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 Germany – EGF/2020/003 DE/GMH Guss
Date: 2021-04-27
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Germany, North Rhine-Westphalia, commitment of expenditure, dismissal, employment aid, general budget (EU), globalisation, metallurgical industry, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 27.4.2021 COM(2021) 207 final 2021/0107 (BUD)  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 Germany – EGF/2020/003 DE/GMH Guss  
 
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’)2. 

On 15 December 2020, Germany submitted an application EGF/2020/003 DE/GMH 
Guss  for  a  financial  contribution  from  the  EGF,  following  redundancies3  in  GMH 
Guss GmbH in Germany. 

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/2020/003 DE/GMH Guss 

Member State 
Region(s) concerned (NUTS4 level 2) 

Date of submission of the application 

Date of acknowledgement of receipt of the 
application 

Germany 
Düsseldorf (DEA1) 
Arnsberg (DEA5) 
15 December 2020 

15 December 2020 

Date of request for additional information 

28 December 2020  

Deadline for provision of the additional 
information 

8 February 2021 

Deadline for the completion of the assessment 

3 May 2021 

Intervention criterion 

Primary enterprise 

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

GMH Guss 

Number of enterprises concerned 

1 

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

Division 24 (Manufacture of basic 
metals) 

Number of subsidiaries, suppliers and 
downstream producers 

4 

1 
2 
3 
4 

5 

OJ L 347, 20.12.2013, p. 855. 
Regulation (EU) No 1309/2013 is applicable to all applications received by 31 December 2020. 
Within the meaning of Article 3 of the EGF Regulation. 
Commission  Regulation  (EU)  No 1046/2012  of  8  November  2012  implementing  Regulation  (EC) 
No 1059/2003  of  the  European  Parliament  and  of  the  Council  on  the  establishment  of  a  common 
classification of territorial units for statistics (NUTS) as regards the transmission of the time series for 
the new regional breakdown (OJ L 310, 9.11.2012, p. 34). 
OJ L 393, 30.12.2006, p. 1. 

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Reference period (four months): 

31 July 2020 – 30 November 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 EGF6 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

585 

585 

476 
1 730 731 
72 114 
1 802 845 
1 081 706 

ASSESSMENT OF THE APPLICATION 

Procedure 

4. 

On  15  December  2020,  Germany  submitted  application  EGF/2020/003 DE/GMH 
Guss,  i.e.  within  12  weeks  of  the  date  on  which  the  intervention  criteria  set  out  in 
Article 4 of the EGF Regulation were met. The Commission acknowledged receipt of 
the application on the same day, and requested additional information from Germany 
on 28 December 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  3 
May 2021. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The application relates to 585 workers made redundant by four subsidiaries of GMH 
Guss  GmbH.  This  enterprise  operates  in  the  economic  sector  classified  under  the 
NACE Revision 2 Division 24 (Manufacture of basic metals). The redundancies are 
located in the NUTS level 2 regions of Düsseldorf (DEA1)7 and Arnsberg (DEA5)8. 
These  sites  are  located  in  the  Ruhr  area,  the  traditional  industrial  region  in  North 
Rhine-Westphalia. 

Intervention criteria 

6. 

7. 

8. 

6 
7 

8 

Germany submitted the application under the intervention criteria of  Article 4(1)(a) 
of  the  EGF  Regulation,  which  requires  at  least  500  workers  being  made  redundant 
over a reference period of four months in an enterprise in a Member State. 

The reference period of four months for the application runs from 31 July 2020 to 30 
November 2020. 

585 workers were made redundant in GMH Guss during the reference period. 

In accordance with the fourth paragraph of Article 7 of Regulation (EU) No 1309/2013. 
subsidiaries  Friedrich  Wilhelms-Hütte  Eisenguss  GmbH  and  Friedrich  Wilhems-Hütte  GmbH,  both 
located in Mülheim an der Ruhr 
subsidiary  Dieckerhoff Guss  GmbH in Gevelsberg, and the subsidiary Walter Hundhausen GmbH (as 
well as the main seat of GMH Guss GmbH) in Schwerte 

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Calculation of redundancies and of cessation of activity 

9. 

