REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the activities of the European Globalisation Adjustment Fund in 2010
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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL
on the activities of the European Globalisation Adjustment Fund in 2010
TABLE OF CONTENTS
1. Introduction 4
2. Overview of the activities of the EGF in 2010 4
3. Follow-up of the 2009 Annual Report on the activities of the EGF 5
4. Analysis of the Activities of the EGF in 2010 5
4.1. Applications received 5
Table 1 — Applications received in 2010 6
4.1.1. Applications received by Member State and sector 7
4.1.2. Applications received by amount requested 7
4.1.3. Applications received by number of workers targeted for assistance 7
4.1.4. Applications received by amount requested per worker 8
4.1.5. Applications received by intervention criterion 8
4.2. Contributions granted 8
Table 2 — Details of contributions granted in 2010 9
Table 3 — EGF contributions granted in 2010: Profile of workers 10
4.2.1. Actions funded with EGF assistance 11
4.2.2. Complementarity with actions funded by the Structural Funds, notably the European Social Fund (ESF) 11
4.3. Cases not meeting the conditions for a financial contribution from the EGF 12
4.4 Results achieved by the EGF 12
4.4.1. Final reports received from Member States in 2010 on the implementation of financial contributions 12
4.4.2. Summary of the results and good practices reported in 2010 12
Table 4 — Final reports received in 2010 — overview of results 14
4.4.3. Details of the measures implemented in 2010 14
4.5. Financial report 18
4.5.1. Funds contributed by the EGF 18
4.5.2. Technical assistance expenditure 18
4.5.3. Irregularities reported or closed 19
4.5.4. Winding-up of financial contributions from the EGF 19
Table 6 — Cases wound up in 2010 20
4.6. Technical assistance activities undertaken by the Commission 20
4.6.1. Information and publicity 20
4.6.2. Meetings with the national authorities and social partners 21
4.6.3. Mid-term evaluation of the EGF 21
5. Trends 21
6. Conclusion 23
Annex 1 24
The European Globalisation Adjustment Fund (EGF) was set up by Regulation (EC) No 1927/2006 to show solidarity with, and provide support to, workers made redundant as a consequence of major structural changes in world trade patterns. It was designed as a means of reconciling the overall long-term benefits of open trade in terms of growth and employment with the short-term adverse effects which globalisation may have, particularly on the employment of the most vulnerable and lowest-skilled workers. The rules were amended by Regulation (EC) No 546/2009 of 18 June 2009 to respond more effectively to the global financial and economic crisis.
Article 16 of Regulation (EC) No 1927/2006 requires the Commission to send to the European Parliament and to the Council, before 1 July of each year, a quantitative and qualitative report on the activities of the EGF in the previous year. The report should focus mainly on the results achieved by the EGF and should, in particular, contain information relating to applications submitted, decisions adopted and actions funded, including their complementarity with actions funded by the Structural Funds, in particular the European Social Fund (ESF), and the winding-up of financial contributions made. It should also document those requests that have been refused owing to a lack of sufficient appropriations or to non-eligibility.
2. Overview of the activities of the EGF in 2010
In 2010, the Commission received 31 applications for contributions from the EGF, which was one application more than in 2009. Details of the applications are given in section 4.1 and in Table 1.
The Budgetary Authority took 31 decisions to mobilise the EGF in 2010, which represents a 300 % increase in terms of decisions and a 60 % increase in terms of EGF co-financing compared to 2009. Details of the contributions granted are set out in section 4.2 and in Tables 2 and 3.
The Commission received four final reports in 2010 on the implementation of EGF contributions. Details of the results are given in section 4.4 and in Table 4. Six EGF contributions granted in previous years were wound up (details in section 4.5.4 and Table 6). Technical assistance at the initiative of the Commission (Article 8(1) of the EGF Regulation) was deployed. The details are given in section 4.6 and in Table 5.
In 2010, the Commission implemented the new decision-making process it had established towards the end of 2009. It has also started to prepare the consultations on the upcoming post-2011 and post-2013 EGF reviews required under Articles 1(1a) and 20 of the EGF Regulation. Details are given in sections 3 and 4.5.2.
3. Follow-up of the 2009 Annual Report on the activities of the EGF
Regulation (EC) No 546/2009 to amend Regulation (EC) No 1927/2006 establishing the EGF
The 2009 amendment of Regulation (EC) No 1927/2006 brought about significant improvements to the EGF, providing better conditions for Member States to apply for EGF co-funding in support of their responses to the negative impact on employment of the global financial and economic crisis. This is reflected by the number of applications received in 2010, which remained at the same high level as in the previous year (31 applications in 2010 compared to 30 applications in 2009). Applying for EGF support was clearly facilitated by the temporary crisis derogation, including the increase in the co-financing rate to 65 %, and by the permanent reduction of the threshold to 500 redundancies and extension of the implementation period to 24 months from the date of application.
The results, particularly the impact of EGF support on the employment of redundant workers, will be determined after completion of the projects. The first final reports for the extended implementation period (24 months from the date of application) will be presented to the Commission in November/December 2011.
Facilitating decision-making on EGF applications: procedure for submitting proposals to the Council and the European Parliament
The EGF contributions granted in 2010 were processed under the new EGF decision-making procedures established towards the end of 2009. Major efforts were made to speed up decision-making within the rules of the present Regulation. The EGF’s intervention speed and its role and potential as a solidarity instrument were issues high on the agenda throughout the whole year, in particular during the consultations with Member States on the upcoming post-2011 and post-2013 EGF reviews, which started in the second half of 2010.
