CELEX: 52011PC0608
Language: en
Date: 2011-10-06
Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Globalisation Adjustment Fund (2014 - 2020)

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		52011PC0608
		
			Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Globalisation Adjustment Fund (2014 - 2020) /* COM/2011/0608 final - 2011/0269 (COD) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
·              
General context
In its Communication 'A Budget for Europe 2020'[1]
the Commission stressed the need to tackle effectively a number of challenges
that constitute a serious threat to social cohesion and competitiveness. These
pressing challenges are mainly: shortfalls in skills levels, under-performance of
active labour market policy and education systems, social exclusion of
marginalised groups and low labour mobility.
In this context, the need is recognised to
provide, for the duration of the Multiannual Financial Framework (MFF) 2014 –
2020, specific, one-off support to workers made redundant as a result of major
structural changes triggered by the increasing globalisation of production and
trade patterns. As in the 2007-2013 programming period, this specific support should
be provided through the European Globalisation Adjustment Fund (EGF), one of
the existing special instruments whose mobilisation does not affect the
expenditure ceilings of the MFF.
In the same Communication the Commission
indicated that through the EGF the Union should also be able to provide support
in the event of large-scale redundancies resulting from a serious disruption of
the local, regional or national economy caused by an unexpected crisis. The
scope of the EGF will furthermore be extended to provide transitory support to
farmers to facilitate their adaptation to a new market situation resulting from
the conclusion by the Union of trade agreements affecting agricultural
products.
·              
Grounds for and objectives of the proposal
The European Globalisation Adjustment Fund
(EGF) was initially established for the duration of the programming period 2007
– 2013 by Regulation (EC) No 1927/2006[2] to provide the Union with
an instrument to demonstrate solidarity with, and give support to, workers made
redundant as a result of major structural changes in world trade patterns
caused by globalisation where these redundancies have a significant adverse
impact on the regional or local economy. By co-funding active labour market
policy measures, the EGF aims to facilitate the re-integration of workers in
areas, sectors, territories or labour markets suffering the shock of serious
economic disruption.
In the light of the scale and the speed of
development of the financial and economic crisis in 2008, the Commission, in
its European Economic Recovery Plan[3], envisaged the revision
of Regulation (EC) No 1927/2006. Apart from some permanent changes based on the
first years of EGF implementation, the main aim of this revision[4]
was to extend from 1 May 2009 until 30 December 2011 the scope of the EGF to
enable it to demonstrate Union solidarity and provide support for workers made
redundant as a direct consequence of the financial and economic crisis and to
increase the co-funding rate from 50 to 65 %, thus reducing the burden for
Member States. Taking into account the current economic situation and the need
for fiscal consolidation the Commission has proposed[5]
that the temporary crisis derogation be extended until 31 December 2013, i.e.
the end of the implementation period of Regulation (EC) No 1927/2006.
The prime objective of this proposal is to
ensure that the EGF continues to operate in the next programming period in line
with the basic principles laid down for the MFF 2014 – 2020, which also
extended the scope of the EGF to include farmers.
In line with the main aim of Regulation (EC) No
1927/2006 the proposal aims to demonstrate solidarity at Union level with
redundant workers affected by exceptional circumstances and to provide support towards
their rapid reintegration into employment in line with the objectives of the
Europe 2020 strategy.
Specifically, the EGF will provide support in
cases where workers have been made redundant as a result of major structural
changes in world trade patterns, in line with the initial scope of the EGF as
laid down in Article 1 of Regulation (EC) No 1927/2006. The EGF will also be
able to act in the event of unexpected crises leading to a serious disruption
of the local, regional or national economy. Such unexpected crises could, for
example, include a major recession in important trading partners, a collapse of
the financial system comparable to the one that occurred in 2008, a serious
energy or primary commodity supply problem, a natural disaster, etc. The EGF
will also be available to help farmers adjust to a new market situation resulting
from a trade agreement, such as an agreement on agricultural products concluded
by the Union. Examples of such possible forthcoming trade agreements are those
under negotiation with Mercosur countries, or in the context of the World Trade
Organisation under the Doha Development Agenda.
In order to ensure that the EGF remains a valid
European-level instrument, an application for EGF support for workers can be
triggered when the number of redundancies reaches a minimum threshold.
Experience with the functioning of Regulation (EC) No 1927/2006 has shown that
a threshold of 500 redundancies within a given reference period is acceptable,
in particular taking into account the possibility to submit applications for a
lower number of redundancies in small labour markets or in exceptional
circumstances.
For the agricultural sector an EGF application
would be triggered on a different basis. Ex-ante information about the sectors
and / or products likely to be affected by increased imports as a direct result
of trade agreements will be provided in the analysis carried out by the
Commission departments for the trade negotiations. Once the trade agreement is
initialled, the Commission departments further check the sectors or products
for which a substantial increase in Union imports and a significant drop in
prices are expected and will assess the likely effect on sectoral income. On
this basis the Commission would designate agricultural sectors or products and,
where relevant, regions as eligible for possible EGF support. Member States
would have the possibility to submit applications for an EGF contribution,
provided that they can prove that eligible sectors experience significant
trade-related losses, that farmers operating in these sectors are affected and
that they have identified and targeted the affected farmers.
In order to ensure that EGF support is
available to workers independently of their contract of employment or
employment relationship, the notion of 'workers' is extended to include not
only workers with contracts of employment of indefinite duration as in
Regulation (EC) No 1927/2006, but also workers with fixed-term contracts,
temporary agency workers and owner-managers of micro, small and medium-sized
enterprises and self-employed workers (including farmers).
As the access to EGF support is conditioned by
the fact that the workers must have been made redundant, or for farmers that
they are adjusting that part of their activity affected by the relevant trade
agreement, the proposal contains specific provisions on how the redundancy
should be counted for each worker.
The EGF is designed to contribute to the growth
and employment objectives of the Europe 2020 strategy. Therefore, its focus is
on active labour market measures aimed at reintegrating dismissed workers
rapidly into stable employment. As does Regulation (EC) No 1927/2006, this
proposal provides for a financial contribution from the EGF for a package of
active labour market measures. It cannot contribute to the funding of passive
measures as these are not compatible with the growth and employment objectives
of the Europe 2020 strategy. Allowances may only be included if they are
designed as incentives to facilitate the participation of dismissed workers in
active labour market policy measures. In order to ensure a reasonable balance
between genuinely active labour market policy measures and 'activated'
allowances, the share of allowances in a coordinated package of active labour
market measures is capped.
For farmers, including all members of the farm
household active on the farm, the measures would focus on the acquisition of appropriate
training and skills and use of advisory services enabling them to adjust their
activities, including carrying out new activities, within and / or outside
agriculture, as well as to support to a limited extent the initial investments
in changing or adjusting their activities so as to assist them to become structurally
more competitive and secure their livelihoods. Support could also be given to
cooperation activities with a view to creating new market options especially
for small-scale farmers.
The EGF is being placed outside the MFF because
of the unforeseeable and urgent character of the circumstances which warrant
its deployment. However, its effectiveness has suffered from the length and
procedural requirements of the decision-making process. Shortening as much as
possible the time lag between the date of application for EGF support and the date
of payment, and simplifying the procedures, should be a common concern for all
parties involved in the EGF process: Member States should strive to submit a
complete application as soon as possible once the relevant criteria are met;
the Commission should assess and conclude on eligibility soon after the
submission of a complete application, and the budgetary authority should swiftly
take its decision on deploying the EGF funding. In order to cover the needs
arising at the beginning of the year, the Commission will continue to propose
within the annual budgetary procedure a minimum amount in payment
appropriations for the relevant budgetary line.
In view of the unpredictable nature of the
needs arising for support from the Fund, it is necessary to reserve a part of
the annual maximum amount for applications receiving financial contributions
after 1 September each year. In case the needs for support from the Fund exceed
the amount remaining available, the Commission’s proposals will reflect the
proportion set for support of the agricultural sector during the duration of
the MFF.
Assistance from the EGF will be in addition to
the efforts of the Member States, at national, regional and local levels. For
reasons of sound financial management the EGF cannot replace measures that are
already covered by Union Funds and Programmes included in the MFF. Nor can the
EGF financial contribution replace measures that are the responsibility of
dismissing companies under national law or collective agreements.
The budget procedure in the proposal follows directly
from point 13 of the draft Interinstitutional Agreement[6].
Whenever possible, the process will be shortened and streamlined.
Taking account of the fact that the measures
co-funded by the EGF are implemented by means of shared management with the
Member States, the payment mechanism for the financial contribution will remain
in line with those applied for this management mode of the Union budget. At the
same time, the financing arrangements should reflect the scope of the actions
to be carried out by the Member States as proposed in their applications.
The co-funding rate will be modulated, with a
50 % contribution to the cost of the package and its implementation as the
norm, and the possibility to raise this rate to 65 % in the case of
applications submitted by those Member States on the territory of which at
least one region at NUTS II level is eligible under the "Convergence"
objective of the Structural Funds. The purpose of this modulation is to ensure
that the Union’s expression of solidarity with workers in these Member States
and regions is not hampered by a lack of Member State co-funding resources, as
