CELEX: 52011PC0618
Language: en
Date: 2011-10-05
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/2010/020 IE/Construction 43 from Ireland)

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		52011PC0618
		
			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/2010/020 IE/Construction 43 from Ireland) /* COM/2011/0618 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 9 June 2010, Ireland submitted application EGF/2010/20 IE/Construction
43 for a financial contribution from the EGF, following
redundancies in 1 560 enterprises operating in the
NACE Revision 2 Division 43 ('Specialised construction activities')[3] in the NUTS II regions of Border, Midlands and Western (IE01) and Southern
and Eastern (IE02) in Ireland. These two contiguous regions comprise the entire
State of Ireland.
This application is part of a series of
three, all concerning the construction sector in Ireland. The other two
applications are in support of workers made redundant in NACE Revision 2
Divisions 41 ('Construction of buildings) and 71 ('Architectural and
engineering activities; technical testing and analysis').
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/2010/020 
 Member State || Ireland 
 Article 2 || (b) 
 Enterprises concerned || 1 560 
 NUTS II regions || Border, Midlands and Western (IE01) Southern and Eastern (IE02) 
 NACE Revision 2 Division || 43 ('Specialised construction activities') 
 Reference period || 1.7.2009 – 31.3.2010 
 Starting date for the personalised services || 1.7.2009 
 Application date || 9.6.2010 
 Redundancies during the reference period || 3 382 
 Redundant workers targeted for support || 2 228 
 Expenditure for personalised services (EUR) || 31 149 027,78 
 Expenditure for implementing EGF[4] (EUR) || 2 180 431,53 
 Expenditure for implementing EGF (%) || 6,5 
 Total budget (EUR) || 33 329 459,31 
 EGF contribution (65 %) (EUR) || 21 664 148 
1.                      
The application was presented to the Commission
on 9 June 2010 and supplemented by additional information up to 17 June 2011.
2.                      
The application meets the conditions for
deploying the EGF as set out in Article 2(b) 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 or the global financial and economic crisis
3.                      
In order to establish the link between the
redundancies and the global financial and economic crisis, Ireland argues that the
global financial and economic crisis started with the sub-prime mortgage crisis
in the United States in mid-2007, with contagion rapidly spreading to the
financial markets. As a small export-oriented economy, Ireland suffered from
the effects of the credit crunch on its major trading partners, at a time when
the world economy was experiencing its worst contraction in the post-war
period. The credit crunch severely affected the banks in Ireland, with further
effects on mortgage loans and building activity in the country.
4.                      
Employment in the previously fast-growing
building sector fell sharply. Ireland had been enjoying a building boom, with the
ratio of housing investment to GDP peaking at 11 % of GDP in 2006 compared
with a long-run EU housing investment to GDP average of around 6 % of GDP.
When the crisis hit, the share of those employed in construction in Ireland dropped
from 12,25 % in Q4 / 2007 to 9,2 % in Q1 / 2009 and 6,25 % by Q3
/ 2010. Many of the redundancies in the sector were caused by the effective
closure of the employing enterprise for reasons cited such as liquidation,
receivership, closure, insolvency, end of contract and bankruptcy.
5.                      
Following a decade of low unemployment (4 %
- 6 %), the unemployment rate in construction increased over six-fold
between Q2 / 2007 and Q2 / 2009. In mid-2009, one in three construction workers
were unemployed. This compares to the overall national unemployment rate at
that time of 12,4 %. In terms of construction sub-sectors, in Q4 / 2009,
the greatest absolute unemployment levels were observed in the construction of
buildings (NACE Revision 2 Division 41) and specialised construction (NACE Revision
2 Division 43) subsectors. In Q2 / 2009, unemployment rates in these subsectors
was almost 40 %.
Demonstration of the number of
redundancies and compliance with the criteria of Article 2(b)
6.                      
Ireland submitted this application under the
intervention criteria of Article 2(b) of Regulation (EC) No 1927/2006, which
requires at least 500 redundancies over a nine-month period in enterprises
operating in the same NACE Revision 2 Division in one region or two contiguous
regions at NUTS II level in a Member State.
7.                      
The application cites 3 382 redundancies in
1 560 enterprises operating in the NACE Revision 2 Division 43 ('Specialised
construction activities')[5] in the NUTS II regions of Border, Midlands and Western (IE01) and Southern
and Eastern (IE02) during the nine-month reference
period from 1 July 2009 to 31 March 2010. 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
8.                      
The Irish authorities argue that the global
financial and economic crisis had been unforeseen by governments, financial
institutions and commentators worldwide and the many small and medium-sized
enterprises (SMEs) in the construction sector in Ireland could not have
foreseen the extent to which the crisis would affect their own businesses.