The redundancies during the reference period have been calculated from the date on 
which the employer, in accordance with Article 3(1) of Council Directive 98/59/EC9, 
notified  the  competent  public  authority  in  writing  of  the  projected  collective 
redundancies.  Germany  confirmed  prior  to  the  date  of  the  completion  of  the 
assessment  by  the  Commission  that  these  585  redundancies  have  actually  been 
effected. 

Eligible beneficiaries 

10. 

The total number of eligible beneficiaries is 585. 

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

11. 

12. 

13. 

14. 

15. 

9 

10 

11 
12 

In order to establish the link between the redundancies and major structural changes 
in  world  trade  patterns  due  to  globalisation,  Germany  argues  that  the  foundry 
industry in Germany is facing profound challenges such as changes in international 
trade in goods and services, as well as relocating activities to non-EU countries. 

In  metal  casting  foundries,  metals  are  melted,  and  the  liquid  metals  are  cast  into 
customised  shapes.  The  process  is  highly  labour-intensive.  Foundries  are  usually 
casting  metals  when  very  complex  shapes  are  needed.  Metal  casting  foundries  are 
classical  suppliers  for  other  manufacturing  industries,  in  particular  the  automotive 
industry,  as  well  as  machine,  construction,  steel,  energy,  chemical  and  health 
technology  industries.  In  Germany,  the  main  customers  of  metal  casting  foundries 
are the automotive industry (60 %) and machine industry (26 %)10. As foundries are 
highly specialised and provide custom-made products for their clients, the activities 
of the foundries are highly dependent on demand by specific main customers. 

Two subsidiaries of GMH Guss were suppliers to the automotive industry: one to car 
producers and the other to heavy truck producers. A third subsidiary was supplier to 
the  machine  industry,  with  a  special  focus  on  shipbuilding.  A  fourth  subsidiary,  as 
well  as  the  parent  company  itself,  were  performing  administrative  services  for  the 
manufacturing subsidiaries. 

Traditionally,  metal  casting  foundries  were  built  near  their  main  customers,  as  a 
close cooperation was necessary to design the custom-made products, and due to the 
difficult  transport  of  heavy  products.  Therefore,  within  Germany,  the  industry  is 
primarily located in the traditional manufacturing regions. 25 % of the German cast 
metals are produced in North Rhine-Westphalia11. 

Whilst, in 2019, Germany was the largest producer of metal casting products in the 
EU,  producing  more  than  twice  as  much  as  Italy,  and  three  times  as  much  as 
France12,  Germany  only  had  a  share  of  5 %  of  global  production,  behind  China 
(45,5 %), India (11 %) and the USA (8,8 %).  

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). 
Bundesverband  der  Deutschen  Gießerei-Industrie  (BDGUss):  Die  Gießerei-Industrie.  Eine  starke 
Branche in Zahlen (2019) 
https://www.bdguss.de/branche/rolle-bedeutung/ 
Bundesverband  der  Deutschen  Gießerei-Industrie  (BDGUss):  Branchenkennzahlen  –  Die  deutsche 
Gießerei-Industrie (2019) 

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16. 

17. 

18. 

19. 

20. 

21. 

As  concerns  the  automotive  industry  as  one  of  the  main  customers  of  the  German 
cast metal foundries, world trade patterns have been changing drastically over recent 
years. Whereas in 2000, the EU was the world’s leading region, with 33 % of global 
car production, the EU’s world market share had dropped to 19 % by 2019. Due to 
the rising demand in the region, Asia now dominates in global car production by far, 
with  a  world  market  share  of  54 %  of  global  car  production  in  2019.  For  the  first 
time  in  history,  German  car  makers  were  producing  more  cars  in  China  than  in 
Germany. In total numbers, in 2019, car production dropped to the lowest level since 
199613. 

As  concerns  heavy  truck  producers,  the  production  of  heavy  trucks  weighing  more 
than 3,5 tons nearly halved in Germany, from 256 131 vehicles in 2008, to 133 997 
in 2019. China is now dominating the world market with a market share of 40 % of 
global  production,  and,  due  to  overproduction,  is  selling  heavy  trucks  at  highly 
competitive prices, undercutting the competitors, in many parts of the world14. 

Furthermore,  on  the  European  market,  a  trend  developed  in  the  whole  automotive 
industry  to  nearshore  production  or  parts  of  the  supply  chain  to  Eastern  Europe, 
including third countries. This is in particular the case for labour-intensive products, 
such as metal casting products. Lower environmental standards, in particular in non-
EU countries, are a further reason for nearshoring of metal casting products15. 

