mobilisation in case of true emergency situations. Even though the threshold currently is 500 
displaced workers, applications range widely, from 108 to 6120 workers  who lost their jobs 
within the reference period.6 In order to mitigate the risks of a potentially higher number of 
EGF  applications,  the  EGF  will  operate  under  a  higher  annual  maximum  amount7 and  the 
reference period will also be shortened from nine to six months (in the framework of sectoral 
applications). Even  though a higher uptake of the fund is expected and intended by removing 
obstacles  to  its  use,  there  does  not  seem  to  be  a  risk  of  an  excessive  use  of  the  fund  by 
Member States.

To  cover  the  needs  arising  at  the  beginning  of  the  year,  the  Commission  will  continue  to 
propose within the annual budgetary procedure a minimum amount in payment appropriations 
for the relevant budgetary line.

Assistance from the EGF will be in addition to the efforts of the Member States at national, 
regional and local level. For reasons of sound financial management, the EGF cannot replace 
measures  that  are  already  covered  by  Union  funds  and  programmes  included  in  the 
multiannual financial  framework.  Nor  can  the  EGF’s  financial  contribution  replace  national 
measures  or  replace  measures  that  are  the  responsibility  of  dismissing  companies  under 
national law or collective agreements.

6

7

The threshold was initially 1000 displaced jobs in the 2007-2013 funding period. The lower threshold of 
500  displaced  jobs  did  not  create  a  big  increase  in  applications  in  the  2014-2020  funding  period. 
However,  several  applications  used  the  exceptional  circumstance  clause,  basing  an  application  on  a 
lower  number  of  dismissed  workers,  as  these  dismissals  had  a  significant  impact  on  the region 
concerned.
The  up-take  of  an  emergency  relief  fund  depends  on  the  number  of  emergencies,  which  are  hard  to 
predict. Should a severe economic downturn lead to a full uptake, possible consequences would need to 
be discussed at the time of the multiannual financial framework review.

7

The  budget  procedure  in  the  proposal  follows  directly  from  point  9  of  the  draft 
Interinstitutional  Agreement.  Whenever  possible,  the  process  will  be  shortened  and 
streamlined.

Given  that  the  measures  co-funded  by  the  EGF  are  implemented  by  means  of  shared 
management with the Member States, the payment mechanism for the financial contribution 
will  remain  in  line  with  the  mechanism  applied  for  this  management  mode  of  the  Union 
budget. At the same time, the financing arrangements should reflect the scope of the measures 
to be carried out by the Member States as proposed in their applications.

To avoid any competition between instruments, the co-funding rate of the EGF will be aligned 
with the highest co-funding rate of the  European  Social Fund  Plus (ESF+) in  the respective 
Member State.

This overall proposal provides for a date of application as of 1 January 2021 and is presented 
for a Union of 27 Member States, in line with the notification by the United Kingdom of its 
intention  to  withdraw  from  the  European  Union  and  Euratom  based  on  Article  50  of  the 
Treaty on European Union received by the European Council on 29 March 2017.

•

Consistency with existing policy provisions

As indicated in ‘A new, modern Multiannual Financial Framework for a European Union that 
delivers  efficiently  on  its  priorities  post-2020’8, ESF+  and  the  European  Regional 
Development  Fund  (ERDF)  will  continue  to  provide  funding  for  structural  actions  for 
economic,  social  and  territorial  cohesion.  Both  the  ESF+  and  the  ERDF  consist  of  multi-
annual  programmes  that  support  strategic,  long-term  goals,  such  as  the  anticipation  and 
management of change and restructuring. The EGF, in turn, is established to provide support 
in exceptional circumstances and outside a multi-annual programming routine.

Consistency with other Union policies

•
The ‘EU Quality Framework for anticipation of change and restructuring'’9 is the EU policy 
instrument  that  provides  the  framework  for  best  practice  for  anticipating  and  dealing  with 
corporate  restructuring.  The  EU  Quality  Framework  for  anticipation  of  change  and 
restructuring  offers  a  comprehensive  framework  on  how  the  challenges  of  economic 
adjustment  and  restructuring  and  their  employment  and  social  impact  should  be  addressed 
using  the  right  policy  means.  The  EU  Quality  Framework  for  anticipation  of  change  and 
restructuring calls upon Member States to use EU and national funding in such a way that the 
social  impact  of  restructuring,  especially  the  adverse  effects  on  employment,  can  be 
cushioned  more  effectively.  The  main  EU  instruments  to  assist  workers  affected  are  ESF+, 
which is designed to offer assistance in an anticipatory way, and the EGF, which is designed 
to offer assistance in a reactive way in the case of unexpected major restructuring events.

The  Commission  proposal  for  the  2021-2027  Multiannual  Financial  Framework  set  a  more 
ambitious goal for climate mainstreaming across all EU programmes, with an overall target of 
25% of EU expenditure contributing to climate objectives. The contribution of this fund to the 
achievement of this overall target will be tracked through an EU climate marker system at an 
appropriate  level  of  disaggregation,  including  the  use  of  more  precise  methodologies  where 

8

9

https://ec.europa.eu/commission/sites/beta-political/files/communication-new-modern-multiannual-
financial-framework_en.pdf
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  EU  Quality  Framework  for 
anticipation of change and restructuring, (COM(2013)882 final, 13.12.2013).

8

these  are  available.  The  Commission  will  continue  to  present  the  information  annually  in 

terms of commitment appropriations in the context of the annual draft budget. 

To support the full utilisation of the potential of the fund to contribute to climate objectives, 

the  Commission  will  seek  to  identify  relevant  actions  throughout  the  fund  preparation, 

implementation, review and evaluation processes.

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

2.

•

Legal basis

The  legal  basis  is  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  and  in 

particular the third paragraph of Article 175.

If specific actions prove necessary outside the Structural Funds and without prejudice to the 

measures  decided  upon  within  the  framework  of  the  other  policies  of  the  Union, 

Article 175(3) allows the European Parliament and the Council to take action in accordance 

with  the  ordinary  legislative  procedure  and  after  consulting  the  European  Economic  and 

Social Committee and the European Committee of the Regions.

•

Subsidiarity (for non-exclusive competence)

Funding  from  the  Union  budget  concentrates  on  activities  whose  objectives  cannot  be 

sufficiently achieved by the Member States alone, and where the Union intervention can bring 

additional value compared to action of Member States alone. The mobilisation of the EGF to 

co-fund  measures  aimed  at  assisting  displaced  workers  find  new  employment  respects  the 

principle of subsidiarity, and it creates European added value.

It is standard practice for national labour market programmes to assist displaced workers, and 

it  is  not  the  EGF’s  aim  to  replace  such  programmes.  However,  unexpected  restructuring 

events that cause a significant impact can test the limits of what regular national programmes 

are  able  to  do.  Therefore,  because  of  the  scale  and  effects  of  unexpected  large-scale 

restructuring and because the EGF is an expression of solidarity across and between Member 

States, assistance can be better delivered at Union level. Mobilising a financial  contribution 

from  the  EGF  will  require  the  agreement  of  both  arms  of  the  budgetary  authority  and 

therefore be an expression of solidarity by the Union and the Member States. In this way, the 

proposal  will  help  to  make  the  objective  of  Union  solidarity  in  exceptional  circumstances 

more tangible for that part of the labour force affected in particular and for Union citizens in 

general.  The  Union  intervention  will  thus  be  limited  to  what  is  necessary  to  fulfil  the 

objectives of showing Union solidarity with displaced workers.

The mobilisation of the  EGF  creates  additional value compared to action  of  Member  States 

alone. EGF co-financed measures not only increase the overall number of services offered to 

dismissed  workers,  but  especially  also  the  variety  of  services  offered  and  their  level  of 

intensity. The  moblilisation  of  the  EGF  furthermore  creates  role  effects.  These  relate  to  the 

extent to which innovative ideas can be tested, best practices identified and incorporated into 

the  regular  package  of  provision.  EGF  co-financed  measures  also  contribute  to  the  general 

improvement of delivery processes.

•

Proportionality

In accordance with the principle of proportionality, the provisions of this proposal do not go 

beyond what is necessary to achieve its goals. The obligations imposed on the Member States 

reflect  the  need  to  help  the  affected  workforce  to  adapt  to  changing  circumstances  and  to 

rapidly  return  to  employment.  The  administrative  burden  on  the  Union  and  on  the  national 

The  budget  procedure  in  the  proposal  follows  directly  from  point  9  of  the  draft 

Interinstitutional  Agreement.  Whenever  possible,  the  process  will  be  shortened  and 

streamlined.

Given  that  the  measures  co-funded  by  the  EGF  are  implemented  by  means  of  shared 

management with the Member States, the payment mechanism for the financial contribution 

will  remain  in  line  with  the  mechanism  applied  for  this  management  mode  of  the  Union 

budget. At the same time, the financing arrangements should reflect the scope of the measures 

to be carried out by the Member States as proposed in their applications.

To avoid any competition between instruments, the co-funding rate of the EGF will be aligned 

with  the  highest  co-funding  rate  of  the European Social Fund Plus (ESF+) in  the respective 

Member State.

This overall proposal provides for a date of application as of 1 January 2021 and is presented 

for a Union of 27 Member States, in line with the notification by the United Kingdom of its 

intention  to  withdraw  from  the  European  Union  and  Euratom  based  on  Article  50  of  the 

Treaty on European Union received by the European Council on 29 March 2017.

•

Consistency with existing policy provisions

As indicated in ‘A new, modern Multiannual Financial Framework for a European Union that 

delivers  efficiently  on  its  priorities  post-2020’8, ESF+  and  the  European  Regional 

Development  Fund  (ERDF)  will  continue  to  provide  funding  for  structural  actions  for 

economic,  social  and  territorial  cohesion.  Both  the  ESF+  and  the  ERDF  consist  of  multi-

annual  programmes  that  support  strategic,  long-term  goals,  such  as  the  anticipation  and 

management of change and restructuring. The EGF, in turn, is established to provide support 

in exceptional circumstances and outside a multi-annual programming routine.

•

Consistency with other Union policies

The ‘EU Quality Framework for anticipation of change and restructuring'’9 is the EU policy 

instrument  that  provides  the  framework  for  best  practice  for  anticipating  and  dealing  with 

corporate  restructuring.  The  EU  Quality  Framework  for  anticipation  of  change  and 

restructuring  offers  a  comprehensive  framework  on  how  the  challenges  of  economic 

adjustment  and  restructuring  and  their  employment  and  social  impact  should  be  addressed 

using  the  right  policy  means.  The  EU  Quality  Framework  for  anticipation  of  change  and 

restructuring calls upon Member States to use EU and national funding in such a way that the 

social  impact  of  restructuring,  especially  the  adverse  effects  on  employment,  can  be 

cushioned  more  effectively.  The  main  EU  instruments  to  assist  workers  affected  are  ESF+, 

which is designed to offer assistance in an anticipatory way, and the EGF, which is designed 

to offer assistance in a reactive way in the case of unexpected major restructuring events.

The  Commission  proposal  for  the  2021-2027  Multiannual  Financial  Framework  set  a  more 

ambitious goal for climate mainstreaming across all EU programmes, with an overall target of 

25% of EU expenditure contributing to climate objectives. The contribution of this fund to the 

achievement of this overall target will be tracked through an EU climate marker system at an 

appropriate  level  of  disaggregation,  including  the  use  of  more  precise  methodologies  where 

https://ec.europa.eu/commission/sites/beta-political/files/communication-new-modern-multiannual-

8

9

financial-framework_en.pdf

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 

Economic  and  Social  Committee  and  the  Committee  of  the  Regions  EU  Quality  Framework  for 

anticipation of change and restructuring, (COM(2013)882 final, 13.12.2013).

these  are  available.  The  Commission  will  continue  to  present  the  information  annually  in 
terms of commitment appropriations in the context of the annual draft budget. 

To support the full utilisation of the potential of the fund to contribute to climate objectives, 
the  Commission  will  seek  to  identify  relevant  actions  throughout  the  fund  preparation, 
implementation, review and evaluation processes.

2.

•

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The  legal  basis  is  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  and  in 
particular the third paragraph of Article 175.

If specific actions prove necessary outside the Structural Funds and without prejudice to the 
measures  decided  upon  within  the  framework  of  the  other  policies  of  the  Union, 
Article 175(3) allows the European Parliament and the Council to take action in accordance 
with  the  ordinary  legislative  procedure  and  after  consulting  the  European  Economic  and 
Social Committee and the European Committee of the Regions.

•

Subsidiarity (for non-exclusive competence)

Funding  from  the  Union  budget  concentrates  on  activities  whose  objectives  cannot  be 
sufficiently achieved by the Member States alone, and where the Union intervention can bring 
additional value compared to action of Member States alone. The mobilisation of the EGF to 
co-fund  measures  aimed  at  assisting  displaced  workers  find  new  employment  respects  the 
principle of subsidiarity, and it creates European added value.

It is standard practice for national labour market programmes to assist displaced workers, and 
it  is  not  the  EGF’s  aim  to  replace  such  programmes.  However,  unexpected  restructuring 
events that cause a significant impact can test the limits of what regular national programmes 
are  able  to  do.  Therefore,  because  of  the  scale  and  effects  of  unexpected  large-scale 
restructuring and because the EGF is an expression of solidarity across and between Member 
States, assistance can be better delivered at  Union level. Mobilising a financial  contribution 
from  the  EGF  will  require  the  agreement  of  both  arms  of  the  budgetary  authority  and 
therefore be an expression of solidarity by the Union and the Member States. In this way, the 
proposal  will  help  to  make  the  objective  of  Union  solidarity  in  exceptional  circumstances 
more tangible for that part of the labour force affected in particular and for Union citizens in 
general.  The  Union  intervention  will  thus  be  limited  to  what  is  necessary  to  fulfil  the 
objectives of showing Union solidarity with displaced workers.

The mobilisation of  the  EGF  creates  additional value compared  to  action of Member  States 
alone. EGF co-financed measures not only increase the overall number of services offered to 
dismissed  workers,  but  especially  also  the  variety  of  services  offered  and  their  level  of 
intensity. The  moblilisation  of  the  EGF  furthermore  creates  role  effects.  These  relate  to  the 
extent to which innovative ideas can be tested, best practices identified and incorporated into 
the  regular  package  of  provision.  EGF  co-financed  measures  also  contribute  to  the  general 
improvement of delivery processes.

•

Proportionality

In accordance with the principle of proportionality, the provisions of this proposal do not go 
beyond what is necessary to achieve its goals. The obligations imposed on the Member States 
reflect  the  need  to  help  the  affected  workforce  to  adapt  to  changing  circumstances  and  to 
rapidly  return  to  employment.  The  administrative  burden  on  the  Union  and  on  the  national 

9

authorities  has  been  limited  to  what  is  necessary  for  the  Commission  to  exercise  its 
responsibility for implementing the Union budget. Since the financial contribution is made to 
the  Member  State  under  the  principle  of  shared  management,  the  Member  State  will  be 
required to report on how the financial contribution was used.

•

Choice of the instrument

Proposed instrument: a Regulation.

Other  means  would  not  be  appropriate  for  the  following  reason:  the objective  of 
demonstrating Union-level solidarity can only be achieved through a directly applicable legal 
instrument.

3.

•

RESULTS OF RETROSPECTIVE EVALUATIONS, STAKEHOLDER
CONSULTATIONS AND IMPACT ASSESSMENTS

Retrospective evaluations/fitness checks of existing legislation

An ex- post evaluation of the existing Regulation has to be carried out by 31 December 2021. 
However, a mid-term evaluation of the 2014-2020 EGF10 was conducted, and the results have 
been taken into account.

The  mid-term  evaluation  of  the  2014-2020  EGF  suggests  that  the  EGF’s  design  needs 
improving. Several challenges should be tackled for the future.

On the scope, the stakeholder consultations conducted for the evaluation show that the EGF’s 
design needs to be revised or better defined. This  includes  aspects  such as the Fund’s  exact 
scope  and  the  criteria  that  trigger  its  use.  In  line  with  the  principle  of  subsidiarity,  any 
occurrence  of  restructuring  must  have  a  significant  impact  on  the  economy  and  the  labour 
market  to  justify  mobilising  EGF  assistance.  However,  the  notion  of  ‘significant  impact’  is 
not  clearly  defined.  This  is  especially  true  for  smaller  redundancies  below  the  current 
threshold of 500 workers made redundant (relevant for 2014-2020). In rural areas, such cases 
could  well  be  eligible  under  the  derogation  clause  specified  in  Article 4(2)  of  the  EGF 
Regulation, for example, but Member States are not sure how to prove the significant impact. 
Many implementers therefore suggested a lower threshold.

The terms ‘globalisation’ and ‘crisis’ are not clearly defined either. Member States are often 
unsure  under  which  criterion  they  should  submit  an  application.  Identifying  what  actually 
triggered the redundancy to see if it could qualify for a potential application and evidencing it 
in  an  application  is  regularly  seen  as  one  of  the  main  obstacles  preventing  a  Member  State 
from applying. In the light of these difficulties, and considering that more jobs are lost due to 
technological  change  (these  redundant  workers  face  the  same  challenges  as  workers  made 
redundant  because  of  globalisation,  as  their  skills  become  outdated  or  obsolete),  a  possible 
solution could be to include within the EGF’s scope all large-scale redundancies that cause a 
significant impact. The evaluation suggests this would make the EGF more relevant and better 
suited for future economic challenges, and also fairer, as it would not focus on a very specific 
group  of  displaced  workers.  Such  changes  would  lead  to  a  more  balanced  use  of  the  EGF, 
extending its potential to the EU-13 Member States (these Member States currently do not use 
the  EGF  very  often).  The  burden  of  having  to  provide  evidence  for  an  application  to  prove 
that job losses were  caused by  globalisation or  a crisis would  be  eliminated. As  this  is  also 
one of the two most time-consuming steps in the application phase, this simplification would 

10

Report  from  the  Commission  on  the  mid-term  evaluation  of  the  European  Globalisation  Adjustment 
Fund  (EGF)  (COM(2018)  297  final,  16.5.2018),  and  accompanying  Commission  staff  working 
document on  the  mid-term  evaluation  of  the  European  Globalisation  Adjustment  Fund  (EGF) 
(SWD(2018)192 final, 16.5.2018)

10

speed  up  the  mobilisation  of  EGF  assistance  by  a  few  weeks,  because  major  background 

checks would no longer be required. A broadened scope and lower threshold would also offer 

more possibilities for smaller Member States to apply for assistance.

As for monitoring and reporting requirements, the evaluation concluded that in order to better 

analyse the EGF’s effectiveness, Member States should be required to collect more detailed 

monitoring  data,  especially  on  the  category  of  workers  (professional  and  educational 

background), their employment status and the type of employment found.

It  appears  that  the  EGF  should  be  better  aligned  with  other  EU  policies.  The  evaluation 

suggests  embedding  EGF  assistance  more  closely  in  the  ‘EU  Quality  Framework  for 

anticipation of change and restructuring’ and designing a more coordinated approach for both 

preventive  measures  in  anticipation  of  major  restructuring  events  and  one-off  reactive 

measures  such  as  those  currently  co-financed  by  the  EGF.  This  could  mean  widening  the 

range of the EGF’s activity or developing a more closely coordinated approach with other EU 

instruments such as the ESF+. Even though the EGF’s design shows a clear complementarity 

with  the  ESF+,  Member  States  could  better  embed  EGF  assistance  in  a  comprehensive 

package  of  restructuring  aid.  Labour  market  transitions  require  intensive  investments  in 

human capital, both in the form of proactive anticipative measures and reactive measures.

During  the  2014-2020  programming  period,  it  is  possible  under  certain  circumstances  to 

include as many NEETs in an EGF application as dismissed workers. Youth unemployment is 

and  will  continue  to  be  a  major  challenge.  Also,  experience  shows  that  EGF  assistance,  if 

offered to NEETs, is largely taken up. However, the evaluation suggests that thought should 

be given to whether the EGF is the right avenue to offer such assistance or if other channels 

would offer a better chance of reaching the  young people concerned. It could be considered 

unfair if help is only offered to NEETs in  regions affected by mass restructuring  caused  by 

globalisation or the financial crisis but not to those in regions affected by automation.

•

Stakeholder consultations

Extensive  stakeholder  consultations,  including  open  internet-based  consultations,  targeted 

consultations  and  focus  group  meetings,  were  core  elements  of  the  mid-term  evaluation 

mentioned above and the impact assessment mentioned below.

The  Commission  also  conducted  stakeholder  events  where  it  discussed  possible  changes  to 

the  design  of  the  EGF  post-2020.  These  discussions  took  place  during  the  regular  EGF 

Contact Persons’ Meetings and Networking Seminars in October 2017 and March 2018, and 

during  an  extraordinary  EGF  Contact  Persons’  Meeting  in  January  2018,  which  was  fully 

dedicated to the post-2020 discussions.

In general, stakeholder views did not diverge from the Commission’s views and are reflected 

in this proposal.

External expertise

an external consultant.

external consultant.

Impact assessment

•

•

In preparing the mid-term evaluation, the Commission contracted out an evaluation study to 

Likewise, in preparing the impact  assessment, the Commission contracted  out  a  study  to  an 

An impact assessment was carried out. This impact assessment, which is part of the regulatory 

proposals  of  Directorate-General  Employment,  Social  Affairs  and  Inclusion  for  the  next 

multiannual financial framework, covers the following funds:

authorities  has  been  limited  to  what  is  necessary  for  the  Commission  to  exercise  its 

responsibility for implementing the Union budget. Since the financial contribution is made to 

the  Member  State  under  the  principle  of  shared  management,  the  Member  State  will  be 

required to report on how the financial contribution was used.

•

Choice of the instrument

Proposed instrument: a Regulation.

Other  means  would  not  be  appropriate  for  the  following  reason:  the objective  of 

demonstrating Union-level solidarity can only be achieved through a directly applicable legal 

instrument.

3.

•

RESULTS OF RETROSPECTIVE EVALUATIONS, STAKEHOLDER

CONSULTATIONS AND IMPACT ASSESSMENTS

Retrospective evaluations/fitness checks of existing legislation

An ex- post evaluation of the existing Regulation has to be carried out by 31 December 2021. 

However, a mid-term evaluation of the 2014-2020 EGF10 was conducted, and the results have 

been taken into account.

The  mid-term  evaluation  of  the  2014-2020  EGF  suggests  that  the  EGF’s  design  needs 

improving. Several challenges should be tackled for the future.

On the scope, the stakeholder consultations conducted for the evaluation show that the EGF’s 

design  needs  to  be  revised  or  better  defined. This  includes aspects such as the Fund’s exact 

scope  and  the  criteria  that  trigger  its  use.  In  line  with  the  principle  of  subsidiarity,  any 

occurrence  of  restructuring  must  have  a  significant  impact  on  the  economy  and  the  labour 

market  to  justify  mobilising  EGF  assistance.  However,  the  notion  of  ‘significant  impact’  is 

not  clearly  defined.  This  is  especially  true  for  smaller  redundancies  below  the  current 

threshold of 500 workers made redundant (relevant for 2014-2020). In rural areas, such cases 

could  well  be  eligible  under  the  derogation  clause  specified  in  Article 4(2)  of  the  EGF 

Regulation, for example, but Member States are not sure how to prove the significant impact. 

Many implementers therefore suggested a lower threshold.

The terms ‘globalisation’ and ‘crisis’ are not clearly defined either. Member States are often 

unsure  under  which  criterion  they  should  submit  an  application.  Identifying  what  actually 

triggered the redundancy to see if it could qualify for a potential application and evidencing it 

in  an  application  is  regularly  seen  as  one  of  the  main  obstacles  preventing  a  Member  State 

from applying. In the light of these difficulties, and considering that more jobs are lost due to 

technological  change  (these  redundant  workers  face  the  same  challenges  as  workers  made 

redundant  because  of  globalisation,  as  their  skills  become  outdated  or  obsolete),  a  possible 

solution could be to include within the EGF’s scope all large-scale redundancies that cause a 

significant impact. The evaluation suggests this would make the EGF more relevant and better 

suited for future economic challenges, and also fairer, as it would not focus on a very specific 

group  of  displaced  workers.  Such  changes  would  lead  to  a  more  balanced  use  of  the  EGF, 

extending its potential to the EU-13 Member States (these Member States currently do not use 

the  EGF  very  often).  The  burden  of  having  to  provide  evidence  for  an  application  to  prove 

that  job  losses  were  caused  by  globalisation  or a  crisis would be  eliminated. As this is  also 

one of the two most time-consuming steps in the application phase, this simplification would 

10

Report  from  the  Commission  on  the  mid-term  evaluation  of  the  European  Globalisation  Adjustment 

Fund  (EGF)  (COM(2018)  297  final,  16.5.2018),  and  accompanying  Commission  staff  working 

document on  the  mid-term  evaluation  of  the  European  Globalisation  Adjustment  Fund  (EGF) 

(SWD(2018)192 final, 16.5.2018)

speed  up  the  mobilisation  of  EGF  assistance  by  a  few  weeks,  because  major  background 
checks would no longer be required. A broadened scope and lower threshold would also offer 
more possibilities for smaller Member States to apply for assistance.

As for monitoring and reporting requirements, the evaluation concluded that in order to better 
analyse the EGF’s effectiveness, Member States should be required to collect more detailed 
monitoring  data,  especially  on  the  category  of  workers  (professional  and  educational 
background), their employment status and the type of employment found.

It  appears  that  the  EGF  should  be  better  aligned  with  other  EU  policies.  The  evaluation 
suggests  embedding  EGF  assistance  more  closely  in  the  ‘EU  Quality  Framework  for 
anticipation of change and restructuring’ and designing a more coordinated approach for both 
preventive  measures  in  anticipation  of  major  restructuring  events  and  one-off  reactive 
measures  such  as  those  currently  co-financed  by  the  EGF.  This  could  mean  widening  the 
range of the EGF’s activity or developing a more closely coordinated approach with other EU 
instruments such as the ESF+. Even though the EGF’s design shows a clear complementarity 
with  the  ESF+,  Member  States  could  better  embed  EGF  assistance  in  a  comprehensive 
package  of  restructuring  aid.  Labour  market  transitions  require  intensive  investments  in 
human capital, both in the form of proactive anticipative measures and reactive measures.

During  the  2014-2020  programming  period,  it  is  possible  under  certain  circumstances  to 
include as many NEETs in an EGF application as dismissed workers. Youth unemployment is 
and  will  continue  to  be  a  major  challenge.  Also,  experience  shows  that  EGF  assistance,  if 
offered to NEETs, is largely taken up. However, the evaluation suggests that thought should 
be given to whether the EGF is the right avenue to offer such assistance or if other channels 
would offer a better chance of reaching the  young people  concerned.  It  could be considered 
unfair if help is only offered to NEETs  in  regions  affected  by  mass  restructuring  caused  by 
globalisation or the financial crisis but not to those in regions affected by automation.

•

Stakeholder consultations

Extensive  stakeholder  consultations,  including  open  internet-based  consultations,  targeted 
consultations  and  focus  group  meetings,  were  core  elements  of  the  mid-term  evaluation 
mentioned above and the impact assessment mentioned below.