4. Analysis of the Activities of the EGF in 2010
4.1. Applications received
The 31 applications received by the Commission in 2010 (see Table 1) were one more than in 2009. Regulation (EC) No 546/2009, adopted on 18 June 2009, applies to all applications (i.e. 65 % co-funding rate, 24-month implementation period from the date of application, etc.).
The applications were submitted by 12 Member States, targeted 31 995 redundant workers and requested a total of EUR 169 994 542 from the EGF. Three Member States applied for the first time in 2010: the Czech Republic, Poland and Slovenia.
Table 1 — Applications received in 2010
4.1.1. Applications received by Member State and sector
The 31 applications received related to 16 sectors. Seven of these are sectors for which an EGF application was presented for the first time in 2010: these are underlined in the list below. A number of applications were facilitated by the possibility to apply under the crisis derogation.
Austria (two applications: basic metals , electronic equipment), Belgium (one application: automotive), Czech Republic (one application: retail trade ), Denmark (four applications: machinery/equipment, shipbuilding ), France (one application: automotive), Germany (one application: machinery/equipment), Ireland (three applications: construction), Netherlands (seven applications: electronic equipment, printing industry, financial services, wholesale trade ), Poland (three applications: automotive, machinery/equipment), Portugal (one application: shoe manufacture ), Spain (six applications: automotive, wearing apparel, stone/marble , retail trade ), Slovenia (one application: wearing apparel).
4.1.2. Applications received by amount requested
The Member State applying for EGF support must design a coordinated package of measures that best fits the targeted workers’ profile, and decide on the amount of assistance to request. The EGF Regulation does not recommend or limit the total amount requested, but the Commission’s assessment of an application may raise issues prompting the Member State to revise the proposed package of personalised services, thereby affecting the amount requested.
The EGF contributions requested per case in 2010 ranged from EUR 114 250 to EUR 38 052 069 (average EUR 5 483 695).
4.1.3. Applications received by number of workers targeted for assistance
The total number of workers targeted by the measures proposed for co-financing by the EGF was 31 995. The numbers ranged from 120 to 2 593 workers, with three applications targeting more than 2 000 workers, four targeting between 1 000 and 2 000, and 21 targeting fewer than 1 000 workers.
The number of workers affected by the redundancies and the number targeted for EGF support may differ if the applicant Member State decides to focus the EGF assistance on specific groups of workers, for example, on those facing exceptional difficulties in staying in the labour market and/or those most in need of assistance. Some of the affected workers may receive assistance outside the EGF, while others may find new jobs on their own or may decide to take early retirement, which means that they would not be targeted for EGF measures.
4.1.4. Applications received by amount requested per worker
The amounts proposed per worker in 2010 varied from slightly above EUR 600 to over EUR 23 000.
The package of individualised services that Member States may propose for the redundant workers concerned is at their discretion, within the terms of the Regulation. The amount requested per worker affected can therefore vary according to the severity of the redundancy event, the situation of the labour market affected, the individual circumstances of the workers targeted, the measures already provided by the Member State, and the cost of providing the services in the Member State or region concerned.
4.1.5. Applications received by intervention criterion
Of the 31 applications submitted, 24 (77 %) were to support workers made redundant as a direct result of the global financial and economic crisis (Article 1a of the amended EGF Regulation), while the remaining seven applications (23 %) were intended to respond to major structural changes in world trade patterns due to globalisation.
Twelve applications were based on Article 2(a) of the EGF Regulation, 18 were based on Article 2(b), and one application referred to Article 2(c), citing exceptional circumstances and stating that the conditions in Article 2(a) could not be fully met.
4.2. Contributions granted
In 2010, the Budgetary Authority took 31 decisions to draw on the EGF to c o-finance active labour market policy measures (see Tables 2 and 3 for an overview and a breakdown of the workers’ profiles). Thirteen of these concerned applications made in 2010 and eighteen concerned applications received in the second half of 2009. Regulation (EC) No 546/2009, adopted on 18 June 2009, applies to all contributions granted (i.e. 65 % co-funding rate, 24-month implementation period from the date of application, etc.).
The 31 contributions granted targeted 23 688 redundant workers in nine Member States with a total of EUR 83 554 141 paid from the EGF (16.7 % of the annual maximum amount available to the EGF).
Table 2 — Details of contributions granted in 2010
Table 3 — EGF contributions granted in 2010: Profile of workers
4.2.1. Actions funded with EGF assistance
Article 3 of Regulation (EC) No 1927/2006 provides that the EGF can co-finance only active labour market measures aiming to help redundant workers back into employment. In addition, it states that the EGF may finance the Member State’s preparatory, management, information, publicity and control activities for the use of the funding (technical assistance).
The measures approved for the 31 EGF contributions granted in 2010 aimed to reintegrate 23 688 redundant workers into the labour market. They consisted mainly of intensive, personalised job search assistance and case management, a variety of vocational training, upskilling and retraining measures, various temporary financial incentives/allowances for the duration of the job search, training and other active labour market measures up to the period of actual work reintegration, and other types of activities such as entrepreneurship promotion and supported employment.
