CELEX: 52012PC0619
Language: en
Date: 2012-10-19
Title: Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2012/006 FI/Nokia Salo from Finland)

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		52012PC0619
		
			Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2012/006 FI/Nokia Salo from Finland) /* COM/2012/0619 final */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
Point 28 of the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[1] allows for the mobilisation of
the European Globalisation Adjustment Fund (EGF) through a flexibility
mechanism, within the annual ceiling of EUR 500 million over and
above the relevant headings of the financial framework.
The rules applicable to the contributions
from the EGF are laid down in Regulation (EC) No 1927/2006 of the European
Parliament and of the Council of 20 December 2006 on establishing the European
Globalisation Adjustment Fund[2].
On 4 July 2012, Finland submitted application EGF/2012/006 FI/Nokia
Salo for a financial contribution from the EGF, following
redundancies in Nokia plc (Salo) in Finland.
After a thorough
examination of this application, the Commission has concluded in accordance
with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a
financial contribution under this Regulation are met.
SUMMARY OF THE APPLICATION AND ANALYSIS
 Key data: ||   
 EGF Reference no. || EGF/2012/006 
 Member State || Finland 
 Article 2 || (a) 
 Primary enterprise || Nokia plc (Salo) 
 Suppliers and downstream producers || 0 
 Reference period || 1.3.2012 – 1.7.2012 
 Starting date for the personalised services || 29.2.2012 
 Application date || 4.7.2012 
 Redundancies during the reference period || 1 000 
 Redundancies before and after the reference period || 0 
 Total eligible redundancies || 1 000 
 Redundant workers expected to participate in the measures || 1 000 
 Expenditure for personalised services (EUR) || 10 273 000 
 Expenditure for implementing EGF[3] (EUR) || 419 000 
 Expenditure for implementing EGF (%) || 3,92 
 Total budget (EUR) || 10 692 000 
 EGF contribution (50 %) (EUR) || 5 346 000 
1.           The application was
presented to the Commission on 4 July 2012 and supplemented by additional
information up to 21 August 2012.
2.           The
application meets the conditions for deploying the EGF as set out in Article
2(a) of Regulation (EC) No 1927/2006, and was submitted within the deadline of
10 weeks referred to in Article 5 of that Regulation.
Link between the redundancies and major structural changes in world trade patterns due to globalisation
3.           In order to establish the
link between the redundancies and major structural changes in world trade
patterns due to globalisation, Finland argues that the current difficulties of
Nokia, Nokia Siemens Networks, almost all subcontractors and the affected
regions go back to February 2011. At that time Nokia announced a significant
change in the company's strategy and launched an extensive cooperation with
Microsoft with regard to the use of Microsoft Windows Phone as its primary
smartphone operating system, while keeping Nokia's own Symbian operating system
as a software platform in lower priced phones until the end of 2016. The demand
for Symbian phones has meanwhile dropped considerably, and the development and
maintenance operations based on the Symbian system will therefore be
discontinued.
4.           The intention was to keep
the Nokia Salo plant operational while reducing the company's personnel by some
12 % in offices all around the world. This led to the closure of the plant
in Cluj, Romania (September 2011), for which another EGF application was
presented[4].
Nokia Siemens Networks also announced major redundancies (November 2011). On 22
March 2012, redundancies in Nokia Salo were announced, numbering 1 000
workers out of a total of 1 700. Further redundancies are already planned,
and a follow-up application from Finland for the next wave of redundancies is
expected.
5.           The primary reason for the
redundancies is the transfer of functions within the sector to third countries
outside Europe. Assembly of mobile phones, previously carried out in Salo and
Cluj, has been offshored to Asia (China, South Korea, India and Vietnam, where a new Nokia plant is under construction). Component manufacture and
subcontracted production had already been transferred out of Europe. Following
the direction already taken by production, both design and product development
have been, or are being, offshored.
6.           Nokia's plan is to
transfer the assembly of devices to its Asian plants, where most of the
component suppliers operate. The purpose of the transfer of assembly operations
to Asia is to expedite the entry of devices into the market. By working closer
to the subcontractors, it will be able to bring new innovations to the market
more rapidly and improve its competitiveness. At present, Nokia is losing its
position in its most important markets of China and India, where several
companies manufacturing cheap phones are increasing their market shares.