Identification of the dismissing
enterprises and workers targeted for assistance
9.                      
The application relates to 3 382 redundancies
in 1 560 enterprises spread throughout the two contiguous regions, which
together constitute the whole of the State of Ireland. Almost 80 % of the
enterprises are located in the Southern and Eastern region (IE02) while the
remaining 20 % are located in the Border, Midlands and Western region
(IE01). Of the 3 382 workers made redundant, 2 228 workers are targeted
for the measures outlined below.
 Region || Number of enterprises || Number of dismissals 
 Border, Midlands and Western (IE01) || 369 || 634 
 Southern and Eastern (IE02) || 1 191 || 2 748 
 Total || 1 560 || 3 382 
The full list of enterprises mentioned in
application EGF/2010/020 IE/Construction 43 from Ireland is attached in the
Commission Staff Working Paper accompanying this Proposal.
10.                  
The break-down of the targeted workers is as
follows:
 Category || Number || Percent 
 Men || 2 132 || 95,69 
 Women || 96 || 4,31 
 EU citizens || 2 228 || 100,00 
 Non EU citizens || 0 || 0,00 
 15-24 years old || 821 || 36,85 
 25-54 years old || 1 276 || 57,27 
 55-64 years old || 109 || 4,89 
 > 64 years old || 22 || 0,99 
11.                  
There are no workers with longstanding health
problems or disabilities among this group.
12.                  
In terms of occupational categories, the
break-down is as follows:
 Category || Number || Percent 
 Legislators, senior officials and managers || 60 || 2,69 
 Professionals || 41 || 1,84 
 Technicians and associate professionals || 69 || 3,10 
 Clerks || 27 || 1,21 
 Service workers and shop and market sales workers || 1 || 0,04 
 Skilled agricultural and fishery workers || 0 || 0,00 
 Craft and related trade workers || 1 702 || 76,39 
 Plant and machine operators and assemblers || 32 || 1,44 
 Elementary occupations || 203 || 9,11 
 N/A || 93 || 4,17 
13.                  
The number of targeted workers within the
overall number of workers made redundant may change, depending on the outcome
of contacts with individual redundant workers. Within the targeted workers are 1 589
redundant apprentices, predominantly young males up to the age of 25, who are
particularly at risk of falling into medium and even long-term unemployment.
14.                  
In accordance with Article 7 of Regulation (EC)
No 1927/2006, Ireland 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
15.                  
The application covers the whole of the State of
Ireland, which is organised into two contiguous regions at NUTS II level. Around
80 % of the former employers of the affected population were based in the
Southern and Eastern region, in which the two largest cities of Dublin and Cork
are located. While this may suggest that the other NUTS II region (Border,
Midlands and Western) is less impacted on, short commuting times and distances,
preparedness of workers to travel, and greater preponderance of construction
projects in urban centres would make it likely that many workers resident in
the Border, Midlands and Western region migrate or commute daily to employers
based in the Southern and Eastern region for work.
16.                  
Ireland had one of the world’s most globalised
and dynamic economies with extremely strong external trade and investment links
until around 2008. However, from the last quarter of 2008 and the first quarter
of 2009, the economic growth rate decelerated considerably, a process which
continues even now. With a GDP decline of 3 % in 2008, Ireland was
severely affected by the global financial and economic crisis. The entire Irish
labour force is undergoing structural change primarily as a result of the
collapse of the construction and banking sectors. 
17.                  
Employment did, however, increase in 2009 in the
ICT sector, with modest increases also recorded in the transport, food and
health sectors. In addition, as a result of the deregulation and the growth of
the renewable energy sector, employment increased in the energy sector (gas and
electricity). 
18.                  
While in general labour supply exceeds demand,
some areas of skills shortage exist in a small number of posts but are
generally confined to specialists (e.g. electrical engineers with expertise in
high voltage grids, senior personnel such as ICT project manager, niche areas
(e.g. telesales with fluency in foreign languages) and specific skills mixes
(e.g. ICT professionals with business development skills).
19.                  
Responsibility for national employment and
training policy formulation and national funding resides with the Department of
Education and Skills. Responsibility at operational level lies with the national
training and employment authority, Foras Áiseanna Saothair (FÁS). Through a
network of 66 offices and 20 training centres, FÁS operates training and employment
programmes, including apprenticeships, provides a recruitment service to
jobseekers and employers, and an advisory service for industry, and it also supports
community-based enterprises.
