CELEX: 52011PC0386
Language: en
Date: 2011-06-28
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/2010/027 NL/Noord-Brabant Division 18 from the Netherlands)

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		52011PC0386
		
			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/2010/027 NL/Noord-Brabant Division 18 from the Netherlands) /* COM/2011/0386 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 20 December 2010, the Netherlands submitted application EGF/2010/027 NL/Noord-Brabant
Division 18 for a financial contribution from the EGF, following
redundancies in 14 enterprises operating in the NACE
Revision 2 Division 18 ('Printing and reproduction of recorded media')[3] in the NUTS II region of Noord-Brabant (NL41) in the Netherlands.
This application is part of a package of four
interrelated applications, all of which concern redundancies in six different
NUTS II regions in the Netherlands in enterprises operating in the printing and
reproduction of recorded media sector.
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/2010/027 
 Member State || Netherlands 
 Article 2 || (c) 
 Enterprises concerned || 14 
 NUTS II region || Noord-Brabant (NL41) 
 NACE Revision 2 Division || 18 ('Printing and reproduction of recorded media') 
 Reference period || 16.1.2010 – 16.10.2010 
 Starting date for the personalised services || 16.1.2010 
 Application date || 20.12.2010 
 Redundancies during the reference period || 199 
 Redundant workers targeted for support || 199 
 Expenditure for personalised services (EUR) || 986 323 
 Expenditure for implementing EGF[4] (EUR) || 41 097 
 Expenditure for implementing EGF (%) || 4,0 
 Total budget (EUR) || 1 027 420 
 EGF contribution (65 %) (EUR) || 667 823 
1.                      
The application was presented to the Commission
on 20 December 2010 and supplemented by additional information up to 7 March
2011.
2.                      
The application meets the conditions for
deploying the EGF as set out in Article 2(c) 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, the Netherlands argues
that the economic crisis resulted in a substantial decrease in demand for the
graphic media industry. As a consequence the turnover in the graphic industry
decreased by 8,6 % in 2009. The orders from other economic sectors for
printed advertising material, which represents 35 % of the total turnover
of the printing and publishing sector, decreased dramatically between 2008 and
2009 due to the reduction of budgets for media and advertising activities
induced by the economic crisis. The application cites several examples. In the
construction industry, the budget for information and publicity was cut by
36,8 % following the start of the crisis; in the financial sector by
33,2 % and in consumer electronics by 30,6 %. In addition, the
economic crisis negatively affected demand for various types of printed media
material: in 2009, demand for popular magazines decreased by 25,7 %, for
newspapers by 24,4 %, for commercial newspapers distributed free of charge
by 10,54 % and for professional magazines by 23,4 %.
Demonstration of the number of
redundancies and compliance with the criteria of Article 2(c)
4.                      
The Netherlands submitted
this application under the intervention criteria of Article 2(c) of Regulation
(EC) No 1927/2006, which provides that, in small labour markets or in
exceptional circumstances, where duly substantiated by the Member State
concerned, an application for a contribution from the EGF may be considered
admissible even if the intervention criteria laid down in Article 2(a) and 2(b)
are not entirely met, when redundancies have a serious impact on employment and
the local economy. In this case the applicant must specify which of the main
intervention criteria its application fails to meet.
5.                      
The Netherlands has specified that the
application seeks to derogate from Article 2(b), where the required threshold
is 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.
6.                      
The application cites 199 redundancies in 14
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media')[5] in the NUTS II region of Noord-Brabant (NL41) during the nine-month reference period from 16
January 2010 to 16 October 2010. All of the redundancies were calculated in
accordance with the second indent of the second paragraph of Article 2 of
Regulation (EC) No 1927/2006.
7.                      
The Dutch authorities argue that this
application meets the requirements for a submission under Article 2(c) of
Regulation (EC) No 1927/2006 citing exceptional circumstances: it covers
further redundancies in the same NACE Revision 2 Division during the same
reference period as the redundancies covered by application EGF/2010/029 NL/
Zuid-Holland and Utrecht Division 18 that was submitted by the Netherlands
under Article 2(b) of Regulation (EC) No 1927/2006. In addition, Noord-Brabant
constitutes a contiguous region at NUTS II level with Zuid-Holland. The
exceptionality of the case lies in the combination of these factors, which
together pose an unusual and difficult situation for the workers and the region
concerned.
8.                      