4.2.2. Complementarity with actions funded by the Structural Funds, notably the European Social Fund (ESF)
The EGF is designed to increase employability and ensure the rapid reintegration of redundant workers within the labour market through active labour market measures, thus complementing the ESF, which is the major EU instrument for promoting employment in the EU. Generally, the complementarity of the two Funds lies in their ability to address these issues in two different time perspectives: while the EGF provides tailor-made assistance to redundant workers in response to a specific, European-scale mass redundancy event, the ESF supports strategic, long-term goals (e.g. increasing human capital, managing change) through pre-programmed multi-annual programmes, the resources of which cannot normally be reallocated to deal with crisis situations caused by mass redundancies. EGF and ESF measures are sometimes used to complement each other to provide both short-term and longer-term solutions. The decisive criterion is the potential of the available instruments to effectively help workers, and it is up to Member States to select — and to programme — the instruments and actions best suited to achieving the objectives pursued.
The content of the ‘coordinated package of personalised services’ to be co-funded by the EGF should be balanced with other actions and complement them. The measures co-funded by the EGF can go well beyond standard courses and actions, and practice has shown that the EGF allows Member States to offer redundant workers tailor-made and in-depth assistance, including measures to which they would not normally have access (e.g. 2nd or 3rd level education). The EGF allows Member States to better focus on particularly vulnerable people, such as the lower-skilled or those with a migrant background, or to provide the support over a longer period of time than would be possible without the EGF. All this increases the workers’ prospects of improving their situation.
Specific examples of good complementarity between the ESF and the EGF are cases EGF/2010/011 NL/NXP Semiconductors and EGF/2010/012 NL/Noord Holland ICT, submitted by the Netherlands, EGF/2010/014 SI/Mura, submitted by Slovenia, and EGF/2010/018 DE/Heidelberger Druckmaschinen, submitted by Germany. Regarding the first Dutch case, the complementarity lies in a specific ESF training project for workers in enterprises involved in the manufacture of semiconductors, the timing of which partially coincided with the EGF implementation period. Regarding the second case, the redundant workers could also participate in two ESF projects in the ICT sector. Slovenia made sure that the EGF measures complemented their various ESF actions. In the German case, the EGF package of personalised services was designed to complement the actions funded by the Structural Funds and particular ESF-certified training courses provided under the federal programme ESF-BA.
All Member States must put in place the necessary mechanisms to avoid any risk of double funding from EU financial instruments, as required by Article 6(5) of Regulation (EC) No 1927/2006.
4.3. Cases not meeting the conditions for a financial contribution from the EGF
The Budgetary Authority did not reject any proposal put to it by the Commission for funding from the EGF. One application (EGF/2009/022 BG/Kremikovtsi, submitted by Bulgaria on 26.10.2009) was deemed by the Commission to be non-eligible. This finding was communicated to the Member State.
4.4 Results achieved by the EGF
The main sources of information on the results achieved by the EGF are the final reports presented by the Member States under Article 15 of Regulation (EC) No 1927/2006. These are complemented by information shared by Member States in direct contacts with the Commission and during coordination meetings and conferences with Member State representatives during the year. The results and data reported by the Member States in 2010 are summarised in the following section and in Table 4.
4.4.1. Final reports received from Member States in 2010 on the implementation of financial contributions
In 2010, the Commission received four final reports on the following cases: EGF/2008/004 ES/Castilla y Léon and Aragón, EGF/2008/005 ES/Cataluña, EGF/2009/001 PT/Norte-Centro and EGF/2009/002 DE/Nokia. These were the last EGF cases with a 12-month implementation period before the period was increased to 24 months by Regulation (EC) No 546/2009 of 18 June 2009.
4.4.2. Summary of the results and good practices reported in 2010
The four final reports presented by the three Member States showed that at the end or shortly after the end of the EGF implementation period, 629 workers (20 % of 3 146) had found new jobs or were self-employed. The others were either in education or training (approximately 5 %), or unemployed or inactive for personal reasons.
The results in terms of reintegration into work were hampered by the significantly reduced absorption capacities of local and regional labour markets as a direct consequence of the global financial and economic crisis. The importance of the reintegration rate should not be overestimated since it merely provides a snapshot of the workers’ employment situation at the moment the data are collected. It does not give any information on the type of employment and the quality of the work that the person has found, and can change significantly a short time later. According to information received from several Member States, the reintegration rates already tend to be higher a few months after submission of the final reports, especially in cases where workers continue to receive the tailor-made assistance beyond the EGF period, at the Member States’ own expense or with the help of the ESF.
The Member States reported a series of interesting facts and encouraging information indicating that the personal situation, self-confidence and employability of the workers concerned visibly improved thanks to the EGF assistance and services, even if they did not always find new work quickly. The EGF gave Member States the opportunity to act more intensively in the regions affected by redundancies, in terms of the number of people assisted and the duration and quality of support, than would have been possible without EGF funding. The EU funds enabled them to respond more flexibly and to include in their packages highly personalised, sometimes innovative, actions and more attention for the least skilled. The assistance co-funded by the EGF therefore represents an enhanced investment in skills, which can have a positive impact in the medium and longer term when markets gradually recover from the crisis. In addition, the EGF was felt to be a useful instrument at a time of budget deficits and public sector cuts, when national resources have become scarce and when Member States and companies are struggling to recover from the global crisis. The mid-term evaluation of the EGF, due in 2011 as required by Article 17(1)(a) of Regulation (EC) No 1927/2006, will assess the impact of the EGF in more detail.