In addition, the Department of Education and
Skills is responsible for policy formulation and funding of the public further
and higher education system in Ireland. Operational responsibility for further
education resides (at lower educational qualifications level) with the
Vocational Education Committees (VECs) in terms of the provision of adult
learning. The publicly funded higher education system includes 7 universities
and 13 institutes of technology. The Higher Education Authority (HEA), which
falls under the remit of the Department, is the funding body for these
institutions. The institutes of technology work closely with FÁS in the
delivery of apprenticeship training.
20.                  
The 35 City and County Enterprise Boards (CEBs),
which come under the remit of the Department of Enterprise, Trade &
Innovation, provide support for micro enterprises with 10 employees or fewer at
local level.
21.                  
The Department of Social Protection formulates
appropriate social protection policies and administers and manages the delivery
of statutory and non-statutory schemes and services. It also has a job search
and employment support function, including enterprise / start your own business
support.
22.                  
Finally, there are a number of private higher
education providers in a position to provide eduational opportunities for those
formerly employed in the construction sector, which may be funded by FÁS
through relevant grant systems.
23.                  
Trade unions, sectoral bodies, local political
representatives, local and regional development bodies, local area Partnerships
and local Enterprise Boards are among the many other stakeholders. 
Expected impact of the redundancies
as regards local, regional or national employment
24.                  
Following a sharp contraction in construction
activity in Ireland in 2008, employment in the construction sector continued to
decline in 2009 and 2010. OECD Labour Force Statistics (MEI) statistics show
that Ireland suffered a decrease in employment in the construction industry of
19 % in the period from Q3 / 2009 to Q1 / 2010, the largest decrease in
employment in that sector for any OECD country[6].
25.                  
Overall employment in the construction industry
(all NACE Revision 2 Divisions) as a share of all national employment fell from
12,8 % at end Q2 / 2007 to 6,9 % at end Q1 / 2010. NACE Revision 2 Division
43 employment fell by 12 200 (16,1 %) between end Q2 / 2009 and end
Q1 / 2010. At the end of Q1 / 2010, the unemployment rate for all workers in
the NACE Revision 2 Division 43 was 39,8 %, i.e. more than three times the
national unemployment rate of 12,9 %. Unemployment for NACE Revision 2 Division
43 rose dramatically from 34 100 at end Q1 / 2009 to 42 100 at the
end of the reference period (Q1 / 2010), a rise of 19 %.
26.                  
In recent years, the construction industry has
generated in excess of 8 % of GDP, well above the average of 4 to 6 %
for OECD countries. The reduction in demand for construction services and
consequent redundancies have obvious negative impacts in terms of loss of
direct wage income, loss in exchequer receipts through income and corporation
taxes, increase in social welfare expenditure on the newly unemployed,
reduction in demand for goods and services from suppliers to the industry
including the important self-contractor cohort, less investment and / or hiring
of new machinery and equipment. In addition, the loss of secondary
consumption-related expenditure of former construction workers will have a
wider impact on all sectors of the economy.
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
27.                  
Ireland proposes a package of measures in support
of the redundant workers that is built around six pillars: Occupational Guidance,
Training Programmes and associated training allowances, Redundant Apprentices on-
and off-the-job training and supports, Vocational / Second Level education and
training programmes and income supports, Enterprise / Self-employment supports,
and Third-level education and income supports :
–     
Occupational Guidance: This consists of one-to-one occupational counselling and advice
for the majority of the redundant workers, leading to an agreed range of steps
to be taken towards a return to employment. The steps include not only
training, but also support through group guidance, job clubs and education
options.
–     
Training programmes and associated training
allowances: FÁS courses cover a wide range of
relevant subjects, including energy conservation, green and sustainable energy
technologies and structures, and the management of the environment. A strategy
designed to augment the skills and qualifications of unemployed construction
workers to enable them to obtain employment in these expanding areas is being
pursued. Persons undertaking full time FÁS courses qualify for a training allowance
in lieu of social welfare payment. Grant aid for assistance in attending
privately provided training or educational courses not delivered by or through
the national training agency will also be provided as appropriate. The design
of specific internship, work placements and community-oriented training
programmes will be a feature of training interventions as appropriate.
–     
Redundant Apprentice on- and off-the-job
training and supports: This is designed to allow the
1 589 existing apprentices to complete their apprenticeships. The
Standards Based Apprenticeship System is based on seven alternating phases of
on-the-job (odd-numbered phases) and off-the-job (even-numbered phases)
training. This measure will subsidise the employment of redundant apprentices during
the required on-the-job phases 3,5 and 7 of apprenticeship, it will provide training
and income maintenance to them during phases 2, 4 and 6, and it will provide
in-centre training, assessment and income maintenance in partial substitution
for the final on-the-job phase 7 of the apprenticeship.