As concerns the shipbuilding industry, average yearly shipbuilding in Europe halved 
during  2011-2019  in  comparison  with  2002-201016.  With  a  market  share  of  84 %, 
Asian producers now dominate the world market17. 

These  globalisation-related  challenges  have  put  severe  strains  on  the  metal  casting 
industry, leading to a 8,9 % decrease of overall metal casting production in Germany 
between 2018 and 201918. 

To date, the NACE Division 24 – Manufacture of basic metals has been the subject 
of six EGF applications, four of which based on trade related globalisation  and two 
on the global financial and economic crisis19. 

Events giving rise to the redundancies and cessation of activity 

22. 

13 

14 

15 

16 
17 
18 
19 

The  events  giving  rise  to  these  redundancies  are  the  insolvency  proceedings  with 
respect to GMH Guss. Whereas one subsidiary, Dieckerhoff Guss GmbH, was closed 
down  entirely,  the  others  were  partially  closed  and  operate  under  insolvency 
administration.  Out  of  a  workforce  of  1 000,  585  workers  have  lost  their  jobs.  The 
public authorities were notified of the redundancies at Walter Hundhausen GmbH on 
31  July  2020,  at  Dieckerhoff  Guss  GmbH  on  24  September  2020,  and  for  the 
remaining entities on 5 October 2020. 

https://www.vda.de/de/services/zahlen-und-daten/jahreszahlen/automobilproduktion 
https://www.quest-trendmagazin.de/automobilindustrie/internationalisierung/weltregion-
automobilproduktion.html 
https://www.oica.net/category/production-statistics/2018-statistics/ 
https://www.acea.be/statistics/article/eu-commercial-vehicle-production 
Deutsche  Bank  Research  (2020):  Automobilindustrie  –  Produktion  in  China  überflügelt  heimische 
Fertigung;  Eurofound  (2016):  -ERM  report  2016:  Globalisation  slowdown?  Recent  evidence  of 
offshoring and reshoring in Europe; Eurofound (2020): ERM report 2020: Restructuring across borders. 
Measured in compensated gross tonnage (cgt).  
Feldhoff, Thomas (2020): Gießereibranche unter Anpassungsdruck: Ausgewählte Entwicklungstrends. 
Stephen, Sophie (2020): Deutsche Gussproduktion 2019 und Ausblick 2020, in: GIESSEREI, 04/2020. 
https://ec.europa.eu/social/main.jsp?catId=582&langId=en 

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23. 

24. 

25. 

26. 

Whereas  GMH  Guss  was  already  operating  in  a  challenging  business  environment 
due  to  globalisation,  its  problems  culminated  when  the  main  client  of  subsidiary  
Walter  Hundhausen  GmbH,  responsible  for  60 %  of  the  subsidiary’s  production, 
decided to nearshore parts of its supply chain to Turkey. 

Furthermore,  Taiwanese  competitor  MEITA  opened  two  foundries  in  Obrenovac, 
Serbia.  These  foundries,  highly  subsidised  by  the  Serbian  government,  launched 
production  in  2017  and  2019,  respectively,  and  produce,  in  particular,  for  the 
European  automotive  industry20.  Due  to  subsidies  and  lower  labour  costs,  MEITA 
was able to offer far lower prices than its German competitors. As a consequence, in 
2019,  the  main  automotive  clients  of  GMH  Guss’  subsidiary  Dieckerhoff  Guss 
GmbH demanded a price reduction of 30 %, that Dieckerhoff was not able to match. 
The loss of its clients, which then contracted out to the Serbian factories of MEITA, 
meant the end of Dieckerhoff Guss. 
The social partners agreed on the creation of four transfer companies21, one for each 
subsidiary of GMH Guss. The transfer companies will be managed by BOB Transfer 
GmbH.  476  of  the  workers  signed  a  tripartite  agreement  according  to  which  they 
enter  the  transfer  company  upon  the  official  end  of  their  employment  with  GMH 
Guss or one of its four subsidiaries. 

The EGF assistance will be used to complement the regular measures offered by the 
transfer  companies  and  can  also  be  used  to  extend  the  duration  of  the  individual 
measures.  86  workers  entered  a  first  transfer  company  on  1 August 2020,  the 
remaining workers started on 1 October 2020. 