The  Commission  also  conducted  stakeholder  events  where  it  discussed  possible  changes  to 
the  design  of  the  EGF  post-2020.  These  discussions  took  place  during  the  regular  EGF 
Contact Persons’ Meetings and Networking Seminars in October 2017 and March 2018, and 
during  an  extraordinary  EGF  Contact  Persons’  Meeting  in  January  2018,  which  was  fully 
dedicated to the post-2020 discussions.

In general, stakeholder views did not diverge from the Commission’s views and are reflected 
in this proposal.

•

External expertise

In preparing the mid-term evaluation, the Commission contracted out an evaluation study to 
an external consultant.

Likewise, in preparing the impact  assessment,  the  Commission  contracted  out  a  study  to  an 
external consultant.

•

Impact assessment

An impact assessment was carried out. This impact assessment, which is part of the regulatory 
proposals  of  Directorate-General  Employment,  Social  Affairs  and  Inclusion  for  the  next 
multiannual financial framework, covers the following funds:

11

–

–

–

–

–

the  European  Social  Fund  (ESF  — one  of  the European  Structural  and 
Investment Funds (ESI Funds)) and Youth Employment Initiative (YEI);

the Fund for European Aid to the Most Deprived (FEAD);

the European Globalisation Adjustment Fund (EGF);

the EU Health programme; and

the Employment and Social Innovation (EaSI) programme.

The following options were assessed for the funds covered by the impact assessment:

Option 1: merging the ESF, YEI, FEAD, EaSI, EU Health programme.

–

This  was  the  preferred  option  based  both  on  the  results  of  evaluations  and  on
stakeholder consultations. In the view of managing authorities, a broad integration of 
funds would improve their capacities to streamline their strategic intervention across 
in  planning 
the  social  policy  scope.  This  would  enhance 
interventions,  and  facilitate  the  delivery  of  the  principles  of  the  European  Pillar  of 
Social  Rights.  Beneficiaries  confirmed  that  there  is  still  untapped  potential  to 
strengthen synergies between programmes and projects funded;

their  flexibility 

Option 2: merging the ESF, YEI, FEAD, EaSI, EU Health programme and EGF

–

This would only result in an artificial reduction in the number of funds. The EGF's 
very  specific  objectives,  high  political  visibility  and  budgetary  flexibility  would  be 
lost if it were to be merged with the ESF+. This has been confirmed by stakeholders 
in the framework of the consultation process11;

Option 3: merging the funds under shared management (i.e. excluding the EaSI and the EU 
Health programme, but including the EGF) –

–

This  would  mean  sacrificing  the  EGF’s high  visibility  as  an  EU-level  emergency 
instrument  to  cushion  the  adverse  side  effects  of  globalisation.  The  potential 
flexibility and synergies to be gained from merging EaSI within the ESF+ would be 
lost;

Option  4: keeping  the  FEAD  as  a  separate  fund,  but  merging  the  two  types  of  FEAD 
programmes (material assistance and social inclusion)

–

This would allow for more synergies between the basic material assistance types of 
support  and  social  inclusion  measures  while  keeping  the  current  implementation 
rules. It  would  not  however  ensure  adequate  demarcation  vis-à-vis  ESF-type  social 
inclusion measures;

Option 5: merging all ESI funds

–

This  would  impair  policy  delivery,  as  it  would  not  be  possible  to  adapt 
implementation rules to the specific requirements of the policies supported. It would 
also not increase synergies and coherence with other human capital funds.

The impact assessment was examined by the Regulatory Scrutiny Board (RSB), which gave a 
positive opinion with reservations. The RSB's opinion is available under Ares(2018)2265999. 
The  comments  of  the  RSB  were  taken  into  account.  The  comments  relevant  to  the  EGF 

11

See study to support the impact assessment of human capital investments, DG EMPL (ongoing): “The 
integration of EGF in framework of other DG EMPL funds was generally not deemed desirable by the 
different stakeholders involved in the management of EGF.”

12

primarily related to the explanation of the rationale of the EGF. The RSB also suggested a more 

precise presentation of the modalities of the use of the EGF, and a more detailed analysis of the 

extent to which the proposed changes address problems identified. The RSB also recommended 

setting out the reasons for keeping the EGF outside the multiannual financial framework more 

clearly.

The  final  policy  proposal  does  not  deviate  from  the  findings  of  the  impact  assessment.  The 

most important finding regarding the EGF is that as an emergency relief fund, the EGF should 

remain  outside  the  budgetary  ceilings  of  the  multiannual  financial  framework.  Emergency 

funds  are  not  expected  to  absorb  a  specific  budget.  Being  inside  the  multiannual  financial 

framework would  therefore  mean  the  contrary,  having  a  specific  budget  that  the  fund  is 

supposed  to  spend,  which  would  turn  it  into  a  tool  of  regular  restructuring  assistance. 

However, being outside  the multiannual financial framework implies a lengthy  mobilisation 

procedure,  which  counteracts  its  function  as  an  emergency  relief  fund.  Therefore,  the 

mobilisation  procedure  needs  to  be  sped-up  and  streamlined.  The  impact  assessment 

underlines the importance of a lower threshold and of a broader scope of the EGF.

Simplification

•

•

not applicable

not applicable

Fundamental rights

4.

BUDGETARY IMPLICATIONS

The  EGF  is  one  of  the  special  instruments  not  included  in  the  budgetary  ceilings  of  the 

multiannual financial framework, with a maximum annual amount of EUR 200 Mio (in 2018 

prices) from 1 January 2021 to 31 December 2027.

Its  functioning  is  governed  by  point  9  of  the  draft  Interinstitutional  Agreement  between  the 

European Parliament, the Council and the Commission on cooperation in  budgetary  matters 

and on sound financial management.

The  human  and  administrative  resources  required  are  set  out  in  the  Legislative  Financial 

Statement.

5.

•

OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

Monitoring  the  performance  of  EGF  will  be  strengthened  by  introducing  provisions  for  a 

common monitoring system with output and result indicators in the EGF Regulation. Success 

will mainly be measured through re-employment rates, i.e. the share of people who  found a 

job after receiving EGF assistance.

Member  States  will  be  required  to  include  the  delivery  of  common  output  and  result 

indicators  in  their  contracts  with  the  implementing  bodies.  The  requirements  currently 

introduced  in  the  EGF  financing  decisions  will  be  incorporated  in  the  EGF  Regulation, 

meaning data on the employment status of beneficiaries is to be delivered when the respective 

Member State submits the final report a year later. This also includes information on the type 

and quality of employment (e.g. permanent/non-permanent) and changes in the beneficiaries’ 

employability at the end of the operations (e.g. qualifications gained). The data collected will 

need to be based on surveys and data provided by the national authorities. This will make it 

possible  to  assess  the  extent  to  which  the  assistance  helped  to  improve  the  beneficiaries’ 

–

–

–

–

–

the  European  Social  Fund  (ESF  — one  of  the European  Structural  and 

Investment Funds (ESI Funds)) and Youth Employment Initiative (YEI);

the Fund for European Aid to the Most Deprived (FEAD);

the European Globalisation Adjustment Fund (EGF);

the EU Health programme; and

the Employment and Social Innovation (EaSI) programme.

The following options were assessed for the funds covered by the impact assessment:

Option 1: merging the ESF, YEI, FEAD, EaSI, EU Health programme.

–

This  was  the  preferred  option  based  both  on  the  results  of  evaluations  and  on

stakeholder consultations. In the view of managing authorities, a broad integration of 

funds would improve their capacities to streamline their strategic intervention across 

the  social  policy  scope.  This  would  enhance 

their  flexibility 

in  planning 

interventions,  and  facilitate  the  delivery  of  the  principles  of  the  European  Pillar  of 

Social  Rights.  Beneficiaries  confirmed  that  there  is  still  untapped  potential  to 

strengthen synergies between programmes and projects funded;

Option 2: merging the ESF, YEI, FEAD, EaSI, EU Health programme and EGF

very  specific  objectives,  high  political  visibility  and  budgetary  flexibility  would  be 

lost if it were to be merged with the ESF+. This has been confirmed by stakeholders 

in the framework of the consultation process11;

Option 3: merging the funds under shared management (i.e. excluding the EaSI and the EU 

Health programme, but including the EGF) –

–

This  would  mean  sacrificing  the  EGF’s high  visibility  as  an  EU-level  emergency 

instrument  to  cushion  the  adverse  side  effects  of  globalisation.  The  potential 

flexibility and synergies to be gained from merging EaSI within the ESF+ would be 

lost;

Option  4: keeping  the  FEAD  as  a  separate  fund,  but  merging  the  two  types  of  FEAD 

programmes (material assistance and social inclusion)

This would allow for more synergies between the basic material assistance types of 

support  and  social  inclusion  measures  while  keeping  the  current  implementation 

rules. It  would  not  however  ensure  adequate  demarcation  vis-à-vis  ESF-type  social 

inclusion measures;

Option 5: merging all ESI funds

This  would  impair  policy  delivery,  as  it  would  not  be  possible  to  adapt 

implementation rules to the specific requirements of the policies supported. It would 

also not increase synergies and coherence with other human capital funds.

The impact assessment was examined by the Regulatory Scrutiny Board (RSB), which gave a 

positive opinion with reservations. The RSB's opinion is available under Ares(2018)2265999. 

The  comments  of  the  RSB  were  taken  into  account.  The  comments  relevant  to  the  EGF 

–

–

11

See study to support the impact assessment of human capital investments, DG EMPL (ongoing): “The 

integration of EGF in framework of other DG EMPL funds was generally not deemed desirable by the 

different stakeholders involved in the management of EGF.”

primarily related to the explanation of the rationale of the EGF. The RSB also suggested a more 
precise presentation of the modalities of the use of the EGF, and a more detailed analysis of the 
extent to which the proposed changes address problems identified. The RSB also recommended 
setting out the reasons for keeping the EGF outside the multiannual financial framework more 
clearly.

The  final  policy  proposal  does  not  deviate  from  the  findings  of  the  impact  assessment.  The 
most important finding regarding the EGF is that as an emergency relief fund, the EGF should 
remain  outside  the  budgetary  ceilings  of  the  multiannual  financial  framework.  Emergency 
funds  are  not  expected  to  absorb  a  specific  budget.  Being  inside  the  multiannual  financial 
framework would  therefore  mean  the  contrary,  having  a  specific  budget  that  the  fund  is 
supposed  to  spend,  which  would  turn  it  into  a  tool  of  regular  restructuring  assistance. 
However,  being  outside  the multiannual  financial  framework implies  a lengthy  mobilisation 
procedure,  which  counteracts  its  function  as  an  emergency  relief  fund.  Therefore,  the 
mobilisation  procedure  needs  to  be  sped-up  and  streamlined.  The  impact  assessment 
underlines the importance of a lower threshold and of a broader scope of the EGF.

•

Simplification

not applicable

•

Fundamental rights

–

This would only result in an artificial reduction in the number of funds. The EGF's 

not applicable

4.

BUDGETARY IMPLICATIONS

The  EGF  is  one  of  the  special  instruments  not  included  in  the  budgetary  ceilings  of  the 
multiannual financial framework, with a maximum annual amount of EUR 200 Mio (in 2018 
prices) from 1 January 2021 to 31 December 2027.

Its  functioning  is  governed  by  point  9  of  the  draft  Interinstitutional  Agreement  between  the 
European Parliament, the Council and  the  Commission  on  cooperation  in  budgetary  matters 
and on sound financial management.

The  human  and  administrative  resources  required  are  set  out  in  the  Legislative  Financial 
Statement.

5.

•

OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

Monitoring  the  performance  of  EGF  will  be  strengthened  by  introducing  provisions  for  a 
common monitoring system with output and result indicators in the EGF Regulation. Success 
will mainly be measured through re-employment rates, i.e. the share of people who  found a 
job after receiving EGF assistance.

Member  States  will  be  required  to  include  the  delivery  of  common  output  and  result 
indicators  in  their  contracts  with  the  implementing  bodies.  The  requirements  currently 
introduced  in  the  EGF  financing  decisions  will  be  incorporated  in  the  EGF  Regulation, 
meaning data on the employment status of beneficiaries is to be delivered when the respective 
Member State submits the final report a year later. This also includes information on the type 
and quality of employment (e.g. permanent/non-permanent) and changes in the beneficiaries’ 
employability at the end of the operations (e.g. qualifications gained). The data collected will 
need to be based on surveys and data provided by the national authorities. This will make it 
possible  to  assess  the  extent  to  which  the  assistance  helped  to  improve  the  beneficiaries’ 

13

significant impact on the labour market. A new provision has been added setting out that the 

EGF, as a trade-oriented fund, cannot be mobilised if public sector redundancies are the direct 

consequence of public budgetary  cuts. This is  also to reflect the fact that  the  EGF  does  not 

give aid to the dismissing enterprise, which in this instance would be the public authorities of 

the Member State applying for EGF assistance.

Article 8 sets out the eligible measures. As a change to the current Regulation, the inclusion 

of  the  dissemination  of  skills  required  in  the  digital  age  is  mandatory.  In  the  light  of  the 

requirements  of  the  job  market,  this  is  considered  a  necessary  requirement.  The  measures 

offered are to be based on the personal needs and qualifications of the beneficiary.

Technical assistance from the Commission is to support any measures necessary to implement 

the proposed Regulation. According to Article 12 of the proposed Regulation, this could be up 

to an amount equalling 0.5 % of the annual maximum amount of the EGF. This is higher than 

in  the  current  programming  period,  as  specific  assistance  will  be  offered  to  Member  States 

less experienced in implementing the EGF or restructuring assistance as such. This would also 

include  additional  measures  to  increase  networking  and  the  exchange  of  good  practice 

between Member States.

The  standard  period  for  implementing  EGF  measures  will  remain  24  months.  However, 

Article 15 of the proposed Regulation stipulates that the 24 months are to be counted from the 

time the decision to mobilise the EGF is adopted and not from the date of application for EGF 

support.  This  is  to  reflect  the  fact  that  many  Member  States  have  budgetary  procedures  in 

place that do not allow them to take the risk and pre-finance such measures without knowing 

if the assistance will actually be  granted. However, if a Member State is willing  to  take  the 

risk, measures are eligible from the time the redundancies are announced, as is the case in the 

current Regulation.

Article 16 of the proposed Regulation stipulates the budgetary procedure. Because decisions 

to  mobilise  the  EGF  are  to  be  based  on  the  formal  requirement  that  a  minimum  of  250 

workers  have  lost  their  job  within  a  specific  reference  period,  an  extensive  analysis  of  the 

background  of  the  redundancies  is  no  longer  required.  Therefore,  Commission  proposals  to 

mobilise the EGF, which were based on such analyses, are no longer needed. The budgetary 

authority  will  decide  on  a  transfer  request.  The  Commission  will  attach  the  draft 

implementing  decision  and  a  brief  summary  of  the  application  to  the  transfer  request.  This 

procedure will ensure a faster deployment of the financial contributions.

The division of responsibilities between the Commission and the Member States is set out in 

the proposed Article 23. The EGF will remain under shared management, and no significant 

changes are made to the provisions on the appointment of implementing bodies, audit issues, 

fraud prevention.

employability and change their employment status, in order to determine whether the EGF is 
functioning effectively.

Given the findings of previous evaluations and Court of Auditors reports, case-specific target 
setting  will  be  introduced.  These  targets  will  need  to  take  into  account  the  specific 
characteristics of a case and the extent to which past cases are comparable. The targets should 
refer  to  beneficiaries’  re-integration  rates.  These  are  necessary  for  reporting  and  evaluation 
purposes  but  are  not  tied  to  penalty  mechanisms  or  result-based  payments.  Emergency 
situations  can  be  characterised  by  the  fact  that  they  occur  unexpectedly,  in  often  quickly 
changing unpredictable environments. Result-based payments would only be fair if the results 
could directly be attributed to the assistance granted and would not be heavily dependent on 
external factors as well. In the final reports, however, Member States will need to provide a 
reasoned  analysis  of  the  extent  to  which  the  targets  have  been  reached.  Evaluations  have 
shown  that  result  orientation  as  such  was  never  an  issue.  Bringing  people  back  into 
employment and/or increasing their employability have always been the greatest concern for 
Member States. However, result measurement has not always been possible due to the poor 
availability of data.

The  EGF  mid-term  evaluation  showed  that  future  evaluations  should  be  scheduled  so  as  to 
ensure that enough data is available. Therefore, in line with the Better Regulation Guidelines, 
the  timing  of  future  evaluations  will  be  better  aligned  with  the  implementation  cycle  of  the 
EGF. This will mean that every four years an evaluation is to be completed.

Evaluations  will  be  carried  out  in  line  with  paragraphs  22  and  23  of  the  Interinstitutional 
Agreement  of  13  April  201612,  where  the  three  institutions  confirmed  that  evaluations  of 
existing legislation and policy should provide the basis for impact assessments of options for 
further action. The evaluations will assess the programme's effects on the ground based on the 
programme  indicators/targets  and  a  detailed  analysis  of  the  degree  to  which  the  programme 
can be deemed relevant, effective, efficient, provides enough EU added value and is coherent 
with other EU policies. They will include lessons learnt to identify any lacks/problems or any 
potential  to  further  improve  the  actions  or  their  results  and  to  help  maximise  their 
exploitation/impact.

The Commission will continue to report every 2 years on the Fund’s activities.

•

Detailed explanation of the specific provisions of the proposal

Articles 2 and 3 of the proposed draft Regulation set out the mission and the objectives of the 
EGF.  As  a  change  to  the  current  EGF  Regulation (EU) 1309/2013,  the  mission  explicitly 
includes  the  EGF’s  role  in  contributing  to  the  relevant  principles  of  the  European  Pillar  of 
Social Rights. Furthermore, it is made clear in the objectives that the EGF will tackle any kind 
of  unexpected  major  restructuring,  making  the  Fund  more  adaptable  to  current  and  future 
economic challenges.

The intervention criteria are set out in Article 5. The proposed threshold of the redundancies 
is a minimum 250 displaced workers, whereas it is a minimum 500 displaced workers in the 
current Regulation. This is to better reflect the realities in many regions, where the occurrence 
of  restructuring  involving  250  displaced  workers  has  a  significant  impact  on  the labour 
market. It is also to reflect that overall, the share of very large-scale redundancies is declining. 
A  new  provision  has  been  added  allowing  Member  States  to  apply  for  EGF  assistance  if 
redundancies  occur  in  the  same  region  but  in  different  economic  sectors.  For  less  populous 
regions especially, a wave of dismissals in various sectors at the same time can have a very 

12

Interinstitutional Agreement between the European Parliament, the Council of the European Union and 
the European Commission on Better Law-Making of 13 April 2016; OJ L 123, 12.5.2016, p. 1–14

14

employability and change their employment status, in order to determine whether the EGF is 

functioning effectively.

Given the findings of previous evaluations and Court of Auditors reports, case-specific target 

setting  will  be  introduced.  These  targets  will  need  to  take  into  account  the  specific 

characteristics of a case and the extent to which past cases are comparable. The targets should 

refer  to  beneficiaries’  re-integration  rates.  These  are  necessary  for  reporting  and  evaluation 

purposes  but  are  not  tied  to  penalty  mechanisms  or  result-based  payments.  Emergency 

situations  can  be  characterised  by  the  fact  that  they  occur  unexpectedly,  in  often  quickly 

changing unpredictable environments. Result-based payments would only be fair if the results 

could directly be attributed to the assistance granted and would not be heavily dependent on 

external factors as well. In the final reports, however, Member States will need to provide a 

reasoned  analysis  of  the  extent  to  which  the  targets  have  been  reached.  Evaluations  have 

shown  that  result  orientation  as  such  was  never  an  issue.  Bringing  people  back  into 

employment and/or increasing their employability have always been the greatest concern for 

Member States. However, result measurement has not always been possible due to the poor 

availability of data.

The  EGF  mid-term  evaluation  showed  that  future  evaluations  should  be  scheduled  so  as  to 

ensure that enough data is available. Therefore, in line with the Better Regulation Guidelines, 

the  timing  of  future  evaluations  will  be  better  aligned  with  the  implementation  cycle  of  the 

EGF. This will mean that every four years an evaluation is to be completed.

Evaluations  will  be  carried  out  in  line  with  paragraphs  22  and  23  of  the  Interinstitutional 

Agreement  of  13  April  201612,  where  the  three  institutions  confirmed  that  evaluations  of 

existing legislation and policy should provide the basis for impact assessments of options for 

further action. The evaluations will assess the programme's effects on the ground based on the 

programme  indicators/targets  and  a  detailed  analysis  of  the  degree  to  which  the  programme 

can be deemed relevant, effective, efficient, provides enough EU added value and is coherent 

with other EU policies. They will include lessons learnt to identify any lacks/problems or any 

potential  to  further  improve  the  actions  or  their  results  and  to  help  maximise  their 

exploitation/impact.

The Commission will continue to report every 2 years on the Fund’s activities.

•

Detailed explanation of the specific provisions of the proposal

Articles 2 and 3 of the proposed draft Regulation set out the mission and the objectives of the 

EGF.  As  a  change  to  the  current  EGF  Regulation (EU) 1309/2013,  the  mission  explicitly 

includes  the  EGF’s  role  in  contributing  to  the  relevant  principles  of  the  European  Pillar  of 

Social Rights. Furthermore, it is made clear in the objectives that the EGF will tackle any kind 

of  unexpected  major  restructuring,  making  the  Fund  more  adaptable  to  current  and  future 

economic challenges.

The intervention criteria are set out in Article 5. The proposed threshold of the redundancies 

is a minimum 250 displaced workers, whereas it is a minimum 500 displaced workers in the 

current Regulation. This is to better reflect the realities in many regions, where the occurrence 

of  restructuring  involving  250  displaced  workers  has  a  significant  impact  on  the labour 

market. It is also to reflect that overall, the share of very large-scale redundancies is declining. 

A  new  provision  has  been  added  allowing  Member  States  to  apply  for  EGF  assistance  if 

redundancies  occur  in  the  same  region  but  in  different  economic  sectors.  For  less  populous 

regions especially, a wave of dismissals in various sectors at the same time can have a very 

12

Interinstitutional Agreement between the European Parliament, the Council of the European Union and 

the European Commission on Better Law-Making of 13 April 2016; OJ L 123, 12.5.2016, p. 1–14

significant impact on the labour market. A new provision has been added setting out that the 
EGF, as a trade-oriented fund, cannot be mobilised if public sector redundancies are the direct 
consequence  of public  budgetary  cuts.  This  is  also  to  reflect  the  fact  that  the  EGF  does  not 
give aid to the dismissing enterprise, which in this instance would be the public authorities of 
the Member State applying for EGF assistance.

Article 8 sets out the eligible measures. As a change to the current Regulation, the inclusion 
of  the  dissemination  of  skills  required  in  the  digital  age  is  mandatory.  In  the  light  of  the 
requirements  of  the  job  market,  this  is  considered  a  necessary  requirement.  The  measures 
offered are to be based on the personal needs and qualifications of the beneficiary.

Technical assistance from the Commission is to support any measures necessary to implement 
the proposed Regulation. According to Article 12 of the proposed Regulation, this could be up 
to an amount equalling 0.5 % of the annual maximum amount of the EGF. This is higher than 
in  the  current  programming  period,  as  specific  assistance  will  be  offered  to  Member  States 
less experienced in implementing the EGF or restructuring assistance as such. This would also 
include  additional  measures  to  increase  networking  and  the  exchange  of  good  practice 
between Member States.

The  standard  period  for  implementing  EGF  measures  will  remain  24  months.  However, 
Article 15 of the proposed Regulation stipulates that the 24 months are to be counted from the 
time the decision to mobilise the EGF is adopted and not from the date of application for EGF 
support.  This  is  to  reflect  the  fact  that  many  Member  States  have  budgetary  procedures  in 
place that do not allow them to take the risk and pre-finance such measures without knowing 
if the assistance will  actually be  granted.  However,  if a  Member State is willing  to  take  the 
risk, measures are eligible from the time the redundancies are announced, as is the case in the 
current Regulation.

Article 16 of the proposed Regulation stipulates the budgetary procedure. Because decisions 
to  mobilise  the  EGF  are  to  be  based  on  the  formal  requirement  that  a  minimum  of  250 
workers  have  lost  their  job  within  a  specific  reference  period,  an  extensive  analysis  of  the 
background  of  the  redundancies  is  no  longer  required.  Therefore,  Commission  proposals  to 
mobilise the EGF, which were based on such analyses, are no longer needed. The budgetary 
authority  will  decide  on  a  transfer  request.  The  Commission  will  attach  the  draft 
implementing  decision  and  a  brief  summary  of  the  application  to  the  transfer  request.  This 
procedure will ensure a faster deployment of the financial contributions.

The division of responsibilities between the Commission and the Member States is set out in 
the proposed Article 23. The EGF will remain under shared management, and no significant 
changes are made to the provisions on the appointment of implementing bodies, audit issues, 
fraud prevention.

15

2018/0202 (COD)

(3)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Globalisation Adjustment Fund (EGF)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

its financing instruments.

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
third paragraph of Article 175 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee,13
Having regard to the opinion of the Committee of the Regions,14

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)

(2)

in  Article  10  TFEU, 

Horizontal  principles  as  set  out  in  Article  3  of  the  Treaty  on  the  European  Union 
('TEU')  and 
including  principles  of  subsidiarity  and 
proportionality as set out in Article 5 TEU should be respected in the implementation 
of the Funds, taking into account the Charter of Fundamental Rights of the European 
Union. Member States and the Commission should aim at eliminating inequalities and 
at promoting equality between men and women and integrating the gender perspective, 
as well as at combating discrimination based on sex, racial or ethnic origin, religion or 
belief,  disability,  age  or  sexual  orientation.  The  objectives  of  the  Funds  should  be 
pursued  in  the  framework  of  sustainable  development  and  the  Union's  promotion  of 
the aim of preserving, protecting and improving the quality of the environment as set 
out in Articles 11 and 191(1) TFEU, taking into account the polluter pays principle.
On 17 November 2017, the European Pillar of Social Rights15 was jointly proclaimed 
by the European Parliament, the Council and the Commission as a response to social 
challenges in Europe. Taking into account the changing realities of the world of work, 
the  Union  shall  be  made  ready  for  the  current  and  future  challenges  of  globalisation 
and  digitisation, making  growth  more  inclusive  and  by  improving  employment  and 
social  policies.  The  twenty  key  principles  of  the  Pillar  are  structured  around  three 
categories:  equal  opportunities  and  access  to  the  labour  market;  fair  working 
conditions; social protection and inclusion. The European Pillar of Social Rights  shall 
act  as  an  overarching  guiding  framework  of  the  European  Globalisation  Adjustment 
Fund (EGF), allowing the Union to set the relevant principles into practice in the case 
of major restructuring events.

13

14

15

OJ C , , p. .
OJ C , , p. .
https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-
pillar-social-rights_en.