Table 4 — Final reports received in 2010 — overview of results
4.4.3. Details of the measures implemented in 2010
EGF/2008/004 Castilla Leon y Aragón/Spain (automotive)
Of the 534 workers who participated in the measures co-funded by the EGF, 184 (34.5 %) were in work again at the end of the implementation period, and the remaining 350 (65.5 %) were either in education or training, unemployed or inactive for various personal reasons. The reintegration rate must be seen in the context of the high unemployment rates in the two affected regions, which doubled between 2008 and 2010 as a consequence of the financial and economic crisis.
Even those still unemployed stated that the EGF measures had reinforced their self-confidence and self-esteem, developed their independence and given them the basic skills and aptitudes for their reintegration into the labour market. For the Spanish authorities, the EGF is an instrument particularly suitable for the reintegration of workers with few opportunities to find new work rapidly, and thanks to the EGF contribution they could choose from a wide range of measures, highly tailored and more personalised than would have been possible without the EGF funds. A high percentage of the assisted workers had successfully maintained their skill levels or enhanced their employability, thereby improving their prospects on the labour market.
The personalised measures implemented represent an interesting mix of job search, training and reintegration assistance and benefits. After standard initial measures for all targeted workers, such as advice and personalised pathways, various actions were carried out, starting out from a large-scale labour market search followed by job matching efforts. Multidisciplinary assistance teams visited nearly 3 000 enterprises (many of them SMEs) with the two-fold aim of matching job opportunities with the qualifications of the unemployed, or qualifying them for the new jobs, and making the project known to the businesses. More than 400 job offers were received in this way, and more than 200 workers applied successfully for the new jobs in the course of the EGF implementation period. The workers were also accompanied beyond their reintegration in order to identify possible setbacks and to evaluate their personal satisfaction. The Spanish authorities will continue to analyse the market and job situations of the workers beyond the EGF project, and the contacts with enterprises will also be maintained to ensure continuity of the EGF achievements over time.
The qualification measures available to the workers included various types of training, some linked to a company commitment to the reintegration of the workers, such as: skills enhancement courses in renewable energy technologies and the IT, technical, maintenance, social and tourism sectors; accounting and SME management; and leadership and communication techniques. Some of the workers were granted temporary financial benefits to compensate for the difference between their previous and new salaries (reintegration incentives) and/or job search allowances, including specific allowances for those with caring responsibilities.
EGF/2008/005 Catalonia/Spain (textiles)
Of the 587 workers who benefited from the measures co-funded by the EGF, 30 (5.1 %) were in work again at the end of the implementation period (including one who started a new business), 17 (2.9 %) were in education or training, and the remaining 540 (92.0 %) were either unemployed or inactive for various personal reasons. The low reintegration rate needs to be seen in the context of the region’s weak employment market as a result of the financial and economic crisis and also against the background of the late arrival of the EGF funds (see comment below).
The Spanish authorities reported that the EGF contribution had allowed them to provide intensive, tailor-made actions for the affected workers, for which other funds are less suitable. Most of the participating workers showed a high commitment to the measures, and the general opinion of participants was very positive. The management model included the use of an extensive network of institutions, and the participation of local authorities was considered a key element for successful implementation of the measures. Where possible, the regional authorities will apply the EGF methodology to similar back-to-work programmes.
The measures included: occupational guidance to identify the employability of the redundant workers and the obstacles to their finding new employment; intensive outplacement/job search assistance involving personal counsellors to help the workers reposition themselves in the labour market; and ‘active classrooms’ giving the workers direct access to computers and job search portals while being mentored by qualified staff. The training measures included upskilling courses such as IT courses, oral/written communication techniques, and basic entrepreneurship courses also addressing the particular needs of those aged 45+, the lower skilled or non-Spanish nationals. Group training was also offered in areas where local enterprises had identified skill needs or in emerging sectors where job opportunities may arise in the future. Some of the workers were granted temporary financial benefits during the job search period and/or when they accepted employment of at least six months (reintegration incentives).
Owing to delays in releasing the EU funds, Spain had started implementing the first set of measures using its own resources. As a major part of the planned measures could not be launched until the final months of the EGF implementation period, Spain also decided to continue the personalised services for four extra months at its expense. The additional measures after the EGF implementation period allowed Spain to assist a further 387 redundant workers (out of the 1 100 initially targeted). Half a year after the EGF implementation period, the rate of reintegration into work was significantly higher than directly upon completion of the EGF project.
EGF/2009/001 North/Centre/Portugal (textiles)
Of the 720 workers who participated in the measures co-funded by the EGF, 30 (4.2 %) were in work again at the end of the implementation period, nine (1.3 %) were in education or training, and the remaining 681 (94.6 %) were either unemployed or inactive for various personal reasons. The rate of reintegration needs to be seen in the context of the region’s weak employment market as a result of the financial and economic crisis. Other explanations are the low levels of education — 79 % of the assisted workers had not completed the basic nine years of education and a further 13 % had not finished secondary education — and the high number of workers aged 55+, for whom the period available was too short to benefit optimally from the extensive educational support.
The Portuguese authorities reported that the measures were well received by the participants, who recognised that they had increased their vocational skills and thus employability, and also by the employment services, which were able, thanks to the EGF support, to follow up on the needs of the unemployed workers dispersed in various villages. Portugal recognised the importance of motivating workers who have lost their jobs, ensuring the full involvement of the regional employment centres and complying with a timetable to ensure that the implementation period is used in the best possible way.