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

27. 

The  redundancies  are  expected  to  have  a  significant  adverse  impact  on  the  local 
economy. The Ruhr area is  a highly urbanised industrial  area. Traditionally a  coal-
mining and steel producing region, the region has been facing tremendous structural 
challenges since the 1960s, with unemployment rates continuously above the average 
of  North  Rhine-Westphalia.  The  Covid-19  pandemic  is  having  a  further  adverse 
impact  on  the  labour  market.  Between  September  2019  and  September  2020, 
unemployment in North Rhine-Westphalia rose from 6,5 % to 7,9 %, and from 9 % 
to  10,7 % in  the Ruhr area. Most of the workers  made redundant  are in  the second 
half of their professional career, have a low level of qualification, and often a poor 
command of German language. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

28. 

The estimated number of redundant workers expected to participate in the measures 
is  476.  The  breakdown  of  these  workers  by  sex,  citizenship  and  age  group  is  as 
follows: 

Category 

Number of  

20 
21 

https://www.serbianmonitor.com/en/chinas-mei-ta-opens-second-factory-in-obrenovac/ 
The creation of a transfer company is not mandatory  under German law. There is no obligation on the 
part of the dismissing company to contribute towards the  creation of a transfer company. Without the 
participation  of  the  dismissing  company,  no  transfer  company  would  be  set  up.  If  the  dismissing 
company  offers  to  participate,  and  if  the  social  partners  agree  to  the  creation  of  a  transfer  company, 
German social law sets the legal frame (§§ 110 and 111,SGB III). 

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Sex: 

Men: 

Women: 

Citizenship:  EU citizens: 

targeted beneficiaries 

455  (95,59 %) 

21 

(4,41 %) 

291  (61,13 %) 

non-EU citizens: 

185  (38,87 %) 

Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

over 64 years: 

7 

(1,47 %) 

24 

(5,04 %) 

269  (56,51 %) 

175  (36,76 %) 

1 

(0,21 %) 

Eligibility of the proposed actions 

29. 

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

– 

– 

– 

– 

– 

– 

– 

Upskilling measures: These are offered following profiling and career guidance 
interviews. Courses can be provided individually or in groups. Considering the 
high number of participants with a migratory background, German courses will 
be offered to participants with a poor command of German. 

Peer  groups  /  workshops:  These  will  be  group  fora  assisted  by  a  facilitator, 
helping  participants  to  exchange  ideas  and  reflect  on  their  experiences.  Some 
peer  groups  focus  on  a  common  background  of  participants  –  such  as 
participants with a migratory background, or older participants.. 

Business  start-up  advisory  service:  This  will  comprise  a  package  of  advisory 
services  for  those  interested  in  starting  their  own  businesses.  These  services 
will  include  individualised  tailor-made  coaching  measures,  as  well  as  the 
participation in group coaching sessions. 

Job search assistance: Professional job scouts will help to locate potential job 
vacancies that are not yet published, and which might suit eligible workers. 

Guidance counselling and vocational orientation: Based on the initial profiling 
interviews,  guidance  counsellors  will  not  only  inform  about  developments  on 
the  job  market  and  possible  career  paths,  but  also  provide  applicants  with 
motivational and inspirational help and support. Workers shall be encouraged 
to  upgrade their skills  or to  learn new skills,  and participate in  education and 
training  measures  aimed  at  finding  new  employment,  possibly  in  a  different 
sector. 

International  job  counselling:  For  job  seekers  willing  to  accept  a  position  in 
another EU member state, special counsellors will assist in job search, inform 
about  work  conditions  in  the  respective  member  state,  and  help  in  getting 
qualifications translated and recognized.  

Follow-up  mentoring:  Workers  can  benefit  from  further  counselling  services 
after taking up new employment in order to facilitate transition into a new job 
and to minimise the risk of a job loss. 

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– 

Training allowance: The payment starts from the date when the worker enters 
the  transfer  company,  and  ends  as  soon  as  the  person  leaves  the  transfer 
company.  Participation  in  active  labour  market  measures  is  a  prerequisite  for 
receiving an allowance. 

The measures organised are in line with Germany’s sustainability strategy. 