recognised by the higher co-funding rates laid down under the Structural Funds.
The Commission, in its assessment of such applications, will decide whether the
higher co-funding rate is justified in the specific case proposed by the Member
State.
One of the key messages for the period 2014 –
2020 is that expenditure at Union level should be result-oriented, thus
ensuring that the output and impact of the expenditure push forward the
implementation of the Europe 2020 strategy and the achievement of its targets.
For expenditure related to the EGF the MFF sets the target that at least 50 %
of workers assisted through the EGF should find a new and stable job after 12
months. In order to enable the Commission to monitor whether Member States are successfully
striving towards this target, Member States will present an interim report on
the implementation of EGF support after 15 months. Within the same results-oriented
approach the proposal provides for the possibility that Member States, subject
to approval by the Commission, can amend the planned active labour market
policy measures if in the course of the 24-month implementation period other
measures become more relevant and promising to reach a higher reintegration
rate.
·              
Existing provisions in the area of the
proposal
As indicated in the Communication[7]
on the MFF, the Structural Funds, comprising the European Social Fund (ESF) and
the European Regional Development Fund (ERDF) will provide funding for
structural actions for economic, social and territorial cohesion. This funding
will be concentrated on the key priorities of the Europe 2020 strategy, such as
promoting employment, investment in skills, education and life-long learning,
social inclusion and the fight against poverty as well as enhancing
institutional capacity and efficient public administration. Both the ESF and
the ERDF consist of multi-annual programmes in support of strategic, long-term
goals, in particular the anticipation and management of change and
restructuring. The EGF, in turn, is established to provide support in
exceptional circumstances and outside a multi-annual programming routine.
As indicated in the same Communication, the
Common Agricultural Policy (CAP) will maintain its current two-pillar structure
and will continue to provide direct support to farmers and to support market
measures, entirely funded by the Union budget. It will also continue to deliver
specific environmental public goods, improve the competitiveness of the
agriculture and forestry sectors and promote the diversification of economic
activity and quality of life in rural areas under its second pillar, and in
particular under the support provided by the European Agricultural Fund for
Rural Development (EAFRD). Like the Structural Funds, the EAFRD consists of
multi-annual programmes in support of strategic, long-term goals.
The EGF, in turn, is established to provide
European Union solidarity by means of time-limited support to workers being
made redundant and to farmers needing to change or adjust their previous
agricultural activities in exceptional circumstances and outside the multi-annual
programming routine.
To promote the effective use of Union economic,
social and territorial cohesion instruments the choice of the instrument will be
based on an assessment of whether the redundancies are caused by structural
factors or by a temporary deterioration of the employment situation caused by
the factors defined in the Regulation.
·              
Consistency with the Union's other policies
and objectives
The EGF contributes to the objectives of the
Europe 2020 strategy, which should enable the Union to emerge stronger from the
crisis, and to turn its economy towards smart, sustainable and inclusive
growth, accompanied by a high level of employment, productivity and social
cohesion. In its Communication[8] 'Europe 2020 – A strategy
for smart, sustainable and inclusive growth', the Commission highlights the
role of the EGF under the flagship initiative 'An industrial policy in the
globalisation era', in particular with a view to quick redeployment of skills
to emerging high-growth sectors and markets.
·              
Impact on fundamental rights
The proposal has no impact on fundamental
rights.
2.           RESULTS OF CONSULTATIONS WITH INTERESTED
PARTIES AND IMPACT ASSESSMENT
·              
Consultation of interested parties
Two stakeholder conferences were held to
discuss the future of the EGF, on 25-26 January 2011[9]
and 8 March 2011[10].
Evidence[11] on the
acceptance of the EGF was collected by asking Member State experts about the
future of the EGF through two questionnaires sent to them on 26 August 2010 and 12 October 2010 and European social partner organisations through
a questionnaire sent to them on 2 February 2011. Twenty-five Member States
replied; relatively few social partner organisations answered but they
participated actively in the conferences. Member State experts were further
consulted at an expert meeting in Porto on 29-30 September 2010[12]
and in Brussels on 9 March 2011[13]. The main outcome of these
consultations was overwhelming support for a rapid crisis intervention
instrument in the event of large-scale redundancies. Nevertheless the
complexity of the procedure and the slowness of the current decision-making
process were severely criticised by all.
·              
Collection and use of expertise
There was no need for external expertise.
·              
Impact assessment
The impact assessment of the EGF is covered by
the Impact Assessment[14] of the financial
instruments of the Directorate-General Employment, Social Affairs and
Inclusion, i.e. the European Social Fund (ESF), the EGF, the PROGRESS
programme, EURES and the PROGRESS Micro-finance Facility.
The impact assessment considered three options
for the EGF:
–              
Option 1 – No policy change, i.e. the EGF continues without its own budget. Following each
application the budgetary authority has to take a decision whether this
particular situation merits support. The main disadvantage is the long delay caused
by the administrative procedures surrounding the decision-making process. The
main advantages are the flexibility of the instrument, in particular taking
into account the largely unpredictable nature of the expenditure, the awareness
it raises in the European Parliament of mass redundancies, the high visibility
of each application as well as the high visibility of the EGF itself.
–              
Option 2 – Incorporation of EGF actions
into the ESF. The main disadvantages are the
need for a clear budget allocation during the programming period despite the
'unprogrammable' nature of mass redundancies, the possible conflict with
overall allocation criteria used in cohesion policy and a reduction of the
political visibility of Union support as the budgetary authority would not be
involved. The main advantages of this option are increased coherence and
complementarity with the ESF, the shortening of the decision-making process and
the simplification and streamlining of EGF applications as the EGF could
benefit from ESF structures, procedures, management and control systems as well
as ESF simplifications in areas such as eligible costs.
–              
Option 3 – the EGF as a stand-alone fund
with its own budgetary allocation. The main
disadvantages are the loss of budgetary flexibility as it would earmark for a
variable expenditure pattern a fixed amount of expenditure, the delivery
mechanism (a negative impact on the delivery mechanism compared with option 2
as the EGF would not benefit from ESF structures, procedures and simplification)
and finally the risk of some overlap with the ESF. The main advantage is the
high degree of visibility for European solidarity.
The assessment has shown that in terms of speed
of delivery of EGF assistance options 2 and 3 are preferable. However, these
options involve a higher risk of reduced efficiency because of non-use of
allocated resources. The involvement of policy makers in option 1 guarantees
the highest level of public commitment of the Union to the welfare of redundant
workers. Therefore, option 1 is the preferred option, offering as it does the
necessary flexibility to enable effective use of resources, without affecting
the Multiannual Financial Framework. It contains scope to further simplify the
delivery mechanism and thus improve the effectiveness of the assistance
provided to dismissed workers and to farmers affected by globalisation.
As far as the financial set-up is
concerned this proposal is based on option 1, i.e. a specific instrument
operating outside the MFF. The specific content of the provisions, and in
particular the adaptation of the EGF rules to cover farmers, has been further
assessed in the ex-ante evaluation accompanying this proposal.
The ex-ante evaluation[15]
considered three options:
–              
Option 1 - No policy change, i.e. the EGF continues to operate under its current rules as amended
by the so-called 'crisis derogation' and set of eligible actions;
–              
Option 2 - Extension of the eligible
population, i.e. the EGF continues to operate
under its current rules as amended by the so-called 'crisis derogation' and set
of eligible actions as in option 1, but its intervention criteria are extended
to include temporary agency workers and workers with fixed-term contracts;
–              
Option 3 – Further extension of the eligible
population and the set of eligible actions, i.e.
the EGF expands option 2 by including in the eligible population owner-managers
of micro, small and medium-sized enterprises and self-employed workers
(including farmers) and by extending the set of eligible actions to take into
account the specific requirements of owner-managers.
On the basis of the assessment of the
advantages and disadvantages of the three above options, this proposal extends support
to that part of the labour force negatively impacted by globalisation of
economic activities, sudden crisis situations or trade agreements, either as a
permanent or temporary employee or as an owner-manager or self-employed worker.
3.           LEGAL ELEMENTS OF THE PROPOSAL
·              
Summary of the proposed action
The proposal aims to ensure that the EGF continues
to operate in the next programming period in line with the basic principles
laid down for the MFF 2014 – 2020. The EGF should enable the Union to
demonstrate solidarity at Union level and to provide support to workers made
redundant as a consequence of trade globalisation, as a result of an unexpected
crisis or as a consequence of trade agreements impacting upon the agricultural
sector.
·              
Legal basis
The Treaty on the Functioning of the European
Union, and in particular the third paragraph of Article 175 and Articles 42 and
43.
Article 175(3) allows the European Parliament
and the Council to take action in accordance with the ordinary legislative
procedure and after consulting the Economic and Social Committee and the
Committee for the Regions, if specific actions prove necessary outside the
Structural Funds and the Common Agricultural Policy and without prejudice to
the measures decided upon within the framework of the other policies of the
Union.
As regards specifically the provisions in this
Regulation related to support for active farmers, EGF assistance can be
considered as aid to agricultural activities and as action taken in pursuance
of an express objective of the Union's Agricultural Policy. Therefore, Articles
42 and 43 of the Treaty on the Functioning of the European Union constitute the
appropriate legal basis for the measures targeting farmers.
·              
Subsidiarity principle
The subsidiarity principle applies insofar as
the proposal does not fall under the exclusive competence of the Union.
The objectives of demonstrating solidarity at Union
level in exceptional circumstances to that part of the workforce that has been
negatively impacted by globalisation, a sudden crisis or trade agreements,
