Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Spain – EGF/2020/001 ES/Galicia shipbuilding ancillary sectors
Date: 2020-09-11
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Galicia, Spain, collective dismissal, commitment of expenditure, employment aid, general budget (EU), globalisation, reintegration into working life, shipbuilding

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 11.9.2020 COM(2020) 485 final  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Spain – EGF/2020/001 ES/Galicia shipbuilding ancillary sectors  
 
EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

1. 

2. 

3. 

The  rules  applicable  to  financial  contributions  from  the  European  Globalisation 
Adjustment  Fund  (EGF)  are  laid  down  in  Regulation  (EU)  No 1309/2013  of  the 
European  Parliament  and  of  the  Council  of  17 December  2013  on  the  European 
Globalisation  Adjustment  Fund  (2014-2020)  and  repealing  Regulation  (EC) 
No 1927/20061 (the ‘EGF Regulation’). 

On  13  May  2020,  Spain  submitted  an  application  EGF/2020/001 ES/Galicia 
shipbuilding  ancillary  sectors  for  a  financial  contribution  from  the  EGF,  following 
redundancies2  in  the  economic  sectors  classified  under  the  NACE  Revision  2 
Division  24  (Manufacture  of  basic  metals),  25  (Manufacture  of  fabricated  metal 
products,  except  machinery  and  equipment),  30  (Manufacture  of  other  transport 
equipment), 32 (Other manufacturing), 33 (Repair and installation of machinery and 
equipment) and 43 (Specialised construction activities) in the NUTS level 2 region of 
Galicia  (ES11)  in  Spain.  Hereafter,  these  sectors  will  be  referred  as  shipbuilding 
ancillary sectors. 

Following  its  assessment  of  this  application,  the  Commission  has  concluded,  in 
accordance with all applicable provisions of the EGF Regulation, that the conditions 
for awarding a financial contribution from the EGF are met.  

SUMMARY OF THE APPLICATION 

EGF application 

EGF/2020/001 ES/Galicia 
shipbuilding ancillary sectors 

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

Date of submission of the application 

Date of acknowledgement of receipt of the 
application 

Spain 
Galicia (ES11) 

13 May 2020 

13 May 2020 

Date of request for additional information 

27 May 2020 

Deadline for provision of the additional 
information 

8 July 2020 

Deadline for the completion of the assessment 

30 September 2020 

Intervention criterion 

Article 4(2) of the EGF Regulation 

Number of enterprises concerned 

38 

1 
2 
3 

OJ L 347, 20.12.2013, p. 855. 
Within the meaning of Article 3 of the EGF Regulation. 
Commission  Regulation  (EU)  No 1046/2012  of  8  November  2012  implementing  Regulation  (EC) 
No 1059/2003  of  the  European  Parliament  and  of  the  Council  on  the  establishment  of  a  common 
classification of territorial units for statistics (NUTS) as regards the transmission of the time series for 
the new regional breakdown (OJ L 310, 9.11.2012, p. 34). 

EN 

1 

  EN 

 
 
                                                 
Sectors of economic activity 
(NACE Revision 2 Division)4 

Division 24 (Manufacture of basic 
metals), 
Division 25 (Manufacture of 
fabricated metal products, except 
machinery and equipment), 
Division 30 (Manufacture of other 
transport equipment), 
Division 32 (Other manufacturing), 
Division 33 (Repair and installation of 
machinery and equipment), and 
Division 43 (Specialised construction 
activities). 

Reference period (nine months): 

23 May 2019 – 23 February 2020 

Number of redundancies during the reference 
period 

Total number of eligible beneficiaries 

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

960 

960 

500 
3 274 000 
0 150 000 
3 424 000 
2 054 400 

ASSESSMENT OF THE APPLICATION 

Procedure 

4. 

Spain submitted application EGF/2020/001 ES/Galicia shipbuilding ancillary sectors 
within 12 weeks of the date on which the intervention criteria set out in Article 4 of 
the  EGF  Regulation  were  met,  on  13  May  2020.  The  Commission  acknowledged 
receipt  of  the  application  on  the  same  date,  and  requested  additional  information 
from  Spain  on  27  May  2020.  Such  additional  information  was  provided  within  six 
weeks  of  the  request.  The  deadline  of  12  weeks  of  the  receipt  of  the  complete 
application  within  which  the  Commission  should  finalise  its  assessment  of  the 
application's  compliance  with  the  conditions  for  providing  a  financial  contribution 
expires on 30 September 2020.  