16

On 20 June 2017, the Council endorsed the Union response16 to the ‘UN 2030 Agenda 

for  Sustainable  Development’17 — a  sustainable  European  future.  The  Council 

underlined  the  importance  of  achieving  sustainable  development  across  the  three 

dimensions (economic, social and environmental), in a balanced and integrated way. It 

is  vital  that  sustainable  development  is  mainstreamed  in  the  European  policy 

framework,  and  that  the  Union  is  ambitious  in  the  policies  it  uses  to  address  global 

challenges.  The  Council  welcomed  the  Commission  Communication  on  ‘Next  steps 

for  a  sustainable  European  future’  of  22 November 2016  as  a  first  step  in 

mainstreaming 

the  Sustainable  Development  Goals  and  applying  sustainable 

development as an essential guiding principle for all Union policies, including through 

(4)

In  February  2018,  the  Commission  adopted  its  Communication  on  ‘A  new,  modern 

Multiannual Financial Framework for a European Union that delivers efficiently on its 

priorities  post-2020’18.  The  Communication  stresses  that  the  Union  budget  shall 

support  Europe’s  unique  social  market  economy.  Therefore,  it  will  be  of  utmost 

importance to improve employment opportunities and to address the skills challenges, 

especially  also  those  linked  to  digitisation.  Budgetary  flexibility  shall  be  a  key 

principle in the next Multiannual Financial Framework. Flexibility  mechanisms shall 

remain  in  place  to  allow  the  Union  to  react  to  unforeseen  events,  and  to  ensure  that 

budgetary resources are used where most urgently needed.

(5)

In  its  ‘White  Paper  on  the  Future  of  Europe’19 the  Commission  expresses  concerns 

regarding isolationist movements, growing doubts over the benefits of open trade and 

the Union’s social market economy in general.

(6)

In its ‘Reflection Paper on Harnessing Globalisation’20 the Commission identifies the 

combination  of  trade  related  globalisation  and  technological  change  as  the  major 

drivers of an increased demand for skilled labour and a reduced number  of  jobs that 

require lower qualifications. Despite the overall tremendous advantages of more open 

trade and further integration of world economies, these negative side effects need to be 

tackled.  As  the  current  benefits  of  globalisation  are  already  unequally  distributed 

among  people  and  regions,  causing  a  significant  impact  on  those  adversely  affected, 

there is a danger that the ever faster evolving technological advances will further fuel 

these  effects.  Therefore,  in  line  with  the  principles  of  solidarity  and  sustainability,  it 

will be necessary to ensure that the benefits of globalisation will be shared more fairly 

by reconciling economic opening and technological advance with social protection.

(7)

In its ‘Reflection Paper on the Future of Union Finances’21 the Commission underlines 

the  need  to  reduce  economic  and  social  divergences  between  and  within  Member 

States. Therefore, a key priority is to invest in equality, social inclusion, education and 

training as well as health.

(8)

Globalisation  and 

technological  change 

is 

likely 

to 

further 

increase 

the 

interconnectedness and interdependence of world economies. Labour reallocation is an 

integral and inevitable part of such economic change. If the benefits of change are to 

be distributed fairly, offering assistance to displaced workers and those threatened by 

displacement is of utmost importance. The ‘EU Quality Framework for anticipation of 

16

17

18

19

20

21

http://eu-un.europa.eu/eu-response-2030-agenda-sustainable-development-sustainable-european-future/.

https://sustainabledevelopment.un.org/post2015/transformingourworld.

https://ec.europa.eu/commission/sites/beta-political/files/communication-new-modern-multiannual-

financial-framework_en.pdf

https://ec.europa.eu/commission/white-paper-future-europe-reflections-and-scenarios-eu27_en.

https://ec.europa.eu/commission/publications/reflection-paper-harnessing-globalisation_en.

https://ec.europa.eu/commission/publications/reflection-paper-future-eu-finances_en.

2018/0202 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the European Globalisation Adjustment Fund (EGF)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular the 

third paragraph of Article 175 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee,13

Having regard to the opinion of the Committee of the Regions,14

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)

Horizontal  principles  as  set  out  in  Article  3  of  the  Treaty  on  the  European  Union 

('TEU')  and 

in  Article  10  TFEU, 

including  principles  of  subsidiarity  and 

proportionality as set out in Article 5 TEU should be respected in the implementation 

of the Funds, taking into account the Charter of Fundamental Rights of the European 

Union. Member States and the Commission should aim at eliminating inequalities and 

at promoting equality between men and women and integrating the gender perspective, 

as well as at combating discrimination based on sex, racial or ethnic origin, religion or 

belief,  disability,  age  or  sexual  orientation.  The  objectives  of  the  Funds  should  be 

pursued  in  the  framework  of  sustainable  development  and  the  Union's  promotion  of 

the aim of preserving, protecting and improving the quality of the environment as set 

out in Articles 11 and 191(1) TFEU, taking into account the polluter pays principle.

(2)

On 17 November 2017, the European Pillar of Social Rights15 was jointly proclaimed 

by the European Parliament, the Council and the Commission as a response to social 

challenges in Europe. Taking into account the changing realities of the world of work, 

the  Union  shall  be  made  ready  for  the  current  and  future  challenges  of  globalisation 

and  digitisation, making  growth  more  inclusive  and  by  improving  employment  and 

social  policies.  The  twenty  key  principles  of  the  Pillar  are  structured  around  three 

categories:  equal  opportunities  and  access  to  the  labour  market;  fair  working 

conditions; social protection and inclusion. The European Pillar of Social Rights  shall 

act  as  an  overarching  guiding  framework  of  the  European  Globalisation  Adjustment 

Fund (EGF), allowing the Union to set the relevant principles into practice in the case 

of major restructuring events.

13

14

15

OJ C , , p. .

OJ C , , p. .

pillar-social-rights_en.

https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetary-union/european-

(3)

(4)

(5)

(6)

(7)

(8)

16

17

18

19

20

21

On 20 June 2017, the Council endorsed the Union response16 to the ‘UN 2030 Agenda 
for  Sustainable  Development’17 — a  sustainable  European  future.  The  Council 
underlined  the  importance  of  achieving  sustainable  development  across  the  three 
dimensions (economic, social and environmental), in a balanced and integrated way. It 
is  vital  that  sustainable  development  is  mainstreamed  in  the  European  policy 
framework,  and  that  the  Union  is  ambitious  in  the  policies  it  uses  to  address  global 
challenges.  The  Council  welcomed  the  Commission  Communication  on  ‘Next  steps 
for  a  sustainable  European  future’  of  22 November 2016  as  a  first  step  in 
the  Sustainable  Development  Goals  and  applying  sustainable 
mainstreaming 
development as an essential guiding principle for all Union policies, including through 
its financing instruments.

In  February  2018,  the  Commission  adopted  its  Communication  on  ‘A  new,  modern 
Multiannual Financial Framework for a European Union that delivers efficiently on its 
priorities  post-2020’18.  The  Communication  stresses  that  the  Union  budget  shall 
support  Europe’s  unique  social  market  economy.  Therefore,  it  will  be  of  utmost 
importance to improve employment opportunities and to address the skills challenges, 
especially  also  those  linked  to  digitisation.  Budgetary  flexibility  shall  be  a  key 
principle in  the  next  Multiannual  Financial Framework. Flexibility  mechanisms  shall 
remain  in  place  to  allow  the  Union  to  react  to  unforeseen  events,  and  to  ensure  that 
budgetary resources are used where most urgently needed.
In  its  ‘White  Paper  on  the  Future  of  Europe’19 the  Commission  expresses  concerns 
regarding isolationist movements, growing doubts over the benefits of open trade and 
the Union’s social market economy in general.
In its ‘Reflection Paper on Harnessing Globalisation’20 the Commission identifies the 
combination  of  trade  related  globalisation  and  technological  change  as  the  major 
drivers of an increased demand  for  skilled  labour  and  a  reduced  number  of jobs  that 
require lower qualifications. Despite the overall tremendous advantages of more open 
trade and further integration of world economies, these negative side effects need to be 
tackled.  As  the  current  benefits  of  globalisation  are  already  unequally  distributed 
among  people  and  regions,  causing  a  significant  impact  on  those  adversely  affected, 
there is a danger that the ever faster evolving technological advances will further fuel 
these  effects.  Therefore,  in  line  with  the  principles  of  solidarity  and  sustainability,  it 
will be necessary to ensure that the benefits of globalisation will be shared more fairly 
by reconciling economic opening and technological advance with social protection.
In its ‘Reflection Paper on the Future of Union Finances’21 the Commission underlines 
the  need  to  reduce  economic  and  social  divergences  between  and  within  Member 
States. Therefore, a key priority is to invest in equality, social inclusion, education and 
training as well as health.

technological  change 

Globalisation  and 
the 
interconnectedness and interdependence of world economies. Labour reallocation is an 
integral and inevitable part of such economic change. If the benefits of change are to 
be distributed fairly, offering assistance to displaced workers and those threatened by 
displacement is of utmost importance. The ‘EU Quality Framework for anticipation of 

increase 

further 

likely 

to 

is 

http://eu-un.europa.eu/eu-response-2030-agenda-sustainable-development-sustainable-european-future/.
https://sustainabledevelopment.un.org/post2015/transformingourworld.
https://ec.europa.eu/commission/sites/beta-political/files/communication-new-modern-multiannual-
financial-framework_en.pdf
https://ec.europa.eu/commission/white-paper-future-europe-reflections-and-scenarios-eu27_en.
https://ec.europa.eu/commission/publications/reflection-paper-harnessing-globalisation_en.
https://ec.europa.eu/commission/publications/reflection-paper-future-eu-finances_en.

17

(9)

(10)

(11)

(12)

change and restructuring’22, is the Union policy instrument that sets the framework of 
best  practice  for  anticipating  and dealing  with  corporate  restructuring.  It  offers  a 
comprehensive  framework  on  how  the  challenges  of  economic  adjustment  and 
restructuring and their employment and social impact should be addressed by adequate 
policy means.  It also  calls upon  Member  States  to  use  EU  and  national  funding  in a 
way to ensure that the social impact of restructuring, especially the adverse effects on 
employment, can be cushioned more effectively. The main Union instruments to assist 
workers affected are the European Social Fund Plus (ESF+), which is designed to offer 
assistance in an anticipatory way, and the EGF, which is designed to offer assistance 
in the case of unexpected major restructuring events in a reactive manner.

The  EGF  was  established  by  Regulation (EC) No 1927/2006  of  the  European 
Parliament  and  of  the  Council23 for  the  multiannual  financial  framework  from 
1 January 2007 to 31 December 2013.The EGF has been set up to enable the Union to 
show  solidarity  towards  workers  who  lost  their  jobs  as  a  result  of  major  structural 
changes in world trade patterns due to globalisation.

in  2009  by 
The  scope  of  Regulation  (EC)  No 1927/2006  was  broadened 
Regulation (EC) No 546/2009 of the European Parliament and of the Council24 as part 
of the European Economic Recovery Plan to include workers who lost their jobs as a 
direct consequence of the global financial and economic crisis.

For  the  duration  of  the  multiannual  financial  framework  from  1 January 2014  to 
31 December 2020, Regulation (EU) No 1309/2013 of the European Parliament and of 
the Council25 extended the scope to cover not only job displacements resulting from a 
serious  economic  disruption  caused  by  a  continuation  of  the  global  financial  and 
economic  crisis  addressed  in  Regulation (EC) No 546/2009,  but  also  from  any  new 
global financial and economic crisis.

The Commission carried out a mid-term evaluation of the EGF to assess  how and to 
what extent the EGF achieves its objectives. The EGF proved to be effective, attaining 
a  higher  reintegration  rate  of  displaced  workers  than  in  the  previous  programming 
period. The evaluation also found that the EGF generated European added value. This 
is  particularly  true  in  terms  of  its  volume  effects,  meaning  that  EGF  assistance  not 
only  increases  the  number  and  variety  of  services  offered,  but  also  their  level  of 
intensity.  Moreover,  EGF  interventions  have  high  visibility  and  demonstrate  the  EU 
added  value  of  the  intervention  directly  to  the  general  public  However,  several 
challenges  were  identified.  On  the  one  hand,  the  mobilisation  procedure  was 
considered  to  be  too  long.  Furthermore,  many  Member  States  reported  problems 
putting  together  the  extensive  background  analysis  of  the  event  that  triggered  the 
redundancies.  The  main  reason  that  keeps  Member  States  that  would  have  had  a 
potential EGF case from applying are financial and institutional capacity problems. On 
the one hand, it could simply be  a lack of manpower – Member States currently can 

22

23

24

25

COMMUNICATION  FROM  THE  COMMISSION  TO  THE  EUROPEAN  PARLIAMENT,  THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE 
OF  THE  REGIONS  EU  Quality  Framework  for  anticipation  of  change  and  restructuring, 
(COM(2013)882 final, 13.12.2013).
Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on 
establishing the European Globalisation Adjustment Fund (OJ L 406, 30.12.2006, p. 1).
Regulation  (EC)  No 546/2009  of  the  European  Parliament  and  of  the  Council  of  18  June  2009 
amending Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund 
(OJ L 167, 29.6.2009, p. 26).
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 
1927/2006.

18

ask for technical assistance only if they implement an EGF case. Since redundancies 

can happen unexpectedly, it would be important that Member States are ready to react 

immediately and can submit an application without any delays. Furthermore, in certain 

Member States, more profound institutional capacity building efforts  seem necessary 

in  order  to  ensure  an  efficient  and  effective  implementation  of  EGF  cases.  The 

threshold  of  500  displaced  jobs  was  criticized  as  being  too  high,  especially  in  lesser 

populated regions26.

(13)

The  Commission  underlines  the  continuing  importance  of  the  role  of  the  EGF  as  a 

flexible fund to support workers who lose their jobs in large-scale restructuring events 

and to help them to find another job as rapidly as possible. The Union should continue 

to provide specific, one-off support to facilitate the re-integration into employment of 

displaced workers in areas, sectors, territories or labour markets suffering a shock of 

serious  economic  disruption.  Considering  the  interplay  and  mutual  effects  of  open 

trade,  technological  change  or  other  factors  like  the  transition  to  a  low  carbon 

economy,  and  therefore  considering  that  it  is  increasingly  difficult  to  single  out  a 

specific factor that causes job displacements, the mobilisation of the EGF shall in the 

future  only  be  based  on  the  significant  impact  of  a  restructuring  event.  Given  its 

purpose,  which  is  to  provide  support  in  situations  of  urgency  and  unexpected 

circumstances, complementing the more anticipatory assistance offered by the ESF+, 

the EGF shall remain a flexible and special instrument outside the budgetary ceilings 

of 

the  Multiannual  Financial  Framework,  as  set  out 

in 

the  Commission's 

communication.' A Modern Budget for a Union that Protects, Empowers and Defends 

- The Multiannual Financial Framework for 2021 – 2027'and its annex27.

(14) As  stated,  in  order  to  maintain  the  European  nature  of  the  EGF,  an  application  for 

support  should  be  triggered  when  a  major  restructuring  event  causes  a  significant 

impact  on  the  local  or  regional  economy.  Such  an  impact  should  be  defined  by  a 

minimum number of job displacements within a specific reference period. Taking into 

account the findings of the mid-term evaluation, the threshold shall be set at 250 jobs 

displacement within a reference period of four months (or 6 months in sectoral cases). 

Taking into account that waves of dismissals in different sectors but the same region 

have  an  equally  significant  impact  on  the  local labour  market,  regional  applications 

shall  be  possible  as  well.  In  small  labour  markets,  such  as  small  Member  States  or 

remote  regions,  including  the  outermost  regions  as  referred  in  Article 349  of  the 

TFEU, or in  exceptional circumstances,  applications could be submitted  in case  of a 

lower number of job displacements.

(15)

In order to express Union solidarity with displaced workers and self-employed persons 

whose  activity  has  ceased,  the  co-funding  rate  of  the  cost  of  the  package  of 

personalised  services  and  its  implementation  should  equal  that  of  the  ESF+  in  the 

respective Member State concerned.

(16)

Part  of  the  budget  of  the  Union  allocated  to  the EGF  should  be  implemented  by  the 

Commission  under  shared  management  with  Member  States  within  the  meaning  of

Regulation (EU, Euratom) [number of the new Financial Regulation] of the European 

Parliament  and  of  the  Council28

(the  'Financial  Regulation').  Therefore,  when 

implementing  the  EGF  under  shared  management,  the  Commission  and  the  Member 

States  should  respect  the  principles  referred  to  in  the  Financial  Regulation,  such  as 

sound financial management, transparency and non-discrimination.

26

27

28

COM (2018) 297 final and accompanying SWD (2018) 192 final.

Commission SWD (2018) 171 final and its annex COM (2018) 321 final.

OJ L […], […], p. […].

change and restructuring’22, is the Union policy instrument that sets the framework of 

best  practice  for  anticipating  and dealing  with  corporate  restructuring.  It  offers  a 

comprehensive  framework  on  how  the  challenges  of  economic  adjustment  and 

restructuring and their employment and social impact should be addressed by adequate 

policy  means.  It  also  calls upon  Member  States  to  use  EU  and  national  funding  in  a 

way to ensure that the social impact of restructuring, especially the adverse effects on 

employment, can be cushioned more effectively. The main Union instruments to assist 

workers affected are the European Social Fund Plus (ESF+), which is designed to offer 

assistance in an anticipatory way, and the EGF, which is designed to offer assistance 

in the case of unexpected major restructuring events in a reactive manner.

(9)

The  EGF  was  established  by  Regulation (EC) No 1927/2006  of  the  European 

Parliament  and  of  the  Council23 for  the  multiannual  financial  framework  from 

1 January 2007 to 31 December 2013.The EGF has been set up to enable the Union to 

show  solidarity  towards  workers  who  lost  their  jobs  as  a  result  of  major  structural 

changes in world trade patterns due to globalisation.

(10)

The  scope  of  Regulation  (EC)  No 1927/2006  was  broadened 

in  2009  by 

Regulation (EC) No 546/2009 of the European Parliament and of the Council24 as part 

of the European Economic Recovery Plan to include workers who lost their jobs as a 

direct consequence of the global financial and economic crisis.

(11)

For  the  duration  of  the  multiannual  financial  framework  from  1 January 2014  to 

31 December 2020, Regulation (EU) No 1309/2013 of the European Parliament and of 

the Council25 extended the scope to cover not only job displacements resulting from a 

serious  economic  disruption  caused  by  a  continuation  of  the  global  financial  and 

economic  crisis  addressed  in  Regulation (EC) No 546/2009,  but  also  from  any  new 

global financial and economic crisis.

(12)

The Commission carried out a mid-term evaluation of the EGF to assess how and to 

what extent the EGF achieves its objectives. The EGF proved to be effective, attaining 

a  higher  reintegration  rate  of  displaced  workers  than  in  the  previous  programming 

period. The evaluation also found that the EGF generated European added value. This 

is  particularly  true  in  terms  of  its  volume  effects,  meaning  that  EGF  assistance  not 

only  increases  the  number  and  variety  of  services  offered,  but  also  their  level  of 

intensity.  Moreover,  EGF  interventions  have  high  visibility  and  demonstrate  the  EU 

added  value  of  the  intervention  directly  to  the  general  public  However,  several 

challenges  were  identified.  On  the  one  hand,  the  mobilisation  procedure  was 

considered  to  be  too  long.  Furthermore,  many  Member  States  reported  problems 

putting  together  the  extensive  background  analysis  of  the  event  that  triggered  the 

redundancies.  The  main  reason  that  keeps  Member  States  that  would  have  had  a 

potential EGF case from applying are financial and institutional capacity problems. On 

the one hand, it could simply be  a lack of manpower – Member States currently can 

22

23

24

25

COMMUNICATION  FROM  THE  COMMISSION  TO  THE  EUROPEAN  PARLIAMENT,  THE 

COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE 

OF  THE  REGIONS  EU  Quality  Framework  for  anticipation  of  change  and  restructuring, 

(COM(2013)882 final, 13.12.2013).

Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on 

establishing the European Globalisation Adjustment Fund (OJ L 406, 30.12.2006, p. 1).

Regulation  (EC)  No 546/2009  of  the  European  Parliament  and  of  the  Council  of  18  June  2009 

amending Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund 

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 

(OJ L 167, 29.6.2009, p. 26).

1927/2006.

(13)

ask for technical assistance only if they implement an EGF case. Since redundancies 
can happen unexpectedly, it would be important that Member States are ready to react 
immediately and can submit an application without any delays. Furthermore, in certain 
Member States, more profound  institutional  capacity  building  efforts seem  necessary 
in  order  to  ensure  an  efficient  and  effective  implementation  of  EGF  cases.  The 
threshold  of  500  displaced  jobs  was  criticized  as  being  too  high,  especially  in  lesser 
populated regions26.

The  Commission  underlines  the  continuing  importance  of  the  role  of  the  EGF  as  a 
flexible fund to support workers who lose their jobs in large-scale restructuring events 
and to help them to find another job as rapidly as possible. The Union should continue 
to provide specific, one-off support to facilitate the re-integration into employment of 
displaced workers in areas, sectors, territories or  labour markets suffering a shock of 
serious  economic  disruption.  Considering  the  interplay  and  mutual  effects  of  open 
trade,  technological  change  or  other  factors  like  the  transition  to  a  low  carbon 
economy,  and  therefore  considering  that  it  is  increasingly  difficult  to  single  out  a 
specific factor that causes job displacements, the mobilisation of the EGF shall in the 
future  only  be  based  on  the  significant  impact  of  a  restructuring  event.  Given  its 
purpose,  which  is  to  provide  support  in  situations  of  urgency  and  unexpected 
circumstances, complementing the more anticipatory assistance offered by the ESF+, 
the EGF shall remain a flexible and special instrument outside the budgetary ceilings 
of 
the  Commission's 
communication.' A Modern Budget for a Union that Protects, Empowers and Defends 
- The Multiannual Financial Framework for 2021 – 2027'and its annex27.

the  Multiannual  Financial  Framework,  as  set  out 

in 

(14) As  stated,  in  order  to  maintain  the  European  nature  of  the  EGF,  an  application  for 
support  should  be  triggered  when  a  major  restructuring  event  causes  a  significant 
impact  on  the  local  or  regional  economy.  Such  an  impact  should  be  defined  by  a 
minimum number of job displacements within a specific reference period. Taking into 
account the findings of the mid-term evaluation, the threshold shall be set at 250 jobs 
displacement within a reference period of four months (or 6 months in sectoral cases). 
Taking into account that waves of dismissals in different sectors but the same region 
have  an  equally  significant  impact  on  the  local labour  market,  regional  applications 
shall  be  possible  as  well.  In  small  labour  markets,  such  as  small  Member  States  or 
remote  regions,  including  the  outermost  regions  as  referred  in  Article 349  of  the 
TFEU, or in  exceptional circumstances,  applications  could  be  submitted  in  case  of a 
lower number of job displacements.

(15)

(16)

In order to express Union solidarity with displaced workers and self-employed persons 
whose  activity  has  ceased,  the  co-funding  rate  of  the  cost  of  the  package  of 
personalised  services  and  its  implementation  should  equal  that  of  the  ESF+  in  the 
respective Member State concerned.

Part  of  the  budget  of  the  Union  allocated  to  the  EGF  should  be  implemented  by  the 
Commission  under  shared  management  with  Member  States  within  the  meaning  of
Regulation (EU, Euratom) [number of the new Financial Regulation] of the European 
Parliament  and  of  the  Council28
(the  'Financial  Regulation').  Therefore,  when 
implementing  the  EGF  under  shared  management,  the  Commission  and the  Member 
States  should  respect  the  principles  referred  to  in  the  Financial  Regulation,  such  as 
sound financial management, transparency and non-discrimination.

26

27

28

COM (2018) 297 final and accompanying SWD (2018) 192 final.
Commission SWD (2018) 171 final and its annex COM (2018) 321 final.
OJ L […], […], p. […].

19

(17)

The  European  Monitoring  Centre  on  Change,  based  in  the  European  Foundation  for 
the Improvement of Living and Working Conditions (Eurofound) in Dublin, assists the 
Commission and the Member States with qualitative and quantitative analyses in order 
to  help  in  the  assessment  of  trends  of  globalisation,  restructuring  and  the  use  of  the 
EGF.

(18) Displaced workers and self-employed persons whose activity has ceased should have 
equal  access  to  the  EGF  independently  of  their  type  of  employment  contract  or 
employment  relationship.  Therefore,  displaced  workers  as  well  as  self-employed 
persons  whose  activity  has  ceased  should  be  regarded  as  possible  EGF  beneficiaries 
for the purposes of this Regulation.

(19)

Financial  contributions  from  the  EGF  should  be  primarily  directed  at  active  labour 
market  measures  aimed  at  reintegrating  beneficiaries  rapidly  into  sustainable 
employment,  either  within  or  outside  their  initial  sector  of  activity.  Measures  should 
reflect  the  prospected  needs  of  the  local  or  regional  labour  market.  However, 
whenever  relevant,  the  mobility  of  displaced  workers  should  also  be  supported  in 
order to help find new employment elsewhere. A particular focus shall be laid on the 
dissemination  of  skills  required  in  the  digital  age.  The  inclusion  of  pecuniary 
allowances  in  a  coordinated  package  of  personalised  services  should  be  restricted. 
Companies could be encouraged to participate in the national co-funding for the EGF-
supported measures.

(20) When  drawing  up  the  coordinated  package  of  active  labour  market  policy  measures, 
Member  States  should  favour  measures  that  will  significantly  contribute  to  the 
employability  of  the  beneficiaries.  Member  States  should  strive  towards  the 
reintegration  into  sustainable  employment  of  the  largest  possible  number  of 
beneficiaries participating in these measures as soon as possible within the six-month 
period  before  the  final  report  on  the  implementation  of  the  financial  contribution  is 
due.

(21) Member  States  should  pay  particular  attention  to  disadvantaged  beneficiaries, 
including  young  and  older  unemployed  persons  and  those  at  risk  of  poverty,  when 
designing the coordinated package of active labour market policy measures, given that 
those  groups  experience  particular  problems  in  re-entering  the  labour  market. 
Notwithstanding,  the  principles  of  gender  equality  and  of  non-discrimination,  which 
are among the Union’s core values and are enshrined in the European Pillar of Social 
Rights, should be respected and promoted when implementing the EGF.

(22)

(23)

(24)

In  order  to  support  beneficiaries  effectively  and  rapidly,  Member  States  should  do 
their  utmost  to  submit  complete  applications  for  a  financial  contribution  from  the 
EGF.  In  case  the  Commission  requires  further  information  for  the  assessment  of  an 
application, the provision of additional information should be limited in time.

In  the  interest  of  beneficiaries  and  bodies  responsible  for  implementation  of  the 
measures,  the  applicant  Member  State  should  keep  all  actors  involved  in  the 
application process informed of the progress of the application.

the  principle  of  sound  financial  management,  financial 
In  compliance  with 
contributions  from  the  EGF  should  not  replace  but  should,  where  possible, 
complement support measures which are available for beneficiaries within the Union 
funds or other Union policies or programmes.