cannot be sufficiently achieved by the Member States alone. They can be better
achieved at Union level taking into account that the EGF is an expression of
solidarity across and between Member States. Mobilising a financial
contribution from the EGF will require the agreement of both arms of the
budgetary authority, thus expressing solidarity by the Union and the Member
States. In this way, the proposal will contribute to making the objective of Union
solidarity in exceptional circumstances more tangible for that part of the labour
force affected in particular and for Union citizens in general.
·              
Proportionality principle
In accordance with the principle of
proportionality, the provisions of this proposal do not go beyond what is
necessary to achieve its goals. The obligations imposed on the Member States
reflect the need to help the affected workforce to adapt to changing
circumstances and to reintegrate rapidly into employment. The administrative
burden on the Union and on the national authorities has been limited to what is
necessary for the Commission to exercise its responsibility for the implementation
of the Union budget. Since the financial contribution is made to the Member
State under the principle of shared management, the Member State will be
required to report on the use made of the financial contribution.
·              
Choice of instrument
Proposed instrument: a Regulation.
Other means would not be appropriate for the
following reason: the objective of demonstrating Union-level solidarity can
only be achieved through a directly applicable legal instrument.
4.           BUDGETARY IMPLICATION
The EGF is one of the special instruments not
included in the MFF, with a maximum amount from January 2014 to 31 December
2020 of EUR 3 billion, while the amount in support of the
agricultural sector shall not exceed EUR 2,5 billion (2011 prices).
Its functioning is governed by point 13 of the
Draft Interinstitutional Agreement[16] between the European
Parliament, the Council and the Commission on cooperation in budgetary matters
and on sound financial management.
It may not exceed a maximum annual amount of
EUR 429 million.
5.           OPTIONAL ELEMENTS 
2011/0269 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the European Globalisation Adjustment
Fund (2014 - 2020)
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular the third paragraph of Article
175, as well as Articles 42 and 43 thereof,
Having regard to the proposal from the Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[17],
Having regard to the opinion of the
Committee of the Regions[18],
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)              
On 26 March 2010, the European Council agreed to
the Commission's proposal to launch a new strategy, Europe 2020. One of the
three priorities of the Europe 2020 strategy is inclusive growth by empowering
people through high levels of employment, investing in skills, fighting poverty
and modernising labour markets, training and social protection systems so as to
help people anticipate and manage change, and build a cohesive society.
(2)              
The European Globalisation Adjustment Fund (EGF)
was established by Regulation (EC) No 1927/2006 of the European Parliament and
of the Council of 20 December 2006 on establishing the European Globalisation
Adjustment Fund[19] for the duration of the Financial
Framework from 1 January 2007 to 31 December 2013 to enable the Union to show solidarity
towards workers made redundant as a result of major structural changes in world
trade patterns due to globalisation and to provide support for their rapid
reintegration into employment. This initial objective of the EGF remains valid.
(3)              
The Communication from the Commission to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions on 'A budget for Europe 2020'[20]
recognises the role of the EGF as a flexible fund to support workers who lose their
jobs and help them to find another job as rapidly as possible. The Union should
continue to provide, for the duration of the Multiannual Financial Framework
from 1 January 2014 to 31 December 2020, specific, one-off support to
facilitate the re-integration into employment of redundant workers in areas,
sectors, territories or labour markets suffering the shock of serious economic
disruption. Given its purpose, which is to provide support in situations of
urgency and unexpected circumstances, the EGF should remain outside the
Multiannual Financial Framework.
(4)              
The scope of Regulation (EC) No 1927/2006 was
broadened in 2009 by Regulation (EC) No 546/2009 of the European Parliament and
of the Council[21] as part of the European
Economic Recovery plan to include workers made redundant as a result of the global
financial and economic crisis. In order to enable the EGF to intervene in
future crisis situations, its scope should cover redundancies resulting from a
serious economic disruption when caused by an unexpected crisis comparable to
the financial and economic crisis that hit the economy from 2008 onwards.
(5)              
In compliance with the Communication on 'A Budget
for Europe 2020', the scope of the EGF should be broadened to facilitate the
adaptation of farmers to a new market situation resulting from international
trade agreements in the agricultural sector and leading to a change or a
significant adjustment in the agricultural activities of the affected farmers so
as to assist them to become structurally more competitive or to facilitate
their transition to non-agricultural activities.
(6)              
In order to maintain the European nature of the
EGF, an application for support should be triggered when the number of
redundancies reaches a minimum threshold. In small labour markets, such as
small Member States or remote regions, and in exceptional circumstances, applications
may be submitted for a lower number of redundancies. As regards farmers, the necessary
criteria should be determined by the Commission in relation to the consequences
of each trade agreement.
(7)              
Redundant workers should have equal access to the
EGF independently of their type of employment contract or employment
relationship. Therefore, workers with fixed term contracts and temporary agency
workers made redundant as well as owner-managers of micro, small and
medium-sized enterprises and self-employed workers who cease their activities
and farmers who change or adjust their activities to a new market situation
following trade agreements, should be regarded as redundant workers for the
purposes of this Regulation.
(8)              
Regarding farmers, the scope of the EGF should include
beneficiaries affected by bilateral agreements concluded by the Union in
accordance with Article XXIV of the GATT or multilateral agreements concluded
within the World Trade Organisation. This covers farmers changing or adjusting
their previous agricultural activities within a period starting upon
initialling of such trade agreements and ending three years after their full
implementation.
(9)              
Financial contributions from the EGF should be
primarily directed at active labour market measures aimed at reintegrating
redundant workers rapidly into employment, either within or outside their
initial sector of activity, including the agricultural sector. The inclusion of
pecuniary allowances in a coordinated package of personalised services should therefore
be restricted.
(10)          
When drawing up the coordinated package of
active labour market policy measures, Member States should favour measures that
will significantly contribute to the employability of the redundant workers. Member
States should strive towards the reintegration into employment or new
activities of at least 50 % of the targeted workers within 12 months of the
date of application.
(11)          
In order to support redundant workers
effectively and rapidly, Member States should do their utmost to submit complete
applications. The provision of supplementary information should be exceptional
and limited in time.
(12)          
In compliance with the principle of sound
financial management, financial contributions from the EGF should not replace
support measures which are available for redundant workers within the Union's Structural
Funds or other Union policies or programmes.
(13)          
Special provisions should be included for information and communication activities on EGF cases and outcomes.
In addition, to bring about greater efficiency in
communication to the public at large and stronger synergies between the
communication activities undertaken at the initiative of the Commission, the resources
allocated to communication actions under this Regulation should also contribute
to covering the corporate communication of the political priorities of the
Union provided that these are related to the general objectives of this
Regulation.
(14)          
In order to ensure that the Union’s expression
of solidarity with workers is not hampered by a lack of Member State co-funding
resources, the co-funding rate should be modulated, with a maximum 50 %
contribution to the cost of the package and its implementation as the norm, and
the possibility to raise this rate to up to 65 % in the case of
applications submitted by those Member States on the territory of which at
least one region at NUTS II level is eligible under the "Convergence"
objective of the Structural Funds. 
(15)          
To facilitate the implementation of this
Regulation, expenditure should be eligible either from the date on which a
Member State incurs administrative expenditure for implementing the EGF or from
the date on which a Member State starts to provide personalised services or, in
the case of farmers, from the date set in a Commission act in accordance with
Article 4(3).
(16)          
In order to cover the needs arising during the
final months of each year, it is necessary to ensure that at least one quarter
of the annual maximum amount of the EGF remains available on 1 September. Financial
contributions made during the remainder of the year should be allocated taking
into account the overall ceiling laid down for support to farmers in the
Multiannual Financial Framework.
(17)          
The Interinstitutional Agreement between the
European Parliament, the Council and the Commission of […………..] on cooperation
in budgetary matters and on sound financial management[22]
('the Interinstitutional Agreement') determines the budgetary framework of the
EGF.
(18)          
In the interest of the redundant workers, the
Member States and the Union institutions involved in the EGF decision-making
process should do their utmost to reduce processing time and simplify
procedures.
(19)          
In order to enable continuous monitoring by the
Commission of results obtained with EGF assistance, Member States should submit
interim and final reports on the implementation of the EGF.
(20)          
The Member States should remain responsible for
the implementation of the financial contribution and for the management and
control of the actions supported by Union funding, in accordance with Council
Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
Regulation applicable to the general budget of the European Communities ('the
Financial Regulation')[23]. The Member States
should justify the use made of the financial contribution received from the
EGF.
(21)          
Since the objectives of this Regulation cannot
be sufficiently achieved by the Member States and can therefore, by reason of
their scale and effects, be better achieved at the Union level, the Union may
adopt measures, in accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty on the European Union. In accordance with the principle
of proportionality, as set out in that Article, this Regulation does not go
beyond what is necessary in order to achieve those objectives,
HAVE ADOPTED THIS REGULATION:
Article 1
Objectives
This Regulation establishes the European