In light of the Covid-19 pandemic, a sanitary hygiene concept has been developed to 
ensure  the  implementation  of  measures.  This  includes  online  courses,  as  well  as 
adequate rooms for classroom courses22. 

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. 

Germany 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. 

30. 

31. 

32. 

33. 

Estimated budget 

34. 

The  estimated 
personalised  services  of  EUR 1 730 731  and  expenditure 
management, 
EUR 72 114. 

total  costs  are  EUR 1 802 845,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

35. 

The total financial contribution requested from the EGF is EUR 1 081 706 (60 % of 
total costs). 

Actions 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR23) 

Estimated total 
costs 
(EUR) 24 

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

Upskilling measures 
(Qualifizierungsmaßnahmen) 

Peergroups/workshops 

 Business start-up advisory service 
(Existenzgründerberatung)  

Job search assistance (Beratung und 
Stellenakquise) 

Guidance counseling and vocational 
orientation (Berufsvorbereitung und 
Orientierung)  

415 

240 

1 189 

493 605 

438 

105 160 

3 

5 133 

15 400 

476 

517 

245 968 

200 

201 

40 133 

22 
23 

24 

For classroom courses, Covid-19 rapid tests are used to ensure classroom safety. 
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 Germany. 
Totals do not tally due to rounding. 

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International job counseling (Internationale 
Beratung)  

10 

1 133 

11 332 

Follow-up mentoring 
(Nachbetreuungsmaßnahmen) 

375 

569 

213 378 

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

– 

1 124 976 

(65 %) 

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

Training allowance 
(Transferkurzarbeitergeld)  

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

 Actions under Article 7(4) of the EGF Regulation 

1. Preparatory activities 

2. Management 

3. Information and publicity 

4. Control and reporting 

Sub-total (c): 
Percentage of the total costs : 

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

476 

1 273 

605 755 

– 

– 

– 

– 

– 

– 

– 

– 

605 755 

(35 %) 

7 211 

39 663 

3 606 

21 634 

72 114 

(4 %) 

1 802 845 

1 081 706 

36. 

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.  Germany  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 

37. 

38. 

Germany started providing the personalised services to the targeted beneficiaries on 
1  August  2020.  The  expenditure  on  the  actions  will  therefore  be  eligible  for  a 
financial contribution from the EGF from 1 August 2020 to 15 December 2022. 

Germany started incurring the administrative expenditure to implement the EGF on 1 
November  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 1 November 2020 to 15 June 2023. 

Complementarity with actions funded by national or Union funds 

39. 

The  sources  of  national  pre-financing  or  co-funding  are  the  Federal  budget  and 
Bundesagentur  für  Arbeit  (Federal  Public  Employment  Service).  These  fund  the 

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40. 

41. 

national contribution of 40 % of the total costs of EGF financed measures offered by 
the transfer company25. 

Germany  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. 

Germany set out that the EGF measures offered are complementing measures offered 
by  the  European  Social  Fund  (ESF).  The  ESF  Operational  Programme  for  North 
Rhine-Westphalia co-finances some of the basic  measures of the severance scheme 
(Sozialplan)  agreed  by  the  social  partners.  Germany  confirmed  that  the  EGF  is  not 
replacing any of these measures. 

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

42. 

Germany  has  indicated  that  the  co-ordinated  package  of  personalised  services  has 
been  drawn  up  in  consultation  with  all  parties  concerned,  particularly  the  social 
partners.  For  the  planning  of  the  EGF-supported  measures,  the  Federal  Ministry  of 
Labour and Social Affairs held talks with the PES and BOB Transfer GmbH on the 
scope  for  possible  support  from  the  EGF.  From  the  very  beginning,  the  social 
partners supported a possible EGF application. A monitoring committee was set-up 
to  steer  a  possible  EGF  co-financed  intervention.  Besides  representatives  of  the 
Ministry of Labour and Social Affairs, of the PES, and of the transfer company, the 
monitoring  committee  comprises 
social  partners, 
representatives of IG Metall trade union, the liquidators of the dismissing enterprise 
and its subsidiaries, as well as representatives of the works councils. 

representatives  of 

the 

Management and control systems 

43. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Germany  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  by  the  same  bodies 
within  the  Federal  Ministry  for  Labour  and  Social  Affairs  (Bundesministerium  für 
Arbeit  und  Soziales)  which  manage  the  European  Social  Fund  (ESF).  Whereas  the 
'Gruppe Europäische Fonds für Beschäftigung' acts as the managing authority26, the 
organisationally  independent  'Organisationseinheit  Prüfbehörde'27  is  the  control 
authority for these funds. These bodies also managed the previous EGF contributions 
to  Germany.  Some  of  the  tasks  of  the  EGF  managing  authority  are  permanently 
delegated to the PES by administrative agreement. 