The measures included individualised job search assistance for about one-third of the targeted workers, for example the recognition/certification of existing skills, the preparation of training and reintegration pathways, and a variety of (short) training and retraining modules, based on the National Catalogue of Qualifications and provided by recognised training centres, for almost all of the targeted workers. Other measures were tailored to the needs of people facing particular difficulties reintegrating into employment: these were provided by not-for-profit bodies and consisted of personal integration plans, integration assistance and financial allowances for participating workers. Some training grants and support for entrepreneurship were also offered. For most of the measures, cooperation agreements were signed between the workers and the delivering/monitoring bodies, setting out their respective obligations.
By January 2011 (one year after the EGF implementation period), the reintegration rate had reached 200, showing that the measures co-funded by the EGF continued to produce positive results for some time after EGF implementation.
EGF/2009/002 Nokia/Germany (mobile phones)
Of the 1 305 workers who participated in the measures co-funded by the EGF, 385 workers (29.5 %) had found new employment four weeks after the end of the implementation period (including 36 who were self-employed), 121 (9.3 %) were in education or training, and the remaining people were either unemployed (737 or 56.5 %) or inactive for various personal reasons (62 or 4.8 %).
Despite the unfavourable labour market situation as a result of the global crisis and other problems such as the relatively low levels of qualification, the more advanced ages of most workers, their low willingness to contemplate mobility and their reluctance to accept new lower-paid jobs, the German authorities regarded the results of the EGF project as ‘quite satisfactory’.
Germany considers the EGF to be an instrument that complements and deepens national crisis response efforts in a useful way by broadening the spectrum of qualifications on offer and by prolonging the period during which workers can receive assistance. A large majority of the workers who benefited from EGF support were former Nokia workers who, after having participated in the earlier measures of the Transfergesellschaft (set up by the social partners for a maximum duration of 12 months), were not yet reintegrated into the labour market. They continued to be coached intensively for up to six more months under the EGF project, being offered a wide spectrum of personalised services with a focus on intensive, individualised job search assistance and training measures, complemented by financial benefits in the form of short-time subsistence allowances (‘Transferkurzarbeitergeld’) for the duration of their participation in the training and active reintegration measures, provided that the workers concerned committed to the EGF project on a full-time basis.
The training courses were carefully chosen for those areas where there is demand in the labour market, and were designed to complement the courses already offered by the European Social Fund or the dismissing enterprise. Help for those who had found employment to prepare for their new jobs, support for would-be entrepreneurs, guidance for those seeking work abroad and the setting up of peer groups to empower specific groups of people were also included in the offer. The EGF enabled Germany to provide a much better job seeker/ counsellor ratio — one counsellor for 40 workers as opposed to the normal ratio of one counsellor per 200 workers — and counsellors were selected on the basis of the participants’ backgrounds. Owing to delays in releasing the EGF funds, Germany had started implementing the initial measures using its own resources and ESF funding.
All this made the EGF co-funded support highly individualised and effective.
Six months after the end of the implementation period, 42 additional, previously unemployed persons had found new work, increasing the number of workers reintegrated to 427. The reintegration rate increased even further a couple of months later, showing that the support co-funded by the EGF can also have a positive impact in the longer run.
4.5. Financial report
4.5.1. Funds contributed by the EGF
During 2010 the Budgetary Authority granted 31 contributions from the EGF, for a total of EUR 83 554 141, representing 16.7 % of the annual maximum amount available (Table 2). All 31 payments came from the 2010 budget, although nine were paid out at the beginning of 2011.
Under Article 28 of the Interinstitutional Agreement of 17 May 2006, which lays down the budgetary framework of the EGF, the EGF may not exceed an annual maximum amount of EUR 500 million, which can be drawn from any margin existing under the global expenditure ceiling of the previous year, and/or from cancelled commitment appropriations from the previous two years, excluding those under heading 1B of the financial framework. In addition, Article 12 of the EGF Regulation states that at least 25 % of the annual maximum amount must remain available on 1 September of each year in order to cover any needs arising by the end of the year.
The commitment appropriations for the funds granted in 2010 were transferred from the reserve to the EGF budget line.
In 2010, the payment appropriations were sourced from the ESF budget (EUR 19 881 554) at the start of the year because of the policy proximity of the two funds. In order to avoid confusion over the use of budgetary resources, the Commission identified alternative sources of payment appropriations as the year went on, and sources of underspending became apparent. An amount of EUR 21 381 228 was used from the budget line ‘Completion of programme for enterprises: improvement of the financial environment for small and medium-sized enterprises (SMEs)’. A further amount of EUR 42 291 359 was identified and used from the budget line ‘Competitiveness and Innovation Framework Programme — Entrepreneurship and innovation programme’. Investment forecasts for both these budget lines had been drastically reduced as a consequence of the financial crisis.
Payments made for 2010 (EUR 83 554 141) were 60 % higher than for 2009 (EUR 52 349 047). Experience has shown that Member States are now drafting and submitting EGF applications more efficiently than during the initial years.
