(1)

Horizontal principles as set out in Article 3 of the Treaty on the European Union (‘TEU’) and in Article Articles 9 and 10 of the Treaty on the Functioning of the European Union ( TFEU), including principles of subsidiarity and proportionality as set out in Article 5 TEU should be respected in the implementation of the Funds, taking into account the Charter of Fundamental Rights of the European Union. In accordance with Article 8 TFEU, Member States and the Commission should aim at eliminating inequalities and at promoting equality between men and women and integrating the gender perspective, as well as at combating discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The objectives of the Funds should be pursued in the framework of sustainable development and the Union's promotion of the aim of preserving, protecting and improving the quality of the environment as set out in Articles 11 and 191(1) TFEU, taking into account the polluter pays principle. [Am. 2]

(2)

On 17 November 2017, the European Pillar of Social Rights (4) was jointly proclaimed by the European Parliament, the Council and the Commission as a response to social challenges in Europe. Taking into account the changing realities of the world of work, the Union shall be made ready for the current and future challenges of globalisation and digitisation, making growth more inclusive and by improving employment and social policies. The twenty key principles of the Pillar are structured around three categories: equal opportunities and access to the labour market; fair working conditions; social protection and inclusion. The European Pillar of Social Rights shall act as an overarching guiding framework of the European Globalisation Adjustment Fund for Transition (EGF EFT ), allowing the Union to set the relevant principles into practice in the case of major restructuring events.

(3)

On 20 June 2017, the Council endorsed the Union response (5) to the ‘UN 2030 Agenda for Sustainable Development’ (6) — a sustainable European future. The Council underlined the importance of achieving sustainable development across the three dimensions (economic, social and environmental), in a balanced and integrated way. It is vital that sustainable development is mainstreamed in the European policy framework, and that the Union is ambitious in the policies it uses to address global challenges. The Council welcomed the Commission Communication on ‘Next steps for a sustainable European future’ of 22 November 2016 as a first step in mainstreaming the Sustainable Development Goals and applying sustainable development as an essential guiding principle for all Union policies, including through its financing instruments.

(4)

In February 2018, the Commission adopted its Communication on ‘A new, modern Multiannual Financial Framework for a European Union that delivers efficiently on its priorities post-2020’ (7). The Communication stresses that the Union budget shall support Europe’s unique social market economy. Therefore, it will be of utmost importance to improve employment opportunities and to address the skills challenges, especially also those linked to digitisation , automatisation and a transition towards a resource-efficient economy, fully respecting the 2015 Paris Agreement on Climate Change following the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change . Budgetary flexibility shall be a key principle in the next Multiannual Financial Framework. Flexibility mechanisms shall remain in place to allow the Union to react in a more timely manner to unforeseen events, and to ensure that budgetary resources are used where most urgently needed. [Am. 3]

(5)

In its ‘White Paper on the Future of Europe’ (8) the Commission expresses concerns regarding isolationist movements, growing doubts over the benefits of open trade and the Union’s social market economy in general.

(6)

In its ‘Reflection Paper on Harnessing Globalisation’ (9) the Commission identifies the combination of trade related globalisation and technological change as the major drivers of an increased demand for skilled labour and a reduced number of jobs that require lower qualifications. Despite the overall tremendous advantages of more open trade and further integration of world economies, these While acknowledging the advantages of more open trade, a ppropriate means are needed to address related negative side effects need to be tackled. As the current benefits of globalisation are already unequally distributed among people and regions, causing a significant impact on those adversely affected, there is a danger that the ever faster evolving technological advances and environmental changes will further fuel these effects. Therefore, in line with the principles of solidarity and sustainability, it will be necessary to ensure that the benefits of globalisation will be are shared more fairly. Any simultaneous adverse effects of globalisation and technological and environmental transitions should be more widely anticipated by the relevant Union Structural Funds, such as the European Social Fund Plus (ESF+), in order better to adapt the business world and workforces by reconciling economic opening growth and technological advance with adequate social protection and active support to accessing employment and self-employment opportunities . [Am. 4]

(7)

In its ‘Reflection Paper on the Future of Union Finances’ (10) the Commission underlines the need to reduce economic and social divergences between and within Member States. Therefore, a key priority is to invest in sustainable development, equality, social inclusion, education and training as well as health. [Am. 5]

(8)

Globalisation Climate Change, globalisation and technological change is are likely to further increase the interconnectedness and interdependence of world economies. Labour reallocation is an integral and inevitable part of such economic change. If the benefits of change are to be distributed fairly, offering assistance to displaced workers and those threatened by displacement is of utmost importance. The main Union instruments to assist affected workers are ESF+, which is designed to offer assistance in an anticipatory way, and the EFT, which is designed to offer assistance in the case of major restructuring events in a reactive manner. The ‘EU Quality Framework for anticipation of change and restructuring’ (11), is the Union policy instrument that sets the framework of best practice for anticipating and dealing with corporate restructuring. It offers a comprehensive framework on how the challenges of economic adjustment and restructuring and their employment and social impact should be addressed by adequate policy means. It also calls upon Member States to use EU and national funding in a way to ensure that the social impact of restructuring, especially the adverse effects on employment, can be cushioned more effectively. The main Union instruments to assist workers affected are the European Social Fund Plus (ESF+), which is designed to offer assistance in an anticipatory way, and the EGF, which is designed to offer assistance in the case of unexpected major restructuring events in a reactive manner. [Am. 6]

(9)

The European Globalisation Adjustment Fund ( EGF) was established by Regulation (EC) No 1927/2006 of the European Parliament and of the Council (12) for the multiannual financial framework from 1 January 2007 to 31 December 2013. The EGF has been set up to enable the Union to show solidarity towards workers who lost their jobs as a result of major structural changes in world trade patterns due to globalisation.