–     
Vocational / Second Level education and
training programmes and income supports: There is a
growing recognition that upskilling is key to secure employment in the years
ahead. Consequently, unemployed construction workers who, only a few years ago,
may not have contemplated returning to education or training, are increasingly
coming to realise that they must upskill to improve their chances of
employment. It has been established that redundant construction workers, many
of whom are highly technically skilled, are realistic about their situation and
are open to considering alternative careers outside the construction sector. In
doing so, they are aware of gaps in their education and training and welcome
guidance about how these gaps might be eliminated. In this context, several
options are being proposed, involving the Vocational Education Committees, Post
Leaving Certificate courses, Vocational Training Opportunities Schemes,
Intensive Tuition in Adult Basic Education, and the Back to Education
Initiative. Many of these programmes count towards the award of nationally and
internationally recognised certification.
–     
Enterprise / self-employment supports: Enterprise support bodies such as the City and County Enterprise Boards
(CEBs) will promote the array of supports available to redundant workers who
are contemplating starting their own businesses through, for example, the
holding of information workshops, fairs and roadshows and other promotion
related activities. Grant assistance will be offered in cases where business
proposals conform with eligibility criteria. Such assistance includes priming
and employment grants payable by CEBs to provide newly self-employed persons or
small start-up companies with assistance for start-up costs and to recruit
employees. The beneficiaries are generally sole traders or micro enterprises
with a focus on manufacturing or on internationally traded services. The
Department of Social Protection operates a number of schemes designed to provide
income support for social welfare recipients to engage in self-employment.
These include the Back to Work Enterprise Allowance and Short Term Enterprise
Allowance whereby an unemployed person can set up as self-employed in a
business that has been approved by a Department job facilitator or a local
integrated development company. There is no restriction on the nature of the
self-employed business, but it must be considered viable and sustainable by the
job facilitator.
–     
Third Level Educational Programmes and income
supports: Thousands of modules and programmes are
available within the higher education sector which are relevant to the
redundant construction workers, depending on their educational background and
skills levels. Some of these programmes are in the green technology area, which
may be particularly relevant for people with a construction background.
Considerable emphasis will be placed initially on assessing those considering
higher education pathways, their skills sets and suitability to enter
particular courses or whether preparatory courses or alternative options in
other support areas are more appropriate. The higher education sector is in a
position to provide transition programmes, short and medium duration full-time
programmes and part-time programmes. All third level colleges provide
opportunities for direct entry and advanced entry to programmes based on an
individual's prior skills and work experience. In the context of increased
flexibility of delivery modes, it is possible for students to take modules or
minor awards of a shorter duration, with the option over time to build towards
a major qualification. There are also opportunities for holders of craft
certificates to gain advanced entry to a number of specific degree level
programmes in the Institutes of Technology. However, the finite duration of the
EGF implementation period does not generally facilitate the support of a full
degree course in its entirety. Various income supports are available to help
redundant construction workers to access and participate in third level
programmes.
28.                  
The expenditure for implementing the EGF, which
is included in the application in accordance with Article 3 of Regulation (EC)
No 1927/2006, covers preparatory, management and control
activities as well as information and publicity. Since this case covers the
whole of the State of Ireland, the Irish authorities have devoted the most
significant part of the expenditure to management and oversight, as well as
control, including audits. Regarding information and publicity, all measures
provided under EGF assistance will be highlighted at national, regional and
local levels to ensure that the EGF is attributed with such assistance. This
will include publicity materials, logos, letterheads, posters, brochures and
media advertisements etc. The Government, primarily through the Department of
Education and Skills, and all relevant State agencies and educational
institutions, will continue to highlight the assistance of the Community at all
appropriate occasions, such as press briefings, parliamentary questions,
debates, media events etc.
29.                  