(25)

Special provisions should be included for information and communication activities on 
EGF cases and outcomes.

20

(26)

To  facilitate  the  implementation  of  this  Regulation,  expenditure  should  be  eligible 

either from the date on which a Member State starts to provide personalised services 

or  from  the  date  on  which  a  Member  State  incurs  administrative  expenditure  for 

implementing the EGF.

(27)

In  order  to  cover  the  needs  arising  especially  during  the  first  months  of  each  year, 

when the possibilities for transfers from other budget lines are particularly difficult, an 

adequate  amount  of payment  appropriations  should  be  made  available  on  the  EGF 

budget line in the annual budgetary procedure.

(28)

[The Multiannual Financial Framework and the Interinstitutional Agreement between 

the  European  Parliament,  the  Council  and  the  Commission  of  [future  date]  on 

budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 

management29 (‘the Interinstitutional Agreement’) determine the budgetary framework 

of the EGF].

(29)

In the interest of the beneficiaries, assistance should be made available as quickly and 

efficiently as possible. The Member States and the Union institutions involved in the

EGF  decision-making  process  should  do  their  utmost  to  reduce  processing  time  and 

simplify procedures so as to ensure the smooth and rapid adoption of decisions on the 

mobilisation of the EGF. Therefore, the Budgetary Authority shall in the future decide 

on  transfer  requests  submitted  by  the  Commission,  not  requiring  a  Commission 

Proposal for the mobilisation of the EGF anymore.

(30)

In the event of an enterprise closing down, displaced workers may be helped to take 

over some or all of the activities of their former employer.

(31)

In  order  to  enable  political  scrutiny  by  the  European  Parliament  and  continuous 

monitoring  by  the  Commission  of  results  obtained  with  EGF  assistance,  Member 

States should submit a final report on the implementation of the EGF.

(32)

The Member States should remain responsible for the implementation of the financial 

contribution  and  for  the  management  and  control  of  the  actions  supported  by  Union 

funding,  in  accordance  with  the  relevant  provisions  of  Regulation  (EU,  Euratom) 

No 966/2012  of  the  European  Parliament  and  of  the  Council  (the  ‘Financial 

Regulation’)30 or its successor Regulation. The Member States should justify  the use 

made  of  the  financial  contribution  received  from  the  EGF.  In  view  of  the  short 

implementation  period  of  EGF  operations,  reporting  obligations  should  reflect  the 

particular nature of the EGF interventions.

(33) Member States should also prevent, detect and deal effectively with any irregularities 

including fraud committed by beneficiaries. Moreover, in accordance with Regulation 

(EU, Euratom) No 883/201331, and Regulations (Euratom, EC) No 2988/9532 and No 

2185/9633 the  European  Anti-Fraud  Office  (OLAF)  may  carry  out  administrative 

investigations,  including  on-the-spot  checks  and  inspections,  with  a  view  to 

29

30

31

32

33

Reference to be updated.

Reference to be updated.

Regulation (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 

September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and 

repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council 

Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European 

Communities financial interests (OJ L 312, 23.12.1995, p. 1).

Council  Regulation  (Euratom,  EC)  No  2185/96 of  11  November  1996  concerning  on-the-spot  checks 

and inspections carried out by the Commission in order to protect the European Communities' financial 

interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

(17)

The  European  Monitoring  Centre  on  Change,  based  in  the  European  Foundation  for 

the Improvement of Living and Working Conditions (Eurofound) in Dublin, assists the 

Commission and the Member States with qualitative and quantitative analyses in order 

to  help  in  the  assessment  of  trends  of  globalisation,  restructuring  and  the  use  of  the 

EGF.

(18) Displaced workers and self-employed persons whose activity has ceased should have 

equal  access  to  the  EGF  independently  of  their  type  of  employment  contract  or 

employment  relationship.  Therefore,  displaced  workers  as  well  as  self-employed 

persons  whose  activity  has  ceased  should  be  regarded  as  possible  EGF  beneficiaries 

for the purposes of this Regulation.

(19)

Financial  contributions  from  the  EGF  should  be  primarily  directed  at  active  labour 

market  measures  aimed  at  reintegrating  beneficiaries  rapidly  into  sustainable 

employment,  either  within  or  outside  their  initial  sector  of  activity.  Measures  should 

reflect  the  prospected  needs  of  the  local  or  regional  labour  market.  However, 

whenever  relevant,  the  mobility  of  displaced  workers  should  also  be  supported  in 

order to help find new employment elsewhere. A particular focus shall be laid on the 

dissemination  of  skills  required  in  the  digital  age.  The  inclusion  of  pecuniary 

allowances  in  a  coordinated  package  of  personalised  services  should  be  restricted. 

Companies could be encouraged to participate in the national co-funding for the EGF-

supported measures.

(20) When  drawing  up  the  coordinated  package  of  active  labour  market  policy  measures, 

Member  States  should  favour  measures  that  will  significantly  contribute  to  the 

employability  of  the  beneficiaries.  Member  States  should  strive  towards  the 

reintegration  into  sustainable  employment  of  the  largest  possible  number  of 

beneficiaries participating in these measures as soon as possible within the six-month 

period  before  the  final  report  on  the  implementation  of  the  financial  contribution  is 

due.

(21) Member  States  should  pay  particular  attention  to  disadvantaged  beneficiaries, 

including  young  and  older  unemployed  persons  and  those  at  risk  of  poverty,  when 

designing the coordinated package of active labour market policy measures, given that 

those  groups  experience  particular  problems  in  re-entering  the  labour  market. 

Notwithstanding,  the  principles  of  gender  equality  and  of  non-discrimination,  which 

are among the Union’s core values and are enshrined in the European Pillar of Social 

Rights, should be respected and promoted when implementing the EGF.

(22)

In  order  to  support  beneficiaries  effectively  and  rapidly,  Member  States  should  do 

their  utmost  to  submit  complete  applications  for  a  financial  contribution  from  the 

EGF.  In  case  the  Commission  requires  further  information  for  the  assessment  of  an 

application, the provision of additional information should be limited in time.

(23)

In  the  interest  of  beneficiaries  and  bodies  responsible  for  implementation  of  the 

measures,  the  applicant  Member  State  should  keep  all  actors  involved  in  the 

application process informed of the progress of the application.

(24)

In  compliance  with 

the  principle  of  sound  financial  management,  financial 

contributions  from  the  EGF  should  not  replace  but  should,  where  possible, 

complement support measures which are available for beneficiaries within the Union 

funds or other Union policies or programmes.

(25)

Special provisions should be included for information and communication activities on 

EGF cases and outcomes.

(26)

(27)

(28)

(29)

(30)

(31)

(32)

To  facilitate  the  implementation  of  this  Regulation,  expenditure  should  be  eligible 
either from the date on which a Member State starts to provide personalised services 
or  from  the  date  on  which  a  Member  State  incurs  administrative  expenditure  for 
implementing the EGF.

In  order  to  cover  the  needs  arising  especially  during  the  first  months  of  each  year, 
when the possibilities for transfers from other budget lines are particularly difficult, an 
adequate  amount  of payment  appropriations  should  be  made  available  on  the  EGF 
budget line in the annual budgetary procedure.

[The Multiannual Financial Framework and the  Interinstitutional Agreement between 
the  European  Parliament,  the  Council  and  the  Commission  of  [future  date]  on 
budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 
management29 (‘the Interinstitutional Agreement’) determine the budgetary framework 
of the EGF].

In the interest of the beneficiaries, assistance should be made available as quickly and 
efficiently as possible. The Member States and the Union institutions involved in the
EGF  decision-making  process  should  do  their  utmost  to  reduce  processing  time  and 
simplify procedures so as to ensure the smooth and rapid adoption of decisions on the 
mobilisation of the EGF. Therefore, the Budgetary Authority shall in the future decide 
on  transfer  requests  submitted  by  the  Commission,  not  requiring  a  Commission 
Proposal for the mobilisation of the EGF anymore.

In the event of an enterprise closing down, displaced workers may be helped to take 
over some or all of the activities of their former employer.

In  order  to  enable  political  scrutiny  by  the  European  Parliament  and  continuous 
monitoring  by  the  Commission  of  results  obtained  with  EGF  assistance,  Member 
States should submit a final report on the implementation of the EGF.

The Member States should remain responsible for the implementation of the financial 
contribution  and  for  the  management  and  control  of  the  actions  supported  by  Union 
funding,  in  accordance  with  the  relevant  provisions  of  Regulation  (EU,  Euratom) 
No 966/2012  of  the  European  Parliament  and  of  the  Council  (the  ‘Financial 
Regulation’)30 or its successor Regulation. The Member States should justify  the use 
made  of  the  financial  contribution  received  from  the  EGF.  In  view  of  the  short 
implementation  period  of  EGF  operations,  reporting  obligations  should  reflect  the 
particular nature of the EGF interventions.

(33) Member States should also prevent, detect and deal effectively with any irregularities 
including fraud committed by beneficiaries. Moreover, in accordance with Regulation 
(EU, Euratom) No 883/201331, and Regulations (Euratom, EC) No 2988/9532 and No 
2185/9633 the  European  Anti-Fraud  Office  (OLAF)  may  carry  out  administrative 
investigations,  including  on-the-spot  checks  and  inspections,  with  a  view  to 

29

30

31

32

33

Reference to be updated.
Reference to be updated.
Regulation (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 
September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and 
repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council 
Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European 
Communities financial interests (OJ L 312, 23.12.1995, p. 1).
Council  Regulation  (Euratom,  EC)  No  2185/96 of  11  November  1996  concerning  on-the-spot  checks 
and inspections carried out by the Commission in order to protect the European Communities' financial 
interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

21

(34)

establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 
affecting  the  financial  interests  of  the  Union.  In  accordance  with  Regulation  (EU) 
2017/193934,  the  European  Public  Prosecutor's  Office  may  investigate  and  prosecute 
fraud  and  other  criminal  offences  affecting  the  financial  interests  of  the  Union  as 
provided for in Directive (EU)  2017/137135 on  the  fight  against  fraud  to  the Union's 
financial interests by means of criminal law. Member States should take the necessary 
measures  so  that  any  person  or  entity  receiving  Union  funds  fully  cooperates  in  the 
protection of the Union’s financial interests, grants the necessary rights and access to 
the  Commission,  the  European  Anti-Fraud  Office  (OLAF),  the  European  Public 
Prosecutor's  Office  (EPPO)  and  the  European  Court  of  Auditors  (ECA)  and  ensures 
that any third parties involved in the implementation of Union funds grant equivalent 
rights.  Member  States  should  report  to  the  Commission  on  detected  irregularities 
including  fraud,  and  on  their  follow-up  as  well  as  on  the  follow-up  of  OLAF 
investigations.

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 
of the European Parliament and of the Council[1], Council Regulation (Euratom, EC) 
No  2988/95[2],Council Regulation  (Euratom,  EC)  No  2185/96[3]  and  Council 
Regulation (EU) 2017/1939 [4], the financial interests of the Union are to be protected 
through  proportionate  measures,  including  the  prevention,  detection,  correction  and 
investigation  of  irregularities  and  fraud,  the  recovery  of  funds  lost,  wrongly  paid  or 
incorrectly used and, where appropriate, the imposition of administrative sanctions. In 
particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation 
(Euratom,  EC)  No  2185/96  the  European  Anti-Fraud  Office  (OLAF)  may  carry  out 
investigations,  including  on-the-spot  checks  and  inspections,  with  a  view  to 
establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 
affecting  the  financial  interests  of  the  Union.  In  accordance  with  Regulation  (EU) 
2017/1939,  the  European  Public  Prosecutor's  Office (EPPO)  may  investigate  and 
prosecute fraud and other illegal activities affecting the financial interests of the Union 
as  provided  for  in  Directive  (EU)  2017/1371  of  the  European  Parliament  and  of  the 
Council[5].  In  accordance  with  the  Financial  Regulation,  any  person  or  entity 
receiving Union funds is to fully cooperate in the protection of the Union’s financial 
interests,  to  grant  the  necessary  rights  and  access  to  the  Commission,  OLAF,  the 
EPPO and the European Court of Auditors (ECA) and to ensure that any third parties 
involved in the implementation of Union funds grant equivalent rights.

(35) Horizontal financial rules adopted by the European Parliament and the Council on the 
basis of Article 322 of the Treaty on the Functioning of the European Union apply to 
this Regulation. These rules are laid down in the Financial Regulation and determine 
in  particular  the  procedure  for  establishing  and  implementing  the  budget  through 
grants,  procurement,  prizes,  indirect  implementation,  and  provide  for  checks  on  the 
responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also 
concern  the  protection  of  the  Union's  budget  in  case  of  generalised  deficiencies  as 
regards the rule of law in the Member States, as the respect  for the rule  of law is an 
essential precondition for sound financial management and effective EU funding.

(36)

Pursuant to paragraph 22 and 23  of  the  Inter-institutional  agreement  for  Better  Law-
Making of 13 April 2016, there is a need to  evaluate this Programme on the basis of 
information  collected  through  specific  monitoring  requirements,  while  avoiding 

34

35

Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight 
against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

22

overregulation  and  administrative  burdens,  in  particular  on  Member  States.  These 

requirements,  where  appropriate,  can  include  measurable  indicators,  as  a  basis  for 

evaluating the effects of the Programme on the ground.

(37) Reflecting  the  importance  of  tackling  climate  change  in  line  with  the  Union's 

commitments  to  implement  the  Paris  Agreement  and  the  United  Nations  Sustainable 

Development  Goals,  this  Programme  will  contribute  to  mainstream  climate  action  in 

the  Union's  policies  and  to  the  achievement  of  an  overall  target  of  25  %  of  the  EU 

budget expenditures supporting climate objectives. Relevant actions will be identified 

during the fund's preparation and implementation, and reassessed in the context of its 

evaluation.

(38)

Since the objectives of this Regulation cannot be sufficiently achieved by the Member 

States, but can rather, by reason of their scale and effects, be better achieved at Union 

level, the Union may adopt measures, in accordance with the principle of subsidiarity 

as  set  out  in  Article 5  of  the  Treaty  on  European  Union.  In  accordance  with  the 

principle  of  proportionality  as  set  out  in  that  Article,  this  Regulation  does  not  go 

beyond what is necessary in order to achieve those objectives.

(39) Considering the fact that the digital transformation of the economy requires a certain 

level of digital competence of the workforce, the dissemination of skills required in the 

digital age should be  a  mandatory horizontal element of  any coordinated  package  of 

personalised services offered.

HAVE ADOPTED THIS REGULATION:

This Regulation establishes the European Globalisation Adjustment Fund (EGF).

It  lays  down  the  objectives  of  the  EGF,  the  forms  of  Union  funding  and  the  rules  for 

providing  such  funding,  including  applications  by  the  Member  States  for  financial 

contributions from the EGF for measures targeting the beneficiaries referred to in Article 7.

The  EGF  shall  contribute  to  a  better  distribution  of  the  benefits  of  globalisation  and 

technological advance by helping displaced workers adapt to structural change. As such, the 

EGF  shall  contribute  to  the  implementation  of  the  principles  defined  under  the  European 

Pillar of Social Rights and enhance social and economic cohesion among regions and Member 

Article 1

Subject matter

Article 2

Mission

Article 3

Objectives

The general objective of the programme is to demonstrate solidarity  with  and offer 

support to displaced workers and self-employed persons whose activity has ceased in 

the course of unexpected major restructuring events, referred to in Article 5.

The specific objective of the EGF is to offer assistance in case of unexpected major 

restructuring  events,  particularly  those  caused  by  globalisation-related  challenges, 

such as changes in world trade patterns, trade disputes, financial or economic crises,

States.

1.

2.

(34)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 

establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 

affecting  the  financial  interests  of  the  Union.  In  accordance  with  Regulation  (EU) 

2017/193934,  the  European  Public  Prosecutor's  Office  may  investigate  and  prosecute 

fraud  and  other  criminal  offences  affecting  the  financial  interests  of  the  Union  as 

provided for  in Directive (EU)  2017/137135 on the fight against fraud to the Union's 

financial interests by means of criminal law. Member States should take the necessary 

measures  so  that  any  person  or  entity  receiving  Union  funds  fully  cooperates  in  the 

protection of the Union’s financial interests, grants the necessary rights and access to 

the  Commission,  the  European  Anti-Fraud  Office  (OLAF),  the  European  Public 

Prosecutor's  Office  (EPPO)  and  the  European  Court  of  Auditors  (ECA)  and  ensures 

that any third parties involved in the implementation of Union funds grant equivalent 

rights.  Member  States  should  report  to  the  Commission  on  detected  irregularities 

including  fraud,  and  on  their  follow-up  as  well  as  on  the  follow-up  of  OLAF 

investigations.

of the European Parliament and of the Council[1], Council Regulation (Euratom, EC) 

No  2988/95[2],Council Regulation  (Euratom,  EC)  No  2185/96[3]  and  Council 

Regulation (EU) 2017/1939 [4], the financial interests of the Union are to be protected 

through  proportionate  measures,  including  the  prevention,  detection,  correction  and 

investigation  of  irregularities  and  fraud,  the  recovery  of  funds  lost,  wrongly  paid  or 

incorrectly used and, where appropriate, the imposition of administrative sanctions. In 

particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation 

(Euratom,  EC)  No  2185/96  the  European  Anti-Fraud  Office  (OLAF)  may  carry  out 

investigations,  including  on-the-spot  checks  and  inspections,  with  a  view  to 

establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 

affecting  the  financial  interests  of  the  Union.  In  accordance  with  Regulation  (EU) 

2017/1939,  the  European  Public  Prosecutor's  Office (EPPO)  may  investigate  and 

prosecute fraud and other illegal activities affecting the financial interests of the Union 

as  provided  for  in  Directive  (EU)  2017/1371  of  the  European  Parliament  and  of  the 

Council[5].  In  accordance  with  the  Financial  Regulation,  any  person  or  entity 

receiving Union funds is to fully cooperate in the protection of the Union’s financial 

interests,  to  grant  the  necessary  rights  and  access  to  the  Commission,  OLAF,  the 

EPPO and the European Court of Auditors (ECA) and to ensure that any third parties 

involved in the implementation of Union funds grant equivalent rights.

(35) Horizontal financial rules adopted by the European Parliament and the Council on the 

basis of Article 322 of the Treaty on the Functioning of the European Union apply to 

this Regulation. These rules are laid down in the Financial Regulation and determine 

in  particular  the  procedure  for  establishing  and  implementing  the  budget  through 

grants,  procurement,  prizes,  indirect  implementation,  and  provide  for  checks  on  the 

responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also 

concern  the  protection  of  the  Union's  budget  in  case  of  generalised  deficiencies  as 

regards the  rule of law in the Member States, as the respect for the rule of law is an 

essential precondition for sound financial management and effective EU funding.

(36)

Pursuant  to  paragraph  22  and 23  of  the  Inter-institutional agreement  for  Better  Law-

Making of 13 April 2016, there is a need to evaluate this Programme on the basis of 

information  collected  through  specific  monitoring  requirements,  while  avoiding 

34

35

Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 

establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).

Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight 

against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

overregulation  and  administrative  burdens,  in  particular  on  Member  States.  These 
requirements,  where  appropriate,  can  include  measurable  indicators,  as  a  basis  for 
evaluating the effects of the Programme on the ground.

(37) Reflecting  the  importance  of  tackling  climate  change  in  line  with  the  Union's 
commitments  to  implement  the  Paris  Agreement  and  the  United  Nations  Sustainable 
Development  Goals,  this  Programme  will  contribute  to  mainstream  climate  action  in 
the  Union's  policies  and  to  the  achievement  of  an  overall  target  of  25  %  of  the  EU 
budget expenditures supporting climate objectives. Relevant actions will be identified 
during the fund's preparation and implementation, and reassessed in the context of its 
evaluation.

(38)

Since the objectives of this Regulation cannot be sufficiently achieved by the Member 
States, but can rather, by reason of their scale and effects, be better achieved at Union 
level, the Union may adopt measures, in accordance with the principle of subsidiarity 
as  set  out  in  Article 5  of  the  Treaty  on  European  Union.  In  accordance  with  the 
principle  of  proportionality  as  set  out  in  that  Article,  this  Regulation  does  not  go 
beyond what is necessary in order to achieve those objectives.

(39) Considering the fact that the digital transformation of the economy requires a certain 
level of digital competence of the workforce, the dissemination of skills required in the 
digital age should be  a  mandatory horizontal element of  any coordinated package of 
personalised services offered.

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter

This Regulation establishes the European Globalisation Adjustment Fund (EGF).

It  lays  down  the  objectives  of  the  EGF,  the  forms  of  Union  funding  and  the  rules  for 
providing  such  funding,  including  applications  by  the  Member  States  for  financial 
contributions from the EGF for measures targeting the beneficiaries referred to in Article 7.

Article 2

Mission

The  EGF  shall  contribute  to  a  better  distribution  of  the  benefits  of  globalisation  and 
technological advance by helping displaced workers adapt to structural change. As such, the 
EGF  shall  contribute  to  the  implementation  of  the  principles  defined  under  the  European 
Pillar of Social Rights and enhance social and economic cohesion among regions and Member 
States.

Article 3

Objectives

1.

2.

The general objective of the programme  is  to demonstrate  solidarity with  and  offer 
support to displaced workers and self-employed persons whose activity has ceased in 
the course of unexpected major restructuring events, referred to in Article 5.

The specific objective of the EGF is to offer assistance in case of unexpected major 
restructuring  events,  particularly  those  caused  by  globalisation-related  challenges, 
such as changes in world trade patterns, trade disputes, financial or economic crises,

23

the  transition  to  low-carbon  economy  or  as  a  consequence  of  digitisation  or 
automation.  Particular  emphasis  shall  lie  on  measures  that  help  the  most 
disadvantaged groups.

For the purposes of this Regulation,

Article 4

Definitions

(a)

(b)

(c)

(d)

1.

2.

3.

'displaced  worker'  means  a  worker  whose  employment  is  ended  prematurely  by 
redundancy, or whose contract is not renewed, due to economic reasons;

'self-employed person' means a person who employed fewer than 10 workers;

'beneficiary means' a person participating in EGF co-funded measures.

'irregularity' means any breach of applicable law, resulting  from an act or omission 
by an economic operator involved in the implementation of the EGF, which has, or 
would have, the effect of prejudicing the budget of the Union by charging unjustified 
expenditure to that budget.

Article 5

Intervention criteria

Member  States  may  apply  for  financial  contributions  from  the  EGF  for  measures 
targeting  displaced  workers  and  self-employed  persons  in  accordance  with  the 
provisions laid down in this Article.

A  financial  contribution  from  the  EGF  shall  be  provided  in  major  restructuring 
events that result in the following:

(a)

(b)

(c)

the cessation of activity of more than 250 displaced workers or self-employed 
persons, over a reference period of four months, in an enterprise in a Member 
State,  including  where  that  cessation  applies  in  its  suppliers  or  downstream 
producers;

the cessation of activity of more than 250 displaced workers or self-employed 
persons, over a reference period of six months, particularly in SMEs, where all 
operate  in  the  same  economic  sector  defined  at  NACE  Revision  2  division 
level and located in one region or two contiguous regions defined at NUTS 2 
level or in more than two contiguous regions defined at NUTS 2 level provided 
that there are more than 250 workers or self-employed persons affected in two 
of the regions combined;

the cessation of activity of more than 250 displaced workers or self-employed 
persons,  over  a  reference  period  of  four  months,  particularly  in  SMEs, 
operating in the same or different economic sectors defined at NACE Revision 
2 division level and located in the same region defined at NUTS 2 level.

In small labour markets or in exceptional circumstances, in particular with regard to 
applications  involving  SMEs,  where  duly  substantiated  by  the  applicant  Member 
State, an application for a financial contribution under this Article may be considered 
admissible even if the criteria  laid down  in  points  (a),  (b)  or  (c)  of  paragraph 1  are 
not entirely met, when the redundancies  have  a  serious  impact  on  employment  and 
the  local  or  regional  economy.  The  applicant  Member  State  shall  specify  which  of 
the intervention criteria set out in points (a), (b) or (c) of paragraph 1 are not entirely 

24

met. The aggregated amount of contributions in exceptional circumstances may not 

exceed 15 % of the annual ceiling of the EGF.

4.

The  EGF  may  not  be  mobilised  when  workers  are  dismissed  as  a  result  of  budget 

cuts taken by a Member State, which affect sectors that depend on public financing.

1.

2.

Article 5.

Article 6

Calculation of displacements and of cessation of activity

The  applicant  Member  State  shall  specify  the  method  used  for  calculating  the 

number of workers and self-employed persons defined in Article 4 for the purpose of 

The applicant Member State shall calculate the number referred to in paragraph 1 as 

it stands on one of the following dates:

(a)

the  date  on  which  the  employer,  in  accordance  with  Article 3(1)  of  Council 

Directive 98/59/EC ,36 notifies the competent public authority in writing of the 

projected collective redundancies;

(b)

the  date  of  the  employer’s  individual  notice  to  lay  off  or  to  terminate  the 

contract of employment of the worker;

the date of the de facto termination of the contract of employment or its expiry;

the end of the assignment to the user undertaking; or

for a self-employed person, the date of cessation of the activities as determined 

in accordance with national law or administrative provisions.

In  the  cases  referred  to  in  point  (a),  the  applicant  Member  State  shall  provide  the 

Commission  with  additional  information  on  the  actual  number  of  redundancies 

effected according to Article 5(1) of this Regulation, prior to the  completion of  the 

assessment by the Commission.

(c)

(d)

(e)

Article 7

Eligible beneficiaries

The applicant Member State may provide a coordinated package of personalised  services  in 

accordance with Article 8 co-financed by the EGF to eligible beneficiaries, who may include:

(a)

displaced  workers  and  self-employed  persons  whose  activity  has  ceased, 

calculated in accordance with Article 6, within the reference periods provided 

for in Article 5;

(b)

displaced  workers  and  self-employed  persons  whose  activity  has  ceased, 

calculated in accordance with Article 6, outside the reference period provided 

for  in  Article 5;  namely  6  months  before  the  start  of  the  reference  period  or 

between the end of the reference period and the last day before the date of the 

completion of the assessment by the Commission.

The workers and self-employed persons referred to in point (b) of the first subparagraph shall 

be  considered  eligible  provided  that  a  clear  causal  link  can  be  established  with  the  event 

which triggered the redundancies during the reference period.

36

Reference to be checked/updated: Council Directive 98/59/EC of 20 July 1998 on the approximation of 

the laws of the Member States relating to collective redundancies (OJ L 225, 12.8.1998, p. 16).

the  transition  to  low-carbon  economy  or  as  a  consequence  of  digitisation  or 

automation.  Particular  emphasis  shall  lie  on  measures  that  help  the  most 

disadvantaged groups.

For the purposes of this Regulation,

Article 4

Definitions

(a)

(b)

(c)

(d)

1.

2.

