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 Finland – EGF/2020/007 FI/Finnair
Date: 2021-05-06
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, Finland, Southern Finland, air transport, commitment of expenditure, dismissal, employment aid, general budget (EU), globalisation, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 6.5.2021 COM(2021) 227 final 2021/0116 (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 Finland – EGF/2020/007 FI/Finnair  
 
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  30  December  2020,  Finland  submitted  an  application  EGF/2020/007 FI/Finnair 
for  a  financial  contribution  from  the  EGF,  following  redundancies3  in  Finnair  Oyj 
and one subcontractor4 in Finland. 

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

SUMMARY OF THE APPLICATION 

EGF application 

Member State 
Region(s) concerned (NUTS5 level 2) 

EGF/2020/007 FI/Finnair 

Finland 
Helsinki-Uusimaa (FI1B) 

Date of submission of the application 

30 December 2020 

Date of acknowledgement of receipt of the 
application 

30 December 2020 

Date of request for additional information 

13 January 2021 

Deadline for provision of the additional 
information 

24 February 2021 

Deadline for the completion of the assessment 

19 May 2021 

Intervention criterion 

Primary enterprise 

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

Finnair Oyj 

Number of enterprises concerned 

1 

Sector(s) of economic activity 
(NACE Revision 2 Division)6 

Division 51 (Air transport) 

Number of subsidiaries, suppliers and 
downstream producers 

1 

1 
2 
3 
4 
5 

6 

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. 
Hub Logistics Finland Oy located in the region of Helsinki-Uusimaa. 
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): 

25 August 2020 - 25 December 2020 

Number of redundancies during the reference 
period (a) 

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

Total number of redundancies (a + b) 

Total number of eligible beneficiaries 

Total number of targeted beneficiaries 

Number of targeted young persons not in 
employment, education or training (NEETs) 
Budget for personalised services (EUR) 
Budget for implementing EGF7 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

ASSESSMENT OF THE APPLICATION 

Procedure 

508 

0 

508 

508 

500 

0 

2 730 600 
190 000 
2 920 600 
1 752 360 

4. 

On 30 December 2020, Finland submitted application EGF/2020/007 FI/Finnair, 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 date, and requested additional information from Finland on 
13 January 2021. 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  compliance  of  the 
application with  the  conditions  for providing a  financial contribution  expires on 19 
May 2021. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  508  workers  made  redundant  in  Finnair  Oyj  and  one 
subcontractor.  Finnair  operates  in  the  economic  sector  classified  under  the  NACE 
Revision  2  Division  51  (Air  transport).  The  redundancies  made  by  the  enterprises 
occurred in the NUTS level 2 region of Helsinki-Uusimaa (FI1B). 

Enterprises and number of dismissals  

Finnair 
Hub Logistics Finland Oy 
Total no. of enterprises: 2 

504 
4 
Total no. of dismissals: 508 

Intervention criteria 

6. 

7 

EN 

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

In accordance with Article 7(4) of Regulation (EU) No 1309/2013. 

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7. 

8. 

workers  made  redundant  by  suppliers  and  downstream  producers  and  /  or  self-
employed persons whose activity has ceased. 

The reference period of four months for the application runs from 25 August 2020 to 
25 December 2020. 

The redundancies during the reference period are as follows: 

– 

– 

504 workers made redundant in Finnair 

4 workers made redundant in subcontractor of Finnair 

Calculation of redundancies and of cessation of activity 

9. 

The redundancies during the reference period have been calculated as follows: 

– 

– 

504  from  the  date  on  which  the  employer,  in  accordance  with  Article 3(1)  of 
Council Directive 98/59/EC8, notified the competent public authority in writing 
of the projected collective redundancies. Finland confirmed prior to the date of 
the  completion  of  the  assessment  by  the  Commission  that  these  504 
redundancies have actually been effected. 

4 from the date of the employer's individual notice to lay off or to terminate the 
contract of employment of the worker.  

Eligible beneficiaries 

10. 

The total number of eligible beneficiaries is therefore 508. 

Link between the redundancies and a global financial and economic crisis 

11. 

12. 

13. 

8 

9 
10 

11 

On  11  March  2020,  the  World  Health  Organisation  (WHO)  declared  COVID-19  a 
global pandemic. On 27 May 2020, in its communication ‘The European Union (EU) 
budget powering the recovery plan for Europe’9, the European Commission declared 
that the health crisis  resulted in  an economic crisis,  and set  out a recovery plan for 
the economy. This included the EGF as an emergency tool to assist persons who lost 
their jobs due to the global economic crisis. 