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The application relates to 960 workers made redundant in the shipbuilding ancillary 
sectors, in enterprises located in the NUTS level 2 region of Galicia (ES11). 

4 
5 

OJ L 393, 30.12.2006, p. 1. 
In accordance with the fourth paragraph of Article 7 of Regulation (EU) No 1309/2013. 

EN 

2 

  EN 

 
 
                                                 
Enterprises and number of dismissals within the reference period 

Division 
24 

Manufacture of basic metals 

  Division 

33 

  AISLAMIENTOS SOAMAR, S.L. 

Repair and installation of 
machinery and equipment 
2 

PIPEWORKS, S.L. 

Division 
25 

15 
Manufacture of fabricated 
metal products, except 
machinery and equipment 

ELABORADOS METALICOS 
EMESA, S.L.U. 
INDUSTRIAL DE ACABADOS, 
S.A. (INDASA) 
IRIS SOCIEDAD COOP. 
GALLEGA DE TRABAJO 
ASOCIADO 

MONTAJES ROTELU, S.L. 

MONTAJES TUBACER, S.L. 

NAVALIBER, S.L. 

TALLERES DIZMAR, S.L. 

TALLERES MECANICOS 
GALICIA, S.L. 
WELDMAIN SERVICIOS 
CALDERIA, TUBERIA Y 
SOLDADURA, S.L. 
Division 
30 

AZZERO MORRAZO  

DOMAYO METAL SL 
FACTORIAS VULCANO, S.A. 
INDUSTRIAS  NAVALES  A 
XUNQUEIRA, S.L. 

TUYCALDE, S.L. 

33 

15 

22 

7 

128 

88 

7 

4 

12 

15 
69 

3 

8 

37 

VIGUESA  DE  CARPINTERIA  Y 
POLIURETANO, 
S.L. 
(VICARPO) 
Division 
32 

Other manufacturing 

CYSTERCLEAN SA 

57 

6 

8 

1 

5 

54 

18 

5 

29 

13 

20 

2 

6 

11 
3 

22 

BULBO 

CALSOMATU SL 

CANCELAS NAVAL SL 

COGALSO FERROLTERRA, 
S.C.G.T. 

  EXACTA SERVICIOS NAVALES E 

INDUSTRIALES, S.L. 

  GABADI, S.L. 

INSTALACIONES Y 
MANTENIMIENTOS IMAFER, S.L. 
J.J. NAVAL HISPANOGALAICA, 
S.L. 

M. BLANCO, S.L. 

  MONTAJES HERMANOS 

RAMALLO, S.L. 

  MONTAJES HERMANOS 

RODRIGUEZ RAMALLO, S.L. 

  SERFRIMEC, S.L. 
  TALLERES NAVALES RUIZ, S.L. 
  TUBERIA NAVAL FERRADAS, 

S.L. 
  Division 

43 

Specialised construction 
activities 

ELINCO CONSTRUCCIONES 
ELECTRICAS SL 

MONTAXES AGORPA, S.L.L. 

  NORINVER MONTAJES E 

INGENIERIA, S.L. 
  PROTECNAVI, S.L. 
  URKIRA OX, S.L. 

92 

62 

22 

4 
24 

31 

MONTAJES CANCELAS, S.L. 

Manufacture of other transport 
equipment 

Total no. of enterprises: 38 

Total no. of dismissals:  

960 

Total no. of eligible workers:  960 

Intervention criteria 

6. 

Spain submitted the application under the intervention criteria of Article 4(2), which 
derogates from the criteria of Article 4(1)(b) of the EGF Regulation requiring at least 
500  workers  being  made  redundant  over  a  reference  period  of  nine  months  in 
enterprises  operating  in  the  same  economic  sector  defined  at  NACE  Revision  2 
Division  and  located  in  one  region  or  two  contiguous  regions  defined  at  NUTS  2 
level in a Member State. There were 960 redundancies in the NUTS level 2 region of 

EN 

3 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Galicia  (ES11)  in  the  shipbuilding  ancillary  sectors.  However,  as  the  redundancies 
did  not  take  place  in  the  same  economic  sector  (see  paragraph  2),  the  derogation 
from article 4(1)(b) provided for in article 4(2) is applied (see paragraphs 17-22 for 
more  details  on  the  exceptional  circumstances  concerning  the  admissibility  of  the 
application). 

