Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Germany – EGF/2023/003 DE/Vallourec
Date: 2024-02-29
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, iron and steel industry, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 29.2.2024  COM(2024) 30 final 2024/0049 (BUD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Germany – EGF/2023/003 DE/Vallourec  
 
EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

1. 

2. 

3. 

The  rules  applicable  to  financial  contributions  from  the  European  Globalisation 
Adjustment  Fund  for  Displaced  Workers  (EGF)  are  laid  down  in  Regulation  (EU) 
2021/691  of  the  European  Parliament  and  of  the  Council  of  28  April  2021  on  the 
European  Globalisation  Adjustment  Fund  for  Displaced  Workers  (EGF)  and 
repealing Regulation (EU) No 1309/20131. 

15 

November 

On 
application 
EGF/2023/003 DE/Vallourec  for  a  financial  contribution  from  the  EGF,  following 
displacements in Vallourec (Vallourec Deutschland GmbH (VAD)) in Germany. 

submitted 

Germany 

2023, 

an 

Following  its  assessment  of  this  application,  the  Commission  has  concluded,  in 
accordance  with  all  applicable  provisions  of  Regulation  (EU)  2021/691,  that  the 
conditions for awarding a financial contribution from the EGF are met.  

SUMMARY OF THE APPLICATION 

EGF application 

Member State 

Region(s) concerned (NUTS2 level 2) 

EGF/2023/003 DE/Vallourec 

Germany 
DEA1 (Düsseldorf) 

Date of submission of the application 

15 November 2023 

Date of acknowledgement of receipt of the 
application 

15 November 2023 

Date of request for additional information 

29 November 2023 

Deadline for provision of the additional 
information 

20 December 2023 

Deadline for the completion of the assessment 

8 March 2024 

Intervention criterion 

Primary enterprise 

Article 4(2), point (a), of Regulation 
(EU) 2021/691 

Vallourec (Vallourec Deutschland 
GmbH (VAD)) 

Number of enterprises concerned 

1 

Sector(s) of economic activity 
(NACE Revision 2 division)3 

Division 24 (Manufacture of basic 
metals) 

Reference period (four months): 

26 April 2023 – 26 August 2023 

Number of displacements during the reference 
period 

1 518 

1 
2 

3 

OJ L 153, 3.5.2021, p. 48. 
Commission Delegated Regulation 2019/1755 of 8 August 2019 amending the Annexes to 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). OJ L 270, 24.10.2019, p. 1–56. 
OJ L 393, 30.12.2006, p. 1. 

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Total number of eligible beneficiaries 

Total number of targeted beneficiaries 

Budget for personalised services (EUR) 

Budget for implementing EGF4 (EUR) 

Total budget (EUR) 
EGF contribution (60 %) (EUR) 

1 518 

835 

4 783 057 

191 322 

4 974 379 
2 984 627 

ASSESSMENT OF THE APPLICATION 

Procedure 

4. 

Germany submitted application EGF/2023/003 DE/Vallourec within 12 weeks of the 
date on which the intervention criteria set out in Article 4 (2), point (a), of Regulation 
(EU)  2021/691  were  met,  on  15  November  2023.  The  Commission  acknowledged 
receipt  of  the  application  the  same  date  and  requested  additional  information  from 
Germany  on  29  November  2023.  Such  additional  information  was  provided  within 
15  working  days.  The  deadline  of  50  working  days  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 8 March 2024. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The  application  relates  to  1 518  displaced  workers  whose  activity  has  ceased  in 
Vallourec  (Vallourec  Deutschland  GmbH  (VAD)).  This  enterprise  operates  in  the 
economic sector classified under the NACE Revision 2 division 24 (Manufacture of 
basic  metals).  The  redundancies  made  by  the  enterprise  are  located  in  the  NUTS  2 
region of Düsseldorf (DEA1). 

Intervention criteria 

6. 

7. 