The  pandemic  caused  the  deepest  recession  in  EU  history.  According  to  the 
‘Commission’s Winter 2021 European Economic Forecast’10, EU GDP contracted by 
6,3 % in 2020, and projected to rebound by 3,7 % in 2021 and by 3,9 % in 2022. 

The COVID-19 pandemic has had a significant impact on the aviation industry due 
to  travel  restrictions  and  a  dramatic  decline  in  passenger  air  transport.  The  drop  in 
passenger  numbers  massively  reduced  the  revenues  of  airlines  and  forced  many  of 
them  to  lay  off  employees  or  declare  insolvency.  In  April  2020,  international 
passenger  traffic  dropped  by  98,9 %  compared  to  April  2019  and  64 %  of  global 
aircraft was put into storage, representing the largest contraction in aviation history11. 

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). 
COM(2020) 442 final. 
Winter 2021 Economic Forecast https://ec.europa.eu/info/business-economy-euro/economic-
performance-and-forecasts/economic-forecasts/winter-2021-economic-forecast-challenging-winter-
light-end-tunnel_en  
ATAG. 2020 Aviation Benefits Beyond Borders Report: 
https://aviationbenefits.org/media/167186/abbb2020_full.pdf  

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14. 

In June 2020, passenger demand improved slightly, but remained significantly below 
pre-crisis  levels.  Industry-wide  revenue  passenger  kilometres  shrank  by  86,5 % 
compared to June 201912.  

Air passenger volumes13 

Industry-wide revenue passenger kilometres - RPKs (billion per month) 

  Actual 

Seasonally adjusted 

15. 

16. 

17. 

International passenger demand fell by 75,6 % in 2020 compared to 2019 levels. The 
capacity (measured in available seat kilometres or ASKs) declined by 68,1 % and the 
passenger  load  factor  (which  measures  the  percentage  of  available  seating  capacity 
that is filled with passengers) fell by 19,2 percentage points to 62,8 %14. 

According  to  the  global  passenger  forecast  by  the  International  Air  Transport 
Association,  it will take  3 to  4  years for the aviation industry to  recover  to  its pre-
crisis levels15.  

To  date,  the  air  transport  sector  has  been  the  subject  of  four  applications  for  EGF 
support,  three  of  which  based  on  trade  related  globalisation16  and  one  on  the 
economic crisis resulting from the COVID-19 pandemic17. 

Events giving rise to the redundancies and cessation of activity 

18. 

19. 

12 

13 
14 
15 
16 

17 

The  events  giving  rise  to  these  redundancies  are  a  result  of  the  unexpected  global 
economic crisis caused by the COVID-19 pandemic.  

Finland reports that Finnair has been hit hard by the impact of the pandemic. Before 
the COVID-19 outbreak, Finnair had  a strong financial position.  In 2019, Finnair’s 
revenue grew by 9,2 %, reaching a record high of EUR 3 097 million, compared to 
EUR 2 836  million  in  2018.  The  operating  result  totalled  EUR  162,8  million, 
compared to EUR 256,3 million in 2018, a decrease of 38 %, driven by an increase in 
fuel costs, aircraft materials and overhaul expenses.  

IATA: Air Passenger Market Analysis June 2020: https://www.iata.org/en/iata-
repository/publications/economic-reports/air-passenger-monthly-analysis---june-20202/  
Ibid. 
IATA : https://www.iata.org/en/pressroom/pr/2021-02-03-02/  
IATA:  https://www.iata.org/en/pressroom/pr/2020-07-28-02/  
EGF/2017/009  FR/Air  France,  COM(2018)  230;  EGF/2013/014  FR  Air  France,  COM(2014) 701  and 
EGF/2015/004 IT Alitalia, COM(2015) 397. 
EGF/2020/004 NL/KLM, COM(2021)226. 

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20. 

21. 

22. 

23. 

24. 

Over the last decade, the number of passengers at the airport of Helsinki-Vantaa had 
increased  significantly.  Between  2009  and  2019,  passenger  numbers  increased  by 
58 %  from  12,6  million  to  21,9  million.  Passengers  on  international  flights  formed 
the majority of the passenger traffic: 10,2 million in 2009 and 18,9 million in 201918. 
In 2019, the number of passengers carried by Finnair increased by 10,3 % to 14 650 
400 passengers, reaching a new annual record19. 