According to the Netherlands, Noord-Brabant is
in a very difficult situation. In
this province the unemployment rate increased from 3,1 % in Q3/2008 to
5 % in Q3/2010. In Veghel and Uden, the second most important graphic
media industry centre in Noordoost-Brabant, the unemployment rate for graphic
professions was 88 % higher in October 2010 than in October 2008. In
addition, forecasts[6]
state that the labour market of Noord-Brabant will further shrink due to the
crisis in the technical industries and the construction sector, which will have
a huge impact on the job finding chances of unemployed workers.
9.                      
At the same time, the graphics sector in the
Netherlands has suffered from large-scale redundancies, as is also shown by the
three other interrelated EGF applications submitted by the
Netherlands, which show a high number of redundancies in enterprises in the
graphics sector in other parts of the Netherlands. Moreover, in 2009 the Netherlands
successfully applied for EGF co-funding to support workers made redundant in
the same sector and in the same NUTS II region[7].
10.                  
The Commission services therefore consider that
the redundancies in question have a serious impact on employment and the local
economy and that the difficult economic and labour
market situation in Noord-Brabant and the further
redundancies in other NUTS II level regions of the Netherlands due to the same
cause and during the same period in the same NACE Revision 2 Division combine to meet the criteria of Article 2(c) of Regulation (EC) No
1927/2006.
11.                  
This interpretation is also in line with the
statement of the Commission on the occasion of the adoption of Regulation (EC)
No 546/2009[8]
according to which "in cases where an EGF application under Article
2(b) is submitted by a Member State, if further redundancies have occurred in
another NUTS II level region of the same Member State due to the same cause and
during the same period in the same NACE 2 Division, the Commission considers
that an application for EGF assistance for the latter workers can be made under
Article 2(c) citing exceptional circumstances"[9].
Explanation of the unforeseen nature
of those redundancies
12.                  
The Dutch authorities argue that the financial
and economic crisis and its impact on the sector could not have been foreseen.
The application states that before the crisis the printing and publishing
industry in the Netherlands went through an expensive restructuring process in
order to remain competitive with enterprises from outside the EU. The sector
was transformed from a demand driven to a supply oriented industry which meant
a great deal of effort to prepare employees for the new way of working. The
current crisis bears the risk of cancelling out the benefits of the heavy
investments and efforts made by the sector.
Identification of the dismissing
enterprises and workers targeted for assistance
13.                  
The application relates to 199 redundancies (all
of whom are targeted for assistance) in the following 14 enterprises:
 Enterprises and number of dismissals 
 Lithorado BV, Uden || 85 
 Graphic Web Systems BV, Schijndel || 50 
 All Color Press, Eersel || 27 
 Peeters Druk & Printservice BV, Waalre || 4 
 De Rijense Handelsdrukkerij BV (DRH), Rijen || 6 
 Manders Grafische Communicatie, Eindhoven || 3 
 Drukkerij Sprintcopy vof, Bergen op Zoom || 4 
 Van Engelen BV Waalwijk || 1 
 Kon. Broese & Peereboom BV Breda || 12 
 Drukkerij Altorffer, Roosendaal || 1 
 Drukkerij Hearkens BV Someren || 1 
 Van der Garde-Jémé, Eindhoven || 1 
 Lutkie BV, ‘s-Hertogenbosch || 3 
 Roto Smeets Grafiservices Eindhoven || 1 
 Total enterprises: 14 || Total dismissals: || 199 
14.                  
The break-down of the targeted workers is as
follows:
 Category || Number || Percent 
 Men || 129 || 64,8 
 Women || 70 || 35,2 
 EU citizens || 187 || 94,0 
 Non EU citizens || 12 || 6,0 
 15-24 years old || 36 || 18,1 
 25-54 years old || 109 || 54,8 
 55-64 years old || 50 || 25,1 
 > 64 years old || 4 || 2,0 
15.                  
Eight of the targeted workers are disabled.
16.                  
In terms of occupational categories, the
break-down is as follows:
 Category || Number || Percent 
 Manager || 14 || 7,0 
 Professional || 40 || 20,1 
 Technicians || 42 || 21,1 
 Clerical support workers || 24 || 12,1 
 Service and sales workers || 24 || 12,1 
 Plant and machine operators and assemblers || 55 || 27,6 
17.                  
In accordance with Article 7 of Regulation (EC)
No 1927/2006, the Netherlands 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 territory concerned covers the province of
Noord-Brabant. This is a province of the Netherlands centrally positioned
between the port cities of Rotterdam and Antwerp and the German Ruhr area. It
is the second largest province and the third most populous province of the
Netherlands with a population density close to 500 inhabitants per km2.
