Debate: European Globalisation Adjustment Fund  -
Date: TUESDAY, 27 APRIL 2021
Speaker: Nicolas Schmit
Language: EN

Since 2007 the European Globalisation Fund (EGF) has received 169 applications. Some EUR 636 million have been mobilised to help about 155 workers in 21 Member States. The average reintegration rates of the 2014—2020 period were around 60%, which is a great achievement considering that the EGF is assisting the most vulnerable groups of displaced workers. And now, more than ever, it is essential that the EGF provides continued support to workers who have lost their jobs in the current challenging economic and social situation. At the end of 2020 we received six applications, among them an application from Estonia aimed at 5 000 people who lost their jobs in the tourism industry. They fall under the previous regulation. Not later than today, the Commission proposes EUR 1.1 million to support 500 foundry workers in Germany, and there’s another proposal by the Commission of EUR 3.7 million to support nearly 1 500 dismissed airport workers in Belgium, and we all know that for the time being airports and aviation are in a very critical situation.  All this shows that the need for a fund like the EGF that demonstrates European solidarity with displaced workers who fall victim to the economic downturn; structural changes are absolutely necessary. This is even more important in the current juncture where we need to mitigate the impact of the COVID-19 crisis. We did well to broaden the scope of the fund. The new EGF will enable more workers to benefit from it in a simpler way. It will no longer be conditional on the cause of restructuring which has led to their dismissal. The threshold has been reduced to at least 200 workers made redundant, currently 500.  On a proposal from Parliament we also included a provision in case the fund’s resources are exhausted at year end in order to avoid any funding gaps. The revamped EGF will thus be more flexible, allowing the Union to react to economic challenges the future might bring. This is of paramount importance in a fast-changing world undergoing major technological transitions.  The EGF complements the support offered by the European Social Fund which can be programmed in advance and offers support in an anticipatory way. Both the EGF and the ESF contribute to the implementation of the European pillar of social rights. We need to use all tools available to preserve and strengthen social cohesion, especially in times of crisis.  With the objective of building a strong social Europe we have put forward the European social pillar action plan setting out ambitious goals and concrete measures which should also guide the recovery strategy.  There is only one point where the Commission would have liked to go a bit further. The Commission considers that the text on the single data mining tool is not sufficient to enhance the protections of the Union budget against fraud and irregularities. We already made this point at the trilogue negotiations.  We have issued a statement in this regard in our communication on the Council position. The Commission is very much looking forward to continue the excellent cooperation with the European Parliament and the Council, and to ensure that the European Globalisation Adjustment Fund for displaced workers expresses the solidarity of the European Union with people dismissed due to major restructuring events, contributing to enhancing social cohesion and ultimately to the resilience of our economy and society.