7. 

The reference period of nine months for the application runs from 23 May 2019 to 23 
February 2020. 

Calculation of redundancies and of cessation of activity 

8. 

The 960 redundancies during the reference period have been calculated from the date 
of the de facto termination of the contract of employment or its expiry. 

Eligible beneficiaries 

9. 

The total number of eligible beneficiaries is 960. 

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

10. 

11. 

12. 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Spain  argues  that  the  global  maritime 
industry changed dramatically over the last 20 years. Resulting from massive growth 
of the order book in the period 2002 - 2008 (from 48,9 million Compensated Gross 
Tonnes  (CGT)6  to  194,2  million)7,  new  shipyards  were  built  and  most  of  them  in 
Asia.  However,  the  global  economic  and  financial  crisis  already  halved  the  orders 
between  2008  and  2012.  The  declining  trend  has  continued  ever  since.  Since  2012 
and  until  the  end  of    2019,  orders  decreased  by  13,6%  (from  92,3  million  CGT  to 
79,7  million)8.  As  a  result  of  the  reduced  orders  and  the  significant  expansion  of 
shipbuilding in Asia, the sector has been suffering from global overcapacity leading 
to tough global competition.  

The fact  that  a new ocean-going  vessel  can load its first  freight  independent  of the 
location  where  it  has  been  built  adds  to  the  flexibility  of  ship  buyers  in  procuring 
vessels, intensifying competition of shipyards across the globe9. 

Within 15 years (from 2004 to 2019), Europe has lost its merchant shipbuilding (i.e. 
the building of tankers, bulkers and containerships) to East-Asia. In the light of fierce 
their 
competition  from  East-Asian  countries  European  shipyards  refocused 
shipbuilding activities to new markets and entered into the niche markets of complex 
shipbuilding  such  as  passenger  ships  and  other  non-cargo  carrying  vessels 
(ONCCV)10. In 2019, passenger ships, ONCCV and offshore accounted all together 
for 95% of the European orders11. 

13. 

However, confronted with a serious overcapacity in merchant shipbuilding in recent 
years,  countries  like  China,  South  Korea  and  Japan  have  equally  decided  to  enter 
Europe’s market of high-tech/complex ship types recently. Moreover, these countries 

6 

7 
8 
9 

10 
11 

CGT  -  Compensated  Gross  Tonnes  -  International  unit  of  measure  that  facilitates  the  comparison  of 
different shipyards’ production regardless of the types of vessel produced. 
Source: Sea Europe Shipbuilding Market Monitoring, report 46 FY 2018. 
Ibid. 
An  analysis  of  market-distorting  factors  in  shipbuilding.  OECD  Science,  Technology  and  Industry 
Policy Papers. April 2019, No. 67. 
SEA Europe Annual Report 2018 2019. 
EU28 and Norway.  

EN 

4 

  EN 

                                                 
have introduced new sectoral strategies and policies and apply a toolbox of measures, 
including  state  aid  and  other  financial  incentives,  aimed  at  stimulating  domestic 
demand.  In  addition,  these  countries  have  also  introduced  new  or  additional  trade 
measures in support of their local shipyards as well as their local maritime equipment 
companies12. 

This  has  led  to  a  considerable  shift  in  the  global  production  from  Europe  towards 
Asia.  In  2002,  the  global  market  leaders  in  shipbuilding,  measured  by  production 
volume,  were  South  Korea  and  Japan  (30%  each)  followed  by  Europe  (22,5%). 
China represented only 7% of the shipbuilding worldwide. By 2018, China, (35,5%) 
had become the leader, followed by Japan (23,4%) and South Korea (22,7%), whilst 
Europe's market share had fallen to only 6,8%13. In terms of the order book, Europe's 
share in 2019 was 14,7% (five p.p. less than in 2002), China as market leader had a 
share of 34%, South Korea 26% and Japan 15%14. 

Europe has thus largely lost out to Asian countries with lower labour costs, subsidy 
policies and preferential fiscal treatment15.  

To  date,  the  shipbuilding  sector  in  the  broader  sense  has  been  the  subject  of  seven 
EGF applications16, with two based on trade related globalisation and the other five 
on the global financial and economic crisis. Four of these cases relate to machinery 
and equipment for ships, while the other three relate to shipyards. 