4.5.2. Technical assistance expenditure
Under Article 8(1) of Regulation (EC) No 1927/2006, up to 0.35 % of the financial resources available for the year (maximum of EUR 1 75 million) can be made available in the form of technical assistance at the initiative of the Commission for activities such as information, administrative and technical support, and monitoring, audit, control and evaluation activities necessary to implement the EGF Regulation. In 2010, an amount of EUR 1 110 000 was made available for technical assistance regarding the activities listed in Table 5. The remaining EUR 640 000 potentially available for technical assistance during the year was not called upon.
Table 5 — Technical assistance expenditure 2010
Description | Budgeted amount EUR | Actual amount EUR |
Information (e.g. updating of EGF website in all EU languages, publications and audio-visual activities) | 240 000 | 81 436.59 |
Administrative and technical support - Meetings of the Contact Persons of the EGF - Conferences and seminars (incl. Stakeholder Conferences) | 70 000 200 000 | 86 425.34 332 478.59 |
Evaluation (mid-term evaluation of the EGF, as required by Article 17(1)(a) of the EGF Regulation) | 300 000 | 300 000 |
Monitoring (ten studies) | 250 000 | 0 |
Creation of a knowledge base | 50 000 | 0 |
Audit and control: No contribution was used for this category (the audits carried out in 2010 were financed from other European Commission sources) |
Total | 1 110 000 | 800 340.52 |
During the course of the year, it was decided to organise two EGF Stakeholder Conferences to consult the Member States, the implementing bodies and the social partners on the current EGF Regulation and the changes needed for the future post-2011 (whether or not to continue with the crisis derogation allowing the EGF to support workers made redundant as a result of the global financial and economic crisis and raising the EGF contribution to 65 % of total costs) and post-2013 (when the whole EGF Regulation has to be reviewed). These consultative conferences replaced the ten monitoring studies originally envisaged. In addition, an EGF Auditors’ Seminar was planned for April 2011.
4.5.3. Irregularities reported or closed
There were no irregularities reported to the Commission under the EGF Regulation in 2010. There were no irregularities closed in 2010 under the EGF Regulation.
4.5.4. Winding -up of financial contributions from the EGF
Article 15(2) of the EGF Regulation stipulates the procedures for winding up EGF financial contributions. In 2010 the second series of EGF contributions since the establishment of the fund were wound up. These are the following six contributions:
Table 6 — Cases wound up in 2010
The total amount of unspent funds due to be reimbursed to the Commission for these six cases is EUR 9 857 484.55.
There are various reasons why Member States did not use all of the EGF contributions granted. While Member States are encouraged to make realistic budget estimates for the coordinated package of personalised services, not all resources requested may be needed during implementation of the measures. In some cases, the number of workers needing assistance may have been overestimated, some workers may prefer lower-cost measures to higher-cost measures, some may participate in a measure for a shorter period than anticipated because they have found new jobs, and others may not participate at all because they have opted for early retirement. Delays in starting up the measures may be another reason for lower spending. The budgeting of the measures and the forecasting of worker participation by Member States are expected to improve with experience, and Member States have already started to apply lessons learnt to subsequent applications. Furthermore, major efforts are being made to simplify the procedures for decision-making and the payment of EGF funds, so that the time and funds provided can be used optimally in future.
4.6. Technical assistance activities undertaken by the Commission
4.6.1. Information and publicity
Article 9 of Regulation (EC) No 1927/2006 calls on the Commission to ‘set up an internet site, available in all Community languages, to provide information on the EGF, guidance on the submission of applications, as well as updated information on accepted and refused applications, highlighting the role of the budgetary authority’.
In line with the requirements of Article 9, the EGF internet site ( http://ec.europa.eu/egf ) set up by the Commission is available in all 23 EU languages, including Irish. The EGF website recorded 177 654 pages consulted by 80 208 visitors in 2010.
Promotional actions undertaken in 2010
In the first quarter of 2010, a leaflet was produced to highlight the main changes introduced by Regulation (EC) No 546/2009 amending Regulation (EC) No 1927/2006 establishing the European Globalisation Adjustment Fund. The leaflet was produced in 23 languages and is available online on the EGF website. Printed copies in EN, FR and DE were distributed to the public employment offices and the general public.
4.6.2. Meetings with the national authorities and social partners
The fifth and sixth meetings of the Contact Persons of the European Globalisation Adjustment Fund, made up of representatives of the Member States, were held on 11 March 2010 in Brussels and on 29-30 September 2010 in Porto. Part of the Porto meeting was devoted to the preparation of the two reviews of the EGF Regulation which the Commission will be undertaking by the end of 2011 and 2013, respectively.
4.6.3. Mid-term evaluation of the EGF
The Commission undertook the preparatory work for the Fund’s mid-term evaluation as required by Article 17(1)(a) of the EGF Regulation. The administrative procedures for contracting out the evaluation were almost completed by the end of 2010.
With the increasing number of EGF cases, more data are available to identify trends in applications and to gain an overview of the direction of the Fund’s actions. The data contained in the graphs below and in Annex 1 relate to the 73 applications in 25 economic sectors received from January 2007 to December 2010.
Graph 1: Number of applications received from 2007 to 2010
2007 | 2008 | 2009 | 2010 | Total |
crisis-type | ------- | ------ | 23 | 24 | 47 |
trade-type | 8 | 5 | 6 | 7 | 26 |
Total | 8 | 5 | 29 | 31 | 73 |
% of total | 11.0 % | 6.8 % | 39.7 % | 42.5 % | 100.0 % |
Graph 2: Number of targeted workers per Member State
Ireland tops the list of Member States with more than 12 600 workers targeted for assistance, followed by Spain with more than 9 600 workers, while the Czech Republic and Bulgaria have targeted roughly 450 and 650 workers.