'displaced  worker'  means  a  worker  whose  employment  is  ended  prematurely  by 

redundancy, or whose contract is not renewed, due to economic reasons;

'self-employed person' means a person who employed fewer than 10 workers;

'beneficiary means' a person participating in EGF co-funded measures.

'irregularity' means any  breach of applicable law, resulting  from an act or omission 

by an economic operator involved in the implementation of the EGF, which has, or 

would have, the effect of prejudicing the budget of the Union by charging unjustified 

expenditure to that budget.

Article 5

Intervention criteria

Member  States  may  apply  for  financial  contributions  from  the  EGF  for  measures 

targeting  displaced  workers  and  self-employed  persons  in  accordance  with  the 

provisions laid down in this Article.

A  financial  contribution  from  the  EGF  shall  be  provided  in  major  restructuring 

events that result in the following:

(a)

the cessation of activity of more than 250 displaced workers or self-employed 

persons, over a reference period of four months, in an enterprise in a Member 

State,  including  where  that  cessation  applies  in  its  suppliers  or  downstream 

producers;

(b)

the cessation of activity of more than 250 displaced workers or self-employed 

persons, over a reference period of six months, particularly in SMEs, where all 

operate  in  the  same  economic  sector  defined  at  NACE  Revision  2  division 

level and located in one region or two contiguous regions defined at NUTS 2 

level or in more than two contiguous regions defined at NUTS 2 level provided 

that there are more than 250 workers or self-employed persons affected in two 

of the regions combined;

(c)

the cessation of activity of more than 250 displaced workers or self-employed 

persons,  over  a  reference  period  of  four  months,  particularly  in  SMEs, 

operating in the same or different economic sectors defined at NACE Revision 

2 division level and located in the same region defined at NUTS 2 level.

3.

In small labour markets or in exceptional circumstances, in particular with regard to 

applications  involving  SMEs,  where  duly  substantiated  by  the  applicant  Member 

State, an application for a financial contribution under this Article may be considered 

admissible  even  if  the  criteria  laid  down  in  points (a), (b) or (c) of  paragraph 1 are 

not  entirely  met,  when  the redundancies  have a  serious impact  on employment and 

the  local  or  regional  economy.  The  applicant  Member  State  shall  specify  which  of 

the intervention criteria set out in points (a), (b) or (c) of paragraph 1 are not entirely 

4.

1.

2.

met. The aggregated  amount of contributions in exceptional circumstances may not 
exceed 15 % of the annual ceiling of the EGF.

The  EGF  may  not  be  mobilised  when  workers  are  dismissed  as  a  result  of  budget 
cuts taken by a Member State, which affect sectors that depend on public financing.

Article 6

Calculation of displacements and of cessation of activity

The  applicant  Member  State  shall  specify  the  method  used  for  calculating  the 
number of workers and self-employed persons defined in Article 4 for the purpose of 
Article 5.

The applicant Member State shall calculate the number referred to in paragraph 1 as 
it stands on one of the following dates:

(a)

(b)

(c)

(d)

(e)

the  date  on  which  the  employer,  in  accordance  with  Article 3(1)  of  Council 
Directive 98/59/EC ,36 notifies the competent public authority in writing of the 
projected collective redundancies;

the  date  of  the  employer’s  individual  notice  to  lay  off  or  to  terminate  the 
contract of employment of the worker;

the date of the de facto termination of the contract of employment or its expiry;

the end of the assignment to the user undertaking; or

for a self-employed person, the date of cessation of the activities as determined 
in accordance with national law or administrative provisions.

In  the  cases  referred  to  in  point  (a),  the  applicant  Member  State  shall  provide  the 
Commission  with  additional  information  on  the  actual  number  of  redundancies 
effected according to Article 5(1) of  this  Regulation,  prior  to  the  completion of  the 
assessment by the Commission.

Article 7

Eligible beneficiaries

The applicant Member State may provide a  coordinated  package  of  personalised  services in 
accordance with Article 8 co-financed by the EGF to eligible beneficiaries, who may include:

(a)

(b)

displaced  workers  and  self-employed  persons  whose  activity  has  ceased, 
calculated in accordance with Article 6, within the reference periods provided 
for in Article 5;

displaced  workers  and  self-employed  persons  whose  activity  has  ceased, 
calculated in accordance with Article 6, outside the reference period provided 
for  in  Article 5;  namely  6  months  before  the  start  of  the  reference  period  or 
between the end of the reference period and the last day before the date of the 
completion of the assessment by the Commission.

The workers and self-employed persons referred to in point (b) of the first subparagraph shall 
be  considered  eligible  provided  that  a  clear  causal  link  can  be  established  with  the  event 
which triggered the redundancies during the reference period.

36

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

25

Article 8

Eligible measures

1.

A  financial  contribution  from  the  EGF  may  be  made  for  active  labour  market 
measures that form part of a coordinated package of personalised services, designed 
to facilitate the re-integration of the targeted beneficiaries and, in particular, the most 
disadvantaged among the displaced workers, into employment or self-employment.

The  dissemination  of  skills  required  in  the  digital  industrial  age is  a  mandatory 
horizontal  element  of  any  package  of  personalised  services  offered.  The  level  of 
training  shall  be  adapted  to  the  qualifications  and  the  needs  of  the  respective 
beneficiary.

The coordinated package of personalised services may include in particular:

(a)

(b)

retraining, 

training  and 

tailor-made 
information  and 
communication  technology  and  other  skills  required  in  the  digital  age,
certification  of  acquired  experience,  job-search  assistance,  occupational 
guidance, 
assistance, 
entrepreneurship  promotion,  aid  for  self-employment,  business  start-ups  and 
employee take-overs, and cooperation activities;

services,  mentoring, 

outplacement 

including 

advisory 

in 

special  time-limited  measures,  such  as  job-search  allowances,  employers’ 
recruitment 
subsistence 
allowances, including allowances for carers.

incentives,  mobility  allowances, 

training  or 

The costs of the measures referred to in point (b) may not exceed 35 % of the total 
costs for the coordinated package of personalised services listed in this paragraph.

The investments for self-employment, starting an own business or for employee take-
overs may not exceed EUR 20 000 per displaced worker.

The design of the coordinated package of personalised services shall anticipate future 
labour  market  perspectives  and  required  skills.  The  coordinated  package  shall  be 
compatible with the shift towards a resource-efficient and sustainable economy, and 
shall  also  focus  on  the  dissemination  of  skills  required  in  the  digital  industrial  age 
and take into account the demand on the local labour market.

2.

The  following  measures  shall  not  be  eligible  for  a  financial  contribution  from  the 
EGF:

(a)

special time-limited measures referred to in point (b) of paragraph 1, which are 
not conditional on the active participation of the targeted beneficiaries in job-
search or training activities;

(b) measures which are the responsibility of enterprises by virtue of national law or 

collective agreements.

3.

4.

The  measures  supported  by  the  EGF  shall  not  substitute  passive  social  protection 
measures.

The  coordinated  package  of  services  shall  be  drawn  up  in  consultation  with  the 
targeted beneficiaries or their representatives, or the social partners.

At  the  initiative  of  the  applicant  Member  State,  a  financial  contribution  from  the 
EGF  may  be  made  for  the  preparatory,  management,  information  and  publicity, 
control and reporting activities.

26

Article 9

Applications

1.

2.

The applicant Member State shall submit an application to the Commission within 12 

weeks of the date on which the criteria set out in Article 5(2) or (3) are met.

Within  ten  working  days  of  the  date  of  submission  of  the  application,  or,  where 

applicable, of the date on which the Commission is in possession of the translation of 

the  application,  whichever  is  the  later,  the  Commission  shall  inform  the  Member 

State of any additional information it requires in order to assess the application.

3.

Where additional information is required by the Commission, the Member State shall 

reply  within  ten  working  days  of  the  date  of  the  request.  That  deadline  shall  be 

extended by the Commission by ten working days at the duly justified request of the 

Member State concerned.

4.

On the basis of the information provided by the Member State, the Commission shall 

complete  its  assessment  of  the  application’s  compliance  with  the  conditions  for 

providing  a  financial  contribution,  within  60  working  days  of  the  receipt  of  the 

complete  application  or,  where  applicable,  of  the  translation  of  the  application. 

Where  the  Commission  is  unable,  exceptionally,  to  comply  with  that  deadline,  it 

shall provide a written explanation setting out the reasons for the delay.

5.

An application shall contain the following information:

(a)

an  assessment  of  the  number  of  redundancies  in  accordance  with  Article  6, 

including the method of calculation;

(b)

the  confirmation  that,  where  the  dismissing  enterprise  has  continued  its 

activities after the lay-offs, it has complied with its legal obligations governing 

the redundancies;

(c)

(d)

a brief description of the events that led to the displacement of workers;

the identification, where applicable, of the dismissing enterprises, suppliers or 

downstream  producers,  sectors,  and  the  categories  of  targeted  beneficiaries 

broken down by gender, age group and educational level;

(e)

the  expected  impact  of  the  redundancies  as  regards  the  local,  regional  or 

national economy and employment;

(f)

a detailed description of the coordinated package of personalised services and 

related  expenditure,  including,  in  particular,  any  measures  in  support  of 

employment initiatives for disadvantaged, older and young beneficiaries;

(g)

an explanation to what extent the recommendations set out in the EU Quality 

Framework  for  anticipation  of  change  and  restructuring  were  taken  into 

account,  and how 

the  coordinated  package  of  personalised  services 

complements  actions  funded  by  other  national  or  Union  funds,  including 

information  on  measures  that  are  mandatory  for  the  dismissing  enterprises

concerned by virtue of national law or pursuant to collective agreements;

(h)

the estimated budget for each of the components of the coordinated package of 

personalised  services  in  support  of  the  targeted  beneficiaries  and  for  any 

preparatory,  management,  information  and  publicity,  control  and  reporting 

activities;

Article 8

Eligible measures

1.

A  financial  contribution  from  the  EGF  may  be  made  for  active  labour  market 

measures that form part of a coordinated package of personalised services, designed 

to facilitate the re-integration of the targeted beneficiaries and, in particular, the most 

disadvantaged among the displaced workers, into employment or self-employment.

The  dissemination  of  skills  required  in  the  digital  industrial  age is  a  mandatory 

horizontal  element  of  any  package  of  personalised  services  offered.  The  level  of 

training  shall  be  adapted  to  the  qualifications  and  the  needs  of  the  respective 

beneficiary.

The coordinated package of personalised services may include in particular:

(a)

tailor-made 

training  and 

retraining, 

including 

in 

information  and 

communication  technology  and  other  skills  required  in  the  digital  age,

certification  of  acquired  experience,  job-search  assistance,  occupational 

guidance, 

advisory 

services,  mentoring, 

outplacement 

assistance, 

entrepreneurship  promotion,  aid  for  self-employment,  business  start-ups  and 

employee take-overs, and cooperation activities;

(b)

special  time-limited  measures,  such  as  job-search  allowances,  employers’ 

recruitment 

incentives,  mobility  allowances, 

training  or 

subsistence 

allowances, including allowances for carers.

The costs of the measures referred to in point (b) may not exceed 35 % of the total 

costs for the coordinated package of personalised services listed in this paragraph.

The investments for self-employment, starting an own business or for employee take-

overs may not exceed EUR 20 000 per displaced worker.

The design of the coordinated package of personalised services shall anticipate future 

labour  market  perspectives  and  required  skills.  The  coordinated  package  shall  be 

compatible with the shift towards a resource-efficient and sustainable economy, and 

shall  also  focus  on  the  dissemination  of  skills  required  in  the  digital  industrial  age 

and take into account the demand on the local labour market.

2.

The  following  measures  shall  not  be  eligible  for  a  financial  contribution  from  the 

EGF:

measures.

(a)

special time-limited measures referred to in point (b) of paragraph 1, which are 

not conditional on the active participation of the targeted beneficiaries in job-

(b) measures which are the responsibility of enterprises by virtue of national law or 

search or training activities;

collective agreements.

The  measures  supported  by  the  EGF  shall  not  substitute  passive  social  protection 

3.

4.

The  coordinated  package  of  services  shall  be  drawn  up  in  consultation  with  the 

targeted beneficiaries or their representatives, or the social partners.

At  the  initiative  of  the  applicant  Member  State,  a  financial  contribution  from  the 

EGF  may  be  made  for  the  preparatory,  management,  information  and  publicity, 

control and reporting activities.

Article 9

Applications

1.

2.

3.

4.

The applicant Member State shall submit an application to the Commission within 12 
weeks of the date on which the criteria set out in Article 5(2) or (3) are met.

Within  ten  working  days  of  the  date  of  submission  of  the  application,  or,  where 
applicable, of the date on which the Commission is in possession of the translation of 
the  application,  whichever  is  the  later,  the  Commission  shall  inform  the  Member 
State of any additional information it requires in order to assess the application.

Where additional information is required by the Commission, the Member State shall 
reply  within  ten  working  days  of  the  date  of  the  request.  That  deadline  shall  be 
extended by the Commission by ten working days at the duly justified request of the 
Member State concerned.

On the basis of the information provided by the Member State, the Commission shall 
complete  its  assessment  of  the  application’s  compliance  with  the  conditions  for 
providing  a  financial  contribution,  within  60  working  days  of  the  receipt  of  the 
complete  application  or,  where  applicable,  of  the  translation  of  the  application. 
Where  the  Commission  is  unable,  exceptionally,  to  comply  with  that  deadline,  it 
shall provide a written explanation setting out the reasons for the delay.

5.

An application shall contain the following information:

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

an  assessment  of  the  number  of  redundancies  in  accordance  with  Article  6, 
including the method of calculation;

the  confirmation  that,  where  the  dismissing  enterprise  has  continued  its 
activities after the lay-offs, it has complied with its legal obligations governing 
the redundancies;

a brief description of the events that led to the displacement of workers;

the identification, where applicable, of the dismissing enterprises, suppliers or 
downstream  producers,  sectors,  and  the  categories  of  targeted  beneficiaries 
broken down by gender, age group and educational level;

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

a detailed description of the coordinated package of personalised services and 
related  expenditure,  including,  in  particular,  any  measures  in  support  of 
employment initiatives for disadvantaged, older and young beneficiaries;

an explanation to what extent the recommendations set out in the EU Quality 
Framework  for  anticipation  of  change  and  restructuring  were  taken  into 
the  coordinated  package  of  personalised  services 
account,  and how 
complements  actions  funded  by  other  national  or  Union  funds,  including 
information  on  measures  that  are  mandatory  for  the  dismissing  enterprises
concerned by virtue of national law or pursuant to collective agreements;

the estimated budget for each of the components of the coordinated package of 
personalised  services  in  support  of  the  targeted  beneficiaries  and  for  any 
preparatory,  management,  information  and  publicity,  control  and  reporting 
activities;

27

(i)

(j)

(k)

(l)

for evaluation purposes, indicative case specific targets defined by the Member 
State regarding the re-employment rate of beneficiaries 6 months after the end 
of the implementation period;

the  dates  on  which  the  personalised  services  to  the  targeted  beneficiaries  and 
the activities to implement the EGF, as set out in Article 8, were started or are 
due to be started;

the  procedures  followed  for  consulting  the  targeted  beneficiaries  or  their 
representatives or the social partners as well as local and regional authorities or 
other relevant stakeholders as applicable;

a  statement  of  compliance  of  the  requested  EGF  support  with  the  procedural 
and material Union rules on State aid as well as a statement outlining why the 
coordinated  package  of  personalised  services  does  not  replace  measures  that 
are  the  responsibility  of  companies  by  virtue  of  national  law  or  collective 
agreements;

(m)

the  sources  of  national  pre-financing  or  co-funding  and  other  co-funding  if 
applicable.

Article 10

Complementarity, compliance and coordination

1.

2.

3.

4.

5.

A  financial  contribution  from  the  EGF  shall  not  replace  measures  which  are  the 
responsibility of companies by virtue of national law or collective agreements.

Support for targeted beneficiaries shall complement measures of the Member States 
at national, regional and local level including those co-financed by Union funds, in 
line with the recommendations set out in the EU Quality Framework for anticipation 
of change and restructuring.

The  financial  contribution  from  the  EGF  shall  be  limited  to  what  is  necessary  to 
provide  temporary,  one-off  support  for  targeted  beneficiaries.  The  measures 
supported by the EGF shall comply with Union and national law, including State aid 
rules.

In  accordance  with  their  respective  responsibilities,  the  Commission  and  the 
applicant  Member  State  shall  ensure  the  coordination  of  the  assistance  from  Union 
funds.

The  applicant  Member  State  shall  ensure  that  the  specific  measures  receiving  a 
financial contribution  from  the  EGF  do  not  receive  assistance  from  other  Union 
financial instruments.

Article 11

Equality between men and women and non-discrimination

the EGF. 

The Commission and the Member States shall ensure that equality between men and women 
and the integration of the gender perspective are an integral part of, and are promoted during, 
the various stages of the implementation of the financial contribution from the EGF.

The  Commission  and  the  Member  States  shall  take  all  appropriate  steps  to  prevent  any 
discrimination  based  on  gender,  gender  identity,  racial  or  ethnic  origin,  religion  or  belief, 
disability, age or sexual orientation in access to the EGF and during the various stages of the 
implementation of the financial contribution.

28

Article 12

Technical assistance at the initiative of the Commission

1.

At the initiative of the Commission, a maximum of 0.5 % of the annual ceiling of the 

2.

3.

4.

EGF may be used for technical and administrative assistance for its implementation, 

such  as  preparatory,  monitoring,  control,  audit  and  evaluation  activities  including 

corporate  information  technology  systems,  communication  activities  and  those 

enhancing  the  EGF's  visibility  and  other  administrative  and  technical  assistance 

measures. Such measures may cover future and previous programming periods.

Subject to the ceiling set out in paragraph 1, the Commission shall submit a request 

for a transfer of appropriations for technical assistance to the relevant budgetary lines 

in accordance with Article 31 of the Financial Regulation.

The  Commission  shall  implement  technical  assistance  at  its  own  initiative  under 

direct or indirect management in accordance with [points (a) and (c) of Article 62(1)] 

of the Financial Regulation.

The  Commission’s  technical  assistance  shall  include  the  provision  of  information 

and  guidance  to  the  Member  States  for  using,  monitoring  and  evaluating  the  EGF. 

The Commission shall also provide information along with clear guidance on using 

the EGF to the European and national social partners. Guidance measures may also 

include  the  creation  of  taskforces  in  cases  of  severe  economic  disruptions  in  a 

Member State.

Article 13

Information, communication and publicity

1.

The  Member  States  shall  acknowledge  the  origin  and  ensure  the  visibility  of  the 

Union funding by providing coherent, effective and targeted information to multiple 

audiences,  including  targeted  information  to  beneficiaries,

local  and  regional 

authorities, social partners, the media and the public.

Member  States  shall  use  the  EU  emblem  in  accordance  with  [Annex  VIII  of  the 

Common  Provisions  Regulation] 

together  with  a  simple  funding  statement 

("funded/co-funded by the European Union").

2.

The Commission shall maintain and update regularly an online presence, accessible 

in  all  official  languages  of  the  institutions  of  the  Union,  to  provide  updated 

information  on  the  EGF,  guidance  on  the  submission  of  applications,  as  well  as 

information  on  accepted  and  rejected  applications  and  on  the  role  of  the  European 

Parliament and the Council in the budgetary procedure.

3.

The Commission shall implement information and communication activities on EGF 

cases  and  outcomes  based  on  its  experience  with  the  aim  of  improving  the 

effectiveness of the EGF and ensuring that Union citizens and workers know about 

The  Member  States  shall  ensure  that  all  communication  and  visibility  material  is 

made  available  upon  request  to  Union  Institutions,  bodies  or  agencies  and  that  a 

royalty-free, non-exclusive and irrevocable licence to use such material and any pre-

existing rights attached to it is granted to the Union. The licence grants the following 

rights to the Union:

(i)

for evaluation purposes, indicative case specific targets defined by the Member 

State regarding the re-employment rate of beneficiaries 6 months after the end 

of the implementation period;

(j)

the  dates  on  which  the  personalised  services  to  the  targeted  beneficiaries  and 

the activities to implement the EGF, as set out in Article 8, were started or are 

due to be started;

(k)

the  procedures  followed  for  consulting  the  targeted  beneficiaries  or  their 

representatives or the social partners as well as local and regional authorities or 

other relevant stakeholders as applicable;

(l)

a  statement  of  compliance  of  the  requested  EGF  support  with  the  procedural 

and material Union rules on State aid as well as a statement outlining why the 

coordinated  package  of  personalised  services  does  not  replace  measures  that 

are  the  responsibility  of  companies  by  virtue  of  national  law  or  collective 

(m)

the  sources  of  national  pre-financing  or  co-funding  and  other  co-funding  if 

agreements;

applicable.

Article 10

Complementarity, compliance and coordination

1.

2.

4.

5.

A  financial  contribution  from  the  EGF  shall  not  replace  measures  which  are  the 

responsibility of companies by virtue of national law or collective agreements.

Support for targeted beneficiaries shall complement measures of the Member States 

at national, regional and local level including those co-financed by Union funds, in 

line with the recommendations set out in the EU Quality Framework for anticipation 

of change and restructuring.

3.

The  financial  contribution  from  the  EGF  shall  be  limited  to  what  is  necessary  to 

provide  temporary,  one-off  support  for  targeted  beneficiaries.  The  measures 

supported by the EGF shall comply with Union and national law, including State aid 

rules.

funds.

In  accordance  with  their  respective  responsibilities,  the  Commission  and  the 

applicant  Member  State  shall  ensure  the  coordination  of  the  assistance  from  Union 

The  applicant  Member  State  shall  ensure  that  the  specific  measures  receiving  a 

financial contribution  from  the  EGF  do  not  receive  assistance  from  other  Union 

financial instruments.

Article 11

Equality between men and women and non-discrimination

The Commission and the Member States shall ensure that equality between men and women 

and the integration of the gender perspective are an integral part of, and are promoted during, 

the various stages of the implementation of the financial contribution from the EGF.

The  Commission  and  the  Member  States  shall  take  all  appropriate  steps  to  prevent  any 

discrimination  based  on  gender,  gender  identity,  racial  or  ethnic  origin,  religion  or  belief, 

disability, age or sexual orientation in access to the EGF and during the various stages of the 

implementation of the financial contribution.

1.

2.

3.

4.

1.

2.

3.

Article 12

Technical assistance at the initiative of the Commission

At the initiative of the Commission, a maximum of 0.5 % of the annual ceiling of the 
EGF may be used for technical and administrative assistance for its implementation, 
such  as  preparatory,  monitoring,  control,  audit  and  evaluation  activities  including 
corporate  information  technology  systems,  communication  activities  and  those 
enhancing  the  EGF's  visibility  and  other  administrative  and  technical  assistance 
measures. Such measures may cover future and previous programming periods.

Subject to the ceiling set out in paragraph 1, the Commission shall submit a request 
for a transfer of appropriations for technical assistance to the relevant budgetary lines 
in accordance with Article 31 of the Financial Regulation.

The  Commission  shall  implement  technical  assistance  at  its  own  initiative  under 
direct or indirect management in accordance with [points (a) and (c) of Article 62(1)] 
of the Financial Regulation.

The  Commission’s  technical  assistance  shall  include  the  provision  of  information 
and  guidance  to  the  Member  States  for  using,  monitoring  and  evaluating  the  EGF. 
The Commission shall also provide information along with clear guidance on using 
the EGF to the European and national social partners. Guidance measures may also 
include  the  creation  of  taskforces  in  cases  of  severe  economic  disruptions  in  a 
Member State.

Article 13

Information, communication and publicity

The  Member  States  shall  acknowledge  the  origin  and  ensure  the  visibility  of  the 
Union funding by providing coherent, effective and targeted information to multiple 
audiences,  including  targeted  information  to  beneficiaries,
local  and  regional 
authorities, social partners, the media and the public.

Member  States  shall  use  the  EU  emblem  in  accordance  with  [Annex  VIII  of  the 
Common  Provisions  Regulation] 
together  with  a  simple  funding  statement 
("funded/co-funded by the European Union").

The Commission shall maintain and update regularly an online presence, accessible 
in  all  official  languages  of  the  institutions  of  the  Union,  to  provide  updated 
information  on  the  EGF,  guidance  on  the  submission  of  applications,  as  well  as 
information  on  accepted  and  rejected  applications  and  on  the  role  of  the  European 
Parliament and the Council in the budgetary procedure.

The Commission shall implement information and communication activities on EGF 
cases  and  outcomes  based  on  its  experience  with  the  aim  of  improving  the 
effectiveness of the EGF and ensuring that Union citizens and workers know about 
the EGF. 

The  Member  States  shall  ensure  that  all  communication  and  visibility  material  is 
made  available  upon  request  to  Union  Institutions,  bodies  or  agencies  and  that  a 
royalty-free, non-exclusive and irrevocable licence to use such material and any pre-
existing rights attached to it is granted to the Union. The licence grants the following 
rights to the Union:

29

internal  use 

•
the 
communication  and  visibility  materials  to  EU  and  EU  Member  States'  institutions 
and agencies and their employees;

to  reproduce,  copy  and  make  available 

i.e.  right 

reproduction of the communication and visibility materials by any means and 

•
in any form, in whole or in part;

communication to the public of the communication and visibility materials by 

•
using any and all means of communication;

distribution  to  the  public  of  the  communication  and  visibility  materials  (or 

•
copies thereof) in any and all forms;

•

storage and archiving of the communication and visibility materials

sub-licensing  of  the  rights  on  the  communication  and  visibility  materials  to 

•
third parties

Additional rights may be granted to the Union.

The  resources  allocated  to  communication  actions  under  this  Regulation  shall  also 
contribute to covering the corporate communication of the political priorities of the 
Union provided that they are related to the general objectives referred to in Article 3.

Article 14

Determination of the financial contribution

The Commission shall, on the basis of the assessment carried out in accordance with 
Article 9 and in particular taking into account the number of targeted beneficiaries, 
the  proposed  measures  and  the  estimated  costs,  evaluate  and  propose  as  quickly  as 
possible  the  amount  of  a  financial  contribution  from  the  EGF,  if  any,  that  may  be 
made within the limits of the resources available.

The co-financing rate of the EGF for the measures offered shall be aligned with the 
highest co-financing rate of the ESF+ in the respective Member State.

Where, on the basis of the assessment  carried out  in  accordance with  Article 9,  the 
Commission  concludes  that  the  conditions  for  a  financial  contribution  under  this 
Regulation are met, it shall immediately initiate the procedure set out in Article 16.

Where, on the basis of the assessment carried out  in accordance with  Article 9,  the 
Commission  concludes  that  the  conditions  for  a  financial  contribution  under  this 
Regulation are not met, it shall immediately notify the applicant Member State.

Article 15

Eligibility period

Expenditure shall be eligible for a financial contribution from the EGF from the dates 
set out in the application pursuant to point (j) of Article 9(5) on which the Member 
State  concerned  starts,  or  is  due  to  start,  providing  the  personalised  services  to  the 
targeted beneficiaries or incurs the administrative expenditure to implement the EGF, 
in accordance with Article 8(1) and (4).