Globalisation Adjustment Fund (EGF) for the period of the Multiannual Financial
Framework from 1 January 2014 to 31 December 2020. 
The aim of the EGF shall be to contribute
to economic growth and employment in the Union by enabling the Union to show
solidarity towards workers made redundant as a result of major structural
changes in world trade patterns due to globalisation, trade agreements
affecting agriculture, or an unexpected crisis, and to provide financial
support for their rapid reintegration into employment, or for changing or
adjusting their agricultural activities.
Actions benefiting from financial
contributions by the Fund pursuant to Article 2(a) and (b) shall aim to ensure
that a minimum of 50 % of workers participating in these actions find
stable employment within a year from the date of application.
Article 2
Scope
This Regulation shall apply to applications
by the Member States for financial contributions to be provided to:
(a)                   
workers made redundant as a result of major
structural changes in world trade patterns due to globalisation, demonstrated,
in particular, by a substantial increase in imports into the Union, a rapid
decline of the Union market share in a given sector or a delocalisation of activities
to non-member countries, where these redundancies have a significant adverse
impact on the local, regional or national economy;
(b)                   
workers made redundant as a result of a serious disruption
of the local, regional or national economy caused by an unexpected crisis,
provided that a direct and demonstrable link can be established between the
redundancies and that crisis;
(c)                   
workers changing or adjusting their previous
agricultural activities during a period starting upon initialling of the trade agreement
by the Union containing trade liberalisation measures for the relevant
agricultural sector and ending three years after the full implementation of
these measures and provided that these trade measures lead to a substantial
increase in Union imports of an agricultural product or products accompanied by
a significant decrease in prices of such products at the Union or, where
relevant, the national or regional level.
Article 3
Definition 
For the purposes of this Regulation, the
following definitions of a worker apply:
(a)                   
'a worker' means workers with contracts of
employment of indefinite duration whose employment contract or relationship is
in accordance with Article 4; or
(b)                   
'a worker' means fixed-term workers as defined
in Council Directive 1999/70/EC[24], whose employment
contract or relationship is in accordance with Article 4(1)(a) or (b), and ends
and is not renewed within the period set out in that point of Article 4; or
(c)                   
'a worker' means temporary agency workers as
defined in Article 3 of Directive 2008/104/EC of the European Parliament and of
the Council[25], whose user undertaking
is an enterprise in accordance with Article 4(1)(a) or (b), and whose
assignment to the user undertaking ends and is not renewed within the period
set out in that point of Article 4; or
(d)                   
'a worker' means owner-managers of micro, small
and medium-sized enterprises and self-employed workers (including farmers) and
all members of the household active in the business, provided that, if farmers,
they were already producing the output affected by the relevant trade agreement
before the measures concerning the specific sector were implemented.
Article 4
Intervention criteria
1.                      
A financial contribution from the EGF shall be
provided where any of the conditions set out in points (a), (b) and (c) of Article
2 occur and result in:
(a)         
at least 500 workers being made redundant over a
period of four months in an enterprise in a Member State, including workers
made redundant in its suppliers or downstream producers;
(b)         
at least 500 workers being made redundant over a
period of nine months, particularly in small or medium-sized enterprises,
operating in one economic sector defined at NACE Revision 2 division level and
located in one region or two contiguous regions defined at NUTS II level, or in
more than two contiguous regions defined at NUTS II level provided that more
than 500 workers are made redundant in two of the regions combined.
2.                      
In small labour markets or in exceptional
circumstances, where duly substantiated by the applicant Member State, an
application for a financial contribution under this Article may be considered
admissible even if the criteria laid down in points (a) or (b) of paragraph 1
are not entirely met, when redundancies have a serious impact on employment and
the local economy. The Member State shall specify which of the intervention criteria
set out in points (a) and (b) of paragraph 1 is not entirely met.
3.                      
As regards farmers, when, after a trade
agreement is initialled and on the basis of the information, data and analyses
available to it, the Commission considers that the conditions for support in
accordance with Article 2(c) are likely to be met for a significant number of
farmers, it shall adopt delegated acts in accordance with Article 24 designating
the eligible sectors or products, defining the affected geographical areas
where appropriate, setting a maximum amount for potential support at Union
level, setting reference periods and eligibility conditions for farmers and eligibility
dates for expenditure as well as establishing the deadline by which
applications must be submitted and, if necessary, the content of these
applications in accordance with Article 8(2).
4.                      
Where owner-managers of micro, small and
medium-sized enterprises and self-employed workers change or, in the case of
farmers, adjust their previous activities, such situations shall be considered
as redundancies for the purposes of this Regulation.
Article 5
Calculation of
redundancies
For the purposes of calculating the number
of redundancies provided for in Article 4(1), a redundancy shall be counted:
(a)                   
for workers with contracts of employment of
indefinite duration or for workers with a fixed term contract that comes to an
end before its expiry, from:
(1)         
 the date of the employer's individual notice to
lay off or to terminate the contract of employment of the worker; or
(2)         
 the date of the de facto termination of the
contract of employment before its expiry; or
(3)         
 the date on which the employer, in accordance with
Article 3(1) of Council Directive 98/59/EC[26], notifies the
competent public authority in writing of the projected collective redundancies;
in this case the applicant Member State shall provide the Commission with additional
information on the actual number of redundancies effected according to Article 4(1),
prior to the completion of the assessment by the Commission.
(b)                   
for fixed term workers and for temporary agency
workers, from either:
(1)         
the date of the de facto termination of the
contract of employment, or
(2)         
 the end of the assignment to the user
undertaking, or
(3)         
 the date at which they become unemployed.
(c)                   
For owner-managers of micro, small and
medium-sized enterprises and self-employed workers (including farmers), the
redundancy shall be counted either from the date of cessation of the activities
caused by any of the conditions set out in Article 2, and determined in
accordance with national law or administrative provisions, or from the date specified
by the Commission in the delegated act adopted in accordance with the Article
4(3).
For each enterprise or self-employed worker
covered by an application the Member State shall specify how the redundancies
are being counted.
Article 6
Eligible workers
The applicant Member State may provide
personalised services co-financed by the EGF to affected workers, who may
include:
(a)                   
all workers being made redundant in accordance
with Article 5, within the period provided for in Article 4(1), (2) or (3),
(b)                   
workers being made redundant before or after the
period provided for in Article 4(1)(a) or (2), in cases where an application
under Article 4(2) derogates from the criteria set out in Article 4(1)(a),
(c)                   
farmers changing or adjusting their previous
agricultural activities following the initialling by the Union of a trade agreement
referred to in the delegated act taken in accordance with Article 4(3).
The workers referred to in point (b) are
considered eligible, provided that they were made redundant after the general
announcement of the projected redundancies and that a clear causal link can be
established with the event which triggered the redundancies during the
reference period.
Article 7
Eligible actions
1.                      
A financial contribution may be made for active
labour market measures that form part of a coordinated package of personalised
services, designed to facilitate the re-integration of the targeted redundant
workers into employment or self-employment or, in the case of farmers, to
change or adjust their previous activities. The coordinated package of personalised
services may include in particular:
(a)         
job-search assistance, occupational guidance, advisory
services, mentoring, outplacement assistance, entrepreneurship promotion, aid
for self-employment and business start-up or for changing or adjusting activity
(including investments in physical assets), co-operation activities, tailor-made
training and re-training, including information and communication technology
skills and certification of acquired experience;
(b)         
special time-limited measures, such as job-search
allowances, employers' recruitment incentives, mobility allowances, subsistence
or training allowances (including allowances for carers or farm relief
services), all of which limited to the duration of the documented active job
search or life-long learning or training activities;
(c)         
measures to stimulate in particular
disadvantaged or older workers to remain in or return to the labour market.
The costs of the measures under (b) may not
exceed 50 % of the total costs of the coordinated package of personalised
services listed in this paragraph.
The cost of investments in physical assets for self-employment
and business start-up or for changing or adjusting activity may not exceed EUR 35 000.
2.                      
The following measures shall not be eligible for
a financial contribution from the EGF:
(a)         
special time-limited measures as listed in
paragraph 1 (b) which are not conditional upon the active participation of the
targeted workers in job-search or training activities;
(b)         
actions which are the responsibility of
enterprises by virtue of national law or collective agreements.
3.                      
At the initiative of the applicant Member State,
a financial contribution may be made for the preparatory, management, information
and publicity, control and reporting activities.
Article 8
Applications
1.                      
The Member State shall submit a complete
application to the Commission within a period of 12 weeks from the date on
which the criteria set in Article 4(1) or (2) are met or, where applicable,
before the deadline set by the Commission in accordance with Article 4(3). In
exceptional and duly justified circumstances the application may be
supplemented with additional information by the applicant Member State within
six months from the date of application, following which the Commission shall
assess the application on the basis of the available information. The
Commission shall complete its assessment of the application within twelve weeks
of the date of receipt of a complete application or (in the case of an
incomplete application) six months after the date of the initial application,
whichever is the earlier.