At  the  beginning  of  2020,  passenger  traffic  at  Helsinki-Vantaa  airport  was  still 
growing. In January 2020, passenger volumes to China increased by 58 % compared 
to January 2019. However, in February 2020, passenger volumes decreased sharply 
by 73 % due to the epidemic situation. Finnair had to cancel all flights to mainland 
China as of 6 February 2020 and to other Asian destinations as of 4 March 202020. 
On  13  March  2020,  the  United  States  government  restricted  all  non-essential 
travelling to the USA, therefore Finnair had to also cancel all flights to the USA21.  

The  restrictions  in  place  both  in  Finland  and  in  other  destination  countries  have 
heavily  affected  Finnair's  operations,  in  particular  regarding  international  and 
intercontinental  flights.  In  April  2020,  the  air  traffic  at  Helsinki-Vantaa  airport 
ceased  almost  entirely,  remaining  at  only  1 %  compared  to  April  2019  (21 000 
passengers  in  April  2020  vs.  1,8  million  in  April  2019).  In  the  second  quarter, 
comparing  2020  to  2019,  the  number  of  flights  between  Finnair’s  Asian  and 
European destinations decreased by 92,1 %. The number of passengers decreased by 
97,5 % from 3,9 million to 98 000 passengers and passenger traffic capacity (ASKs) 
decreased by 97,2 %22. 

The  Finnair Annual  Report  2020 showed a sharp drop in  revenue by  73,2 % (from 
3 097,7  million  to  EUR  829,2  million),  the  number  of  passengers  decreased  by 
76,2 %  (from  14,7  million    to  3,5  million)  and  the  company  had  accumulated  an 
operating loss of EUR 464,5 million23.  

Finnair had to reduce its costs in order to address this crisis and savings were made 
in  real  estate,  aircraft  leasing,  IT  (digitalisation  and  automation  of  its  customer 
processes),  sales  and  distribution  costs,  as  well  as  administration  costs  and 
compensation structures. This led to the workforce being reduced by 1 000 jobs24.  

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

25. 

The aviation sector’s contribution to the economy of Finland is significant. In 2020, 
the  industry  employed  42 000  persons  (23 000  direct  and  19 000  indirect  jobs)  and 
contributed  EUR  8,8  billion  to  the  Finland’s  GDP,  thus  representing  3,2 %  of  the 

18 

19 

20 

21 
22 

23 

24 

Finavia annual report 2019: 
https://www.finavia.fi/sites/default/files/documents/Tilinpäätös%202019.pdf  
Finnair annual report 2019: https://investors.finnair.com/~/media/Files/F/Finnair-
IR/documents/en/reports-and-presentation/2020/annual-report-2019.pdf  
https://news.cision.com/finnair/r/finnair-cancels-all-flights-to-mainland-china-between-february-6-and-
february-29--2020--customers-to,c3024652 
https://news.cision.com/finnair/r/finnair-cancels-flights-to-us-and-delhi,c3057949  
Finnair annual report 2020: https://investors.finnair.com/~/media/Files/F/Finnair-
IR/documents/en/reports-and-presentation/2020/half-year-2020-report-en.pdf  
https://investors.finnair.com/~/media/Files/F/Finnair-IR/documents/en/reports-and-
presentation/2021/annual-report-2020.pdf  
https://company.finnair.com/en/media/all-releases/news?id=3751510 and 
https://www.aviation24.be/airlines/finnair/finnair-targets-100-million-euros-cost-base-reductions-plans-
to-reduce-1-000-jobs/  

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26. 

27. 

28. 

total GDP25.  Finnair is the largest airline of Finland with its hub at Helsinki-Vantaa 
airport. At the end of 2019, Finnair had 6 788 employees and operated traffic to 132 
destinations26. 

The  redundancies  in  Finnair  have  a  serious  impact  on  the  national  economy.  The 
NUTS  2 region  concerned by the redundancies is Helsinki-Uusimaa, where Finnair 
has its operating hub. Between February and April 2020, the number of unemployed 
jobseekers in Helsinki-Uusimaa region increased by 22,5 % from 68 016 to 83 340. 
On an annual basis and despite measures to preserve employment, the unemployment 
rate  in  the  region  of  Helsinki-Uusimaa  increased  by  0,8  percentage  points,  from 
6,4 % in 2019 to 7,2 % in 202027. 

In  2020,  the  national  unemployment  rate  stood  at  7,8  %,  i.e.  1,1  percentage  points 
higher  than  in  201928.  The  Finnish  Ministry  of  Finance  estimated  that  the 
unemployment rate will continue to rise to 8,2 % in 2021, before decreasing to 7,8 % 
in 202229. 

Due to rising unemployment resulting from the crisis, the re-employment of former 
Finnair  workers  will  be  difficult.  The  Finnish  authorities  argue  that  dismissed 
workers  need  customised  job-search  guidance  and  support,  along  with  tailored 
upskilling and reskilling to increase their chances of re-employment. 