The Member State shall carry out the eligible measures set out in Article 8 as soon as 
possible, and at the latest within 24 months after the date of entry into force of the 
decision on the financial contribution.

4.

1.

2.

3.

4.

1.

2.

30

3.

The  implementation  period  is  the  period  from  the  dates  set  out  in  the  application 

pursuant to point (j) of Article 9(5) on which the Member State concerned starts the 

personalised services to the targeted beneficiaries and the activities to implement the 

EGF, as set out in Article 8, and ends 24 months after the date of entry into force of 

the decision on the financial contribution.

4.

Where a beneficiary accesses an education or training course the duration of which is 

two  years  or  more,  the  expenditure  for  such  a  course  shall  be  eligible  for  EGF  co-

funding  up  to  the  date  when  the  final  report  referred  to  in  Article 20(1)  is  due, 

provided that the relevant expenditure have been incurred before that date.

5.

Expenditure  pursuant  to  Article 8(4)  shall  be  eligible  until  the  deadline  for 

submission of the final report in accordance with Article 20(1).

1.

2.

3.

2.

3.

4.

Article 16

Budgetary procedure and implementation

Where  the  Commission  has  concluded  that  the  conditions  for  providing  a financial 

contribution  from  the  EGF  are  met,  it  shall  submit  a  request  for  a  transfer  to  the 

relevant budgetary lines in accordance with Article 31 of the Financial Regulation.

The transfer request needs to be accompanied by  a summary of the  examination of 

the eligibility of the application.

The Commission shall adopt a decision on a financial contribution, by means of an 

implementing act, which shall enter into force on the date the Commission is notified 

of  the  approval  of  the  budgetary  transfer  by the  European  Parliament  and  the 

Council.  The  decision  shall  constitute  a  financing  decision  within  the  meaning  of 

Article 110 of the Financial Regulation.

Article 17

Payment and use of the financial contribution

1.

Following the entry into force of a decision on a financial contribution in accordance 

with  Article 16(3)  the  Commission  shall  pay  the  financial  contribution  to  the 

Member  State  concerned  in  a  single  100 %  pre-financing  payment,  in  principle 

within 15 working days. The pre-financing shall be cleared once the Member State 

submits the certified statement of expenditure in  accordance with  Article 20(1).The 

unspent amount shall be reimbursed to the Commission.

The  financial  contribution  referred  to  in  paragraph  1  shall  be  implemented  under 

shared management in accordance with Article 63 of the Financial Regulation.

Detailed technical terms of the financing shall be determined by the Commission in 

the decision on a financial contribution referred to in Article 16(3).

When  carrying  out  the  measures  contained  in  the  coordinated  package  of 

personalised  services,  the  Member  State  concerned  may  submit  a  proposal  to  the 

Commission to amend the actions included by adding other eligible measures listed 

in points (a) and (b) of Article 8(1), provided that such amendments are duly justified 

and the total does not exceed the financial contribution referred  to  in  Article 16(3). 

The Commission shall assess the proposed amendments and, if it agrees, shall amend 

the decision on a financial contribution accordingly.

5.

The  Member  State  concerned  shall  have  the  flexibility  to  re-allocate  amounts 

between  the  budget  items  laid  down  in  the  decision  on  a  financial  contribution 

internal  use 

i.e.  right 

to  reproduce,  copy  and  make  available 

the 

communication  and  visibility  materials  to  EU  and  EU  Member  States'  institutions 

and agencies and their employees;

in any form, in whole or in part;

reproduction of the communication and visibility materials by any means and 

communication to the public of the communication and visibility materials by 

using any and all means of communication;

distribution  to  the  public  of  the  communication  and  visibility  materials  (or 

copies thereof) in any and all forms;

storage and archiving of the communication and visibility materials

sub-licensing  of  the  rights  on  the  communication  and  visibility  materials  to 

•

•

•

•

•

•

third parties

Additional rights may be granted to the Union.

4.

The  resources  allocated  to  communication  actions  under  this  Regulation  shall  also 

contribute to covering the corporate communication of the political priorities of the 

Union provided that they are related to the general objectives referred to in Article 3.

Article 14

Determination of the financial contribution

1.

The Commission shall, on the basis of the assessment carried out in accordance with 

Article 9 and in particular taking into account the number of targeted beneficiaries, 

the  proposed  measures  and  the  estimated  costs,  evaluate  and  propose  as  quickly  as 

possible  the  amount  of  a  financial  contribution  from  the  EGF,  if  any,  that  may  be 

made within the limits of the resources available.

2.

3.

4.

The co-financing rate of the EGF for the measures offered shall be aligned with the 

highest co-financing rate of the ESF+ in the respective Member State.

Where,  on  the  basis  of  the  assessment carried out in accordance with Article 9, the 

Commission  concludes  that  the  conditions  for  a  financial  contribution  under  this 

Regulation are met, it shall immediately initiate the procedure set out in Article 16.

Where,  on  the  basis of  the  assessment  carried out in accordance with Article 9, the 

Commission  concludes  that  the  conditions  for  a  financial  contribution  under  this 

Regulation are not met, it shall immediately notify the applicant Member State.

Article 15

Eligibility period

1.

Expenditure shall be eligible for a financial contribution from the EGF from the dates 

set out in the application pursuant to point (j) of Article 9(5) on which the Member 

State  concerned  starts,  or  is  due  to  start,  providing  the  personalised  services  to  the 

targeted beneficiaries or incurs the administrative expenditure to implement the EGF, 

in accordance with Article 8(1) and (4).

2.

The Member State shall carry out the eligible measures set out in Article 8 as soon as 

possible, and at the latest within 24 months after the date of entry into force of the 

decision on the financial contribution.

3.

4.

5.

1.

2.

3.

1.

2.

3.

4.

5.

The  implementation  period  is  the  period  from  the  dates  set  out  in  the  application 
pursuant to point (j) of Article 9(5) on which the Member State concerned starts the 
personalised services to the targeted beneficiaries and the activities to implement the 
EGF, as set out in Article 8, and ends 24 months after the date of entry into force of 
the decision on the financial contribution.

Where a beneficiary accesses an education or training course the duration of which is 
two  years  or  more,  the  expenditure  for  such  a  course  shall  be  eligible  for  EGF  co-
funding  up  to  the  date  when  the  final  report  referred  to  in  Article 20(1)  is  due, 
provided that the relevant expenditure have been incurred before that date.

Expenditure  pursuant  to  Article 8(4)  shall  be  eligible  until  the  deadline  for 
submission of the final report in accordance with Article 20(1).

Article 16

Budgetary procedure and implementation

Where  the  Commission  has  concluded  that  the  conditions  for  providing  a financial 
contribution  from  the  EGF  are  met,  it  shall  submit  a  request  for  a  transfer  to  the 
relevant budgetary lines in accordance with Article 31 of the Financial Regulation.

The transfer request needs to be accompanied by  a summary  of  the  examination of 
the eligibility of the application.

The Commission shall adopt a decision on a financial contribution, by means of an 
implementing act, which shall enter into force on the date the Commission is notified 
of  the  approval  of  the  budgetary  transfer  by the  European  Parliament  and  the 
Council.  The  decision  shall  constitute  a  financing  decision  within  the  meaning  of 
Article 110 of the Financial Regulation.

Article 17

Payment and use of the financial contribution

Following the entry into force of a decision on a financial contribution in accordance 
with  Article 16(3)  the  Commission  shall  pay  the  financial  contribution  to  the 
Member  State  concerned  in  a  single  100 %  pre-financing  payment,  in  principle 
within 15 working days. The pre-financing shall  be cleared once the Member State 
submits the certified  statement  of  expenditure in  accordance with  Article 20(1).The 
unspent amount shall be reimbursed to the Commission.

The  financial  contribution  referred  to  in  paragraph  1  shall  be  implemented  under 
shared management in accordance with Article 63 of the Financial Regulation.

Detailed technical terms of the financing shall be determined by the Commission in 
the decision on a financial contribution referred to in Article 16(3).

When  carrying  out  the  measures  contained  in  the  coordinated  package  of 
personalised  services,  the  Member  State  concerned  may  submit  a  proposal  to  the 
Commission to amend the actions included by adding other eligible measures listed 
in points (a) and (b) of Article 8(1), provided that such amendments are duly justified 
and the total does not exceed the  financial contribution  referred  to  in  Article 16(3). 
The Commission shall assess the proposed amendments and, if it agrees, shall amend 
the decision on a financial contribution accordingly.

The  Member  State  concerned  shall  have  the  flexibility  to  re-allocate  amounts 
between  the  budget  items  laid  down  in  the  decision  on  a  financial  contribution 

31

pursuant  to  Article 16(3).  Should  a  reallocation  exceed  a  20 %  increase  for  one  or 
more  of  the  items  specified,  the  Member  State  shall  notify  the  Commission 
beforehand.

2.

Not  later  than  at  the  end  of  the  nineteenth  month  after  the  expiry  of  the  period 

specified  in  Article 15(3),  the  Member  State concerned  shall  submit  the  simple 

dataset  informing  on  the  longer-term  result  indicator  specified  in  point  (3)  of  the 

Article 18

Use of the euro

Applications, decisions on financial contributions  and  reports  under  this Regulation,  as  well 
as any other related documents, shall express all amounts in euro.

Article 19

Indicators

Indicators  to  report  on  progress  of  the  Programme  towards  the  achievement  of  the 

1.
objectives established in Article 3 are set out in the Annex.

The  performance  reporting  system  shall  ensure  that  data  for  monitoring  programme 
2.
implementation  and  results  are  collected  efficiently,  effectively  and  in  a  timely  manner.  To 
that end, proportionate reporting requirements shall be imposed on Member States.

The Commission is empowered to adopt delegated acts in accordance with Article 25 
3.
to  amend  the  indicators  in  the  Annex  where  considered  necessary  to  ensure  effective 
assessment of the use of the fund.

Article 20

Final report and closure

1.

Not later than at the end of the seventh month after the expiry of the period specified
in  Article 15(3),  the  Member  State  concerned  shall  present  a  final  report  to  the 
Commission  on  the  implementation  of  the  financial  contribution,  including 
information on:

(a)

(b)

(c)

(d)

the  type  of  measures  and  main  results,  explaining  the  challenges,  lessons 
learned, synergies and complementarities with other EU funds and indicating, 
whenever  possible,  the  complementarity  of  measures  with  those  funded  by 
other  Union  or  national  programmes  in  line  with  the  EU  Quality  Framework 
for anticipation of change and restructuring;

the  names  of  the  bodies  delivering  the  package  of  measures  in  the  Member 
State;

the indicators set out in Article 19;

the  results  of  a  beneficiary  survey  conducted  six  months  after  the  end  of  the 
implementation  period,  which  shall  cover  the  perceived  change  in  the 
employability  of  beneficiaries,  or  for  those  who  already  found  employment, 
more information on the quality  of  employment  found,  such  as  the  change in 
working hours, level of responsibility or change of salary level in comparison 
to previous employment, and the sector in which the person found employment 
and break down this information by gender, age group and education level;

(e) whether the dismissing enterprise, with the exception of micro enterprises and 
SMEs,  has  been  a  beneficiary  of  State  aid  or  previous  funding  from  Union 
cohesion or structural funds in the preceding five years;

(f)

a statement justifying the expenditure.

32

Annex.

3.

No  later  than  six  months  after  the  Commission  has  received  all  the  information 

required in accordance with paragraph 1, it shall wind up the financial contribution 

by determining the final amount of the financial contribution from the EGF and the 

balance due, if any, by the Member State concerned in accordance with Article 24. 

The  winding-up  shall  be  conditional  on  the  provision  of  the  longer-term  result 

indicator in accordance with paragraph 2.

Article 21

Biennial report

1.

By  1 August 2021  and  every  two  years  thereafter,  the  Commission  shall  present  to 

the  European  Parliament  and  to  the  Council  a  comprehensive,  quantitative  and 

qualitative  report  on  the  activities  under  this  Regulation  and  Regulation (EU) 

No 1309/2013 in the previous two years. The report shall focus mainly on the results 

achieved  by  the  EGF  and  shall  in  particular  contain  information  relating  to 

applications  submitted,  decisions  adopted,  measures  funded,  including  statistics  on 

the indicators set out in the Annex, and the complementarity of such measures with 

measures funded by other Union funds, in particular ESF+, and information relating 

to  the  winding-up  of  financial  contributions  made  and  shall  also  document  those 

applications  that  have  been  rejected  or  reduced  owing  to  a  lack  of  sufficient 

appropriations or to non-eligibility.

2.

The  report  shall  be  transmitted  for  information  to  the  Court  of  Auditors,  the 

European  Economic  and  Social  Committee,  the  Committee  of  the  Regions  and  the 

social partners.

Article 22

Evaluation

1.

2.

3.

4.

Every  four  years  the  Commission  shall  carry  out  on  its  own  initiative  and  in  close 

cooperation  with  the  Member  States,  an  evaluation  of  the EGF  financial 

contributions.

The  results  of  the  evaluations  referred  to  in  paragraph  1  shall  be  transmitted,  for 

information,  to  the  European  Parliament,  the  Council,  the  Court  of  Auditors,  the 

European  Economic  and  Social  Committee,  the  Committee  of  the  Regions  and  the 

social partners. The recommendations of the evaluations shall be taken into account 

for the design of new programmes in the area of employment and social affairs or the 

further development of existing programmes.

The  evaluations  referred  to  in  paragraph  1  shall  include  relevant  statistics  on  the 

financial contributions, broken down by Member State.

To ensure effective assessment of progress of the EGF towards  the  achievement  of 

its objectives, the Commission is empowered to adopt delegated  acts in accordance 

with Article 25 to  amend the Annex to review or complement the  indicators  where 

considered  necessary  and  to  supplement  this  Regulation  with  provisions  on  the 

establishment of a monitoring and evaluation framework.

pursuant  to  Article 16(3).  Should  a  reallocation  exceed  a  20 %  increase  for  one  or 

more  of  the  items  specified,  the  Member  State  shall  notify  the  Commission 

beforehand.

Article 18

Use of the euro

Article 19

Indicators

Applications,  decisions  on financial  contributions  and  reports under  this Regulation, as well 

as any other related documents, shall express all amounts in euro.

1.

2.

3.

Indicators  to  report  on  progress  of  the  Programme  towards  the  achievement  of  the 

objectives established in Article 3 are set out in the Annex.

The  performance  reporting  system  shall  ensure  that  data  for  monitoring  programme 

implementation  and  results  are  collected  efficiently,  effectively  and  in  a  timely  manner.  To 

that end, proportionate reporting requirements shall be imposed on Member States.

The Commission is empowered to adopt delegated acts in accordance with Article 25 

to  amend  the  indicators  in  the  Annex  where  considered  necessary  to  ensure  effective 

assessment of the use of the fund.

Article 20

Final report and closure

1.

Not later than at the end of the seventh month after the expiry of the period specified

in  Article 15(3),  the  Member  State  concerned  shall  present  a  final  report  to  the 

Commission  on  the  implementation  of  the  financial  contribution,  including 

information on:

(a)

the  type  of  measures  and  main  results,  explaining  the  challenges,  lessons 

learned, synergies and complementarities with other EU funds and indicating, 

whenever  possible,  the  complementarity  of  measures  with  those  funded  by 

other  Union  or  national  programmes  in  line  with  the  EU  Quality  Framework 

for anticipation of change and restructuring;

(b)

the  names  of  the  bodies  delivering  the  package  of  measures  in  the  Member 

State;

(c)

(d)

the indicators set out in Article 19;

the  results  of  a  beneficiary  survey  conducted  six  months  after  the  end  of  the 

implementation  period,  which  shall  cover  the  perceived  change  in  the 

employability  of  beneficiaries,  or  for  those  who  already  found  employment, 

more  information  on  the  quality of  employment  found, such as the change in 

working hours, level of responsibility or change of salary level in comparison 

to previous employment, and the sector in which the person found employment 

and break down this information by gender, age group and education level;

(e) whether the dismissing enterprise, with the exception of micro enterprises and 

SMEs,  has  been  a  beneficiary  of  State  aid  or  previous  funding  from  Union 

cohesion or structural funds in the preceding five years;

(f)

a statement justifying the expenditure.

2.

3.

1.

2.

1.

2.

3.

4.

Not  later  than  at  the  end  of  the  nineteenth  month  after  the  expiry  of  the  period 
specified  in  Article 15(3),  the  Member  State concerned  shall  submit  the  simple 
dataset  informing  on  the  longer-term  result  indicator  specified  in  point  (3)  of  the 
Annex.

No  later  than  six  months  after  the  Commission  has  received  all  the  information 
required in accordance with paragraph 1, it shall wind up the financial contribution 
by determining the final amount of the financial contribution from the EGF and the 
balance due, if any, by the Member State concerned in accordance with Article 24. 
The  winding-up  shall  be  conditional  on  the  provision  of  the  longer-term  result 
indicator in accordance with paragraph 2.

Article 21

Biennial report

By  1 August 2021  and  every  two  years  thereafter,  the  Commission  shall  present  to 
the  European  Parliament  and  to  the  Council  a  comprehensive,  quantitative  and 
qualitative  report  on  the  activities  under  this  Regulation  and  Regulation (EU) 
No 1309/2013 in the previous two years. The report shall focus mainly on the results 
achieved  by  the  EGF  and  shall  in  particular  contain  information  relating  to 
applications  submitted,  decisions  adopted,  measures  funded,  including  statistics  on 
the indicators set out in the Annex, and the complementarity of such measures with 
measures funded by other Union funds, in particular ESF+, and information relating 
to  the  winding-up  of  financial  contributions  made  and  shall  also  document  those 
applications  that  have  been  rejected  or  reduced  owing  to  a  lack  of  sufficient 
appropriations or to non-eligibility.

The  report  shall  be  transmitted  for  information  to  the  Court  of  Auditors,  the 
European  Economic  and  Social  Committee,  the  Committee  of  the  Regions  and  the 
social partners.

Article 22

Evaluation

Every  four  years  the  Commission  shall  carry  out  on  its  own  initiative  and  in  close 
cooperation  with  the  Member  States,  an  evaluation  of  the EGF  financial 
contributions.

The  results  of  the  evaluations  referred  to  in  paragraph  1  shall  be  transmitted,  for 
information,  to  the  European  Parliament,  the  Council,  the  Court  of  Auditors,  the 
European  Economic  and  Social  Committee,  the  Committee  of  the  Regions  and  the 
social partners. The recommendations of the evaluations shall be taken into account 
for the design of new programmes in the area of employment and social affairs or the 
further development of existing programmes.

The  evaluations  referred  to  in  paragraph  1  shall  include  relevant  statistics  on  the 
financial contributions, broken down by Member State.

To ensure effective assessment  of  progress  of  the  EGF  towards  the  achievement of 
its objectives, the Commission is empowered to  adopt delegated  acts in accordance 
with Article 25 to  amend the  Annex  to  review  or  complement  the  indicators  where 
considered  necessary  and  to  supplement  this  Regulation  with  provisions  on  the 
establishment of a monitoring and evaluation framework.

33

Article 23

Management and financial control

1.

Without prejudice to the Commission’s responsibility  for  implementing the  general 
budget of the Union, Member States shall take responsibility for the management of 
measures supported by the EGF and the financial control of the measures. The steps 
they take shall include:

(a)

(b)

(c)

(d)

(e)

verifying that management and control arrangements have been set up and are 
being implemented in such a way as to ensure that Union funds are being used 
efficiently  and  correctly,  in  accordance  with  the principle  of  sound  financial 
management;

ensuring  that  the  delivery  of  monitoring  data  is  a  mandatory  requirement  in 
contracts  with  bodies  delivering  the  coordinated  package  of  personalised 
services;

verifying that the financed measures have been properly carried out;

ensuring that expenditure funded is based on verifiable supporting documents, 
and is legal and regular;

including  fraud  and 
preventing,  detecting  and  correcting 
recovering amounts unduly paid together with interest on late payments where 
appropriate. The Member States shall report on irregularities including fraud to 
the Commission.

irregularities 

For the purposes of Article [63(3)?] of the Financial Regulation, Member States shall 
identify  bodies  responsible  for  the  management  and  control  of  the  measures 
supported  by  the  EGF.  Those  bodies  shall  provide  the  Commission  with  the 
information set out in [Article 63(5), (6) and (7) ?] of the Financial Regulation on the 
implementation  of  the  financial  contribution  when  submitting  the  final  report 
referred to in Article 20(1) of this Regulation.

Where  authorities  designated  in  accordance  with  Regulation (EU) No 1309/2013 
have provided sufficient guarantees that payments are legal and regular, and properly 
accounted for, the Member State concerned may notify to the Commission that these 
authorities  are  confirmed  under  this  Regulation.  In  this  case,  the  Member  State 
concerned shall indicate which authorities are confirmed and which is their function.

Member States shall make the financial corrections required where an irregularity is 
ascertained. The corrections made by  the Member  States shall  consist  in cancelling 
all or part of the financial contribution. The Member States shall recover any amount 
unduly paid as a result of an irregularity  detected, repay  it  to the  Commission  and, 
where  the  amount  is  not  repaid  by  the  relevant  Member  State  in  the  time  allowed, 
default interest shall be due.

The Commission, in its responsibility for the implementation of the general budget of 
the  Union,  shall  take  every  step  necessary  to  verify  that  the  actions  financed  are 
carried out in accordance with the principle of sound financial management. It is the 
responsibility  of  the  applicant  Member  State  to  ensure  that  it  has  smoothly 
functioning  management  and  control  systems.  The  Commission  shall  satisfy  itself 
that such systems are in place.

To that end, without prejudice to the powers of the Court of Auditors or the checks 
carried  out  by  the  Member  State  in  accordance  with  national  laws,  regulations  and 
administrative  provisions,  Commission  officials  or  servants  may  carry  out  on-the-

2.

3.

4.

34

spot checks, including sample checks, on the measures financed by the EGF with a 

minimum  notice  of  one  working  day.  The  Commission  shall  give  notice  to  the 

applicant  Member  State  with  a  view  to  obtaining  all  the  assistance  necessary. 

Officials or servants of the Member State concerned may take part in such checks.

5.

6.

The Commission is empowered to adopt delegated acts in accordance with Article 25 

to supplement paragraph 1(e) by setting out the criteria for determining the cases of 

irregularity to be reported and the data to be provided.

The Commission shall adopt an implementing act setting out the  format  to  be used 

for reporting of irregularities in accordance with the advisory procedure referred to in 

Article  26(2)  in  order  to  ensure  uniform  conditions  for  the  implementation  of  this 

7.

Member  States  shall  ensure  that  all  supporting  documents  regarding  expenditure 

incurred  are  kept  available  for  the  Commission  and  the  Court  of  Auditors  for  a 

period  of  three  years  following  the  winding-up  of  a  financial  contribution  received 

Article.

from the EGF.

Article 24

Recovery of the financial contribution

1.

In cases where the actual cost of the coordinated package of personalised services is

less  than  the  amount  of  the  financial  contribution  pursuant  to  Article 16,  the 

Commission shall recover the corresponding amount after having given the Member 

State concerned the possibility to submit its observations.

2.

If,  after  completing  the  necessary  verifications,  the  Commission  concludes  that  a 

Member State either has failed to comply with the obligations stated in the decision 

on  a  financial  contribution  or  is  not  complying  with  its  obligations  under 

Article 23(1), it shall give the Member State concerned the possibility to submit its 

observations.  The  Commission  shall,  if  no  agreement  has  been  reached,  adopt  a 

decision by means of an implementing act  to make the financial corrections required 

by cancelling all or part of the contribution of the EGF to the measure in question. 

That decision shall be taken within 12 months after having received the observations 

from  the  Member  State.  The  Member  State  concerned  shall  recover  any  amount 

unduly paid as a result of an irregularity and, where the amount is not repaid by the 

applicant Member State in the time allowed, default interest shall be due.

Article 25

Exercise of the delegation

1.

2.

3.

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 

conditions laid down in this Article.

The power to adopt delegated acts referred to in Article 19(3) and Article 23(5) shall 

be  conferred  on  the  Commission  for  an  indeterminate  period  of  time  from  date  of 

entry into force of this Regulation.

The  delegation  of  power  referred  to  in  Article  19(3)  and  Article  23(5),  may  be 

revoked  at  any  time  by  the  European  Parliament  or  by  the  Council.  A  decision  to 

revoke shall put an end to the delegation of the power specified  in that  decision.  It 

shall  take  effect  the  day  following  the  publication  of  the  decision  in  the  Official 

Journal of the European Union or at a later date specified therein. It shall not affect 

the validity of any delegated acts already in force. 

Article 23

Management and financial control

1.

Without  prejudice to  the  Commission’s  responsibility  for implementing the  general 

budget of the Union, Member States shall take responsibility for the management of 

measures supported by the EGF and the financial control of the measures. The steps 

they take shall include:

(a)

verifying that management and control arrangements have been set up and are 

being implemented in such a way as to ensure that Union funds are being used 

efficiently  and  correctly,  in  accordance  with  the principle  of  sound  financial 

(b)

ensuring  that  the  delivery  of  monitoring  data  is  a  mandatory  requirement  in 

contracts  with  bodies  delivering  the  coordinated  package  of  personalised 

management;

services;

(c)

(d)

verifying that the financed measures have been properly carried out;

ensuring that expenditure funded is based on verifiable supporting documents, 

and is legal and regular;

(e)

preventing,  detecting  and  correcting 

irregularities 

including  fraud  and 

recovering amounts unduly paid together with interest on late payments where 

appropriate. The Member States shall report on irregularities including fraud to 

the Commission.

2.

For the purposes of Article [63(3)?] of the Financial Regulation, Member States shall 

identify  bodies  responsible  for  the  management  and  control  of  the  measures 

supported  by  the  EGF.  Those  bodies  shall  provide  the  Commission  with  the 

information set out in [Article 63(5), (6) and (7) ?] of the Financial Regulation on the 

implementation  of  the  financial  contribution  when  submitting  the  final  report 

referred to in Article 20(1) of this Regulation.

Where  authorities  designated  in  accordance  with  Regulation (EU) No 1309/2013 

have provided sufficient guarantees that payments are legal and regular, and properly 

accounted for, the Member State concerned may notify to the Commission that these 

authorities  are  confirmed  under  this  Regulation.  In  this  case,  the  Member  State 

concerned shall indicate which authorities are confirmed and which is their function.

3.

Member States shall make the financial corrections required where an irregularity is 

ascertained.  The  corrections  made by  the Member States shall consist in cancelling 

all or part of the financial contribution. The Member States shall recover any amount 

unduly  paid  as  a  result  of an irregularity  detected, repay it to the Commission and, 

where  the  amount  is  not  repaid  by  the  relevant  Member  State  in  the  time  allowed, 

default interest shall be due.

4.