2.                      
The application shall include the following
information:
(a)         
a reasoned analysis of the link between the
redundancies and the major structural changes in world trade patterns, or the
serious disruption of the local, regional or national economy caused by an
unexpected crisis, or the new market situation in the agricultural sector in
the Member State and resulting from the effects of a trade agreement initialled
by the European Union in accordance with Article XXIV of the GATT or a
multilateral agreement initialled within the World Trade Organisation as per
Article 2(c). This analysis shall be based on statistical and other information
at the most appropriate level to demonstrate the fulfilment of the intervention
criteria set out in Article 4;
(b)         
an assessment of the number of redundancies in
accordance with Article 5, and an explanation of the events giving rise to those
redundancies;
(c)         
the identification, where applicable, of the
dismissing enterprises, suppliers or downstream producers, sectors, and the
categories of targeted workers;
(d)         
the expected impact of the redundancies as
regards the local, regional or national economy and employment;
(e)         
the estimated budget for each of the components
of the coordinated package of personalised services in support of the targeted
workers;
(f)           
the dates on which the personalised services to
the affected workers and the activities to implement EGF, as set out in Article
7(1) and (3) respectively, were started or are planned to be started;
(g)         
the procedures followed for consulting the
social partners or other relevant organisations as applicable;
(h)         
a statement of compliance of the requested EGF
support with the procedural and material Union rules on state aid as well as a
statement that the personalised services do not replace measures that are the
responsibility of companies by virtue of national law or collective agreements;
(i)           
the sources of national co-funding;
(j)           
if applicable, any further requirements which
may have been laid down in the delegated act taken in accordance with Article
4(3).
3.                      
On the basis of the information provided for in paragraph
2 and any additional information submitted by the applicant Member State within
the period provided for in paragraph 1, the Commission shall assess, in consultation
with the Member State concerned, whether the conditions for making a financial
contribution are met.
Article 9
Complementarity,
compliance and coordination
1.                      
Support for redundant workers shall complement
actions of the Member States at national, regional and local level.
2.                      
The financial contribution shall be limited to
what is necessary to provide solidarity and support for individual redundant workers.
The activities supported by the EGF shall comply with
Union and national law, including state aid rules.
3.                      
In accordance with their respective
responsibilities, the Commission and the applicant Member State shall ensure
the coordination of the assistance from Union Funds.
4.                      
The applicant Member State shall ensure that the
specific actions receiving a financial contribution shall not also receive
assistance from other Union financial instruments.
Article 10
Equality between men and
women and non-discrimination
The Commission and the Member States shall
ensure that equality between men and women and the integration of the gender
perspective are promoted during the various stages of the implementation of the
financial contribution. The Commission and the Member State shall take
appropriate steps to prevent any discrimination based on sex, racial or ethnic
origin, religion or belief, disability, age, sexual orientation and type of
contract of employment or employment relationship in access to and during the
various stages of the implementation of the financial contribution.
Article 11
Technical assistance at
the initiative of the Commission
1.                      
At the initiative of the Commission, subject to
a ceiling of 0,5 % of the annual maximum amount of the EGF, the EGF may be
used to finance the preparation, monitoring, data gathering and creation of a
knowledge base relevant to the implementation of the EGF. It may also be used
to finance administrative and technical support, information and communication
activities, as well as audit, control and evaluation activities necessary to
implement this Regulation.
2.                      
Subject to the ceiling set out in paragraph 1,
the budgetary authority shall make available an amount for technical assistance
at the start of each year on the basis of a proposal from the Commission.
3.                      
The tasks set out in paragraph 1 shall be performed
in accordance with the Financial Regulation, as well as the implementing rules
applicable to this form of implementation of the budget.
4.                      
The Commission's technical assistance shall
include the provision of information and guidance to the Member States for using,
monitoring and evaluating the EGF. The Commission may also provide information
on using the EGF to the European and national social partners.
Article 12
Information, communication
and publicity
1.                      
The applicant Member State shall provide
information on and publicise the funded actions. The information shall be
addressed to the targeted workers, local and regional authorities, social
partners, the media and the general public. It shall highlight the role of the
Union and ensure that the contribution from the EGF is visible.
2.                      
The Commission shall set up an Internet site,
available in all Union languages, to provide information on the EGF, guidance
on the submission of applications, and information on accepted and rejected
applications, highlighting the role of the budgetary authority.
3.                      
The Commission shall implement information and
communication activities on EGF cases and outcomes.
4.                      
The resources allocated to communication actions
under this Regulation shall also contribute to covering the corporate
communication of the political priorities of the Union provided that these are
related to the general objectives of this Regulation.
Article 13
Determination of financial
contribution
1.           The Commission shall, on
the basis of the assessment carried out in accordance with Article 8(3), particularly
taking into account the number of targeted workers, the proposed actions and
the estimated costs, evaluate and propose as quickly as possible the amount of a
financial contribution, if any, that may be made within the limits of the
resources available. The amount may not exceed 50 % of the total of the
estimated costs referred to in Article 8(2)(e) or 65 % of these costs in
the case of applications submitted by a Member State on the territory of which
at least one region at NUTS II level is eligible under the
"Convergence" objective of the Structural Funds. The Commission, in
its assessment of such cases, will decide whether the 65 % co-funding rate is
justified.
2.           Where on the basis of the
assessment carried out in accordance with Article 8(3) the Commission has
concluded that the conditions for a financial contribution under this
Regulation are met, it shall immediately initiate the procedure set out in
Article 15.
3.           Where on the basis of the
assessment carried out in accordance with Article 8(3) the Commission has
concluded that the conditions for a financial contribution are not met, it
shall notify the applicant Member State as soon as possible.
Article 14
Eligibility of expenditure
Expenditure shall be eligible for a financial
contribution from the dates set out in Article 8(2)(h) on which the Member
State starts the personalised services to the targeted workers or the administrative
expenditure to implement the EGF in accordance with Article 7(1) and (3)
respectively. In the case of farmers, expenditure shall be eligible for
a contribution from the date set in the delegated act taken in accordance with
Article 4(3).
Article 15
Budget procedure
1.           The arrangements for the
EGF shall comply with point 13 of the Interinstitutional Agreement.
2.           The appropriations
concerning the EGF shall be entered in the general budget of the European Union
as a provision.
3.           Where the Commission has
concluded that the conditions for mobilising the EGF are met, it shall submit a
proposal to deploy it. The Decision to deploy the EGF shall be taken jointly by
the two arms of the budgetary authority. The Council shall act by a qualified
majority and the European Parliament shall act by a majority of its component
members and three fifths of the votes cast.
At the same time as it presents the proposal
for a Decision to deploy the EGF, the Commission shall present to the two arms
of the budgetary authority a proposal for a transfer to the relevant budgetary
lines. In case of disagreement a trialogue procedure shall be initiated.
Transfers related to the EGF shall be made in
accordance with the Financial Regulation.
4.           Jointly with the proposal
for a Decision to deploy the EGF the Commission shall adopt a Decision on a
financial contribution, by means of an implementing act, which shall enter into
force on the date at which the budgetary authority adopts the Decision to
deploy the EGF.
5.           A proposal pursuant to
paragraph 3 shall include the following:
(a)         
the assessment carried out in accordance with
Article 8(3), together with a summary of the information on which that
assessment is based;
(b)         
evidence that the criteria laid down in Articles
4 and 9 are met; and
(c)         
the reasons justifying the amounts proposed.
6.           On 1 September each year,
at least one quarter of the annual maximum amount of the EGF shall remain
available in order to cover needs arising until the end of the year.
Article 16
Payment and use of the
financial contribution
1.                      
Following the entry into force of a Decision on
a financial contribution in accordance with Article 15(4) the Commission shall
pay the financial contribution to the Member State in form of a pre-financing
of at least 50 % of the Union's financial contribution to the Member
State, in principle within 15 days, followed where necessary in form of
intermediate and final payments. The pre-financing shall be cleared when the
financial contribution is wound up in accordance with Article 18(3).
2.                      
This financial contribution shall be implemented
within the framework of shared management between the Member States and the
Commission, in accordance with the Financial Regulation.
3.                      
Detailed terms of financing, in particular the
rate of pre-financing and the modalities of intermediate and final payments
shall be determined by the Commission in the Decision on a financial contribution
referred to in Article 15(4).
Intermediate payments shall be made in order to
reimburse the expenditure incurred by the Member States in carrying out the
eligible actions, subject to presentation to the Commission of a declaration of
expenditure signed by a representative of an accredited public body pursuant to
Article 21. 
4.                      
The Member State shall carry out the eligible
actions set out in Article 6 as soon as possible, but not later than 24 months
after the date of the application, pursuant to Article 8(1).
5.                      
When carrying out the actions contained in the
package of personalised services the Member State may submit to the Commission
a proposal to amend the actions included by adding other eligible actions
listed in Article 7(1)(a) and (c), provided that those amendments are duly
justified and the total does not exceed the financial contribution pursuant to