7.           At its height, the
electronics and electrotechnical industry provided employment to more than
60 000 people in Finland, but by the end of 2012, this number will have
fallen to 50 000. At the same time, the number of personnel in
third-country subsidiaries of the companies in this industry has grown,
constituting a clear statement about offshoring of functions to Asia in particular.
Personnel in Finland
 Personnel
in subsidiaries abroad
8.           To date, the mobile phone
sector has been the subject of several EGF applications, all of which based on
trade related globalisation[5].

Demonstration of the number of
redundancies and compliance with the criteria of Article 2(a)
9.           Finland submitted this
application under the intervention criteria of Article 2(a) of Regulation (EC)
No 1927/2006, which requires at least 500 redundancies over a four-month period
in an enterprise in a Member State, including workers made redundant in its
suppliers and downstream producers.
10.         The application cites 1 000
redundancies in Nokia plc (Salo) during the four-month
reference period from 1 March 2012 to 1 July 2012. More
redundancies are expected in both Nokia and its subcontractors; a separate
application will be presented for them. All of these redundancies were
calculated in accordance with the first indent of the second paragraph of
Article 2 of Regulation (EC) No 1927/2006.
Explanation of the unforeseen nature
of those redundancies
11.         The Finnish authorities
argue that the redundancies at the Salo plant were unforeseen, as this had been
explicitly exempt when Nokia announced major redundancies in Finland in February 2011. At the time, the role of the Salo plant was expected to be the production
of smartphones based on the Windows Phone platform.
12.         At the end of November
2011, when the plant closure in Cluj (Romania) was announced, Nokia also
announced that it was reconsidering the role of the Salo plant and that some
personnel reductions could be expected in 2012. On 22 March 2012, the reduction
of the Salo staff by 1 000 was announced, to be implemented by the end of
June. This was unforeseen after the assurances given only a year earlier, and
in the light of the fact that this was the first Nokia production plant with
product development operations and the place where Nokia usually launched the
assembly and assembly-learning process for new and important telephone models.
In addition, sizeable staff reductions had already been carried out in Finland, and further cuts of this size were not expected.
Identification of the dismissing
enterprises and workers targeted for assistance
13.         The application relates to
1 000 redundancies all of which occurring in Nokia plc (Salo). All 1 000
workers are targeted for the measures described further below.
14.         The break-down of the
targeted workers is as follows:
 Category || Number || Percent 
 Men || 365 || 36,5 
 Women || 635 || 63,5 
 EU citizens || 944 || 94,4 
 Non EU citizens || 56 || 5,6 
 15-24 years old || 28 || 2,8 
 25-54 years old || 803 || 80,3 
 55-64 years old || 169 || 16,9 
 > 64 years old || 0 || 0,0 
15.         Among these workers, there
are 20 with longstanding health problems or a disability.
16.         In terms of occupational
categories, the break-down is as follows:
 Category || Number || Percent 
 Legislators, senior officials and managers || 15 || 1,5 
 Professionals || 14 || 1,4 
 Technicians and associated professionals || 64 || 6,4 
 Clerks || 49 || 4,9 
 Craft and related trade workers || 104 || 10,4 
 Plant and machine operators and assemblers || 713 || 71,3 
 Elementary occupations || 41 || 4,1 
17.         In accordance with Article
7 of Regulation (EC) No 1927/2006, Finland has confirmed that a policy of
equality between women and men as well as non-discrimination has been applied,
and will continue to apply, during the various stages of the implementation of
and, in particular, in access to the EGF.
Description of the territory
concerned and its authorities and stakeholders
18.         The Salo area is part of
the province of South-West Finland, which is one of the most export-driven
provinces of the country (over 60 % of its industrial output is exported).
The region rose to its highly productive status during the 1990s, with the
strong growth of Nokia, which was then becoming the world's leading mobile
phone manufacturer. As Nokia's position weakened and the global financial and
economic crisis struck, the situation in Salo deteriorated in terms of
employment and production, and it suffered more than other regions of Finland.
19.         The economic structure of
the Salo area has been exceptionally specialised since the late 1990s, with the
information and communications sector accounting for more than 50 % of
added value in 2008. As Nokia declined, it was initially the suppliers that
suffered, with electronic components, plastic parts and other support sectors being
reduced. It is only in the second phase that Nokia cut back its own production
and finally its own workforce.