The Commission, in its responsibility for the implementation of the general budget of 

the  Union,  shall  take  every  step  necessary  to  verify  that  the  actions  financed  are 

carried out in accordance with the principle of sound financial management. It is the 

responsibility  of  the  applicant  Member  State  to  ensure  that  it  has  smoothly 

functioning  management  and  control  systems.  The  Commission  shall  satisfy  itself 

that such systems are in place.

To that end, without prejudice to the powers of the Court of Auditors or the checks 

carried  out  by  the  Member  State  in  accordance  with  national  laws,  regulations  and 

administrative  provisions,  Commission  officials  or  servants  may  carry  out  on-the-

5.

6.

7.

1.

2.

1.

2.

3.

spot checks, including sample checks, on the measures financed by the EGF with a 
minimum  notice  of  one  working  day.  The  Commission  shall  give  notice  to  the 
applicant  Member  State  with  a  view  to  obtaining  all  the  assistance  necessary. 
Officials or servants of the Member State concerned may take part in such checks.

The Commission is empowered to adopt delegated acts in accordance with Article 25 
to supplement paragraph 1(e) by setting out the criteria for determining the cases of 
irregularity to be reported and the data to be provided.

The  Commission shall  adopt  an  implementing act setting out the  format to be used 
for reporting of irregularities in accordance with the advisory procedure referred to in 
Article  26(2)  in  order  to  ensure  uniform  conditions  for  the  implementation  of  this 
Article.

Member  States  shall  ensure  that  all  supporting  documents  regarding  expenditure 
incurred  are  kept  available  for  the  Commission  and  the  Court  of  Auditors  for  a 
period  of  three  years  following  the  winding-up  of  a  financial  contribution  received 
from the EGF.

Article 24

Recovery of the financial contribution

In cases where the actual cost of the coordinated package of personalised services is
less  than  the  amount  of  the  financial  contribution  pursuant  to  Article 16,  the 
Commission shall recover the corresponding amount after having given the Member 
State concerned the possibility to submit its observations.

If,  after  completing  the  necessary  verifications,  the  Commission  concludes  that  a 
Member State either has failed to comply with the obligations stated in the decision 
on  a  financial  contribution  or  is  not  complying  with  its  obligations  under 
Article 23(1), it shall give the Member State concerned the possibility to  submit its 
observations.  The  Commission  shall,  if  no  agreement  has  been  reached,  adopt  a 
decision by means of an implementing act  to make the financial corrections required 
by cancelling all or part of the contribution of the EGF to the measure in question. 
That decision shall be taken within 12 months after having received the observations 
from  the  Member  State.  The  Member  State  concerned  shall  recover  any  amount 
unduly paid as a result of an irregularity and, where the amount is not repaid by the 
applicant Member State in the time allowed, default interest shall be due.

Article 25
Exercise of the delegation

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article.

The power to adopt delegated acts referred to in Article 19(3) and Article 23(5) shall 
be  conferred  on  the  Commission  for  an  indeterminate  period  of  time  from  date  of 
entry into force of this Regulation.

The  delegation  of  power  referred  to  in  Article  19(3)  and  Article  23(5),  may  be 
revoked  at  any  time  by  the  European  Parliament  or  by  the  Council.  A  decision  to 
revoke shall put an end to the  delegation  of  the  power  specified  in  that  decision.  It 
shall  take  effect  the  day  following  the  publication  of  the  decision  in  the  Official 
Journal of the European Union or at a later date specified therein. It shall not affect 
the validity of any delegated acts already in force. 

35

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

3.

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 

affected 

3.2. Estimated impact on expenditure

3.2.1. Summary of estimated impact on expenditure 

3.2.2. Estimated impact on appropriations of an administrative nature

3.2.3. Third-party contributions 

3.3. Estimated impact on revenue

4.

5.

6.

1.

2.

Before adopting a delegated act, the Commission shall consult experts designated by
the 
in  accordance  with 
each  Member  State 
Interinstitutional Agreement on Better Law-Making of 13 April 2016.

the  principles 

laid  down 

in 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

A delegated act adopted pursuant to Article 19(3) and Article 23(5) shall enter into 
force only if no objection has been expressed either by the European Parliament or 
by  the  Council  within  a  period  of  two  months  of  notification  of  that  act  to  the 
European  Parliament  and  the  Council  or  if,  before  the  expiry  of  that  period,  the 
European Parliament and the Council have both informed the Commission that they 
will not object. That period shall be extended by two months at the initiative of the 
European Parliament or of the Council.

Article 26
Committee Procedure

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply.

1.

FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative 

1.2. Policy area(s) concerned (programme cluster)

1.3. Nature of the proposal/initiative 

1.4. Grounds for the proposal/initiative 

1.5. Duration and financial impact 

1.6. Management mode(s) planned 

2.

MANAGEMENT MEASURES

2.1. Monitoring and reporting rules 

2.2. Management and control system 

2.3. Measures to prevent fraud and irregularities 

Article 27

Transitional provision

Regulation (EU)  No 1309/2013  shall  continue  to  apply  to  applications  submitted  until 
31 December 2020. It shall apply until the closure of the respective cases.

Article 28

Entry into force

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union.

It shall apply to applications submitted as from 1 January 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament 
The President 

For the Council
The President

36

4.

5.

6.

1.

2.

Before adopting a delegated act, the Commission shall consult experts designated by

each  Member  State 

in  accordance  with 

the  principles 

laid  down 

in 

the 

Interinstitutional Agreement on Better Law-Making of 13 April 2016.

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 

the European Parliament and to the Council. 

A delegated act adopted pursuant to Article 19(3) and Article 23(5) shall enter into 

force only if no objection has been expressed either by the European Parliament or 

by  the  Council  within  a  period  of  two  months  of  notification  of  that  act  to  the 

European  Parliament  and  the  Council  or  if,  before  the  expiry  of  that  period,  the 

European Parliament and the Council have both informed the Commission that they 

will not object. That period shall be extended by two months at the initiative of the 

European Parliament or of the Council.

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 

committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 

182/2011 shall apply.

Regulation (EU)  No 1309/2013  shall  continue  to  apply  to  applications  submitted  until 

31 December 2020. It shall apply until the closure of the respective cases.

Article 26

Committee Procedure

Article 27

Transitional provision

Article 28

Entry into force

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 

Official Journal of the European Union.

It shall apply to applications submitted as from 1 January 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament 

The President 

For the Council

The President

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.

FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative 

1.2. Policy area(s) concerned (programme cluster)

1.3. Nature of the proposal/initiative 

1.4. Grounds for the proposal/initiative 

1.5. Duration and financial impact 

1.6. Management mode(s) planned 

2.

MANAGEMENT MEASURES

2.1. Monitoring and reporting rules 

2.2. Management and control system 

2.3. Measures to prevent fraud and irregularities 

3.

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected 

3.2. Estimated impact on expenditure

3.2.1. Summary of estimated impact on expenditure 

3.2.2. Estimated impact on appropriations of an administrative nature

3.2.3. Third-party contributions 

3.3. Estimated impact on revenue

37

LEGISLATIVE FINANCIAL STATEMENT

1.4.4. Compatibility and possible synergy with other appropriate instruments

The  ESF+  and  EGF  will  continue  to  complement  each  other,  as  the  former  will 

continue  to  function  as  a  preventive  and  anticipatory  fund,  while  the  latter  will 

remain  a  reactive  emergency  Fund  outside  the  MFF.  The  ESF+  will  for  example 

complement the EGF by proactively supporting adequate measures in areas that are 

at  risk  due  to  foreseeable  economic  challenges.  Support  for  targeted  beneficiaries 

shall complement measures of the Member States at national, regional and local level 

including  those  co-financed  by  Union  funds,  in  line  with the  recommendations  set 

out in the EU Quality Framework for anticipation of change and restructuring (QFR).

1.

1.1.

FRAMEWORK OF THE PROPOSAL/INITIATIVE

Title of the proposal/initiative 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the
European Globalisation Adjustment Fund (EGF).

1.2.

Policy area(s) concerned (Programme cluster)

European  Globalisation  Adjustment  Fund  as  included  in  DG  EMPL  2018 
Management Plan.

1.3.

The proposal/initiative relates to: 

 a new action
 a new action following a pilot project/preparatory action37
 the extension of an existing action

 a merger or redirection of one or more actions towards another/a new action

1.4.

Grounds for the proposal/initiative 

1.4.1.

Requirement(s) to be met in the short or long term including a detailed timeline for 
roll-out of the implementation of the initiative

Regulation (EU) No 1309/2013 must be  reviewed by the end of 2020. The review, 
which is carried out by means of the Proposal for a Regulation, enables the Fund to 
continue,  to  enlarge  its  objective  offer  support  to  displaced  workers  and  self-
employed  persons  whose  activity  has  ceased  in  the  course  of  unexpected  major 
restructuring  events,  and  to  amend  some  technical  details  in  order  to  have  more 
coherence and synergies, flexibility, focus on performance, and simplification.

1.4.2.

Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone.

Expected  generated  Union  added  value  (ex-post)  Union  involvement  through  the 
EGF  makes  it  possible  to  complement  national  measures  in  order  to  re-integrate 
dismissed workers by offering them a unique combination of tailored measures that 
lead to more sustainable results, increase the self-esteem of beneficiaries, who finally 
have  a  more  proactive  approach  to  job  seeking,  and  improve  their  employability.
Experience  achieved  so  far  with  the  EGF  indicates  that  the  help  offered  would  not 
have been available without the involvement of the EGF.

1.4.3.

Lessons learned from similar experiences in the past

See  the  experience  gained  under  Regulation  (EU)  No  1309/2013  as  set  out  in  the 
Explanatory Memorandum of the Proposal for a Regulation.

37

As referred to in Article 58(2)(a) or (b) of the Financial Regulation.

38

LEGISLATIVE FINANCIAL STATEMENT

1.4.4. Compatibility and possible synergy with other appropriate instruments

The  ESF+  and  EGF  will  continue  to  complement  each  other,  as  the  former  will 
continue  to  function  as  a  preventive  and  anticipatory  fund,  while  the  latter  will 
remain  a  reactive  emergency  Fund  outside  the  MFF.  The  ESF+  will  for  example 
complement the EGF by proactively supporting adequate measures in areas that are 
at  risk  due  to  foreseeable  economic  challenges.  Support  for  targeted  beneficiaries 
shall complement measures of the Member States at national, regional and local level 
including  those  co-financed  by  Union  funds,  in  line  with the  recommendations  set 
out in the EU Quality Framework for anticipation of change and restructuring (QFR).

1.

1.1.

FRAMEWORK OF THE PROPOSAL/INITIATIVE

Title of the proposal/initiative 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  the

European Globalisation Adjustment Fund (EGF).

1.2.

Policy area(s) concerned (Programme cluster)

European  Globalisation  Adjustment  Fund  as  included  in  DG  EMPL  2018 

1.3.

The proposal/initiative relates to: 

Management Plan.

 a new action

 a new action following a pilot project/preparatory action37

 the extension of an existing action

 a merger or redirection of one or more actions towards another/a new action

1.4.

Grounds for the proposal/initiative 

1.4.1.

Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative

Regulation (EU) No 1309/2013 must be  reviewed  by  the  end  of  2020.  The  review, 

which is carried out by means of the Proposal for a Regulation, enables the Fund to 

continue,  to  enlarge  its  objective  offer  support  to  displaced  workers  and  self-

employed  persons  whose  activity  has  ceased  in  the  course  of  unexpected  major 

restructuring  events,  and  to  amend  some  technical  details  in  order  to  have  more 

coherence and synergies, flexibility, focus on performance, and simplification.

1.4.2.

Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 

the purposes of this point 'added value of Union involvement' is the value resulting 

from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 

otherwise created by Member States alone.

Expected  generated  Union  added  value  (ex-post)  Union  involvement  through  the 

EGF  makes  it  possible  to  complement  national  measures  in  order  to  re-integrate 

dismissed workers by offering them a unique combination of tailored measures that 

lead to more sustainable results, increase the self-esteem of beneficiaries, who finally 

have  a  more  proactive  approach  to  job  seeking,  and  improve  their  employability.

Experience  achieved  so  far  with  the  EGF  indicates  that  the  help  offered  would  not 

have been available without the involvement of the EGF.

1.4.3.

Lessons learned from similar experiences in the past

See  the  experience  gained  under  Regulation  (EU)  No  1309/2013  as  set  out  in  the 

Explanatory Memorandum of the Proposal for a Regulation.

37

As referred to in Article 58(2)(a) or (b) of the Financial Regulation.

39

1.5.

Duration and financial impact 

 limited duration 
–  in effect from 01/01/2021 

–  Financial impact from 2021 to 2027 for commitment appropriations and from 

2021 to 2031 for payment appropriations. 

 unlimited duration

– Implementation  with  a  start-up period from  YYYY to YYYY, followed  by  full-

scale operation.

1.6.

Management mode(s) planned38
 Direct management by the Commission

–  by its departments, including by its staff in the Union delegations; 

–  by the executive agencies 

 Shared management with the Member States 

 Indirect management by entrusting budget implementation tasks to:

–  third countries or the bodies they have designated;

–  international organisations and their agencies (to be specified);

– the EIB and the European Investment Fund;

–  bodies referred to in Articles 70 and 71 of the Financial Regulation;

–  public law bodies;

–  bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees;

–  bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership and  that  provide  adequate 
financial guarantees;

–  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act.

–

If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments 

[…]

[…]

38

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx

40

2.

2.1.

MANAGEMENT MEASURES

Monitoring and reporting rules 

Specify frequency and conditions.

Article 21 of the proposed Regulation requires the Commission to present every two 

years  to  the  European  Parliament  and  the  Council  a  quantitative  and  qualitative 

report  on  the  activities  carried  out  under  the  proposed  Regulation  as  well  as  under 

Regulation  (EU)  No  1309/2013  in  the  previous  two  years.  This  report  shall  focus 

mainly on the results achieved by the EGF and shall in particular contain information 

relating to applications submitted, decisions adopted, measures funded,

In accordance with Article 22 of the proposed Regulation, the Commission will carry 

out  before  the  end  of  30  June  2025,  an  interim  evaluation  on  the  mobilised  EGF 

funding. By 31 December 2029, the Commission is required to carry out an ex-post 

evaluation of the mobilised EGF funding.

2.2.

Management and control system(s) 

2.2.1.

Justification of the management mode(s), the funding implementation mechanism(s), 

the payment modalities and the control strategy proposed

The  requirements  applicable  to  management  and  financial  control  are  laid  down  in 

Article 23 of the proposed Regulation.

EGF  is  and  will  remain  under  shared  management. Experience  has  shown  that  a 

tailor-made  package  of  personalised  services  needs  to  be  designed  by  the  authority 

closest to the citizens. Depending on the Member State and the type of restructuring 

event,  this  would  usually  be  a  local,  regional  or  national  authority.  The 

implementation tasks will therefore be delegated to the Member State authorities. EU 

intervention is needed due to the scale of the impact of the redundancies, but in line 

with  the  subsidiarity  principle  it  will  be  limited  to  what  is  necessary  to  fulfil  the 

objectives of showing Union solidarity with displaced workers.

Given  its  purpose,  which  is  to  provide  support  in  situations  of  urgency  and 

unexpected circumstances, the EGF shall remain a flexibility and special instrument 

outside the budgetary ceilings of the Multiannual Financial Framework.

Regarding  the  mobilisation  mechanism  is  laid  down  in  Article  16  of  the  proposed 

Regulation.  The  Commission  shall  pay  the  financial  contribution  to  the  Member 

State concerned in a single 100 % pre-financing payment.

2.2.2.

Information concerning the risks identified and the internal control system(s) set up 

to mitigate them

The risks are those related to shared management of Community Funds.

1.5.

Duration and financial impact 

 limited duration 

–  in effect from 01/01/2021 

–  Financial impact from 2021 to 2027 for commitment appropriations and from 

2021 to 2031 for payment appropriations. 

 unlimited duration

– Implementation with  a start-up period from  YYYY to YYYY, followed  by  full-

scale operation.

1.6.

Management mode(s) planned38

 Direct management by the Commission

–  by its departments, including by its staff in the Union delegations; 

–  by the executive agencies 

 Shared management with the Member States 

 Indirect management by entrusting budget implementation tasks to:

–  third countries or the bodies they have designated;

–  international organisations and their agencies (to be specified);

– the EIB and the European Investment Fund;

–  bodies referred to in Articles 70 and 71 of the Financial Regulation;

–  public law bodies;

–  bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees;

–  bodies governed by the private law of a Member State that are entrusted with 

the  implementation  of  a  public-private  partnership and  that  provide  adequate 

financial guarantees;

–  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act.

–

If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments 

[…]

[…]

2.

2.1.

MANAGEMENT MEASURES

Monitoring and reporting rules 

Specify frequency and conditions.

Article 21 of the proposed Regulation requires the Commission to present every two 
years  to  the  European  Parliament  and  the  Council  a  quantitative  and  qualitative 
report  on  the  activities  carried  out  under  the  proposed  Regulation  as  well  as  under 
Regulation  (EU)  No  1309/2013  in  the  previous  two  years.  This  report  shall  focus 
mainly on the results achieved by the EGF and shall in particular contain information 
relating to applications submitted, decisions adopted, measures funded,

In accordance with Article 22 of the proposed Regulation, the Commission will carry 
out  before  the  end  of  30  June  2025,  an  interim  evaluation  on  the  mobilised  EGF 
funding. By 31 December 2029, the Commission is required to carry out an ex-post 
evaluation of the mobilised EGF funding.

2.2.

Management and control system(s) 

2.2.1.

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed

The  requirements  applicable  to  management  and  financial  control  are  laid  down  in 
Article 23 of the proposed Regulation.

EGF  is  and  will  remain  under  shared  management. Experience  has  shown  that  a 
tailor-made  package  of  personalised  services  needs  to  be  designed  by  the  authority 
closest to the citizens. Depending on the Member State and the type of restructuring 
event,  this  would  usually  be  a  local,  regional  or  national  authority.  The 
implementation tasks will therefore be delegated to the Member State authorities. EU 
intervention is needed due to the scale of the impact of the redundancies, but in line 
with  the  subsidiarity  principle  it  will  be  limited  to  what  is  necessary  to  fulfil  the 
objectives of showing Union solidarity with displaced workers.

Given  its  purpose,  which  is  to  provide  support  in  situations  of  urgency  and 
unexpected circumstances, the EGF shall remain a flexibility and special instrument 
outside the budgetary ceilings of the Multiannual Financial Framework.

Regarding  the  mobilisation  mechanism  is  laid  down  in  Article  16  of  the  proposed 
Regulation.  The  Commission  shall  pay  the  financial  contribution  to  the  Member 
State concerned in a single 100 % pre-financing payment.

2.2.2.

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them

The risks are those related to shared management of Community Funds.

38

Details of management modes and references to the Financial Regulation may be found on the 

BudgWeb site: 

https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx

41

2.2.3.

Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure) 

The  requirements  applicable  to  management  and  financial  control  are  laid  down  in 
Article 23 of the proposed Regulation.

In terms of expected error rate(s), at the stage of the legislative proposals the aim is 
to maintain the error rate below the threshold of 2%. A different materiality threshold 
could only be discussed on a case-by-case basis in the light of the legislative debate, 
notably  when  the  Legislative  Authority  would  not  (fully)  endorse  the  proposed 
programme  simplifications  and/or  would  cap  the  controls,  which  would  have 
consequences  on  the  expected  error  rate.  This  would  then  require  a  coordinated 
approach.]

2.3.

Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.

The  measures  to  prevent,  detect  and  correct  irregularities  are  laid  down  in  Article 
23(1)(e) and in Article 23(2) of the proposed Regulation.

In  the  case  of  the  shared  management  funds  there  is  the  more  specific  Joint  Anti-
Fraud  Strategy  (JAFS)  2015-2020  of  DG  Regional  and  Urban  Policy,  DG 
Employment, Social Affairs and Inclusion and DG Maritime Affairs and Fisheries.

The Commission Communication on an anti-fraud strategy (COM(2011)376 final of 
24.6.2011) welcomes the existing strategy as a best practice initiative and envisages 
complementary actions to it, the most important being that the Commission proposal 
for  2014-2020  regulations  request  Member  States  to  put  in  place  fraud  prevention 
measures. The current Commission proposal includes an explicit requirement to put 
in  place  such  measures.  This  should  further  reinforce  fraud  awareness  in  Member 
States among all bodies involved in the management and control of funds and thus 
reduce the risk of fraud.

3.

3.1.

Heading of 

multiannual 

financial 

framework

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

Heading  of  the  multiannual  financial  framework  and  new  expenditure  budget 

line(s) proposed 

Budget line

Type of 

expenditure

Contribution 

Instrument  which  is  out  of  the 

Multiannual  Financial  Framework 

2021-2027

Diff./Non-diff. 39

from EFTA 

countries40

from 

candidate 

countries41

from third 

countries

within the 

meaning of 

Article [21(2)(b)] 

of the Financial 

Regulation 

n.a.

the European Globalisation 

Non-diff.

NO

NO

NO

NO

17 01 01 Support expenditure for 

Adjustment Fund

17.04 Operational line for the 

Fund

n.a.

European Globalisation Adjustment 

Diff.

NO

NO

NO

n.a.

30.03 Reserve for the European 

Globalisation Adjustment Fund

Diff

NO

NO

NO

NO

NO

39

40

41

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

EFTA: European Free Trade Association. 

Candidate countries and, where applicable, potential candidates from the Western Balkans

42

2.2.3.

Estimation and justification of the cost-effectiveness of the controls (ratio of "control 

costs ÷ value of the related funds managed"), and assessment of the expected levels 

of risk of error (at payment & at closure) 

The  requirements  applicable  to  management  and  financial  control  are  laid  down  in 

Article 23 of the proposed Regulation.

In terms of expected error rate(s), at the stage of the legislative proposals the aim is 

to maintain the error rate below the threshold of 2%. A different materiality threshold 

could only be discussed on a case-by-case basis in the light of the legislative debate, 

notably  when  the  Legislative  Authority  would  not  (fully)  endorse  the  proposed 

programme  simplifications  and/or  would  cap  the  controls,  which  would  have 

consequences  on  the  expected  error  rate.  This  would  then  require  a  coordinated 

approach.]

2.3.

Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.

The  measures  to  prevent,  detect  and  correct  irregularities  are  laid  down  in  Article 

23(1)(e) and in Article 23(2) of the proposed Regulation.

In  the  case  of  the  shared  management  funds  there  is  the  more  specific  Joint  Anti-

Fraud  Strategy  (JAFS)  2015-2020  of  DG  Regional  and  Urban  Policy,  DG 

Employment, Social Affairs and Inclusion and DG Maritime Affairs and Fisheries.

The Commission Communication on an anti-fraud strategy (COM(2011)376 final of 

24.6.2011) welcomes the existing strategy as a best practice initiative and envisages 

complementary actions to it, the most important being that the Commission proposal 

for  2014-2020  regulations  request  Member  States  to  put  in  place  fraud  prevention 

measures. The current Commission proposal includes an explicit requirement to put 

in  place  such  measures.  This  should  further  reinforce  fraud  awareness  in  Member 

States among all bodies involved in the management and control of funds and thus 

reduce the risk of fraud.

3.

3.1.

Heading of 
multiannual 
financial 
framework

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

Heading  of  the  multiannual  financial  framework  and  new  expenditure  budget 
line(s) proposed 

Budget line

Type of 
expenditure

Contribution 

Instrument  which  is  out  of  the 
Multiannual  Financial  Framework 
2021-2027

Diff./Non-diff. 39

from EFTA 
countries40

from 
candidate 
countries41

from third 
countries

within the 
meaning of 
Article [21(2)(b)] 
of the Financial 
Regulation 

n.a.

n.a.

n.a.

17 01 01 Support expenditure for 
the European Globalisation 
Adjustment Fund

17.04 Operational line for the 
European Globalisation Adjustment 
Fund

30.03 Reserve for the European 
Globalisation Adjustment Fund

Non-diff.

NO

NO

NO

NO

Diff.

NO

NO

NO

Diff

NO

NO

NO

NO

NO

39

40

41

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
EFTA: European Free Trade Association. 
Candidate countries and, where applicable, potential candidates from the Western Balkans

43

)
s
e
c
a
l
p

l
a
m
i
c
e
d

e
e
r
h
t

o
t
(
n
o
i
l
l
i

m
R
U
E

s
g
n
i
l
i
e
c
F
F
M

e
h
t

e
d
i
s
t
u
o

t
n
e
m
u
r
t
s
n
i

l
a
i
c
e
p
S

>
…
<

l
a
i
c
n
a
n
i
f

l
a
u
n
n
a
i
t
l
u
m

f
o
g
n
i
d
a
e
H

k
r
o
w
e
m
a
r
f

e
r
u
t
i
d
n
e
p
x
e

n
o

t
c
a
p
m

i

d
e
t
a
m

i
t
s
e

f
o
y
r
a
m
m
u
S

.
1
.
2
.
3

e
r
u
t
i

d
n
e
p
x
e
n
o
t
c
a
p
m

i
d
e
t
a
m

i
t
s
E

.
2
.
3

L
A
T
O
T

t
s
o
P

7
2
0
2

7
2
0
2

6
2
0
2

5
2
0
2

4
2
0
2

3
2
0
2

2
2
0
2

1
2
0
2

.

m
.
p

.
a
.
n

8
7
5
.
1

.

m
.
p

.
a
.
n

8
7
5
.
1

.

m
.
p

.
a
.
n

.

m
.
p

.
a
.
n

9
3
2

.

m
.
p

.

m
.
p

.

m
.
p

.
a
.
n

4
3
2

.

m
.
p

.

m
.
p

.

m
.
p

.
a
.
n

0
3
2

.

m
.
p

.

m
.
p

.

m
.
p

.
a
.
n

5
2
2

.

m
.
p

.

m
.
p

.

m
.
p

.
a
.
n

1
2
2

.

m
.
p

.

m
.
p

.

m
.
p

.
a
.
n

6
1
2

.

m
.
p

.

m
.
p

.

m
.
p

.
a
.
n

2
1
2

.

m
.
p

.

m
.
p

9
3
2

4
3
2

0
3
2

5
2
2

1
2
2

6
1
2

2
1
2

.

m
.
p

.

m
.
p

.

m
.
p

.

m
.
p

.

m
.
p

.

m
.
p

.

m
.
p

)
1
(

)
2
(

)
1
(

)
2
(

)
3
(

3
+
1
=

3
+
2
=

s
t
n
e
m

t
i

m
m
o
C

s
t
n
e
m

t
i

m
m
o
C

s
t
n
e
m
y
a
P

s
t
n
e
m
y
a
P

=
s
t
n
e
m

t
i

m
m
o
C

s
t
n
e
m
y
a
P

s
t
n
e
m

t
i

m
m
o
C

s
t
n
e
m
y
a
P

n
a
e
p
o
r
u
E

e
h
t

r
o
f

e
n
i
l

l
a
n
o
i
t
a
r
e
p
O

4
0

.