paragraph 1. The Commission shall assess the proposed revisions and, if it
agrees, shall notify the Member State accordingly.
6.                      
Expenditure pursuant to Article 7(3) shall be
eligible until the deadline for submission of the report.
Article 17
Use of the euro
Applications, decisions on financial
contributions and reports under this Regulation, as well as any other related
documents, shall express all amounts in euro.
Article 18
Interim and final report
and closure
1.                      
No later than 15 months after the date of the application
pursuant to Article 8(1) or by the date laid down in the delegated act taken in
accordance with Article 4(3) the Member State shall present an interim report
to the Commission on the implementation of the financial contribution,
including on the funding, timing and type of actions already carried out and on
the rate of reintegration into employment or new activities achieved 12 months after
the date of the application.
In addition, the interim report shall contain
information on:
(a)         
a description of the coordinated package of
personalised services and related expenditure, including how it complements
actions funded by other national or Union Funds as well as information on
actions that are mandatory for the enterprises concerned by virtue of national
law or pursuant to collective agreements;
(b)         
a description of the actions taken and planned
by the national, regional or local authorities, Union Funds, social partners
and enterprises, including an estimate of how these contribute to the
reintegration of the workers into employment or new activities.
2.                      
No later than six months after the expiry of the
period specified in Article 16(4) the Member State shall present a final report
to the Commission on the implementation of the financial contribution,
including information on the type of actions and main outcomes, the
characteristics of the targeted workers and their employment status, together
with a statement justifying the expenditure and indicating whenever possible
the complementarity of actions with those funded by the ESF.
3.                      
No later than six months after the Commission
has received all the information required under paragraph 2, it shall wind up
the financial contribution by determining the final amount of the financial
contribution and, if any, the balance due by the Member State in accordance
with Article 22.
Article 19
Biennial report
1.                      
By 1 August of every second year year, and for
the first time in 2015, the Commission shall present to the European Parliament
and to the Council a quantitative and qualitative report on the activities
under this Regulation and Regulation 1927/2006 in the previous two years. The
report shall focus mainly on the results achieved by the EGF and shall in
particular contain information relating to applications submitted, decisions
adopted, actions funded, including their complementarity with actions funded by
other Union Funds, notably the European Social Fund (ESF) and the European
Agricultural Fund for Rural Development (EAFRD), and the winding-up of
financial contributions made. It should also document those applications that
have been rejected or reduced owing to a lack of sufficient appropriations or
to non-eligibility.
2.                      
The report shall be transmitted for information
to the European Economic and Social Committee, the Committee of the Regions and
the social partners.
Article 20
Evaluation
1.                      
The Commission shall carry out at its own
initiative and in close cooperation with the Member States:
(a)         
by 30 June 2018, a mid-term evaluation of the
effectiveness and sustainability of the results obtained;
(b)         
by 31 December 2022, an ex-post evaluation with
the assistance of external experts, to measure the impact of the EGF and its
added value.
2.                      
The results of the evaluation shall be
transmitted, for information, to the European Parliament, the Council, the
European Economic and Social Committee, the Committee of the Regions and the
social partners.
Article 21
Management and financial
control
1.                      
Without prejudice to the Commission's
responsibility for implementing the general budget of the European Union,
Member States shall take responsibility in the first instance for the
management of actions supported by the EGF and the financial control of the actions.
To that end, the measures they take shall include:
(a)         
verifying that management and control
arrangements have been set up and are being implemented in such a way as to
ensure that Union funds are being used efficiently and correctly, in accordance
with the principles of sound financial management;
(b)         
verifying that the financed actions have been
properly carried out;
(c)         
ensuring that expenditure funded is based on
verifiable supporting documents, and is correct and regular;
(d)         
preventing, detecting and correcting
irregularities as defined in [Regulation (EU) No .../... of the European
Parliament and of the Council of ... on laying down general provisions on the
European Regional Development Fund, the European Social Fund and the Cohesion
Fund and repealing Regulation (EC) No. 1083/2006] on the Structural Funds and
recovering amounts unduly paid together with interest on late payments where
appropriate. They shall notify any such irregularities to the Commission, and
keep the Commission informed of the progress of administrative and legal
proceedings.
2.                      
Member States shall accredit bodies responsible
for the proper management and control of the actions supported by the EGF in
accordance with Article 56 of the Financial Regulation and with the criteria
and procedures laid down in the General Regulation on the Structural Funds. By
1 February of the following financial year, these accredited bodies shall
provide the Commission with the information set out in Article 56(5) of the
Financial Regulation.
3.                      
The Member State shall make the financial
corrections required where an irregularity is ascertained. The corrections made
by the Member State shall consist in cancelling all or part of the financial
contribution. The Member State shall recover any amount lost as a result of an
irregularity detected, repay it to the Commission and, where the amount is not
repaid by the relevant Member State in the time allowed, default interest shall
be due.
4.                      
The Commission, in its responsibility for the
implementation of the general budget of the European Union, shall take every
step necessary to verify that the actions financed are carried out in
accordance with the principles of sound and efficient financial management. It
is the responsibility of the applicant Member State to ensure that it has
smoothly functioning management and control systems. The Commission shall
satisfy itself that such systems are in place.
To that end, without prejudice to the powers of
the Court of Auditors or the checks carried out by the Member State in
accordance with national laws, regulations and administrative provisions,
Commission officials or servants may carry out on-the-spot checks, including
sample checks, on the actions financed by the EGF with a minimum of one working
day's notice. The Commission shall give notice to the applicant Member State
with a view to obtaining all the assistance necessary. Officials or servants of
the Member State concerned may take part in such checks.
5.                      
The Member State shall ensure that all
supporting documents regarding expenditure incurred are kept available for the
Commission and the Court of Auditors for a period of three years following the
winding-up of the financial contribution received from the EGF.
Article 22
Reimbursement of financial
contribution
1.                      
In cases where the amount of the actual cost of
an action is less than the estimated amount quoted pursuant to Article 15, the
Commission shall adopt a Decision, by means of an implementing act, requiring the
Member State to reimburse the corresponding amount of the financial contribution
received.
2.                      
Where the Member State fails to comply with the
obligations stated in the Decision on a financial contribution, the Commission
shall take the necessary steps by adopting a Decision, by means of an
implementing act, to require the Member State to reimburse all or part of the
financial contribution received.
3.                      
Prior to the adoption of a decision under
paragraphs 1 or 2, the Commission shall conduct a suitable examination of the
case and shall, in particular, allow the Member State a specified period of
time in which to submit its comments.
4.                      
If, after completing the necessary
verifications, the Commission concludes that a Member State is not complying
with its obligations under Article 21(1), it shall, if no agreement has been
reached and the Member State has not made the corrections in a period set by
the Commission, and taking account of any comments made by the Member State,
decide within three months from the end of the period referred to in paragraph
3 to make the financial corrections required by cancelling all or part of the
contribution of the EGF to the action in question. Any amount lost as a result
of an irregularity detected shall be recovered and, where the amount is not
repaid by the applicant Member State in the time allowed, default interest
shall be due.
Article 23
Financial management of
support to farmers
By way of derogation from Articles 21 and
22, support for farmers shall be managed and controlled in accordance with
Regulation (EC) No………… on the financing, management and monitoring of the
common agricultural policy. 
Article 24
Exercise of the delegation
1.                      
The powers to adopt delegated acts are conferred
on the Commission subject to the conditions laid down in this Article. 
2.                      
The delegations of power referred to in this
Regulation shall be conferred for an indeterminate period of time from
the date of entry into force of this Regulation.
3.                      
The delegations of power referred to in Article
4 may be revoked at any time by the European Parliament or by the Council.
A decision of revocation shall put an end to
the delegation of the power specified in that decision. It shall take effect
the day following the publication of the decision in the Official Journal of
the European Union or at a later date specified therein. It shall not
affect the validity of any delegated acts already in force.
4.                      
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.
5.                      
A delegated act adopted pursuant to Article 4(3)
shall enter into force only if no objection has been expressed either by the
European Parliament or the Council within a period of 2 months of
notification of that act to the European Parliament and the Council or
if, before the expiry of that period, the European Parliament and the Council have
both informed the Commission that they will not object. That period
shall be extended by 2 months at the initiative of the European Parliament
or the Council.
Article 25
Repeal
Regulation (EC) No 1927/2006 is repealed
with effect from 1 January 2014.
It shall continue to apply for applications
submitted up to 31 December 2013.
Article 26
Entry into force
This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.
It shall apply to all applications
submitted between 1 January 2014 and 31 December 2020.
This Regulation shall be binding in its
entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament                       For
the Council
The President                                                 The
President
LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE 
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative 
              1.4.    Objective(s)