Targeted beneficiaries and proposed actions 

Targeted beneficiaries 

29. 

Out of the 508 eligible persons, the estimated number of redundant workers expected 
to participate in EGF measures is 500. The breakdown of these redundant workers by 
sex, citizenship and age group is as follows: 

Sex: 

Category 

Men: 

Women: 

Citizenship:  EU citizens: 

non-EU citizens: 

Age group: 

15-24 years: 

25-29 years: 

30-54 years: 

55-64 years: 

over 64 years: 

Number of  
targeted beneficiaries 

280  (56,00 %) 

220  (44,00 %) 

493  (98,60 %) 

7 

(1,40 %) 

19 

28 

(3,80 %) 

(5,60 %) 

312  (62,40 %) 

141  (28,20 %) 

0 

(0,00 %) 

25 

26 

27 
28 
29 

Air Transport Action Group (ATAG), Aviation Benefits Beyond Borders: 
https://aviationbenefits.org/downloads/aviation-benefits-beyond-borders-2020/     
Finnair annual report 2019: https://investors.finnair.com/~/media/Files/F/Finnair-
IR/documents/en/reports-and-presentation/2020/annual-report-2019.pdf  
Finland's statistical database https://pxnet2.stat.fi/PXWeb/pxweb/en/StatFin/  
https://www.stat.fi/til/tyti/2020/13/tyti_2020_13_2021-03-04_tie_001_en.html  
Statistics  Finland  https://www.stat.fi/til/tyti/2020/09/tyti_2020_09_2020-10-20_tie_001_en.html  and 
https://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/162542/TEM%20työmarkkinaennuste%20sy
ksy%202020.pdf  

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Eligibility of the proposed actions 

30. 

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

– 

– 

– 

– 

– 

– 

Coaching and other preparatory measures. These include 1) Expert assessments 
of  jobseeker's  professional  competences  and  the  needs  for  the  services;  2) 
Competency  assessment  to  map  participants  according  to  their  competences 
and job perspectives; 3) Job-seeking training and information about the labour 
market;  4)  Career  and  individual  intensive  coaching  to  support  and  guide 
participants in seeking employment. 

Employment and business services. This measure will provide vocational and 
job-seeking  guidance,  counselling,  work  ability  evaluations  and  try-outs. 
Recruitment and information events will also be organised.  

Training.  This  will  provide  a  tailored  program  “Further  Educated  with 
Companies  (F.E.C.)30”  developed  by  the  Finnish  authorities  that  aims  at 
bringing  together  job  candidates  and  companies  looking  to  recruit.    The 
participants  will  also  receive  the  vocational  qualification  trainings,  including 
courses  such  as  business  development,  executive  training,  human  resource, 
sales  and  marketing,  artificial  intelligence  (A.I.),  digital  security,  robotics, 
financial management, project management, etc. 

Pay subsidy. This measure will support employment in a new job, by reducing 
the payroll costs. The pay subsidy will be 30-50 % of the payroll costs and paid 
to the employer. The amount and length of the subsidy depends on the length 
of the unemployment period.  

Start-up grant. The purpose of the grant is to promote the creation of business 
activity  and  employment  of  individual  persons.  The  start-up  grant  ensures  an 
income  for  an  aspiring  entrepreneur  during  the  estimated  time  required  to 
launch and establish a full-time business, up to a maximum of 12 months. 

Allowances  for  travel,  accommodation  and  removal  may  be  granted  to  cover 
related expenditure incurred during job-seeking or training. 

31. 

32. 

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. 

Finland 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 

33. 

34. 

30 

The  estimated 
total  costs  are  EUR 2 920 600,  comprising  expenditure  for 
personalised  services  of  EUR 2  730  600  and  expenditure  for  preparatory, 
management, 
information  and  publicity,  control  and  reporting  activities  of 
EUR 190 000. 

The total financial contribution requested from the EGF is EUR 1 752 360 (60 % of 
total costs). 

https://www.aaltopro.fi/en/services-in-change-situations/f.e.c.-programs-and-recruitment  

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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) 

Coaching and other preparatory measures 

Employment and business services 

Training 

450 

500 

300 

1 556 

700 000 

400 

200 000 

4 333 

1 300 000 

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

– 

2 200 000 

(80,57 %) 

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

Pay subsidy 

Allowances for travel, accommodation and 
removal 

Start-up grant 

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) 

60 

25 

20 

6 000 

360 000 

200 

5 000 

8 280 

165 600 

– 

– 

– 

– 

– 

– 

– 

– 

530 600 

(19,43 %) 

0 

160 000 

15 000 

15 000 

190 000 

(6,51 %) 

2 920 600 

1 752 360 

35. 