7
1

d
n
u
F
t
n
e
m
t
s
u
j
d
A
n
o
i
t
a
s
i
l
a
b
o
l
G

n
o
i
t
a
s
i
l
a
b
o
l
G
n
a
e
p
o
r
u
E
e
h
t

r
o
f

e
v
r
e
s
e
R
3
0

.

0
3

2
4
d
n
u
F
t
n
e
m

t
s
u
j
d
A

3
4
e
m
m
a
r
g
o
r
p

e
r
u
t
a
n

e
v
i
t
a
r
t
s
i
n
i
m
d
a
n
a

f
o
s
n
o
i
t
a
i
r
p
o
r
p
p
A

44

e
h
t

f
o

e
p
o
l
e
v
n
e

e
h
t

m
o
r
f

d
e
c
n
a
n
i
f

s
n
o
i
t
a
i
r
p
o
r
p
p
a
L
A
T
O
T

,
h
c
r
a
e
s
e
r

t
c
e
r
i
d
n
i

,
)
s
e
n
i
l

’

A
B

‘

r
e
m
r
o
f
(

s
n
o
i
t
c
a

r
o
/
d
n
a

s
e
m
m
a
r
g
o
r
p
U
E
f
o

n
o
i
t
a
t
n
e
m
e
l
p
m

i

e
h
t

f
o

t
r
o
p
p
u
s

n
i

e
r
u
t
i
d
n
e
p
x
e

d
n
a

e
c
n
a
t
s
i
s
s
a

e
v
i
t
a
r
t
s
i
n
i
m
d
a

r
o
/
d
n
a

l
a
c
i
n
h
c
e
T

d
n
u
F
t
n
e
m

t
s
u
j
d
A
n
o
i
t
a
s
i
l
a
b
o
l
G
n
a
e
p
o
r
u
E
e
h
t

r
o
f

r
a
e
y

h
c
a
e

e
l
b
a
l
i
a
v
a

s
t
n
u
o
m
a
m
u
m
i
x
a
m
e
h
t

e
r
a

e
v
o
b
a

d
e
t
a
c
i
d
n
i

s
e
r
u
g
i
f

e
h
T

2
4

3
4

.
h
c
r
a
e
s
e
r

t
c
e
r
i
d

’
e
r
u
t
i
d
n
e
p
x
e

e
v
i
t
a
r
t
s
i
n
i
m
d
A

‘

7

l
a
i
c
n
a
n
i
f

l
a
u
n
n
a
i
t
l
u
m

f
o
g
n
i
d
a
e
H

k
r
o
w
e
m
a
r
f

t

s

o

P

7

2

0

2

t

s

o

P

7

2

0

2

)

s

e

c

a

l

p

l

a

m

i

c

e

d

e

e

r

h

t

o

t

(

n

o

i

l

l

i

m

R

U

E

L

A

T

O

T

7

2

0

2

6

2

0

2

5

2

0

2

4

2

0

2

3

2

0

2

2

2

0

2

1

2

0

2

)

s

e

c

a

l

p

l

a

m

i

c

e

d

e

e

r

h

t

o

t

(

n

o

i

l

l

i

m

R

U

E

5

4

0

.

0

1

.

a

.

n

5

4

0

.

0

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

.

a

.

n

.

a

.

n

.

a

.

n

.

a

.

n

.

a

.

n

.

a

.

n

.

a

.

n

e

r

u

t

i

d

n

e

p

x

e

e

v

i

t

a

r

t

s

i

n

i

m

d

a

r

e

h

t

O

s

e

c

r

u

o

s

e

r

n

a

m

u

H

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

=

s

t

n

e

m

t

i

m

m

o

c

l

a

t

o

T

(

G

N

I

D

A

E

H

r

e

d

n

u

s

n

o

i

t

a

i

r

p

o

r

p

p

a

L

A

T

O

T

)

s

t

n

e

m

y

a

p

l

a

t

o

T

k

r

o

w

e

m

a

r

f

l

a

i

c

n

a

n

i

f

l

a

u

n

n

a

i

t

l

u

m

e

h

t

f

o

7

L

A

T

O

T

7

2

0

2

6

2

0

2

5

2

0

2

4

2

0

2

3

2

0

2

2

2

0

2

1

2

0

2

5

4

0

.

0

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

5

3

4

.

1

s

t

n

e

m

t

i

m

m

o

C

s

t

n

e

m

y

a

P

k

r

o

w

e

m

a

r

f

l

a

i

c

n

a

n

i

f

l

a

u

n

n

a

i

t

l

u

m

e

h

t

f

o

s

n

o

i

t

a

i

r

p

o

r

p

p

a

L

A

T

O

T

S

G

N

I

D

A

E

H

s

s

o

r

c

a

.

t

n

e

m

e

t

a

t

s

a

l

i

c

n

a

n

i

f

e

v

i

t

a

l

s

i

g

e

l

+

F

S

E

e

h

t

r

e

d

n

u

n

w

o

h

s

s

i

e

p

o

l

e

v

n

e

l

a

b

o

l

g

e

l

o

h

w

e

h

t

,

e

r

u

t

i

d

n

e

p

x

e

e

v

i

t

a

r

t

s

i

n

i

m

d

a

r

e

h

t

o

r

o

F

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
)

s

e

c

a

l

p

l

a

m

i

c

e

d

e

e

r

h

t

o

t

(

n

o

i

l

l

i

m

R

U

E

s

g

n

i

l

i

e

c

F

F

M

e

h

t

e

d

i

s

t

u

o

t

n

e

m

u

r

t

s

n

i

l

a

i

c

e

p

S

>

…

<

l

a

i

c

n

a

n

i

f

l

a

u

n

n

a

i

t

l

u

m

f

o

g

n

i

d

a

e

H

k

r

o

w

e

m

a

r

f

e

r

u

t

i

d

n

e

p

x

e

n

o

t

c

a

p

m

i

d

e

t

a

m

i

t

s

e

f

o

y

r

a

m

m

u

S

.

1

.

2

.

3

e

r

u

t

i

d

n

e

p

x

e

n

o

t

c

a

p

m

i

d

e

t

a

m

i

t

s

E

.

2

.

3

L

A

T

O

T

7

2

0

2

6

2

0

2

5

2

0

2

4

2

0

2

3

2

0

2

2

2

0

2

1

2

0

2

.

m

.

p

.

a

.

n

8

7

5

.

1

.

m

.

p

.

a

.

n

8

7

5

.

1

.

m

.

p

.

a

.

n

t

s

o

P

7

2

0

2

.

m

.

p

.

a

.

n

9

3

2

.

m

.

p

.

m

.

p

.

m

.

p

.

a

.

n

4

3

2

.

m

.

p

.

m

.

p

.

m

.

p

.

a

.

n

0

3

2

.

m

.

p

.

m

.

p

.

m

.

p

.

a

.

n

5

2

2

.

m

.

p

.

m

.

p

.

m

.

p

.

a

.

n

1

2

2

.

m

.

p

.

m

.

p

.

m

.

p

.

a

.

n

6

1

2

.

m

.

p

.

m

.

p

.

m

.

p

.

a

.

n

2

1

2

.

m

.

p

.

m

.

p

)

1

(

)

2

(

)

1

(

)

2

(

)

3

(

s

t

n

e

m

t

i

m

m

o

C

s

t

n

e

m

y

a

P

s

t

n

e

m

y

a

P

9

3

2

4

3

2

0

3

2

5

2

2

1

2

2

6

1

2

2

1

2

.

m

.

p

.

m

.

p

.

m

.

p

.

m

.

p

.

m

.

p

.

m

.

p

.

m

.

p

3

+

1

=

3

+

2

=

s

t

n

e

m

t

i

m

m

o

C

s

t

n

e

m

y

a

P

s

t

n

e

m

t

i

m

m

o

C

n

o

i

t

a

s

i

l

a

b

o

l

G

n

a

e

p

o

r

u

E

e

h

t

r

o

f

e

v

r

e

s

e

R

3

0

.

0

3

2

4

d

n

u

F

t

n

e

m

t

s

u

j

d

A

=

s

t

n

e

m

t

i

m

m

o

C

e

r

u

t

a

n

e

v

i

t

a

r

t

s

i

n

i

m

d

a

n

a

f

o

s

n

o

i

t

a

i

r

p

o

r

p

p

A

s

t

n

e

m

y

a

P

3

4

e

m

m

a

r

g

o

r

p

e

h

t

f

o

e

p

o

l

e

v

n

e

e

h

t

m

o

r

f

d

e

c

n

a

n

i

f

n

a

e

p

o

r

u

E

e

h

t

r

o

f

e

n

i

l

l

a

n

o

i

t

a

r

e

p

O

4

0

.

7

1

d

n

u

F

t

n

e

m

t

s

u

j

d

A

n

o

i

t

a

s

i

l

a

b

o

l

G

s

n

o

i

t

a

i

r

p

o

r

p

p

a

L

A

T

O

T

’

e

r

u

t

i

d

n

e

p

x

e

e

v

i

t

a

r

t

s

i

n

i

m

d

A

‘

7

l

a

i

c

n

a

n

i

f

l

a

u

n

n

a

i

t

l

u

m

f

o

g

n

i

d

a

e

H

k

r

o

w

e

m

a

r

f

,

h

c

r

a

e

s

e

r

t

c

e

r

i

d

n

i

,

)

s

e

n

i

l

’

A

B

‘

r

e

m

r

o

f

(

s

n

o

i

t

c

a

r

o

/

d

n

a

s

e

m

m

a

r

g

o

r

p

U

E

f

o

n

o

i

t

a

t

n

e

m

e

l

p

m

i

e

h

t

f

o

t

r

o

p

p

u

s

n

i

e

r

u

t

i

d

n

e

p

x

e

d

n

a

e

c

n

a

t

s

i

s

s

a

e

v

i

t

a

r

t

s

i

n

i

m

d

a

r

o

/

d

n

a

l

a

c

i

n

h

c

e

T

d

n

u

F

t

n

e

m

t

s

u

j

d

A

n

o

i

t

a

s

i

l

a

b

o

l

G

n

a

e

p

o

r

u

E

e

h

t

r

o

f

r

a

e

y

h

c

a

e

e

l

b

a

l

i

a

v

a

s

t

n

u

o

m

a

m

u

m

i

x

a

m

e

h

t

e

r

a

e

v

o

b

a

d

e

t

a

c

i

d

n

i

s

e

r

u

g

i

f

e

h

T

.

h

c

r

a

e

s

e

r

t

c

e

r

i

d

2

4

3

4

)
s
e
c
a
l
p

l
a
m
i
c
e
d

e
e
r
h
t

o
t
(
n
o
i
l
l
i

m
R
U
E

)
s
e
c
a
l
p

l
a
m
i
c
e
d

e
e
r
h
t

o
t
(
n
o
i
l
l
i

m
R
U
E

L
A
T
O
T

5
4
0
.
0
1

.
a
.
n

5
4
0
.
0
1

t
s
o
P

7
2
0
2

7
2
0
2

6
2
0
2

5
2
0
2

4
2
0
2

3
2
0
2

2
2
0
2

1
2
0
2

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

.
a
.
n

.
a
.
n

.
a
.
n

.
a
.
n

.
a
.
n

.
a
.
n

.
a
.
n

e
r
u
t
i
d
n
e
p
x
e

e
v
i
t
a
r
t
s
i
n
i
m
d
a

r
e
h
t
O

s
e
c
r
u
o
s
e
r

n
a
m
u
H

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

=

s
t
n
e
m

t
i

m
m
o
c

l
a
t
o
T
(

G
N
I
D
A
E
H
r
e
d
n
u
s
n
o
i
t
a
i
r
p
o
r
p
p
a
L
A
T
O
T

)
s
t
n
e
m
y
a
p

l
a
t
o
T

k
r
o
w
e
m
a
r
f

l
a
i
c
n
a
n
i
f

l
a
u
n
n
a
i
t
l
u
m
e
h
t

f
o

7

L
A
T
O
T

t
s
o
P

7
2
0
2

7
2
0
2

6
2
0
2

5
2
0
2

4
2
0
2

3
2
0
2

2
2
0
2

1
2
0
2

5
4
0
.
0
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

5
3
4
.
1

s
t
n
e
m

t
i

m
m
o
C

s
n
o
i
t
a
i
r
p
o
r
p
p
a
L
A
T
O
T

S
G
N
I
D
A
E
H

s
s
o
r
c
a

45

s
t
n
e
m
y
a
P

k
r
o
w
e
m
a
r
f

l
a
i
c
n
a
n
i
f

l
a
u
n
n
a
i
t
l
u
m
e
h
t

f
o

.
t
n
e
m
e
t
a
t
s

a
l
i
c
n
a
n
i
f

e
v
i
t
a
l
s
i
g
e
l

+
F
S
E
e
h
t

r
e
d
n
u

n
w
o
h
s

s
i

e
p
o
l
e
v
n
e

l
a
b
o
l
g

e
l
o
h
w
e
h
t

,
e
r
u
t
i
d
n
e
p
x
e

e
v
i
t
a
r
t
s
i
n
i
m
d
a

r
e
h
t
o
r
o
F

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.

Summary of estimated impact on appropriations of an administrative nature

3.2.2.1. Estimated requirements of human resources

–  The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

–  The proposal/initiative does not require the use of human resources. 

administrative nature 

–  The proposal/initiative requires the use of appropriations of an administrative 

below:

nature, as explained below:

EUR million (to three decimal places)

Years

2021

2022

2023

2024

2025

2026

2027

TOTAL

–  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

Years

2021

2022

2023

2024

2025

2026

2027

Estimate to be expressed in full time equivalent units

HEADING 7
of the multiannual 
financial framework

Human resources 

1.435

1.435

1.435

1.435

1.435

1.435

1.435

10.045

 External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED 45

1.435

1.435

1.435

1.435

1.435

1.435

1.435

10.045

Other administrative 
expenditure 

Subtotal HEADING 7
of the multiannual 
financial framework 

Outside HEADING 744
of the multiannual 
financial framework 

Human resources 

Other expenditure 
of an administrative 
nature

Subtotal 
outside HEADING 7
of the multiannual 
financial framework 

TOTAL

1.435

1.435

1.435

1.435

1.435

1.435

1.435

10.045

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints.

9

2

9

2

9

2

9

2

9

2

9

2

 Establishment plan posts (officials and temporary staff)

Headquarters and Commission’s 

Representation Offices

9

- at Headquarters

2

- in Delegations 

Financed from the 

envelope of the 

programme 46

- at Headquarters

- in Delegations 

Delegations

Research

Heading 7

Financed from 

HEADING 7 of 

the multiannual 

financial 

framework

Research

Other (specify)

TOTAL

External staff

11

11

11

11

11

11

11

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or 

have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the 

managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff

Analyse  and  discuss  EGF  applications  submitted  by  the  Member  States.  Preparae  the 

documentation  for  EGF  applications  being  presented  to  the  Commission  and  the 

Budgetary  Authority;  consult  and  discuss  with  the  relevant  Commission  Services 

throughout  their  workflow.  Monitor  the  implementation  of  the  financial  contributions. 

Prepare and/or discuss relevant modifications to the applications presented. 

Analyse  and  discuss  EGF  applications  submitted  by  the  Member  States.  Preparae  the 

documentation  for  EGF  applications  being  presented  to  the  Commission  and  the 

Budgetary  Authority;  consult  and  discuss  with  the  relevant  Commission  Services 

throughout  their  workflow.  Monitor  the  implementation  of  the  financial  contributions. 

Prepare and/or discuss relevant modifications to the applications presented. 

44

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

45

46

AC=  Contract  Staff;  AL  =  Local  Staff;  END  =  Seconded  National  Expert;  INT  =  agency  staff; 

JPD= Junior Professionals in Delegations. 

Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

46

3.2.2.

Summary of estimated impact on appropriations of an administrative nature

3.2.2.1. Estimated requirements of human resources

–  The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

–  The proposal/initiative does not require the use of human resources. 

–  The proposal/initiative requires the use of appropriations of an administrative 

below:

–  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

Years

2021

2022

2023

2024

2025

2026

2027

Estimate to be expressed in full time equivalent units

administrative nature 

nature, as explained below:

EUR million (to three decimal places)

Years

2021

2022

2023

2024

2025

2026

2027

TOTAL

 Establishment plan posts (officials and temporary staff)

Human resources 

1.435

1.435

1.435

1.435

1.435

1.435

1.435

10.045

1.435

1.435

1.435

1.435

1.435

1.435

1.435

10.045

HEADING 7

of the multiannual 

financial framework

Other administrative 

expenditure 

Subtotal HEADING 7

of the multiannual 

financial framework 

Outside HEADING 744

of the multiannual 

financial framework 

Human resources 

Other expenditure 

of an administrative 

nature

Subtotal 

outside HEADING 7

of the multiannual 

financial framework 

TOTAL

1.435

1.435

1.435

1.435

1.435

1.435

1.435

10.045

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 

appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 

DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 

allocation procedure and in the light of budgetary constraints.

Headquarters and Commission’s 
Representation Offices

9

9

9

Delegations

Research

 External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED 45
Heading 7

Financed from 
HEADING 7 of 
the multiannual 
financial 
framework

- at Headquarters

2

2

2

- in Delegations 

9

2

9

2

9

2

9

2

Financed from the 
envelope of the 
programme 46

- at Headquarters

- in Delegations 

Research

Other (specify)

TOTAL

11

11

11

11

11

11

11

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or 
have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the 
managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff

External staff

Analyse  and  discuss  EGF  applications  submitted  by  the  Member  States.  Preparae  the 
documentation  for  EGF  applications  being  presented  to  the  Commission  and  the 
Budgetary  Authority;  consult  and  discuss  with  the  relevant  Commission  Services 
throughout  their  workflow.  Monitor  the  implementation  of  the  financial  contributions. 
Prepare and/or discuss relevant modifications to the applications presented. 

Analyse  and  discuss  EGF  applications  submitted  by  the  Member  States.  Preparae  the 
documentation  for  EGF  applications  being  presented  to  the  Commission  and  the 
Budgetary  Authority;  consult  and  discuss  with  the  relevant  Commission  Services 
throughout  their  workflow.  Monitor  the  implementation  of  the  financial  contributions. 
Prepare and/or discuss relevant modifications to the applications presented. 

44

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 

EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

45

46

AC=  Contract  Staff;  AL  =  Local  Staff;  END  =  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations. 
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

47

3.2.3.

Third-party contributions 

The proposal/initiative:

–  does not provide for co-financing by third parties

–  provides for the co-financing by third parties estimated below:

Years

2021

2022

2023

2024

2025

2026

2027

TOTAL

Appropriations in EUR million (to three decimal places)

Specify  the  co-financing 
body

TOTAL appropriations 
co-financed 

3.3.

Estimated impact on revenue 
–  The proposal/initiative has no financial impact on revenue.

–  The proposal/initiative has the following financial impact:





on own resources 

on other revenue

please indicate, if the revenue is assigned to expenditure lines 

EUR million (to three decimal places)

Impact of the proposal/initiative47

2021

2022

2023

2024

2025

2026

2027

Budget revenue line:

Article ………….

For assigned revenue, specify the budget expenditure line(s) affected.

[…]

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

[…]

47

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, 
i.e. gross amounts after deduction of 20 % for collection costs.

48

3.2.3.

Third-party contributions 

The proposal/initiative:

–  does not provide for co-financing by third parties

–  provides for the co-financing by third parties estimated below:

Years

2021

2022

2023

2024

2025

2026

2027

TOTAL

Appropriations in EUR million (to three decimal places)

Specify  the  co-financing 

body

TOTAL appropriations 

co-financed 

3.3.

Estimated impact on revenue 

–  The proposal/initiative has no financial impact on revenue.

–  The proposal/initiative has the following financial impact:





on own resources 

on other revenue

please indicate, if the revenue is assigned to expenditure lines 

EUR million (to three decimal places)

Impact of the proposal/initiative47

2021

2022

2023

2024

2025

2026

2027

For assigned revenue, specify the budget expenditure line(s) affected.

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

Budget revenue line:

Article ………….

[…]

[…]

47

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, 

i.e. gross amounts after deduction of 20 % for collection costs.

Annex to the proposal
COM(2018) 380 final

EUROPEAN
COMMISSION

Brussels, 30.5.2018
COM(2018) 380 final

ANNEX

ANNEX

to the

Proposal for a Regulation of the European Parliament and of the Council

on the European Globalisation Adjustment Fund (EGF)

50

–

–

–

–

–

–

–

–

–

–

–

–

ANNEX 

Common output and result indicators for EGF applications

All personal data1 are to be broken down by gender (female, male, non binary).

(1)

Common output indicators on beneficiaries

unemployed*,

inactive*,

employed*,

self-employed*,

below 30 years of age*,

above 54 years of age*,

with lower secondary education or less (ISCED 0-2)*,

with upper secondary (ISCED 3) or post-secondary education (ISCED 4)*,

with tertiary education (ISCED 5-8)*.

The total number of beneficiaries is to be calculated automatically on the basis of the common 

output indicators relating to employment status2.

These data on beneficiaries participating in EGF co-funded measures are to be provided in the 

final report as specified in Article 20(1).

(2)

Common result indicators for beneficiaries

percentage  of  EGF  beneficiaries  in  employment  (broken  down  by  type  of 

employment  contract:  full  time/part  time,  fixed  term/open-ended)  and  self-

employment, 6 months after the end of the implementation period*,

percentage of EGF beneficiaries gaining a qualification 6 months after the end 

of the implementation period*,

of the implementation period*.

percentage of EGF beneficiaries in education or training 6 months after the end 

These  data  are  to  be  provided  in  the  final  report  as  specified  in  Article 20(1)  and  are  to  be 

collected by means of data provided by the competent authorities of the Member State as well 

as  by  beneficiary  surveys  (as  specified  in  Article 20(1)d).  Those  data  are  to  cover  the 

calculated total number of beneficiaries as reported under the common output indicators (1). 

The percentages shall thus also relate to this calculated total.

(3)

Common longer-term result indicator for beneficiaries

1

2

Managing  authorities  are  to  establish  a  system  that  records  and  stores  individual  participant  data  in 

computerised form. The data processing arrangements put in place by the Member States are to be in 

line with the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council of 

27 April 2016 on the protection of natural persons with regard to the processing of personal data and on 

the  free  movement  of  such  data,  and  repealing  Directive  95/46/EC  (OJ  L  119,  4.05.2016,  p.  1),  in 

particular Articles 4, 6 and 9 thereof. Data reported under the indicators marked with * are personal data 

according to  Article 4(1) of  Regulation (EU) 2016/679. Their processing is necessary  for compliance 

with  the  legal  obligation  to  which  the  controller  is  subject  (Article  6(1)(c)  of  Regulation  (EU) 

2016/679).

Unemployed, inactive, employed, self employed

EUROPEAN

COMMISSION

Brussels, 30.5.2018

COM(2018) 380 final

ANNEX

ANNEX

to the

Proposal for a Regulation of the European Parliament and of the Council

on the European Globalisation Adjustment Fund (EGF)

ANNEX 

Common output and result indicators for EGF applications
All personal data1 are to be broken down by gender (female, male, non binary).

(1)

Common output indicators on beneficiaries

–

–

–

–

–

–

–

–

–

unemployed*,

inactive*,

employed*,

self-employed*,

below 30 years of age*,

above 54 years of age*,

with lower secondary education or less (ISCED 0-2)*,

with upper secondary (ISCED 3) or post-secondary education (ISCED 4)*,

with tertiary education (ISCED 5-8)*.

The total number of beneficiaries is to be calculated automatically on the basis of the common 
output indicators relating to employment status2.

These data on beneficiaries participating in EGF co-funded measures are to be provided in the 
final report as specified in Article 20(1).

(2)

Common result indicators for beneficiaries

–

–

–

percentage  of  EGF  beneficiaries  in  employment  (broken  down  by  type  of 
employment  contract:  full  time/part  time,  fixed  term/open-ended)  and  self-
employment, 6 months after the end of the implementation period*,

percentage of EGF beneficiaries gaining a qualification 6 months after the end 
of the implementation period*,

percentage of EGF beneficiaries in education or training 6 months after the end 
of the implementation period*.

These  data  are  to  be  provided  in  the  final  report  as  specified  in  Article 20(1)  and  are  to  be 
collected by means of data provided by the competent authorities of the Member State as well 
as  by  beneficiary  surveys  (as  specified  in  Article 20(1)d).  Those  data  are  to  cover  the 
calculated total number of beneficiaries as reported under the common output indicators (1). 
The percentages shall thus also relate to this calculated total.

(3)

Common longer-term result indicator for beneficiaries

1

2

Managing  authorities  are  to  establish  a  system  that  records  and  stores  individual  participant  data  in 
computerised form. The data processing arrangements put in place by the Member States are to be in 
line with the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council of 
27 April 2016 on the protection of natural persons with regard to the processing of personal data and on 
the  free  movement  of  such  data,  and  repealing  Directive  95/46/EC  (OJ  L  119,  4.05.2016,  p.  1),  in 
particular Articles 4, 6 and 9 thereof. Data reported under the indicators marked with * are personal data 
according to  Article 4(1) of  Regulation (EU) 2016/679. Their processing is necessary  for compliance 
with  the  legal  obligation  to  which  the  controller  is  subject  (Article  6(1)(c)  of  Regulation  (EU) 
2016/679).
Unemployed, inactive, employed, self employed

51

–

percentage  of  EGF  beneficiaries  in  employment,  including  self-employment, 
18 months after the end of the implementation period specified in the financing 
decision*.

These data are to be made available by the end  of the nineteenth month after the end of the 
implementation period. The data should cover the calculated total number of beneficiaries as 
reported under the common output indicators (1). The percentages shall thus also relate to this 
calculated  total.  For  larger  cases,  covering  more  than  1 000  beneficiaries,  data  may 
alternatively be collected based on a representative sample of the total number of beneficiaries 
as reported as an output indicator (1). 

52

Getting in touch with the EU

In person
All over the European Union there are hundreds of Europe Direct information centres. You can find the address 
of the centre nearest you at: https://europa.eu/european-union/contact_en

On the phone or by email
Europe Direct is a service that answers your questions about the European Union. You can contact this 
service:
– by freephone: 00 800 6 7 8 9 10 11 (certain operators may charge for these calls),
– at the following standard number: +32 22999696 or 
– by email via: https://europa.eu/european-union/contact_en

Finding information about the EU

Online
Information about the European Union in all the official languages of the EU is available on the Europa 
website at: https://europa.eu/european-union/index_en

EU publications 
You can download or order free and priced EU publications at: https://publications.europa.eu/en/publications. 
Multiple copies of free publications may be obtained by contacting Europe Direct or your local information centre 
(see https://europa.eu/european-union/contact_en).

EU law and related documents
For access to legal information from the EU, including all EU law since 1952 in all the official language 
versions, go to EUR-Lex at: http://eur-lex.europa.eu

Open data from the EU
The EU Open Data Portal (http://data.europa.eu/euodp/en) provides access to datasets from the EU. Data can 
be downloaded and reused for free, for both commercial and non-commercial purposes.

COM(2018)380 final