14. 

15. 

16. 

Explanation of the exceptional circumstances underlying the admissibility of the application 

17. 

18. 

19. 

20. 

12 
13 
14 
15 
16 

17 
18 
19 

Article 4(2)  of  the  EGF  Regulation  allows  that  a  collective  application  involving 
SMEs located in one region may cover SMEs operating in different economic sectors 
as defined at NACE Revision 2 division level, provided that it is SMEs that are the 
main or the only type of business in that region.  

According to  the Galician  Institute of Statistics, in  2018, 247 631, enterprises were 
registered in Galicia, of which 247 478 (99,94%) had less than 250 workers17. SMEs 
are, therefore, the backbone of this region’s economy. 

Moreover, all the 38 enterprises concerned by this application are SMEs. 

European  shipbuilding  is  mostly  made  up  of  small  and  medium  shipyards  (60-150 
ton  ships),  with  an  estimated  subcontracting  of  80%  of  the  value18  and  89%  of 
employment19.  The  Galician  shipbuilding  follows  this  subcontracting  pattern.  The 
subcontractors  have  a  high  level  of  specialisation  and  therefore  a  high  degree  of 
dependence on the main shipyard. When the main shipyard has economic difficulties, 

Cf. SEA Europe Annual Report 2018 2019. 
Source: Sea Europe Shipbuilding Market Monitoring, report 46 FY 2018. 
SEA Europe Annual Report 2018 2019. 
ECORYS (2009) Study on the Competitiveness of the European Shipbuilding Industry. 
These  are:  EGF/2010/001 DK/  Nordjylland  COM(2010) 451;  EGF/2010/006 PL/  Cegielski-Poznan 
COM(2010) 631;  EGF/2010/025 DK/  Odense  Steel  Shipyard  COM(2011) 251;  EGF/2011/008 DK/ 
Odense  Steel  Shipyard  COM(2012) 272;  EGF/2011/019 ES/  Galicia  Metal  COM(2012) 451; 
EGF/2014/008 FI/ STX Rauma COM(2014) 630; and the current case. 
www.ige.eu 
Ardan economic and competitiveness report 2019. Consortium of Vigo free zone. 
González  Rodríguez,  A.  (2009)  “Socio-labour  consequences  of  the  new  flexible  production 
organization  models.  The  case  of  the  naval  industry/Consecuencias  socio-laborales  de  los  nuevos 
modelos  de  organización  de  la  producción  flexibles.  El  caso  de  la  industria  naval”.  Revista  de 
Economia (Curitibia), 8, 22-42. 

EN 

5 

  EN 

                                                 
21. 

22. 

23. 

the  ancillary  shipbuilding  industry  is  severly  affected.  The  interdependencies  and 
consequences on employment in the ancillary shipbuilding industry are therefore the 
same as if the companies were within a single NACE economic sector.  
The concentration of all commercial shipyards (seven20 in 2019) in a small territory, 
the  Vigo  Ria,  exacerbates  the  negative  effects  on  the  regional  labour  market.  The 
redundancies thus have a serious impact on the regional economy. 

The  conditions  of  Article  4(2),  enabling  to  consider  an  application  under  article 
4(1)(b) as admissible even if its criteria are not entirely met, are thus fulfilled. 

Thus, this application should be assimilated to an application under Article 4(1)(b) of 
the EGF Regulation due to exceptional circumstances (the combination of the serious 
impact  of  the  redundancies  on  employment  and  the  local  economy  and  the  SMEs 
being the main type of business in the region). 

Events giving rise to the redundancies and cessation of activity 

24. 

25. 

Shipyards in Galicia build technologically advanced military ships, oil and chemical 
tankers, offshore vessels, oceanographic and seismic research vessels,  tugboats, and 
passenger  ships  (ferries,  cruise  ships  and  pleasure  boats).  Galician  shipyards  stand 
out also for the construction of fishing vessels21.  

The EU’s declining market share in global ship production and the increased global 
competition have led to dire consequences for the ancillary shipbuilding industry in 
Galicia. The liquidation and closure of Factorias Vulcano shipyard in July 2019, and 
the request for creditors pre-bankruptcy by HJ Barreras shipyard in October 2019 are 
the  main  events  leading  to  the  redundancies.  Half  of  the  dismissals  subject  to  this 
application happened in companies that are creditors of HJ Barreras. 