20.         Salo is on the coast of
South-West Finland, some 50 km from the provincial centre Turku, and
100 km from Helsinki. Workers mostly live locally, but some commute from Turku and an even smaller number from Helsinki.
21.         The main stakeholders are
the Southwest Finland Centre for Economic Development, Transport and the
Environment; the Salo Region Employment and Economic Office; the City of Salo; and the City of Somero.
22.         A widely representative
working group has been set up on the reorganisation of the activities of the
Nokia Salo operations. Various sub-groups deal with a range of topics,
including services, well-being, studies, new jobs outside Nokia, and
entrepreneurship. A local co-operation group is set up specifically to help
white-collar workers. Another group, named Invest in Salo, strives to match the
supply of labour to the labour needs of interested companies.
Expected impact of the redundancies
as regards local, regional or national employment
23.         Before the start of the
recession in 2008, the unemployment rate in the Salo region was about 6 %.
This had doubled to 12 % by the end of 2009 and has seen a slightly rising
trend since then. With the current redundancies and the expected second wave,
there is a risk that the unemployment rate may rise to approximately 15 -
17 % by the end of 2012.
24.         The situation of Salo
differs significantly from that in other parts of Finland where Nokia has cut
back its operations. Most of the staff in Nokia Salo have traditionally been
employed in assembly and similar tasks, whereas the emphasis at other units in Finland has been on research and design functions. Therefore the present and future redundancies
in Nokia Salo concern mostly blue-collar workers. Looking at the educational
background of the workers, where some 40 % have basic education only and
another 39 % have secondary-level education, these redundancies will
significantly increase the proportion of the lower educated among the
unemployed population of Salo. The vocational qualifications held by these
workers are in most cases from sectors other than technology or technical work.
They date back too long, and the workers have not acquired any experience in
these areas, so they cannot build on their qualifications.
25.         The financial situation of
the city of Salo is weak, and the redundancies at Nokia will impact the tax
revenues of the municipality. As an employer, the city will probably have to
lay off a number of its own employees, and it will not be able to help the
redundant Nokia workers by offering jobs to any of them.
Co-ordinated package of personalised
services to be funded and a breakdown of its estimated costs, including its
complementarity with actions funded by the Structural Funds
26.         The measures for the Nokia
Salo workers are aimed at either helping them to transfer to a new job / to
start their own businesses, or to commit themselves to some further training or
education (or both). They include the following :
–     
Job-search counselling : Following personal guidance sessions provided to all workers to be
dismissed (these sessions are not part of the EGF application), more in-depth
counselling started on the Nokia premises, while the workers were still serving
out their period of notice. It continues with individual and group counselling,
organisation of and participation in job fairs, information about the local
labour market and the jobs required, enhancing job-seeking skills, particularly
for those who had not been out of work for many years. The duration of
job-search counselling varies between 5 and 20 days, depending on the needs of
the workers. It is estimated that some 600 workers will wish to take up this
in-depth counselling, at a cost of around EUR 450 each. The remaining 400
workers will not need further counselling once they have taken the initial
personal guidance sessions.
–     
Training and retraining : There are two main areas here : preparatory labour market
training for those persons who may not yet have plans for a future career, and
vocational re-education for those who know their objective but need the
necessary qualifications. The preparatory labour market training is the logical
continuation of the job-search counselling that will have preceded it. Some 170
workers are expected to take up this offer, at a cost of about EUR 2 700
each. As regards the vocational re-education, this can either build on previous
qualifications and experience, or help the job seeker to start into a new
direction. In certain conditions, completion of a higher education degree is
possible. A wide range of courses are on offer to the workers made redundant by
Nokia Salo. Some 550 workers are expected to take up this option, at a cost of
EUR 6 880 each.
–     
Steering towards entrepreneurship and
services for new entrepreneurs : For this, the
Finnish authorities will use Protomo operations based at Yrityssalo, a
development centre wholly owned by the city of Salo to provide business
services including start-up support. Protomo is an environment for open
innovation, allowing participants to process ideas into prototypes, work in
teams with pilot projects, develop new kinds of products and services and start
up new businesses with new jobs. Protomo brings new ideas and innovative people
together. During the implementation of this EGF case, three people (based in
Salo and Turku) will be employed full-time in rented premises to provide
Protomo services to the targeted workers. The cost of providing this service to
the estimated 240 workers will be EUR 450 000.