Germany  submitted  the  application  under  the  intervention  criteria  of  Article 4(2), 
point (a), of Regulation (EU) 2021/691, which requires the cessation of activity of at 
least 200 displaced workers over a reference period of]four months in an enterprise 
in  a  Member  State,  including  workers  displaced  in  suppliers  and  downstream 
producers and / or self-employed persons whose activity has ceased. 

The reference period of four months for the application runs from 26 April 2023 to 
26  August  2023.  There  were  1 518  displaced  workers  in  Vallourec  during  the 
reference period. 

Calculation of displacements and of cessation of activity 

8. 

4 
5 

Pursuant  to  Article 6,  first  paragraph,  point (a),  in  conjunction  with  Article 5,  first 
paragraph, point (c), of Regulation (EU) 2021/691, the cessation of activities of the 
1 518 displaced workers during the reference period has been calculated as from the 
date  on  which  the  employer,  in  accordance  with  Article 3(1)  of  Council  Directive 
98/59/EC 5 ,  notified  the  competent  public  authority  in  writing  of  the  projected 

In accordance with Article 7(5) of Regulation (EU) 2021/691. 
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). 

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collective  redundancies.  Germany  confirmed  prior  to  the  date  of  the  completion  of 
the assessment by the Commission that these 1 518 redundancies have actually been 
effected. 

Eligible beneficiaries 

9. 

The total number of eligible beneficiaries is 1 518. 

Description of the events that led to the displacements and cessation of activity 

10. 

11. 

12. 

13. 

14. 

15. 

The  events  giving  rise  to  these  displacements  are  the  closure  of  the  enterprise’s 
production facilities due to globalisation. 

The  enterprise,  Vallourec  Deutschland  GmbH  (VAD),  is  the  German  subsidiary  of 
Vallourec S.A, France.  The enterprise manufactured seamless  hot-rolled steel  tubes 
at  its  two  steel  mills  in  Germany,  namely  in  the  neighbouring  cities  of  Düsseldorf 
and Mülheim an der Ruhr. The steel mills, previously known as Mannesmannröhren-
Werke AG, were founded in 1899 and 1966, respectively. 

The  enterprise  had  been  reporting  losses  since  2014,  and,  as  a  consequence, 
responded  by  several  restructuring  and  downsizing  measures.  In  2018,  the  VAD 
Recovery Plan was launched, with the aim of leading to substantial savings by 2020. 
Despite  some  success,  the  economic  situation  following  the  Covid-19  pandemic 
resulted  in  further  difficulties  for  the  German  tube  mills.  Since  2015,  more  than 
1 400 jobs were already lost due to restructuring. 

On 17 November 2021, the supervisory board of Vallourec S.A. decided to sell the 
German tube mills, and to offshore production to Brazil. 

Even though Vallourec S.A. received offers from potential buyers, none of the offers 
proved viable. On 18 May 2022, the supervisory board declared that all attempts to 
sell the production sites had failed. This meant the definitive closure of the sites, as 
no successor to operate the facilities could be found. 

Production will continue until the offshoring process is completed. Therefore, it has 
been decided to close the sites in three phases. A first batch of workers has left the 
company by 1 January 2024, a second batch will leave by 1 July 2024, and the third 
batch by 1 January 2025. 

16. 

The enterprise will continue activities in Germany, but only as a sales company. 

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

17. 

18. 

The job displacements are expected to have a significant adverse effect on the local 
economy.  The  Rhine-Ruhr  metropolitan  region  is  the  most  highly  populated 
metropolitan region  in  Germany,  comprising both  the Ruhr  area, a traditional coal-
mining  and  steel-producing  region,  as  well  as  the  cities  along  the  Rhine.  The  local 
job markets within the region differ widely. 