31 

32 

The costs of the actions identified in the table above as actions under Article 7(1)(b) 
of  the  EGF  Regulation  do  not  exceed  35 %  of  the  total  costs  for  the  coordinated 
package  of  personalised  services.  Finland  confirmed  that  these  actions  are 

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 Finland. 
Totals do not totally due to rounding. 

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

36. 

Finland confirmed that the costs of investments for self-employment, business start-
ups and employee take-overs will not exceed EUR 15 000 per beneficiary. 

Period of eligibility of expenditure 

37. 

38. 

Finland started providing the personalised services to the targeted beneficiaries on 21 
October  2020.  The  expenditure  on  the  actions  will  therefore  be  eligible  for  a 
financial contribution from the EGF from 21 October 2020 to 30 December 2022. 

Finland started incurring the administrative expenditure to implement the EGF on 21 
October  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 21 October 2020 to 30 June 2023.  

Complementarity with actions funded by national or Union funds 

39. 

40. 

The  sources  of  national  pre-financing  or  co-funding  are  the  public  employment 
service  in  the  administrative  branch  of  the  Ministry  of  Economic  Affairs  and 
Employment  (MEAE).  Some  services  will  also  be  funded  from  the  operating 
expenditure  of  the  Centres  for  Economic  Development,  Transport  and  the 
Environment  (ELY  Centres)  and  the  Employment  and  Economic  Development 
Offices (TE Offices). 

Finland  has  confirmed  that  the  measures  described  above  receiving  a  financial 
contribution  from  the  EGF  will  not  receive  financial  contributions  from  other 
European Union financial instruments33.  

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

41. 

Finland has indicated that the co-ordinated package of personalised services has been 
put  together  in  consultation  with  a  working  group.  The  preparation  activities 
included  meetings  with  the  representatives  of  Centres  for  Economic  Development, 
Transport and Environment  and TE offices of Uusimaa, Finnair and  Trade Unions, 
namely  Ilmailualan  Unioni  (IAU),  Finnairin  insinöörit  ja  ylemmät  toimihenkilöt 
(FINTO), Auto ja Kuljetusalan Työntekijäliitto ry (AKT) and Trade Union Pro. 

Management and control systems 

42. 

The application contains a description of the management and control system which 
specifies  the  responsibilities  of  the  bodies  involved.  Finland  has  notified  the 
Commission  that  the  financial  contribution  will  be  managed  by  the  Ministry  of 
Economic Affairs and Employment, which acts as managing and certifying authority 
for  EGF  and  as  an  intermediate  body  distributing  EGF  funds.  The  management 
functions  for  EGF  have  been  assigned  to  the  Regions  and  Growth  Services 
Department,  which  also  acts  as  managing  authority  for  the  European  Social  Fund. 
The  Centres  for  Economic  Development,  Transport  and  the  Environment  (ELY 
Centres) are in charge of implementation of measures financed from EGF. 

33 

On  18  May  2020,  the  European  Commission  approved  a  Finnish  aid  measure  consisting  of  a  State 
guarantee  on  a  EUR  600  million  loan  to  Finnair  to  mitigate  the  economic  impact  of  the  coronavirus 
outbreak on the company. https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1032  

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43. 

Regarding the role of the certifying authority, this is taken by the Human Resources 
the 
and  Administration  Unit.  Regarding  auditing, 
independent Internal Auditing Unit, operating under the Permanent Secretary of the 
Ministry of Economic Affairs and Employment. 

the  responsible  body 

is 

Commitments provided by the Member State concerned 

44. 

Finland 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, 

Finnair, 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 
2021-202734. 

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 1 752 360, 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 
resources35. 

34 
35 

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

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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 1 752 360. 

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 

11 

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2021/0116 (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 Finland – EGF/2020/007 FI/Finnair 

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 1927/200636, 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 resources37, and in particular point 9 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

36 
37 
38 

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), 
(EU, 
as 
Euratom) 2020/209338. 

of  Council  Regulation 

in  Article 8(1) 

down 

laid 

On  30  December  2020,  Finland  submitted  an  application  to  mobilise  the  EGF,  in 
respect  of  redundancies  in  Finnair  Oyj  and  one  subcontractor  in  Finland.  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 1 752 360 in respect of the application submitted by Finland. 

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. 11). 

EN 

12 

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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 1 752 360 in commitment 
and payment appropriations. 

Article 2 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

  

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

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