The Protomo concept works like a matching
service for new entrepreneurs. The Protomo database is a collection of
promising ideas proposed by individuals or enterprises of the region.
Protomo-appointed tutors then help small groups of redundant workers to respond
to the ideas in the form of a new enterprise that could either produce the
goods or services for which there appears to be a need, or enable them to join
the generator of the idea and work on it from the inside of an existing
enterprise. The Protomo team provide the facilities and advice for this group
work, and they assess the feasibility of the proposal as well as providing the
necessary experts where required. The cost of providing experts and access to
equipment is estimated at EUR 360 000 for the 240 participants.
Protomo works with groups of 4 to 6 persons, of which it intends to set up 60,
and it is expected that more than half of these groups could grow into viable
new enterprises.
Potential new entrepreneurs are helped with
advice, relevant training, counselling, consultation and support, and some
start-up grants are also provided. The start-up grants will support the new
entrepreneur with a subsistence allowance during the early months of the new
enterprise. The cost of the necessary training is estimated at
EUR 240 000 for the 240 workers. Protomo will also be able to provide
external experts with special know-how for the aspiring entrepreneurs; this
service is estimated at EUR 120 000 for the 240 workers concerned.
–     
Support for starting independent business
operations : This is a start-up grant, assuring an
income for an aspiring entrepreneur for up to 18 months of initial operation.
The basic allowance consists of EUR 31,36 per day. A variable supplement
is added to this, which may not exceed 60 % of the basic allowance. It is
estimated that some 60 persons will qualify for this allowance, and that the
average paid out to them over the course of the implementation period will be
EUR 6 000. During this phase, the beneficiaries will continue to
receive counselling and support from Protomo.
–     
Mobility assistance : This provides both for travel expenses and removal expenses. Job
seekers may not be able to find new employment in the immediate area, so may
need to travel to attend job interviews, and may need to move to a new place to
take up vacancies. Travel expenses are calculated on a mileage basis, with
accommodation reimbursed if necessary. Removal expenses are reimbursed up to
EUR 700.
–     
Employment services at the Service Point : The workers from Nokia Salo are provided with a Service Point
which takes care of them during the implementation phase. Originally started
inside the Nokia premises, the Service Point sets out to advise the affected
workers from the outset by providing a much more personal and in-depth service
to them than the public employment office would normally be able to deliver.
Special attention is paid to ensuring that none of the workers slip into
long-term unemployment. Following the intensive initial effort of the Service
Point, it remains available to guide the workers as they proceed with their
individual measures. The cost of maintaining the Service Point for all
1 000 targeted workers is estimated at EUR 900 000.
–     
Pay subsidies :
These can be made available to employers willing to hire the targeted workers
in the full knowledge of deficiencies in the competence or vocational skills of
the person to be employed, and willing to ensure that they are given every
support and the necessary on-the-job training as they settle into unfamiliar
jobs. The duration is fixed according to the needs of the worker, and it is
estimated that it will amount to an average of EUR 7 500 per worker
benefiting from this scheme.
–     
Company based data acquisition scheme : This scheme enables the Employment and Economic Development
Offices, the Centres for Economic Development, and the Ministry of Employment
and the Economy to conduct telephone interviews with companies and gather
up-to-date information on the enterprises' personnel needs. This information
enables the offices to guide the workers in the right direction and help them
with their choices of training courses. The interviews are carried out in a
centralised manner and the results made available to the actors in a sorted
form. The cost of providing this service is estimated at EUR 120 000.
–     
Career guidance, and vocational and
competence mapping : The vocational competencies
and educational background of people who have been involved in assembly work at
Nokia for a long time vary greatly, and these can be assessed by means of
vocational and competence mapping. With a view to individual guidance and
creation of training plans, it is essential to know the starting point of each
worker. Vocational and competence mapping serves as a counterpart to the
information on the personnel needs of enterprises received through reports and
statistics based on telephone interviews with enterprises. As a rule, the
vocational and competence mappings are acquired from vocational education
institutions as a contracted service. This is expected to be taken up by 450
workers at a cost of EUR 500 each.
–     
Work-capacity evaluations : Some of those dismissed have certain limitations in their work
capacity, which must be investigated before making agreements on new plans and
support measures concerning employment. For the purposes of work-capacity
evaluations, the Employment and Economic Development Office can guide a
job-seeker towards the necessary medical examinations. The cost of these is
estimated to vary around an average of EUR 2 500 per person.