              1.5.    Grounds
for the proposal/initiative 
              1.6.    Duration
and financial impact 
              1.7.    Management
method(s) envisaged 
2.           MANAGEMENT MEASURES 
              2.1.    Monitoring
and reporting rules 
              2.2.    Management
and control system 
              2.3.    Measures
to prevent fraud and irregularities 
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
              3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
              3.2.    Estimated
impact on expenditure 
              3.2.1. Summary of
estimated impact on expenditure 
              3.2.2. Estimated impact
on operational appropriations 
              3.2.3. Estimated impact
on appropriations of an administrative nature
              3.2.4. Compatibility
with the current multiannual financial framework
              3.2.5. Third-party
participation in financing 
              3.3.    Estimated impact on revenue
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.                      
FRAMEWORK OF THE PROPOSAL/INITIATIVE 
1.1.                
Title of the proposal/initiative 

Proposal for a Regulation of the European Parliament and of the
Council on the European Globalisation Adjustment Fund 2014 - 2020

1.2.                
Policy area(s) concerned in the ABM/ABB
structure[27] 

ABB Activity: European Globalisation Adjustment Fund as included in
DG EMPL 2010 Management Plan

1.3.                
Nature of the proposal/initiative 

¨ The
proposal/initiative relates to a new action 
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[28] 
X The proposal/initiative relates to the extension of an existing
action 
¨ The
proposal/initiative relates to an action redirected towards a new action 

1.4.                
Objectives
1.4.1.          
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative 

The proposal falls under the "Communication on a Budget for
Europe 2020" containing the Multiannual Financial Framework 2014 - 2020.

1.4.2.          
Specific objective(s) and ABM/ABB activity(ies)
concerned 

Specific objective no.1: Maintain
participation in the labour market of workers made redundant as a result of
changes in world trade patterns and unexpected crises.
Specific objective no 2: Including
fixed-term workers and temporary agency workers in the scope of the EGF.
Specific objective no. 3: Including
owner-managers of micro, small and medium-sized enterprises and self-employed
workers (including farmers). 
ABM/ABB activity(ies) concerned:
European Globalisation Adjustment Fund (EGF)

1.4.3.          
Expected result(s) and impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
The proposal will enable the European Union to continue its support
through the EGF at a co-funding rate of 50 % for active labour market
measures for workers made redundant as a result of trade related globalisation
and unexpected crises. This rate may be increased to 65 % in the case of Member
States on the territory of which at least one region at NUTS II level is
eligible under the "Convergence" objective of the Structural Funds.
The eligible population is expanded to include fixed-term workers, temporary
agency workers and the owner-managers of micro, small and medium-sized
enterprises and self-employed workers (including farmers).

1.4.4.          
Indicators of results and impact 

Specify the
indicators for monitoring implementation of the proposal/initiative.
- Number of applications for EGF support received
- Number of redundant workers targeted for EGF assistance
- Number of redundant workers reintegrated into employment following
EGF supported measures

1.5.                
Grounds for the proposal/initiative 
1.5.1.          
Requirement(s) to be met in the short or long
term 

Regulation (EC) No 1927/2006 on establishing the European
Globalisation Adjustment Fund must be reviewed by the end of 2013. The review,
which is carried out by means of the proposed Regulation, enables the Fund to
continue for the period of the Multiannual Financial Framework 2014 - 2020, to
enlarge its scope to include additional eligible populations, and to amend some
technical details in order to improve its functioning.

1.5.2.          
Added value of Union involvement

Union involvement through the EGF makes it possible to complement
national means available for the re-integration of workers made redundant as a
consequence of trade globalisation or unexpected crises. Experience achieved so
far with the EGF indicates that Union involvement makes it possible to provide
more tailor-made support, for a longer period of time, often involving measures
that could not have been provided without the involvement of the EGF.

1.5.3.          
Lessons learned from similar experiences in the
past

See the experience gained under Regulation (EC) No 1927/2006 as set
out in the explanatory Memorandum.

1.5.4.          
Coherence and possible synergy with other
relevant instruments

The EGF is coherent and offers a synergy with the European Social
Fund.

1.6.                
Duration and financial impact 

–     
X Proposal/initiative of limited duration 
–     
X  Proposal/initiative
in effect from 1 January 2014 to 31 December 2020
–     
¨  Financial impact from YYYY to YYYY 
¨ Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.

1.7.                
Management mode(s) envisaged[29] 

¨ Centralised direct management by the Commission 
¨ Centralised indirect management with the delegation of implementation tasks to:
–     
¨  executive agencies 
–     
¨  bodies set up by the Communities[30] 
–     
¨  national public-sector bodies/bodies with public-service mission 
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

X Shared management with the Member States 
¨ Decentralised management with third countries 
¨ Joint management with international organisations (to be specified)
If more than one
management mode is indicated, please provide details in the
"Comments" section.
Comments 

2.                      
MANAGEMENT MEASURES 
2.1.                
Monitoring and reporting rules 

Specify frequency
and conditions.
Article 19 of the proposed Regulation requires the Commission to
present each year to the European Parliament and the Council a quantitative and
qualitative report on the activities carried out under this Regulation in the
previous two years. This report contains i.a. the Commission's observations on
the monitoring activities during the years under consideration.
In accordance with Article 20 of the proposed Regulation, the
Commission will carry out before the end of June 2018, in close cooperation
with Member States, a mid-term evaluation of the effectiveness and
sustainability of the results obtained under the EGF. By 31 December 2022, the
Commission is required to carry out, with the assistance of external experts,
an ex-post evaluation in order to measure the impact of the EGF and its added
value.

2.2.                
Management and control system 
2.2.1.          
Risk(s) identified 

The risks are those related to shared management of Community Funds.

2.2.2.          
Control method(s) envisaged 

The requirements applicable to management and financial control are
laid down in Article 20 of the proposed Regulation.

2.3.                
Measures to prevent fraud and irregularities 

Specify existing or
envisaged prevention and protection measures.
The measures to prevent, detect and correct irregularities are laid
down in Article 20(1)(d) and in Article 20(2) of the proposed Regulation.