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

26. 

27. 

20 

21 
22 
23 

24 
25 

The shipbuilding sector (shipyards and ancillary industries) in Galicia had an annual 
turnover of around EUR 2 000 million (3,3% of the regional GDP) and 10 000 direct 
jobs and 25,00022 indirect jobs depended on shipbuilding, in 2018. According to the 
Galician  Association  of  Metal  Industries  (ASIME),  due  to  difficulties  in  some 
Galician shipyards, the sector’s turnover dropped by 11% and 20,8% of the jobs were 
lost in 201923.  

In 2019, the unemployment rate in Vigo  a town of about 295 000 inhabitants  
was 16,3%24, almost five p.p. higher than the regional average (11,7%25), and 21 247 
workers  were  registered  as  job-seekers.  As  already  stated,  all  Galician  commercial 
shipyards  are  located  in  Vigo.  The  concentration  of  shipyards  in  a  small  territory 

Astilleros  Armon  Vigo,  Cardama  Shipyard,  Factorías  Vulcano  (liquidated  in  2019),  Freire  Shipyard, 
Hijos de J. Barreras, Metalships & Docks, Nodosa Shipyard and J. Valiña. 
Ardan economic and competitiveness report 2019. Consortium of Vigo free zone. 
Ibid. 
About 2 000 direct jobs were lost in the Galician shipyards and ancillary industries in 2019. However, 
the current application will provide support only to the workers made redundant during the nine-month 
reference period (23 May 2019  – 23 February 2020). Article  4(1)(b) of the  EGF  Regulation does not 
foresee  the  participation  in  the  measures  of  workers  whose  redundancies  were  triggered  by  the  same 
event that triggered the redundancies during the reference period but occurred before or after it. 
EPA municipios (labour force survey/municipalities) 
EPA Comunidades autónomas (labour force survey/ NUTS level 2 regions) 

EN 

6 

  EN 

                                                 
multiply  the  negative  effects  of  the  declining  turnover  and  job  losses  in  the 
shipbuilding industry leading to a more severe impact on the regional labour market 
than the numbers tend to indicate. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

28. 

The estimated number of redundant workers expected to participate in the measures 
is  500.  The  breakdown  of  these  workers  by  sex,  citizenship  and  age  group  is  as 
follows: 

Category 

Number of  
targeted beneficiaries 

Sex: 

Men: 
Women26: 

Citizenship:  EU citizens: 

non-EU citizens: 

Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

over 64 years: 

470 

(94,0 %) 

30 

(6,0 %) 

487 

(97,4 %) 

13 

17 

36 

(2,6 %) 

(3,4 %) 

(7,2 %) 

391 

(78,2 %) 

56 

(11,2 %) 

0 

(0,0 %) 

Eligibility of the proposed actions 

29. 

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

– 

– 

– 

Information  sessions  and  preparatory  workshops:  The  information  session  is 
the first measure to be offered to all targeted beneficiaries and includes general 
information  on  available  counselling  and  training  programmes,  as  well  as  on 
allowances and incentives. This also includes the profiling of the participants. 
information  on 
Preparatory  workshops,  will  provide  more 
redeployment,  sectors  that  require  licensing  or  certificates  of  professional 
competence,  certification  of  competencies  and  soft  skills  acquired  in  work 
situations;  and  how  to  complete  compulsory  education.  Workshops  on 
entrepreneurship are also foreseen.  

in-depth 

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

Training.  This  will  include  (1) training  on  key  competencies  and  horizontal 
competencies;  (2) preparation  for  tests  towards  recognition  of  skills  acquired 
through  work  experience  (recognition  of  prior  learning);  (3) re-skilling 
vocational  training  such  as  maintenance  of  buildings  and  urban  equipment, 
warehouse  operations,  warehouse  logistics,  Scrum  Master,  etc.;  and  (4) up-

26 

Women are underrepresented in the ancillary shipbuilding industry. As a consequence, only 6% of the 
redundant workers were women.  

EN 

7 

  EN 

 
 
 
 
 
 
                                                 
– 

– 

– 

skilling vocational training such as composite material in shipbuilding, HSLA27 
steel for naval structures, virtual reality and augmented reality in shipbuilding, 
CAD/CAM28  solutions  for  shipbuilding,  3D  control  technologies  applied  to 
shipbuilding  (straightening  and  shaping  of  pieces),  FSW29  and  hybrid  laser 
MAG30  welding  techniques,  monitored  electric  arc  welding  systems,  and 
additive manufacturing in shipbuilding. Training towards entrepreneurship will 
be provided for those aiming at self-employment. 