The  city  of  Mülheim  an  der  Ruhr  forms  part  of  the  Ruhr  area,  an  industrial  region 
that  has  been  facing  structural  changes  since  the  1960s.  In  the  city,  manufacturing 
employment is declining. The metal manufacturing sector experienced a loss of more 
than  21%  of  jobs  over  the  past  five  years. 6  The  unemployment  rate  of  8.0% 
(December  2023)  is  high,  also  in  comparison  with  other  cities  of  the  Ruhr  area. 

6 

It  should  be  noted  that  the  previous  EGF  application  from  Germany,  EGF/2020/003  DE/GMH  Guss, 
concerned dismissals in Mülheim an der Ruhr in the very same sector. 

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19. 

20. 

About  74%  of  the  unemployed  do  not  possess  any  professional  qualification,  and 
more than 50% of the unemployed have been without employment for more than a 
year.  

The  neighbouring  city  of  Düsseldorf  is  characterised  by  a  very  high  degree  of 
employment  in  the  tertiary  sector,  boasting  88%  of  overall  jobs.  Only  11%  of  the 
workforce  work  in  the  secondary  sector.  These  production  jobs  are  in  decline, 
especially  in  metal  manufacturing.  Unemployment  in  Düsseldorf  concerns  mostly 
persons  without  formal  professional  qualifications.  About  60%  of  the  unemployed 
fall  into  this  category.  More  than  a  third  of  the  unemployed  were  without 
employment for more than a year. 

According  to  the  projections  of  the  Public  Employment  Services,  based  on 
unemployment  figures  of  September  2023,  the  dismissals  in  VAD  would  cause  the 
unemployment  rate  in  Mülheim  to  rise  by  11.6%,  and  in  the  far  larger  city  of 
Düsseldorf, by 5.6%. The profiles of the displaced workers  do not  match  the skills 
sought  after  on  the  job  market.  Most  of  the  workers  concerned  are  in  an  advanced 
stage of their professional careers, having worked for Vallourec for a long time, with 
low  levels  of  formal  qualifications  and  overall,  rather  outdated  qualifications  and 
skills.  Up-  and  re-skilling  the  workers  in  line  with  labour  market  demands  for 
qualified jobs will thus be a challenge, in particular considering the large number of 
people dismissed at the same time. 

Application of the EU Quality Framework for anticipation of change and restructuring 

(QFR) 

21. 

22. 

23. 

24. 

Germany  has  described  how  the  recommendations  set  out  in  the  EU  Quality 
Framework  for  anticipation  of  change  and  restructuring  have  been  taken  into 
account: directly after the decision to close down the tube mills, the management of 
the enterprise and employee representatives started negotiations of a social plan, and 
in particular the creation of a transfer company. 

According  to  the  German  authorities,  there  is  no  obligation  on  the  part  of  the 
dismissing  enterprise  to  create  or  contribute  towards  the  creation  of  a  transfer 
company. Without the participation of the dismissing enterprise, no transfer company 
would  be  set  up.  If  the  dismissing  enterprise  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). 

The  negotiating  parties  agreed  on  setting  up  a  transfer  company  for  each  batch  of 
dismissals. A transfer agency was commissioned with the setting-up of these transfer 
companies. The transfer agency started its works on 17 April 2023. In preparation of 
the transfer of the workers to the transfer companies, the transfer agency started with 
initial profiling measures on 4 October 2023. 

Regarding  the  activities  undertaken  to  assist  the  displaced  workers,  Germany  has 
reported that the enterprise also offered an early retirement plan for employees born 
1966  or  before,  as  well  as  a  voluntary  termination  plans  for  people  that  might  not 
need longer assistance in finding a new job. 

Complementarity with actions funded by national or Union funds 

25. 

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

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26. 

The  coordinated  package  of  personalised  services  complements  actions  funded  by 
other national and private funds, namely those offered by the transfer company. 

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

27. 

28. 