Graph 3: Number of targeted workers per sector
*) as per 31/12/2010 the two marked cases are included in ‘Construction of buildings’ (NACE division 41).
The sectors concerned are first and foremost the automotive sector, with more than 18 000 workers targeted, followed by textiles (more than 11 000 targeted workers) and the building construction sector (slightly more than 10 000 targeted workers).
Graph 4: Average EGF amount per targeted worker by sector
*) as per 31/12/2010 the two marked cases are included in ‘Construction of buildings’ (NACE division 41).
Graph 4 illustrates the average EGF support per worker in the various sectors. Workers in the ‘shipbuilding’ sector have received the highest average amount of EGF support (slightly more than EUR 15 000 per worker), followed by the ‘basic metals’ sector (almost EUR 9 700 per worker), the ‘aircraft maintenance’ sector (more than EUR 8 700 per worker) and ‘machinery and equipment’ (more than EUR 7 000 per worker). The sectors ‘furniture’, ‘retail trade’ and ‘wearing apparel’ have the lowest average amounts (around EUR 1 000 per worker).
The trends available so far show that EGF applications are being presented in a growing number of sectors, and by an increasing number of Member States. Member States are furthermore gaining experience in selecting the most suitable measures, programming their assistance to redundant workers, and making use of the EGF to test new approaches. Developing the full potential of the EGF, in complementarity with other available instruments and in consultation with the major stakeholders, will increasingly help redundant workers in a tailor-made and personalised manner, thereby improving their opportunities on the labour market.
Annex 1 EGF applications by classification of economic activities as of 31.12.2010 total number of applications: 73 *) |
Automotive (NACE: Manufacture of motor vehicles, trailers and semi-trailers, division 29) |
No | MS | Case |
EGF/2007/001 | FR | Peugeot |
EGF/2007/010 | PT | Lisboa-Alentejo |
EGF/2008/002 | ES | Delphi |
EGF/2008/004 | ES | Castilla Leon |
EGF/2009/007 | SE | Volvo |
EGF/2009/009 | AT | Steiermark |
EGF/2009/013 | DE | Karmann |
EGF/2009/019 | FR | Renault |
EGF/2010/002 | ES | Cataluña |
EGF/2010/004 | PL | Wielkopolskie |
EGF/2010/015 | FR | Peugeot |
EGF/2010/023 | ES | Lear |
EGF/2010/031 | BE | General Motors Belgium |
Textiles (NACE: Manufacture of textiles, division 13) |
No | MS | Case |
EGF/2007/005 | IT | Sardegna |
EGF/2007/006 | IT | Piemonte |
EGF/2007/007 | IT | Lombardia |
EGF/2008/001 | IT | Toscana |
EGF/2008/003 | LT | Alytaus tekstilė |
EGF/2008/005 | ES | Catalonia |
EGF/2009/001 | PT | North/Centre |
EGF/2009/004 | BE | Oost-West Vlaanderen |
EGF/2009/005 | BE | Limburg |
EGF/2010/009 | ES | Valencia |
Wearing apparel (NACE: Manufacture of wearing apparel, division 14) |
No | MS | Case |
EGF/2007/008 | MT | Textiles |
EGF/2009/018 | LT | Wearing apparel |
EGF/2010/003 | ES | Galicia |
EGF/2010/014 | SI | Mura |
Printing industry (NACE: Printing and reproduction of recorded media, division 18) |
No | MS | Case |
EGF/2009/026 | NL | Noord Holland and Utrecht |
EGF/2009/027 | NL | Noord Brabant and Zuid Holland |
EGF/2009/028 | NL | Limburg |
EGF/2009/029 | NL | Gelderland and Overijssel |
EGF/2009/030 | NL | Drenthe |
EGF/2010/027 | NL | N Brabant Div 18 |
EGF/2010/028 | NL | Overijssel Div 18 |
EGF/2010/029 | NL | Z Holland/Utrecht Div 18 |
EGF/2010/030 | NL | N Holland/Flevoland Div 18 |
Machinery and equipment (NACE: Manufacture of machinery and equipment n.e.c., division 28) |
No | MS | Case |
EGF/2009/015 | DK | Danfoss Group |
EGF/2009/031 | DK | Linak |
EGF/2010/001 | DK | Nordjylland |
EGF/2010/006 | PL | H.Cegielski-Poznań |
EGF/2010/013 | PL | Podkarpackie |
EGF/2010/017 | DK | Midtjylland machinery |
EGF/2010/018 | DE | Heidelberger Druckmaschinen |
EGF/2010/022 | DK | LM Glasfiber |
Electronic equipment (NACE: Manufacture of computer, electronic and optical products, division 26) |
No | MS | Case |
EGF/2009/023 | PT | Qimonda |
EGF/2010/008 | AT | AT&S |
EGF/2010/011 | NL | NXP Semiconductors |
Mobile phones (NACE: Manufacture of computer, electronic and optical products, division 26) |
No | MS | Case |
EGF/2007/003 | DE | BenQ |
EGF/2007/004 | FI | Perlos |
EGF/2009/002 | DE | Nokia |
Construction of buildings (NACE: Construction of buildings, division 41) |
No | MS | Case |
EGF/2009/011 | NL | Heijmans |
EGF/2009/017 | LT | Construction |
EGF/2010/019 | IE | Construction 41 |
Specialised construction activities (NACE: Specialised construction activities, division 43) |
No | MS | Case |