The economic situation of Noord-Brabant deteriorated in 2009 and its economic
growth was negative (-4,7 %) compared with the previous year.
Of the almost 2 000 graphic media enterprises in the Netherlands 14,7 %
are located in this province and represent 16,3 % of the jobs in the
graphic media sector.
19.                  
The main authorities concerned are the Ministry
for Social Affairs and Employment (SZW) and the Training Fund for the graphics
and media sector (A&O Fonds Grafimedia) on behalf of Raad for Overleg in de
Grafimedia Branche-ROGB (Council for consultation in the graphics and media
sector). Other relevant stakeholders are the Institute for creative industry
(GOC); the public organisation responsible for allowances (UWV werkbedrijf);
UWV mobility centre; ROC Midden Nederland, ROC Mondriaan (government vocational
training centres at regional level) and the Grafisch Lyceum Boxtel; the
organisation for SMEs (MKB-ondernemingen); the social partner organisations:
FNV Kiem (trade union), CNV Media (trade union), Koninklijk Verbond van
Grafische Ondernemingen-KVGO (employers' organisation) for the districts
Gelderland/Utrecht, Den Haag and Rotterdam; and NUV (employers' organisation).
Expected impact of the redundancies
as regards local, regional or national employment
20.                  
During 2008 and 2009 employment in the graphic
media enterprises located in Noord-Brabant contracted by 18 %. The Dutch
authorities argue that the redundancies in the graphics sector will aggravate
the unemployment situation, which has already deteriorated as a result of the
economic and financial crisis. In the province of Noord-Brabant the unemployment
rate increased from 3,1 % in October 2008 to 5 % in October 2010.
During the same period the number of job seekers without a job increased by 30 %
in the sub-region of Noordoost-Brabant. In this sub-region, forecasts
concerning construction and technical industry (two sectors traditionally
considered as safety-net sectors) indicate that they will further shrink in the
next few years (e.g. the construction sector which declined by 7,8 % in
2010 compared to 2008 is forecasted to lose a further 3,4 % of its jobs by
2014) reducing substantially the chances of finding a new job in this province.
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
21.                  
The following types of measures are proposed,
all of which combine to form a coordinated package of personalised services
aimed at re-integrating the workers into the labour market. They will be
offered to the dismissed workers through a mobility centre, called Creative Career
Centre (C3).
Preparatory activities
–     
Intake and registration: This covers an initial interview in order to register the dismissed
worker and to identify the most suitable types of measures.
–     
Information and helpdesk: This relates to collective meetings and a helpdesk function to
provide information to the dismissed workers about the available measures.
Counselling
–     
Work to work counselling: This job to job accompaniment covers an individualised programme
including screening, the establishment of a career and vocational action plan,
labour market orientation and initial counselling at the new workplace.
–     
Outplacement: This
seeks to give active support to dismissed workers in their exploration of new
job opportunities.
–     
Job interview training: This covers the analysis of available job vacancies, support for the
drafting of a CV and an application letter and preparation for job interviews.
–     
Guidance for starting one's own company: The accompaniment towards business creation seeks to assist
dismissed workers who envisage creating their own business. This covers the
provision of legal advice, assistance for the elaboration of a business plan,
support on administrative requirements.
Training
–     
'Education': This covers vocational
training and re-training, management and social skills training and specific
technical re-training for workers whose technical training has become obsolete.
–     
Recognition of prior experience (APL): This covers the evaluation of prior knowledge and experience of
individual workers as well as the identification of areas where further
training is required.
22.                  
The expenditure for implementing the EGF, which
is included in the application in accordance with Article 3 of Regulation (EC)
No 1927/2006, covers management and control activities as well as
information and publicity.
23.                  