Germany  has  indicated  that  the  co-ordinated  package  of  personalised  services  has 
been  drawn  up  in  consultation  with  the  social  partners,  in  compliance  with  Article 
7(4)  of  Regulation  (EU)  2021/691.  The  third-party  contractor  commissioned  with 
setting-up  of  the  transfer  company  and  the  German  authorities  soon  discussed 
avenues of intensifying and enlarging the suite of measures with the help of the EGF. 

Since  November  2022,  the  German  EGF  Managing  Authority  entered  discussions 
with the dismissing enterprise, the third-party contractor commissioned with setting-
up the transfer company, the Public Employment Service, as  well as the respective 
authorities  of  the  Federal  State  of  North-Rhine  Westfalia  about  a  possible  EGF 
application. On 13 February 2023, a common action plan was agreed upon during a 
round table discussion under the participation of the third-party contractor, the EGF 
Managing  Authority,  the  Public  Employment  Service,  the  dismissing  enterprise  as 
well  as  employee  representatives.  Trade  Union  representatives  were  consulted  and 
invited to the roundtable, but could not participate due to other commitments. 

Targeted beneficiaries and proposed measures 

Targeted beneficiaries 

29. 

The estimated number of displaced workers expected to participate in the measures is 
835. Pursuant  to  Article  8(7), point (f), of Regulation (EU) 2021/691,  the provided 
breakdown  of  these  workers  by  gender,  age  group  and  educational  level  is  as 
follows: 

Category 

Gender: 

Men: 

Women: 

Non-binary 

Age group: 

Below 30 years: 

Educational 
level 

30-54 years: 

Over 54 years: 

Lower  secondary 
education or less7  
Upper  secondary 8 
or  post-secondary 
education9 

Number of  
expected 
beneficiaries 

798 

(95,6 %) 

37 

0 

53 

(4,4 %) 

(0 %) 

(6,4 %) 

614 

168 

(73,5 %) 

(20,1 %) 

77 

(9,2 %) 

667 

(79,9 %) 

Tertiary 

91 

(10,9 %) 

7 
8 
9 

ISCED 0-2 
ISCED 3 
ISCED 4 

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Proposed measures 

education10 

30. 

Pursuant  to  Article  8(7),  point  (h)  of  Regulation  (EU)  2021/691,  the  personalised 
coordinated  package  to  be  provided  to  displaced  workers  consists  of  the  following 
measures: 

– 

– 

– 

– 

– 

– 

– 

Upskilling  Measures:  These  are  offered  following  profiling  and  career 
guidance  interviews,  in  line  with  personal  career  interests  and  job  market 
demands. Courses can be provided individually or in groups. Considering that 
30% of the displaced  workers  have  a migratory  background, German  courses 
will  be  offered  to  participants  with  a  poor  command  of  German.  For 
participants  with  a  low  level  of  digital  skills,  specialised  basic  digital  skills 
courses  will be offered.  Those participants  who take up  employment can  still 
participate in these measures. 

Guidance  counseling  and  vocational  orientation  /  activation  measures:  Based 
on  the  initial  profiling  interviews,  guidance  counsellors  will  inform  about 
developments  on  the  job  market  and  possible  career  paths,  and  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.  This  is 
supported by the use of aptitude and personality tests. There will also be group 
fora in the form of peer groups and workshops, assisted by a facilitator, helping 
participants  to  exchange  ideas  and  reflect  on  their  experiences.  Some  peer 
groups  focus  on  participants  with  a  common  background:  single  mothers  or 
older  participants.  These  offers  will  be  accompanied  by  a  specified  digital 
package  of  assistance  measures  in  the  form  of  a  smartphone  app.  A  further 
focus will be on measures aiming at stabilising and improving the physical and 
mental health of participants. 

Business start-up advisory services: 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  group 
coaching sessions. 

Business  start-up  grants:  These  grants  will  be  offered  to  those  that  decide  to 
start their own business. The grants can be used for investments in equipment, 
but  also  for  the  rent  of  business  premises  or  further  coachings  or  trainings 
during the start-up phase. 