Commitments provided by the Member State concerned 

44. 

Germany 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, 

25 

26 

27 

The provision of the package of personalised services, which comprises the payment of allowances as 
well as active labour market measures, can start as soon as the workers officially enter into the transfer 
company. From the start, workers are paid training allowances (the "Transferkurzarbeitergeld"), which 
are  eligible  for  EGF  co-funding  while  the  redundant  workers  follow  active  labour  market  policy 
measures. 
However, within the 'Gruppe Europäische Fonds für Beschäftigung', it is the 'Referat EF 4' which acts 
as the managing authority for the EGF, while the managing authority for the ESF is 'Referat EF 1'. 
The 'Organisationseinheit Prüfbehörde' is an independent audit and control authority, reporting directly 
to the non-political state secretary. 

EN 

9 

  EN 

                                                 
– 

– 

– 

– 

– 

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

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

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

the  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 

45. 

46. 

47. 

The  EGF  shall  not  exceed  a  maximum  annual  amount  of  EUR 186 million  (2018 
prices), as laid down in Article 8(1) of Council Regulation (EU, Euratom) 2020/2093 
of 17 December 2020 laying down the multiannual financial framework for the years 
2021-202728. 

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 1 081 706, representing 60 % of the total 
costs  of  the  proposed  actions,  in  order  to  provide  a  financial  contribution  for  the 
application. 

The  proposed  decision  to  mobilise  the  EGF  will  be  taken  jointly  by  the  European 
Parliament  and  the  Council,  as  laid  down  in  point  9  of  the  Interinstitutional 
Agreement of 16 December 2020 between the European Parliament, the Council of 
the  European  Union  and  the  European  Commission  on  budgetary  discipline,  on 
cooperation in budgetary matters and on sound financial management, as well as on 
new  own  resources,  including  a  roadmap  towards  the  introduction  of  new  own 
resources29. 

Related acts 

48. 

49. 

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 1 081 706. 

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. 

28 
29 

OJ L 433I, 22.12.2020, p. 15. 
OJ L 433I, 22.12.2020, p. 29. 

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2021/0107 (BUD) 

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 Germany – EGF/2020/003 DE/GMH Guss 

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 1927/200630, and in particular Article 15(4) thereof, 

Having  regard  to  the  Interinstitutional  Agreement  of  16  December  2020  between  the 
European Parliament, the Council of the European Union and the European Commission on 
budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 
management, as well as on new own resources, including a roadmap towards the introduction 
of new own resources31, and in particular point 9 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

30 
31 
32 

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 186  million  (2018 
prices),  as  laid  down  in  Article 8(1)  of  Council  Regulation  (EU,  Euratom) 
2020/209332. 

On  15  December  2020,  Germany  submitted  an  application  to  mobilise  the  EGF,  in 
respect  of  redundancies  in  GMH  Guss  GmbH  in  Germany.  It  was  supplemented  by 
additional  information  provided  in  accordance  with  Article 8(3)  of  Regulation  (EU) 
No 1309/2013.  That  application  complies  with  the  requirements  for  determining  a 
financial contribution from the EGF as laid down in Article 13 of Regulation (EU) No 
1309/2013. 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 1 081 706 in respect of the application submitted by Germany. 

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

OJ L 347, 20.12.2013, p. 855. 
OJ L 433I, 22.12.2020, p. 29. 
Council  Regulation  (EU,  Euratom)  2020/2093  of  17  December  2020  laying  down  the  multiannual 
financial framework for the years 2021-2027 (OJ L 433I, 22.12.2020, p. 15). 

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11 

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HAVE ADOPTED THIS DECISION:  

Article 1 

For the general budget of the Union for the financial year 2021, the European Globalisation 
Adjustment Fund shall be mobilised to provide the amount of EUR 1 081 706 in commitment 
and payment appropriations. 

Article 2 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

  

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

EN 

12 

  EN