3.                      
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.                
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected 

·      Existing expenditure budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Description………………………...……….] || DA/NDA ([31]) || from EFTA[32] countries || from candidate countries[33] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 n.a. || 04.0501 European Globalisation Adjustment Fund 04.010414 European Globalisation Adjustment Fund – Expenditure on administrative management 40.0243 Reserve for the European Globalisation Adjustment Fund || DA || NO || NO || NO || NO 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading……………………………………..] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 n.a. || A new budget line will be requested for implementation of part of the EGF by DG AGRI || [DA…] || /NO || /NO || /NO || /NO 

3.2.                
Estimated impact on expenditure 
3.2.1.          
Summary of estimated impact on expenditure 

EUR million (to 3 decimal places)
 Heading of multiannual financial framework: || Number ||   
 DG: EMPL ||   ||   || Year 2014[34] || Year 2015 || TOTAL 
  Operational appropriations PM ||   ||   ||   
 Number of budget line || Commitments || (1) ||   ||   ||   
 Payments || (2) ||   ||   ||   
 Number of budget line || Commitments || (1a) ||   ||   ||   
 Payments || (2a) ||   ||   ||   
 Appropriations of an administrative nature financed  from the envelop of specific programs[35] ||   ||   ||   
 Number of budget line ||   || (3) ||   ||   ||   
 TOTAL appropriations for DG EMPL || Commitments || =1+1a +3 ||   ||   ||   
 Payments || =2+2a +3 ||   ||   ||   
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   
 Payments || (5) ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelop of specific programs || (6) ||   ||   ||   
 TOTAL appropriations under HEADING EMPL of the multiannual financial framework || Commitments || =4+ 6 ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   
If more than one heading is affected by the proposal /
initiative:
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   
 Payments || (5) ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelop of specific programs || (6) ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   
 Heading of multiannual financial framework: || 5 || " Administrative expenditure " 
EUR million (to 3 decimal places)
   ||   ||   || Year 2014 || Year 2015 || Year 2016 || Year 2017-2020 || TOTAL 
 DG: EMPL + AGRI || 
  Human resources || 1.271 || 1.271 || 1.271 || 1.271 per year || 8.897 || 
  Other administrative expenditure || 0.140 || 0.140 || 0.140 || 0.140 per year || 0.98 || 
 TOTAL ||   || 1.411 || 1.411 || 1.411 || 1.411 per year || 9.877 || 
 TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) ||   ||   ||   
EUR million (to 3 decimal places)
   ||   ||   || Year N[36] || Year N+1 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments ||   ||   ||   
 Payments ||   ||   ||   

3.2.2.          
Estimated impact on operational appropriations 

–     
X  The
proposal/initiative does not require the use of operational appropriations 
–     
¨  The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million (to 3 decimal
places)
 Indicate objectives and outputs   ò ||   ||   || Year 2014 || Year 2015-2020 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL || 
 ||
 Type of output[37] || Average cost of the ouput || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Total number of ouputs || Total cost ||
 SPECIFIC OBJECTIVE No 1[38]… ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || 
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 Sub-total for specific objective N°1 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || 
 SPECIFIC OBJECTIVE No 2… ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || 
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 Sub-total for specific objective N°2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || 
 TOTAL COST ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || 

3.2.3.          
Estimated impact on appropriations of an
administrative nature
3.2.3.1.    
Summary 

–     
     The proposal/initiative does not require
the use of administrative appropriations 
–     
Ö            The proposal/initiative requires the use of
administrative appropriations, as explained below:
EUR million (to 3
decimal places)
   || Year 2014 [39] || Year 2015 || Years 2016-2020 || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   
 Human resources || 1.271 || 1.271 || 1.271 per year || 8.897 
 Other administrative expenditure || 0.14 || 0.14 || 0.14 per year || 0.98 
 Subtotal HEADING 5 of the multiannual financial framework || 1.411 || 1.411 || 1.411 per year || 9.877 
 Outside HEADING 5[40] of the multiannual financial framework ||   ||   ||   ||   
 Human resources ||   ||   ||   
 Other expenditure of an administrative nature ||   ||   ||   
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   
 TOTAL ||   ||   ||   ||   ||   ||   

3.2.3.2.    
 Estimated requirements of human resources 

–     
¨  The proposal/initiative does not require the use of human resources

–     
X  The proposal/initiative requires the use of
human resources, as explained below:
Estimate to be expressed in full amounts
(or at most to one decimal place)
   || Year 2014 || Year 2015 || Same for years 2016 to 2020 
 04 01 01 01 (Headquarters and Commission’s Representation Offices) || 9 || 9 || Ditto 
 XX 01 01 02 (Delegations) ||   ||   
 XX 01 05 01 (Indirect research) ||   ||   
 10 01 05 01 (Direct research) ||   ||   
 04 01 02 01 (CA, INT, SNE from the "global envelope") || 2 || 2 
 XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) ||   ||   
 XX 01 04 yy [41] || - at Headquarters[42] ||   ||   
 - in delegations ||   ||   
 XX 01 05 02 (CA, INT, SNE - Indirect research) ||   ||   
 10 01 05 02 (CA, INT, SNE - Direct research) ||   ||   
 Other budget lines (specify) ||   ||   
 TOTAL || 11 || 11 ||   || 11 ||   
XX is the
policy area or budget title concerned.
The needs for human and administrative
resources shall be covered within the allocation already granted for managing
this action and/or redeployed within the DG, complemented as the case may be by
any additional allocation that might be granted to the managing DG in the
framework of the annual allocation procedure in the light of budgetary
constraints.
Description of
tasks to be carried out:
 Officials and temporary agents ||   
 External personnel ||   

3.2.4.          
Compatibility with the current multiannual
financial framework 

–     
X  Proposal/initiative
is compatible the current multiannual financial framework.
–     
¨  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.
Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.
N/A
–     
¨  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[43].
Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.
N/A

3.2.5.          
Third-party contributions 

–     
X The
proposal/initiative does not provide for co-financing by third parties 
–     
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to 3 decimal places)
   || Year 2014 || Year 2015 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   
 TOTAL appropriations cofinanced ||   ||   ||   ||   ||   ||   

3.3.                
Estimated impact on revenue 

–     
X  Proposal/initiative
has no financial impact on revenue.
–     
¨  Proposal/initiative has the following financial impact:
¨         on own resources 
¨         on miscellaneous revenue 
EUR million (to 3 decimal places)
 Budget revenue line: || Appropriations available for the ongoing budget exercise || ||
 Year 2012 || Year 2013 || … insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6) ||
 Article …………. ||   ||   ||   ||   ||   ||   ||
For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.
N/A
Specify the method for
calculating the impact on revenue.
N/A
[1]               COM(2011) 500 final, 29.6.2011.
[2]               OJ L 406, 30.12.2006, p. 1.
[3]               COM(2008) 800 final, 26.11.2008.
[4]               Regulation (EC) No 546/2009, OJ L 167, 29.6.2009, p. 26.
[5]               COM(2011) 336 final, 10.6.2011.
[6]               COM(2011) 403 final, 29.6.2011.
[7]               COM(2011) 500 final, 29.6.2011.
[8]               COM(2010) 2020 final, 3.3.2010.
[9]               http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=320&furtherEvents=yes
[10]             http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=323&furtherEvents=yes
[11]             http://ec.europa.eu/social/BlobServlet?docId=6578&langId=en
[12]             http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=285&furtherEvents=yes
[13]             http://ec.europa.eu/social/main.jsp?langId=en&catId=326&eventsId=330&furtherEvents=yes
[14]             SEC(2011)xxx.
[15]             SEC(2011)yyy.
[16]             COM(2011) 403 final, 29.6.2011.
[17]             OJ C , , p. .
[18]             OJ C , , p. .
[19]             OJ L 48, 22.2.2008, p. 82.
[20]             COM(2011) 500 final, 29.6.2011.
[21]             OJ L 167, 29.6.2009, p. 27.
[22]             COM(2011) 403 final, 29.6.2011.
[23]             OJ L 
[24]             OJ L 175, 10.7.1999, p. 43.
[25]             OJ L 327, 5.12.2008, p. 9.
[26]             OJ L 225, 12.8.1998, p. 16.
[27]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.
[28]             As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.
[29]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[30]             As referred to in Article 185 of the Financial
Regulation.
[31]             DA= Differentiated appropriations / DNA= Non-Differentiated
Appropriations
[32]             EFTA: European Free Trade Association. 
[33]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[34]             Year N is the year in which implementation of the
proposal/initiative starts.
[35]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.
[36]             Year N is the year in which implementation of the
proposal/initiative starts.
[37]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).
[38]             As described in Section 1.4.2. "Specific
objective(s)…".
[39]             Year N is the year in which implementation of the
proposal/initiative starts.
[40]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.
[41]             Under
the ceiling for external personnel from operational
appropriations (former "BA" lines).
[42]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).
[43]             See points 19 and 24 of the Interinstitutional
Agreement.