Job search assistance: Professional job scouts will help to locate potential job 
vacancies  that  are  not  yet  published,  and  which  might  suit  eligible  workers. 
Furthermore, a variety of job search events, like job fairs, will be organised. 

incentives:  These 

Upskilling 
incentives  can  be  paid  upon  successful 
participation  in  certain  measures.  Whether  incentives  will  be  used,  and  what 
amounts would be paid, will depend on the type, the level and the duration of a 
measure.  

Further incentives: These incentives will primarily focus on the integration of 
participants  in  the  job  market,  and  can  be  paid  as  a  bonus  for  taking  up 
employment during the duration of the transfer company or be paid in the form 

10 

ISCED 5-8 

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of  salary  top-ups.  Such  top-ups  aim  at  offering  an  incentive  to  accept  new 
employment,  even  if  the  salary  of  the  new  employment  is  lower  than  in  the 
previous job. 

– 

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. 

Digital  basic  skills  (Digitale  Grundqualifizierung):  This  measure  caters  for  the 
dissemination of the skills required in the digital industrial age, as required by Article 
7(2)  of  Regulation  (EU)  2021/691.  This  measure  particularly  aims  at  those 
participants  with  no  or  very  little  digital  skills.  Participants  will  be  provided  with 
laptops so that they can follow the course and practise at home. Special attention will 
be paid to applied skills that help participants to use internet tools for job search. 

As  concerns  the  dissemination  of  skills  required  in  a  resource-efficient  economy, 
also  required  by  Article  7(2)  of  Regulation  (EU)  2021/691,  Germany  declares  that 
the external service provider commissioned with managing the transfer companies is 
obliged  by  contractual  agreement  to  ensure  the  dissemination  of  such  skills  as  a 
horizontal  principle  across  the  suite  of  measures  offered.  Further  attention  will  be 
paid on the promotion of jobs that help catalyse the decarbonisation of the economy, 
such as locomotive engineers. 

The  proposed  actions,  here  described,  constitute  active  labour  market  policy 
measures  within  the  eligible  actions  set  out  in  Article  7  of  Regulation  (EU) 
2021/691. These actions do not substitute passive social protection measures.  

Germany  has informed  about activities already undertaken for the assistance of the 
displaced  workers.  The  first  batch  of  workers  has  effectively  lost  their  jobs  on  31 
December 2023. Whereas first screening measures were offered before the dismissal, 
the displaced workers could benefit from the whole suite of measures offered by the 
transfer company as of 1 January 2024. 

Germany has provided the required information on measures that are mandatory for 
the  enterprise  concerned  by  virtue  of  national  law  or  pursuant  to  collective 
agreements. In accordance with Article 9(1) of Regulation (EU) 2021/691, Germany 
has  confirmed  that  a  financial  contribution  from  the  EGF  will  not  replace  such 
measures. 

31. 

32. 

33. 

34. 

35. 

Estimated budget 

36. 

37. 

38. 

The  estimated 
personalised  services  of  EUR 4 783 057  and  expenditure 
management, 
EUR 191 322. 

total  costs  are  EUR 4 974 379,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

The total financial contribution requested from the EGF is EUR 2 984 627 (60 % of 
total costs). 

Pursuant  to  Article  8(7),  point  (m),  of  Regulation  (EU)  2021/691,  Germany  has 
specified  that  the  national  pre-financing  and  co-funding  is  provided  by  the  Federal 
budget as well as by Bundesagentur für Arbeit (Public Employment Service). 