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

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

into  work.  The  workers  reintegrated 

Incentives.  There  will  be  a  variety  of  incentives.  (1) Participation  incentive. 
The workers who take part in the measures and follow the agreed pathway to 
reintegration  will  receive  up  to  EUR 400  (one  pay-off  or  instalments). 
(2) Contribution  to  commuting  expenses  (EUR 0,19/kilometre  plus  additional 
costs such as tolls and parking costs, when duly justified and reimbursement of 
public  transport  costs).  (3) Contribution  to  expenses  for  carers  of  dependent 
persons.  Workers  with  caring  responsibilities  (children,  elderly  or  disabled 
persons)  will  receive  up  to  EUR 20  per  day  of  participation  in  the  measures. 
This  aims  to  cover  the  additional  costs  faced  by  the  participants  with  caring 
responsibilities  in  order  to  avail  themselves  of  training  or  other  measures. 
(4) Outplacement  incentives.  Those  who  return  to  employment  as  dependent 
workers or as self-employed will receive EUR 200 per month, for a maximum 
period  of  six  months.  The  incentive  is  designed  to  stimulate  workers, 
particularly  those  who  are  older,  to  remain  in  the  labour  market  and  to 
encourage quick reemployment.  

30. 

31. 

The  proposed  actions,  here  described,  constitute  active  labour  market  measures 
within the eligible actions set out in Article 7 of the EGF Regulation. These actions 
do not substitute passive social protection measures. 

Spain  has  provided  the  required  information  on  actions  that  are  mandatory  for  the 
enterprise concerned by virtue of national law or pursuant to collective agreements. 
They have confirmed that a financial contribution from the EGF will not replace such 
actions. 

Estimated budget 

32. 

27 

28 
29 
30 

The  estimated 
personalised  services  of  EUR 3 274 000  and  expenditure 
management, 
EUR 150 000. 

total  costs  are  EUR 3 424 000,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

HSLA stands for high-strength low-alloy.  
HSLA  steel  is  a  type  of  alloy  steel  that  provides  better  mechanical  properties  or  greater  resistance  to 
corrosion  than  carbon  steel.  HSLA  steel  vary  from  other  steels  in  that  they  are  not  made  to  meet  a 
specific chemical composition but rather specific mechanical properties. 
CAD/CAM stands for computer-aided design & computer-aided manufacturing. 
Friction Stir Welding 
Metal Active Gas (MAG) welding 

EN 

8 

  EN 

                                                 
 
33. 

The total financial contribution requested from the EGF is EUR 2 054 400 (60 % of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR)31 

Estimated total 
costs 
(EUR)32  

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

Information sessions and preparatory 
workshops 
(Acogida y diagnóstico inicial, medidas de 
sensibilización) 

Occupational guidance  
(Orientación laboral) 

Training 
(Formación)  

Intensive job-search assistance 
(Prospección laboral) 

Tutoring after reintegration into work 
(Seguimiento en el empleo)  

500 

541 

270 500 

500 

350 

300 

250 

500 

250 000 

4 871 

1 705 000 

1 300 

390 000 

250 

62 500 

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

– 

2 678 000 

(81,80 %) 

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

Incentives 
(Programa de incentivos)  

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

 Actions under Article 7(4) of the EGF Regulation 

1. Preparatory activities 

2. Management 

3. Information and publicity 

4. Control and reporting 

Sub-total (c): 

400 

1 49033 

596 000 

– 

– 

– 

– 

– 

– 

596 000 

(18,20 %) 

0 

100 000 

32 000 

18 000 

150 000 

31 

32 
33 

To avoid decimals, the estimated costs per worker have been rounded. However, the rounding has no 
impact on the total cost of each measure, which remains as in the application submitted by Spain. 
Totals do not tally due to rounding. 
The  cost  per  participant  for  this  measure  is  provided  for  presentation  purposes  only.  The  cost  per 
participant of the incentives will depend on the individual situation of each worker and on its eligibility 
for the different types of incentives, as explained under point 29. 

EN 

9 

  EN 

                                                 
Percentage of the total costs : 

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

– 

– 

(4,38 %) 

3 424 000 

2 054 400 

34. 