The personalised services presented by the Dutch
authorities are active labour market measures within the eligible actions
defined by Article 3 of Regulation (EC) No 1927/2006. The Dutch authorities
estimate the total costs of these services at EUR 986 323 and the
expenditure for implementing the EGF at EUR 41 097 (4 % of the
total amount). The total contribution requested from the EGF is EUR 667 823
(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) 
 Intake and registration || 199 || 193 || 38 407 
 Information and helpdesk || 199 || 86 || 17 114 
 Work to work counselling || 75 || 3 594 || 269 550 
 Outplacement || 60 || 4 448 || 266 880 
 Job interview training || 60 || 1 410 || 84 600 
 Guidance for starting one's own company || 10 || 4 630 || 46 300 
 Education || 84 || 2 478 || 208 152 
 Recognition of prior experience (APL) || 20 || 2 766 || 55 320 
 Sub total personalised services ||   || 986 323 
 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) 
 Management ||   || 10 274 
 Information and publicity ||   || 10 274 
 Control activities ||   || 20 549 
 Sub total expenditure for implementing EGF ||   || 41 097 
 Total estimated costs ||   || 1 027 420 
 EGF contribution (65 % of total costs) ||   || 667 823 
24.                  
The Netherlands confirms that the measures
described above are complementary with actions funded by the Structural Funds.
ESF measures are available only for workers in employment while EGF actions aim
to bring back to employment workers already made redundant. The managing
authority for the EGF, which is also managing authority for the ESF has put in
place the necessary control procedures to eliminate any risk of double funding.
Date(s) on which the personalised
services to the affected workers were started or are planned to start
25.                  
The Netherlands started the personalised
services to the affected workers included in the co-ordinated package proposed
for co-financing to the EGF on 16 January 2010. 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
26.                  
The social partners were consulted through the
Foundation Labour Market and Training Fund for the graphics and media sector
(Arbeids & Opleidingsfonds Grafimedia branche), which in the light of the
crisis agreed on the creation of a mobility centre for the sector named C3
(Creative Career Centre). The aim of this mobility centre is to coordinate the
various active labour market measures in consultation with the social partners.
27.                  
The Dutch 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
28.                  
As regards the criteria contained in Article 6
of Regulation (EC) No 1927/2006, the Dutch 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 
29.                  
The Netherlands 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 the
Netherlands. The Agency for Social Affairs and Employment (Agentschap SZW) will
be the intermediate body for the managing authority.
Financing
30.                  
On the basis of the application from the
Netherlands, the proposed contribution from the EGF to the coordinated package
of personalised services is EUR 667 823, representing 65 % of
the total cost. The Commission's proposed allocation under the Fund is based on
the information made available by the Netherlands.
31.                  
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.
32.                  
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.
33.                  
The aggregated amount of EGF contributions for
EGF applications referring to exceptional circumstances for 2011, including the
amount proposed in the present Proposal, will not exceed 15 % of the
annual maximum amount of the EGF, as required by Article 2(c) of Regulation
(EC) No 1927/2006.
34.                  
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.
35.                  
The Commission presents separately a transfer
request in order to enter in the 2011 budget specific commitment
appropriations, as required in Point 28 of the Interinstitutional Agreement of
17 May 2006.
Source of payment appropriations
36.                  
An amount of EUR 6 692 277
remains available on the EGF Budget line 04.0501 after adoption by both arms of
the Budgetary Authority of three Decisions totalling an amount of EUR 10 371 321,
and taking into account the five cases currently discussed by the Budgetary
Authority for a total amount of EUR 30 545 352. This available
amount will be used to cover the amount of EUR 667 823 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/2010/027 NL/Noord-Brabant Division 18 from the
Netherlands)
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[10], 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[11], and in particular Article
12(3) thereof,
Having regard to the proposal from the European
Commission[12],
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)       The Netherlands submitted
an application to mobilise the EGF, in respect of redundancies in 14
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media') in the NUTS II region of Noord-Brabant (NL41),
on 20 December 2010 and supplemented it by additional
information up to 7 March 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 667 823.
(5)       The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by the Netherlands.
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 667 823 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]               LISA/Vestigingenregister
Noord-Brabant 2008. Bureau Louter. UWV Werkbedrijf Arbeidsmarktprognose
2009-2010 en 2011-2014.
[7]               EGF/2009/027 Noord-Brabant and Zuid Holland Division 18.
This application was approved by the Budgetary
Authority on 24 November 2010 (2010/741/EU) (OJ L 318, 4.12.2010, p.38).
[8]               Regulation (EC) No 546/2009 of the European
Parliament and of the Council of 18 June 2009 amending Regulation (EC)
No 1927/2006 on establishing the European Globalisation Adjustment Fund (OJ
L 167, 29.6.2009, p. 26).
[9]               Council of the European Union, 10304/09 ADD1, 8.6.2009.
[10]             OJ C 139, 14.6.2006, p. 1.
[11]             OJ L 406, 30.12.2006, p. 1.
[12]             OJ C […], […], p. […].