Measures 

Estimated 
number of 

Estimated cost 
per participant 

Estimated total 
costs 

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Personalised services (measures under Article 7(2), second subparagraph, point (a), of Regulation 
(EU) 2021/691) 

participants 

(EUR)11 

(EUR)12  

Upskilling measures 
(Qualifizierungsmaßnahmen) 

Guidance counseling and vocational 
orientation / activation measures 
(Berufsorientierung und -beratung / 
Aktivierungsmaßnahmen) 

Business start-up advisory services 
(Existenzgründungsberatung)  

Business start-up grants 
(Existenzgründungsförderung) 

Job search assistance (Beratung und 
Stellenakquise) 

425 

3 681 

1 564 456 

835 

793 

662 617 

18 

18 

2 187 

39 369 

21 871 

393 685 

835 

538 

449 649 

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

– 

3 109 776 

(65,02 %) 

Allowances and incentives (measures under Article 7(2), second subparagraph, point (b), of 
Regulation (EU) 2021/691) 

Upskilling incentives 
(Weiterbildungsprämien)  

Further incentives (Weitere Prämien) 

Training allowance 
(Transferkurzarbeitergeld) 

250 

120 

835 

787 

196 843 

3 280 

393 685 

1 296 

1 082 753 

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

Activities under Article 7(5) of Regulation (EU) 2021/691 

1. Preparatory activities 

2. Management 

3. Information and publicity 

4. Control and reporting 

Sub-total (c): 

– 

– 

– 

– 

– 

– 

1 673 281 

(34,98 %) 

28 698 

95 661 

9 566 

57 397 

191 322 

11 

12 

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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Percentage of the total costs : 

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

– 

– 

(3,85 %) 

4 974 379 

2 984 627 

39. 

40. 

The  costs  of  the  measures  identified  in  the  table  above  as  measures  under 
Article 7(2),  second  subparagraph,  point  (b),  of  Regulation  (EU)  2021/691  do  not 
exceed 35 % of the total costs for the coordinated package of personalised services. 
Germany confirmed that these measures are conditional on the active participation of 
the targeted beneficiaries in job-search or training activities. 

In accordance with Article 7(2), fourth subparagraph, of Regulation (EU) 2021/691, 
Germany  confirmed  that  the  costs  of  investments  for  self-employment,  business 
start-ups and employee take-overs will not exceed EUR 22 000 per beneficiary. 

Period of eligibility of expenditure 

41. 

42. 

Germany started providing the personalised services to the targeted beneficiaries on 
1 December 2023. The expenditure on the measures will therefore be eligible for a 
financial contribution from the EGF from 1 December 2023 until 24 months after the 
date of the entry into force of the Financing Decision. 

Germany started incurring the administrative expenditure to implement the EGF on 1 
January  2023.  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 January 2023 until 31 months after the date of the 
entry into force of the Financing Decision. 

Management and control systems 

43. 

The  application  contains  a  description  of  the  management  and  control  system 
required  under  Article  23  of  Regulation  (EU)  2021/691,  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  authority,  the  organisationally 
independent  'Organisationseinheit  Prüfbehörde'  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 access to the proposed measures and their implementation, 

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

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

any double financing will be prevented, 

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– 

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 (in 2018 
prices),  as 
in  Article 8  of  Council  Regulation  (EU,  Euratom) 
No 2020/2093  of  17  December  2020  laying  down  the  multiannual  financial 
framework for the years 2021 to 202713. 

laid  down 

Having examined the application in respect of the conditions set out in Article 13(1) 
and (2) of Regulation (EU) 2021/691, and having taken into account the number of 
targeted  beneficiaries,  the  proposed  measures  and  the  estimated  costs,  the 
Commission  proposes  to  mobilise  the  EGF  for  the  amount  of  EUR 2 984 627, 
representing 60 % of the total costs of the proposed measures, 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  pursuant  to  Article  15(1),  first  subparagraph,  second 
sentence,  of  Regulation  (EU)  2021/691  and,  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 resources14. 

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 to 
transfer to the relevant budgetary line the amount of EUR 2 984 627. 