The costs of the actions identified in the table above as actions under Article 7(1)(b) 
of  the  EGF  Regulation  do  not  exceed  35 %  of  the  total  costs  for  the  coordinated 
package of personalised services. Spain confirmed that these actions are conditional 
on  the  active  participation  of  the  targeted  beneficiaries  in  job-search  or  training 
activities. 

Period of eligibility of expenditure 

35. 

36. 

Spain  starts  providing  the  personalised  services  to  the  targeted  beneficiaries  on  13 
August 2020. The expenditure on the actions will therefore be eligible for a financial 
contribution from the EGF from 13 August 2020 to 13 August 2022. 

Spain  started  incurring  the  administrative  expenditure  to  implement  the  EGF  on 
8 June  2020.  The  expenditure  for  preparatory,  management,  information  and 
publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 8 June 2020 to 13 February 2023.  

Complementarity with actions funded by national or Union funds 

37. 

38. 

The  source  of  national  pre-financing  or  co-funding  are  funds  of  the  Consellería  de 
Economía, Emprego e Industria de la Xunta de Galicia. 

Spain  has  confirmed  that  the  measures  described  above  receiving  a  financial 
contribution  from  the  EGF  will  not  also  receive  financial  contributions  from  other 
Union financial instruments. 

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

39. 

Spain has indicated that ASIME and the trade unions CCOO34 and UGT35, the social 
partners that participate in the Social Dialogue in Galicia, supported Xunta de Galicia 
when preparing the application by providing detailed information on the shipbuilding 
sector  and  related  labor  market.  The  co-ordinated  package  of  personalised  services 
has  been  drawn  up  in  consultation  with  the  social  partners  and  discussed  in  two 
meetings  on  4  November  2019  and  19  February  2020.  Through  a  collaboration 
agrement,  the  social  partners  will  also  be  involved  in  the  implementation  of  the 
services. 

Management and control systems 

40. 

34 
35 
36 

The application contains a description of the management and control system, which 
specifies  the  responsibilities  of  the  bodies  involved.  Spain  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  and  controlled  by  the 
same  bodies  that  manage  and  control  the  ESF.  The  Xunta  de  Galicia36  will  be  the 
intermediate body for the managing authority. 

Federation of Industry of CCOO Galicia. 
Federation of Metal, Construction and Related Industries of UGT (MCA-UGT). 
Xunta de Galicia and in particular the Consellería de Facenda –Dirección General de política financiera, 
tesoro y fondos europeos / Servicio de inspección y control de fondos comunitarios in cooperation with 

EN 

10 

  EN 

                                                 
 
Commitments provided by the Member State concerned 

41. 

Spain has provided all necessary assurances regarding the following:  

– 

– 

– 

– 

– 

– 

the principles of equality of treatment and non-discrimination will be respected 
in the access to the proposed actions and their implementation, 

the  requirements  laid  down  in  national  and  EU  legislation  concerning 
collective redundancies have been complied with, 

the dismissing enterprises, which have continued their  activities after the lay-
offs,  have  complied  with  their  legal  obligations  governing  the  redundancies 
and provided for their workers accordingly, 

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

the  proposed  actions  will  be  complementary  with  actions  funded  by  the 
Structural Funds, 

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

BUDGETARY IMPLICATION 

Budgetary proposal 

42. 

43. 

44. 

45. 

The  EGF  shall  not  exceed  a  maximum  annual  amount  of  EUR 150 million  (2011 
prices),  as  laid  down  in  Article 12  of  Council  Regulation  (EU,  Euratom) 
No 1311/2013  of  2  December  2013  laying  down  the  multiannual  financial 
framework for the years 2014-202037. 

Having examined the application in respect of the conditions set out in Article 13(1) 
of  the  EGF  Regulation,  and  having  taken  into  account  the  number  of  targeted 
beneficiaries, the proposed actions and the estimated costs, the Commission proposes 
to mobilise the EGF for the amount of EUR 2 054 400, representing 60 % of the total 
costs  of  the  proposed  actions,  in  order  to  provide  a  financial  contribution  for  the 
application. 

The  aggregate  amount  of  contributions  in  exceptional  circumstances  in  the  current 
year does not exceed 15% of the annual maximum amount of the EGF, in accordance 
with Article 4 (2) of the EGF Regulation. 