EGF/2010/020 | IE | Construction 43 |
Architectural and engineering activities (NACE: Architectural and engineering activities; technical testing and analysis, division 71) |
No | MS | Case |
EGF/2010/021 | IE | Construction 71 |
Basic metals (NACE: Manufacture of basic metals, division 24) |
No | MS | Case |
EGF/2009/022 | BG | Kremikovtsi AD (not eligible) |
EGF/2010/007 | AT | Steiermark-Niederoesterreich |
Domestic appliances ( NACE: Manufacture of electrical equipment, division 27) |
No | MS | Case |
EGF/2009/006 | IT | Gruppo Merloni |
EGF/2009/010 | LT | AB Snaige |
Retail trade (NACE: Retail trade, except of motor vehicles and motorcycles, division 47) |
No | MS | Case |
EGF/2010/010 | CZ | Unilever |
EGF/2010/016 | ES | Aragon |
Computers (NACE: Manufacture of computer, electronic and optical products, division 26) |
No | MS | Case |
EGF/2009/008 | IE | Dell |
Wholesale trade (NACE: Wholesale trade, division 46) |
No | MS | Case |
EGF/2010/012 | NL | Noord Holland ICT |
Aircraft maintenance (NACE: Repair and installation of machinery and equipment, division 33) |
No | MS | Case |
EGF/2009/021 | IE | SR Technics |
Publishing (NACE: Publishing activities, division 58) |
No | MS | Case |
EGF/2009/024 | NL | Noord Holland and Zuid Holland |
Furniture (NACE: Manufacture of furniture, division 31) |
No | MS | Case |
EGF/2009/016 | LT | Furniture |
Crystal glass (NACE: Manufacture of other non-metallic mineral products, division 23) |
No | MS | Case |
EGF/2009/012 | IE | Waterford Crystal |
Stone/Marble (NACE: Manufacture of other non-metallic mineral products, division 23) |
No | MS | Case |
EGF/2010/005 | ES | Valencia |
Ceramics (NACE: Manufacture of other non-metallic mineral products, division 23) |
No | MS | Case |
EGF/2009/014 | ES | Valencia |
Carpentry and joinery (NACE: Manufacture of wood and product of wood and cork, except furniture, division 16) |
No | MS | Case |
EGF/2009/020 | ES | Castilla La Mancha |
Financial services (NACE: Financial service activities, except insurance and pension funding, division 64) |
No | MS | Case |
EGF/2010/024 | NL | ABN Amrobank |
Shipbuilding (NACE: Manufacture of other transport equipment, division 30) |
No | MS | Case |
EGF/2010/025 | DK | Odense Steel Shipyard |
Shoe manufacture (NACE: Manufacture of leather and related products, division 15) |
No | MS | Case |
EGF/2010/026 | PT | Rohde |
*) the following four cases have been withdrawn by the Member States (as at 31/12/2010) and are not included in the list or in the statistics: |
EGF/2007/002 | FR | Renault |
EGF/2007/009 | ES | Delphi |
EGF/2009/003 | AT | Magna Steyr |
EGF/2009/025 | NL | Noord Brabant |
 Regulation (EC) No 1927/2006 of 20 December 2006 on establishing the European Globalisation Adjustment Fund, OJ L 406, 30.12.2006, p. 1, as corrected by OJ L 48, 22.02.2008, p. 82, for all languages and OJ L 202, 31.7.2008, p. 74, for the English language only.
 Regulation (EC) No 546/2009 of the European Parliament and of the Council of 18 June 2009 amending Regulation (EC) No 1927/2006 on establishing the European Globalisation Adjustment Fund (OJ L 167, 29.06.2009).
 Machinery and equipment (6), Automotive (5), Printing industry (4), Electronic equipment (2), Retail trade (2), Wearing apparel (2), Textiles (1), Construction of buildings (1), Specialised construction activities (1), Architectural and engineering activities (1), Financial services (1), Shipbuilding (1), Shoe manufacture (1), Stone/marble (1), Wholesale trade (1), Basic metals (1).
 The three Irish construction cases (EGF/2010/019, 020, 021) were not considered here because a breakdown was provided only in 2011.
 2009ESFN451 Stichting Opleidings- en ontwikkelingsfonds voor semiconductor productiebedrijven.
 2008ESFN226 (project period from 1.4.2009 until 31.3.2010) and 2008ESFB295 (project period from 1.11.2009 until 31.10.2010).
 Including ‘training for greater employability’ and ‘preparation for procedures of assessing and awarding national vocational qualifications’.
 SEC(2010) 993 final of 30.8.2010.
 This table was compiled by the Commission on the basis of the measures implemented by the Member States as reported in their final reports. The categories of measures are based on, but do not fully correspond to, the Eurostat methodology described in Labour market policy database — Methodology — Revision of June 2006. Some of the measures co-financed, such as job-search allowances, training allowances, subsistence allowances while in active labour market measures, do not fit any of Eurostat’s categories.
 OJ C 139, 14.6.2006, p. 1.
 OJ L 154, 19.6.2010, p. 27.
 For a more detailed breakdown, see Annex 1.