At the same time as it adopted this proposal for a decision to mobilise the EGF, the 
Commission  adopted  a  decision  on  a  financial  contribution  that  constitutes  a 
financing  decision  within  the  meaning  of  Article  110  of  Regulation  (EU,  Euratom) 
2018/104615. That financing decision will enter into force on the date on which the 
Commission  is  notified  of  the  approval  of  the  budgetary  transfer  by  the  European 
Parliament  and  the  Council  pursuant  to  Article  15(2),  first  subparagraph,  of 
Regulation (EU) 2021/691. 

13 
14 
15 

OJ L 433 I, 22.12.2020, p. 11. 
OJ L 433 I, 22.12.2020, p. 29. 
Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on 
the  financial  rules  applicable  to  the  general  budget  of  the  Union,  amending  Regulations  (EU)  No 
1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) 
No  1316/2013,  (EU)  No  223/2014,  (EU)  No  283/2014,  and  Decision  No  541/2014/EU  and  repealing 
Regulation (EU, Euratom) No 966/2012 OJ L 193, 30.7.2018, p. 1 

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2024/0049 (BUD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund for Displaced 
Workers following an application from Germany – EGF/2023/003 DE/Vallourec 

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) 2021/691 of the European Parliament and of the Council of 
28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) 
and  repealing  Regulation  (EU)  No 1309/2013 16 ,  and  in  particular  Article 15(1),  first 
subparagraph, 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 resources17, and in particular point 9 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

16 
17 
18 

19 

The European Globalisation Adjustment Fund  for  Displaced  Workers (EGF)  aims to 
demonstrate solidarity and promote decent and sustainable employment in the Union 
by  providing  support  for  workers  made  redundant  and  self-employed  persons  whose 
activity  has  ceased  in  the  case  of  major  restructuring  events  and  assisting  them  in 
returning to decent and sustainable employment as soon as possible.  

The  EGF  is  not  to  exceed  a  maximum  annual  amount  of  EUR 186  million  (in  2018 
prices),  as laid down in  Article 8 of Council Regulation  (EU, Euratom)  2020/209318 
and Article 16 of Regulation (EU) 2021/691. 

On  15  November  2023,  Germany  submitted  an  application  to  mobilise  the  EGF  in 
accordance  with  Article  8(1)  of  Regulation  (EU)  2021/691,  in  respect  of  worker’s 
displacements  in  Vallourec  (Vallourec  Deutschland  GmbH  (VAD))  in  the  economic 
sector  classified  under  the  Statistical  classification  of  economic  activities  in  the 
European  Community  ('NACE') 19  Revision  2  division  24  (Manufacture  of  basic 

OJ L 153, 3.5.2021, p. 48. 
OJ L 433 I, 22.12.2020, p. 29 
Council Regulation (EU, Euratom)  No 2020/2093 of 17 December 2020 laying down the multiannual 
financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11). 
Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 
Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (OJ L 
393, 30.12.2006, p. 1). 

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metals) in the Nomenclature of Territorial Units for Statistics ('NUTS')20 level 2 region 
of  Düsseldorf  (DEA1)  in  Germany.  It  was  supplemented  by  additional  information 
provided  in  accordance  with  Article 8(5)  of  Regulation  (EU)  2021/691.  That 
application  is  considered  to  comply  with  the  conditions  for  providing  a  financial 
contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on 
the basis of the assessment made by the Commission in the Proposal for a mobilisation 
decision of the European Parliament and of the Council21. 

(4) 

(5) 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 2 984 627 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, 

HAVE ADOPTED THIS DECISION:  

For the general budget of the Union for the financial year 2024, the European Globalisation 
Adjustment  Fund  for  Displaced  Workers  shall  be  mobilised  to  provide  the  amount  of 
EUR 2 984 627 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 

20 

21 
* 

 Commission Delegated Regulation 2019/1755 of 8 August 2019 amending the Annexes to 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). OJ L 270, 24.10.2019, p. 1–56. 
  COM(2024)30 
Date to be inserted by the Parliament before the publication in OJ. 

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