The  proposed  decision  to  mobilise  the  EGF  will  be  taken  jointly  by  the  European 
Parliament  and  the  Council,  as  laid  down  in  point  13  of  the  Interinstitutional 
Agreement of 2 December 2013 between the European Parliament, the Council and 
the Commission on budgetary discipline, on cooperation in budgetary matters and on 
sound financial management38. 

the Consellería de Economía, Emprego e Industria –Secretaría Xeral de Emprego/Subdirección Xeral de 
Relacións Laborais will be the intermediate body for the managing authority. 
OJ L 347, 20.12.2013, p. 884. 
OJ C 373, 20.12.2013, p. 1. 

37 
38 

EN 

11 

  EN 

                                                                                                                                                         
Related acts 

46. 

47. 

At the same time as it presents this proposal for a decision to mobilise the EGF, the 
Commission will present to the European Parliament and to the Council a proposal 
for a transfer to the relevant budgetary line for the amount of EUR 2 054 400. 

At the same time as it adopts this proposal  for a decision to  mobilise the EGF, the 
Commission  will  adopt  a  decision  on  a  financial  contribution,  by  means  of  an 
implementing  act,  which  will  enter  into  force  on  the  date  at  which  the  European 
Parliament and the Council adopt the proposed decision to mobilise the EGF. 

EN 

12 

  EN 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund following an 
application from Spain – EGF/2020/001 ES/Galicia shipbuilding ancillary sectors 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having  regard  to  Regulation  (EU)  No 1309/2013  of  the  European  Parliament  and  of  the 
Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) 
and repealing Regulation (EC) No 1927/200639, and in particular Article 15(4) thereof, 

Having regard to the Interinstitutional Agreement of 2 December 2013 between the European 
Parliament,  the  Council  and  the  Commission  on  budgetary  discipline,  on  cooperation  in 
budgetary matters and on sound financial management40, and in particular point 13 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Globalisation  Adjustment  Fund  (EGF)  aims  to  provide  support  for 
workers  made  redundant  and  self-employed  persons  whose  activity  has  ceased  as  a 
result  of  major  structural  changes  in  world  trade  patterns  due  to  globalisation,  as  a 
result of a continuation of the global financial and economic crisis, or as a result of a 
new  global  financial  and  economic  crisis,  and  to  assist  them  with  their  reintegration 
into the labour market. 

The  EGF  is  not  to  exceed  a  maximum  annual  amount  of  EUR 150  million  (2011 
in  Article 12  of  Council  Regulation  (EU,  Euratom) 
prices),  as 
No 1311/201341. 

laid  down 

On 13 May 2020, Spain submitted an application to  mobilise the EGF, in respect  of 
redundancies  in  the  economic  sectors  classified  under  the  Statistical  classification  of 
economic  activities  in  the  European  Community  ('NACE')  Revision  2  Divisions  24 
(Manufacture of basic metals), 25  (Manufacture  of fabricated metal  products,  except 
machinery and equipment), 30 (Manufacture of other transport equipment), 32 (Other 
manufacturing),  33  (Repair  and  installation  of  machinery  and  equipment)  and  43 
(Specialised construction activities) in the  NUTS level 2 region of  Galicia (ES11) in 
Spain.  It  was  supplemented  by  additional  information  provided  in  accordance  with 
Article 8(3)  of  Regulation  (EU)  No 1309/2013.  That  application  complies  with  the 
requirements  for  determining  a  financial  contribution  from  the  EGF  as  laid  down  in 
Article 13 of Regulation (EU) No 1309/2013. 

(4) 

In  accordance  with  Article 4(2)  of  Regulation  (EU)  No 1309/2013,  the  application 
from Spain is considered admissible, since it is a collective application involving only 

39 
40 
41 

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

EN 

13 

  EN 

                                                 
SMEs located in a region, Galicia, where the SMEs are the main type of business in 
that region and the redundancies have a serious impact on employment and the local, 
regional or national economy. 

(5) 

(6) 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 2 054 400 in respect of the application submitted by Spain. 

In  order  to  minimise  the  time  taken  to  mobilise  the  EGF,  this  decision  should  apply 
from the date of its adoption, 

HAVE ADOPTED THIS DECISION:  

For the general budget of the Union for the financial year 2020,  the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 2 054 400 in commitment 
and payment appropriations. 

Article 1 

Article 2 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

  

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

EN 

14 

  EN