The personalised services presented by the Irish
authorities are active labour market measures within the eligible actions
defined by Article 3 of Regulation (EC) No 1927/2006. The Irish authorities
estimate the total costs of these services at EUR 31 149 027,78
and the expenditure for implementing the EGF at EUR 2 180 431,53
(6,5 % of the total amount). The total contribution requested from the EGF
is EUR 21 664 148 (65 % 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) 
 Occupational guidance || 1 620 || 112,35 || 182 007,00 
 Training programmes || 644 || 1 022,51 || 658 496,44 
 Training allowances || 212 || 5 192,98 || 1 100 911,76 
 Redundant apprentices training programmes and supports || 3 146 || 7 719,93 || 24 286 899,78 
 Vocational / Second level educational and training programmes || 525 || 2 916,72 || 1 531 278,00 
 Vocational / Second level educational and training supports || 61 || 10 941,39 || 667 424,79 
 Enterprise / self employment creation || 541 || 1 533,99 || 829 888,59 
 Third level educational programmes || 85 || 14 978,89 || 1 273 205,65 
 Third level educational supports || 43 || 14 393,39 || 618 915,77 
 Sub total personalised services ||   || 31 149 027,78 
 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Preparatory activities ||   || 198 201,23 
 Management ||   || 1 139 711,56 
 Information and publicity ||   || 396 402,45 
 Control activities ||   || 446 116,29 
 Sub total expenditure for implementing EGF ||   || 2 180 431,53 
 Total estimated costs ||   || 33 329 459,31 
 EGF contribution (65 % of total costs) ||   || 21 664 148 
30.                  
Ireland confirms that the measures described
above are complementary with actions funded by the Structural Funds. The Irish
authorities have established a Monitoring Committee for the Coordination of EU
Funds under the National Strategic Reference Framework. The Department of
Finance chairs the Committee which discusses any issues of relevance including
the demarcation of funds in operational programmes and any implementation
issues that may arise and any plans for new programmes to ensure that Funds are
not overlapping. In addition, as part of the implementation process for the ESF
and ERDF a group was established and is chaired and co-ordinated by the
Department of Finance, to deal with any issues relating to the implementation
of the Structural Funds for the 2007-2013 period. Since 2010 the EGF has been
included in this process.
Date(s) on which the personalised
services to the affected workers were started or are planned to start
31.                  
Ireland started the personalised services to the
affected workers included in the co-ordinated package proposed for co-financing
to the EGF on 1 July 2009. 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
32.                  
Upon receipt of notification from the Department
of Enterprise, Trade and Innovation of impending collective redundancies, FÁS makes
contact with the company management concerned to discuss the services available
and the potential needs of employees. Trade Unions have also been consulted as
appropriate.
33.                  
The Irish 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
34.                  
As regards the criteria contained in Article 6
of Regulation (EC) No 1927/2006, the Irish 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 
35.                  
Ireland has notified the Commission that the
financial contribution will be managed and controlled by the same bodies that
manage and control the European Social Fund (ESF) funding in Ireland.
Financing
36.                  
On the basis of the application from Ireland, the
proposed contribution from the EGF to the coordinated package of personalised
services (including expenditure to implement EGF) is EUR 21 664 148, representing 65 % of the
total cost. The Commission's proposed allocation under the Fund is based on the
information made available by Ireland.
37.                  
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.
38.                  
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.
39.                  
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.
40.                  
The Commission presents separately a transfer
request in order to enter in the 2011 budget specific commitment and payment appropriations,
as required in Point 28 of the Interinstitutional Agreement of 17 May 2006.
Source of payment appropriations 
41.                  
The amount of payment appropriations initially
entered on the budget line 04.0501 will have been fully consumed after adoption
by both arms of the budgetary authority of the proposals submitted to date for
mobilising the EGF.
42.                  
As payment appropriations are available in 2011
under the budget line 04.0201 "Completion of the European Social Fund
(ESF) – Objective 1 (2000 to 2006)", an amount of EUR 21 664 148 needed
for the present application can therefore be made available for transfer.
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/2010/020 IE/Construction 43 from Ireland)
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[7], 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[8], and in particular Article
12(3) thereof,
Having regard to the proposal from the European
Commission[9],
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 scope of the EGF was
broadened for applications submitted from 1 May 2009 to include support for
workers made redundant as a direct result of the global financial and economic
crisis.
(3)       The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million.
(4)       Ireland submitted an
application to mobilise the EGF, in respect of redundancies in 1 560 enterprises
operating in the NACE Revision 2 Division 43 ('Specialised construction activities')
in the NUTS II regions of Border, Midlands and Western (IE01) and Southern and
Eastern (IE02), on 9 June 2010 and supplemented it by
additional information up to 17 June 2011. 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 21 664 148.
(5)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by Ireland.
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the European
Union for the financial year 2011, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 21 664 148 in
commitment and payment appropriations.
Article 2
This Decision shall be published in the Official
Journal of the European Union.
Done at [Brussels/Strasbourg],
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]               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).
[4]               In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006.
[5]               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).
[6]               OECD Labour Force Statistics (MEI), Q1/2010.
[7]               OJ C 139, 14.6.2006, p. 1.
[8]               OJ L 406, 30.12.2006, p. 1.
[9]               OJ C […], […], p. […].