27.         The expenditure for
implementing the EGF, which is included in the application in accordance with
Article 3 of Regulation (EC) No 1927/2006, covers preparation and
management (setting up the necessary systems, travel expenses and
translations), communication (at local, regional and national levels) and
certification and monitoring. Communication at national scale was already
undertaken at the time when an EGF application was first considered, and again
at the time when it was submitted to the Commission. The people made redundant
by Nokia will be informed that the services provided to them are co-funded by
the EGF. Best practices in implementation will be highlighted, with a focus on the
people who benefited and found new employment.
28.         The personalised services
presented by the Finnish authorities are active labour market measures within
the eligible actions defined by Article 3 of Regulation (EC) No 1927/2006. The
Finnish authorities estimate the total costs at EUR 10 692 000,
of which the expenditure for personalised services at
EUR 10 273 000 and the expenditure for implementing the EGF at
EUR 419 000 (3,92 % of the total amount). The total contribution
requested from the EGF is EUR 5 346 000 (50 % of the total
costs).
 Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR) 
 Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Job-search counselling || 600 || 450 || 270 000 
 Training and retraining (vocational) || 550 || 6 880 || 3 784 000 
 Training and retraining (preparatory) || 170 || 2 700 || 459 000 
 Entrepreneurship promotion (Protomo operations) || 240 || 1 875 || 450 000 
 Entrepreneurship promotion (Protomo service procurement) || 240 || 1 500 || 360 000 
 Entrepreneurship promotion (Protomo training) || 240 || 1 000 || 240 000 
 Entrepreneurship promotion (service procurement) || 240 || 500 || 120 000 
 Support for starting independent business operations || 60 || 6 000 || 360 000 
 Mobility assistance || 300 || 200 || 60 000 
 Employment services at the service point || 1 000 || 900 || 900 000 
 Pay subsidy || 360 || 7 500 || 2 700 000 
 Company based data acquisition system || 1 000 || 120 || 120 000 
 Career guidance and vocational competence mapping || 450 || 500 || 225 000 
 Work capacity evaluations || 90 || 2 500 || 225 000 
 Sub total personalised services ||   || 10 273 000 
 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Preparatory activities ||   || 72 000 
 Management ||   || 152 000 
 Information and publicity ||   || 183 000 
 Control activities ||   || 12 000 
 Sub total expenditure for implementing EGF ||   || 419 000 
 Total estimated costs ||   || 10 692 000 
 EGF contribution (50 % of total costs) ||   || 5 346 000 
29.         Finland confirms that the
measures described above are complementary with actions funded by the
Structural Funds and that measures are in place to ensure that all double
financing will be prevented. A co-ordination group to address sudden structural
change is in operation in the area of South-West Finland, and has among its
responsibilities to agree on the division of responsibilities between the ESF
and the EGF. The steering group of this project is tasked with the management,
steering and determination of strategic guidelines and goals for the activity.
The project group on the other hand is responsible for the initiation of
measures in the Salo region, and monitoring and assessment of the practical
progress of structural change on the basis of strategic goals set by the
steering group. Regional actors, including the social partners and the joint
municipal authority for education, are widely represented in the working
groups.
Date(s) on which the personalised
services to the affected workers were started or are planned to start
30.         Finland started the
personalised services to the affected workers included in the co-ordinated
package proposed for co-financing to the EGF on 29 February 2012. This date
therefore represents the beginning of the period of eligibility for any
assistance that might be awarded from the EGF.
Procedures for consulting the social
partners
31.         The social partners have
been, and continue to be, involved in the process from the outset. For further
information, please see point 29 above.
32.         The Finnish authorities
confirmed that the requirements laid down in national and EU legislation
concerning collective redundancies have been complied with.
Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements
33.         As regards the criteria
contained in Article 6 of Regulation (EC) No 1927/2006, the Finnish authorities
in their application:
·      confirmed that the financial contribution from the EGF does not
replace measures which are the responsibility of companies by virtue of
national law or collective agreements;
·      demonstrated that the actions provide support for individual workers
and are not to be used for restructuring companies or sectors;
·      confirmed that the eligible actions referred to above do not receive
assistance from other EU financial instruments.
Management and control systems 
34.         Finland has notified the
Commission that the financial contribution will be managed by the Ministry of
Employment and the Economy, which also manages ESF funds. The same Ministry
also acts as the certifying authority. There is a strict separation of duties
and of reporting relationships between the departments responsible for these
two functions. The management functions have been assigned to the Employment
and Entrepreneurship Department, while the certifying functions are within the
Human Resources and Administration Unit. The Ministry has prepared a manual
setting out in detail the procedures to be followed.
Financing
35.         On the basis of the
application from Finland, the proposed contribution from the EGF to the
coordinated package of personalised services (including
expenditure to implement EGF) is EUR 5 346 000,
representing 50 % of the total cost. The Commission's proposed allocation
under the Fund is based on the information made available by Finland.
36.         Considering the maximum
possible amount of a financial contribution from the EGF under Article 10(1) of
Regulation (EC) No 1927/2006, as well as the scope for reallocating
appropriations, the Commission proposes to mobilise the EGF for the total
amount referred to above, to be allocated under heading 1a of the financial
framework.
37.         The proposed amount of financial
contribution will leave more than 25 % of the maximum annual amount
earmarked for the EGF available for allocations during the last four months of
the year, as required by Article 12(6) of Regulation (EC) No 1927/2006.
38.         By presenting this proposal
to mobilise the EGF, the Commission initiates the simplified trialogue
procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May
2006, with a view to securing the agreement of the two arms of the budgetary
authority on the need to use the EGF and the amount required. The Commission
invites the first of the two arms of the budgetary authority that reaches
agreement on the draft mobilisation proposal, at appropriate political level,
to inform the other arm and the Commission of its intentions. In case of
disagreement by either of the two arms of the budgetary authority, a formal
trialogue meeting will be convened.
39.         The Commission presents separately
a transfer request in order to enter in the 2012 budget specific commitment
appropriations, as required in Point 28 of the Interinstitutional Agreement of
17 May 2006.
Source of payment appropriations 
40.         The amount of payment
appropriations initially entered on the budget line 04 05 01 in 2012 will be
fully consumed after the adoption by the two arms of the budgetary authority of
the proposals submitted to date for mobilising the EGF and therefore
insufficient to cover the amount needed for the present application. A reinforcement
of the payment appropriations of the EGF budget line will be requested either
through a transfer, in case a source of available appropriations can be
identified, or an Amending budget. Appropriations from this budget line will be
used to cover the amount of EUR 5 346 000 needed for the present application.
Proposal for a
DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the mobilisation of the European
Globalisation Adjustment Fund in accordance with point 28 of the
Interinstitutional Agreement of 17 May 2006 between the European Parliament,
the Council and the Commission on budgetary discipline and sound financial
management (application EGF/2012/006 FI/Nokia Salo from Finland)
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 the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[6], and in particular point 28
thereof,
Having regard to Regulation (EC) No
1927/2006 of the European Parliament and of the Council of 20 December 2006
establishing the European Globalisation Adjustment Fund[7], and in particular Article
12(3) thereof,
Having regard to the proposal from the European
Commission[8],
Whereas:
(1)       The European Globalisation
Adjustment Fund (EGF) was established to provide additional support for workers
made redundant as a result of major structural changes in world trade patterns due
to globalisation and to assist them with their reintegration into the labour
market.
(2)       The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million.
(3)       Finland submitted an
application to mobilise the EGF, in respect of redundancies in the enterprise Nokia plc (Salo), on 4 July 2012 and supplemented it by additional information up to 21 August 2012. This application complies with the requirements for
determining the financial contributions as laid down in Article 10 of
Regulation (EC) No 1927/2006. The Commission, therefore,
proposes to mobilise an amount of EUR 5 346 000.
(4)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Finland,
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the European
Union for the financial year 2012, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 5 346 000 in
commitment and payment appropriations.
Article 2
This Decision shall be published in the Official
Journal of the European Union.
Done at Brussels, 
For the European Parliament                       For
the Council
The President                                                 The
President
[1]               OJ C 139, 14.6.2006, p. 1.
[2]               OJ L 406, 30.12.2006, p. 1.
[3]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.
[4]               EGF/2011/014 RO/Nokia.
[5]               Regular updates here : http://ec.europa.eu/social/BlobServlet?docId=4558&langId=en.
[6]               OJ C 139, 14.6.2006, p. 1.
[7]               OJ L 406, 30.12.2006, p. 1.
[8]               OJ C […], […], p. […].