(10)

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 (13) as part of the European Economic Recovery Plan to include workers who lost their jobs as a direct consequence of the global financial and economic crisis.

(11)

For the duration of the multiannual financial framework from 1 January 2014 to 31 December 2020, Regulation (EU) No 1309/2013 of the European Parliament and of the Council (14) extended the scope to cover not only job displacements resulting from a serious economic disruption caused by a continuation of the global financial and economic crisis addressed in Regulation (EC) No 546/2009, but also from any new global financial and economic crisis.

(11a)

The EFT programme should be visible and require more and better data, in order to allow a proper scientific evaluation of the EFT and avoid administrative constraints in the operation of the programme for trade adjustment assistance. [Am. 7]

(12)

The Commission carried out a mid-term evaluation of the EGF to assess how and to what extent the EGF achieves its objectives. The EGF proved to be effective, attaining a higher reintegration rate of displaced workers than in the previous programming period. The evaluation also found that the EGF generated European added value. This is particularly true in terms of its volume effects, meaning that EGF assistance not only increases the number and variety of services offered, but also their level of intensity. Moreover, EGF interventions have high visibility and demonstrate the EU added value of the intervention directly to the general public However, several challenges were identified. On the one hand, the mobilisation procedure was considered to be too long. Furthermore, many Member States reported problems putting together the extensive background analysis of the event that triggered the redundancies. The main reason that keeps Member States that would have had a potential EGF case from applying are financial and institutional capacity problems. On the one hand, it could simply be a lack of manpower — Member States currently can ask for technical assistance only if they implement an EGF case. Since redundancies can happen unexpectedly, it would be important that Member States are ready to react immediately and can submit an application without any delays. Furthermore, in certain Member States, more profound institutional capacity building efforts seem necessary in order to ensure an efficient and effective implementation of EGF cases. The threshold of 500 displaced jobs was criticized as being too high, especially in lesser populated regions (15).

(13)

The Commission underlines the continuing importance of the role of the EGF EFT as a flexible fund to support workers who lose their jobs in large-scale restructuring events and to help them to find another job as rapidly as possible. The Union should continue to provide specific, one-off support to facilitate the re-integration into e quality and sustainable employment of displaced workers in areas, sectors, territories or labour markets suffering a shock of serious economic disruption. Considering the interplay and mutual effects of open trade, technological change , digitisation and automation or other factors like the withdrawal of the United Kingdom from the European Union or the transition to a low carbon economy, and therefore considering that it is increasingly difficult to single out a specific factor that causes job displacements, the mobilisation of the EGF shall EFT should in the future only be based on the significant impact of a restructuring event. Given its purpose, which is to provide support in situations of urgency and unexpected circumstances, complementing the more anticipatory assistance offered by the ESF+, the EGF shall EFT should remain a flexible and special instrument outside the budgetary ceilings of the Multiannual Financial Framework, as set out in the Commission's communication.‘A Modern Budget for a Union that Protects, Empowers and Defends — The Multiannual Financial Framework for 2021–2027’ and its annex (16). [Ams 8 and 97]

(13a)

In its resolution of 30 May 2018 on the 2021-2027 multiannual financial framework and own resources, the European Parliament reconfirmed its firm position on the necessary level of funding for key Union policies in the 2021-2027 MFF, in order to enable them to fulfil their mission and objectives. It stressed in particular the call to double the specific MFF funding for SMEs and for tackling youth unemployment; welcomed several proposals that improve the current provisions, notably the increased allocations of special instruments; and stated its intention to negotiate additional improvements, wherever necessary. [Am. 9]

(14)

As stated, in order to maintain the European nature of the EGF EFT , an application for support should be triggered when a major restructuring event causes a significant impact on the local or regional economy. Such an impact should be defined by a minimum number of job displacements within a specific reference period. Taking into account the findings of the mid-term evaluation, the threshold shall be set at 250 200 jobs displacement within a the respective reference period of four months (or 6 months in sectoral cases) periods . Taking into account that waves of dismissals in different sectors but the same region have an equally significant impact on the local labour market, regional applications shall be possible as well. In small labour markets, such as small Member States or remote regions, including the outermost regions as referred in Article 349 of the TFEU, or in exceptional circumstances, it should be possible to submit applications could be submitted in the case of a lower number of job displacements. [Am. 10]

(14a)

While respecting the principle of subsidiarity, and taking into account the need for a significant impact of the restructuring event as a threshold for an EFT application, the EFT should strive to show solidarity with dismissed workers from all types of enterprises, regardless of their size. [Am. 11]

(14b)

The EFT should remain a special Union instrument reacting to situations that cause major restructuring events in the European labour market. However, the Union should continue efforts to find more sustainable ways of tackling the structural change and challenges that affect labour markets and lead to such events in the Member States. [Am. 12]

(15)

In order to express Union solidarity with displaced workers and self-employed persons whose activity has ceased, the co-funding rate of the cost of the package of personalised services and its implementation should equal that of the ESF+ in the respective Member State concerned.

(16)

Part of the budget of the Union allocated to the EGF EFT should be implemented by the Commission under shared management with Member States within the meaning of Regulation (EU, Euratom) [number of the new Financial Regulation] of the European Parliament and of the Council (17) (the ‘Financial Regulation’). Therefore, when implementing the EGF EFT under shared management, the Commission and the Member States should respect the principles referred to in the Financial Regulation, such as sound financial management, transparency and non-discrimination.

(17)

The European Monitoring Centre on Change, based in the European Foundation for the Improvement of Living and Working Conditions (Eurofound) in Dublin, assists the Commission and the Member States with qualitative and quantitative analyses in order to help in the assessment of trends of , such as in globalisation, technological and environmental changes , restructuring and in the use of the EGF EFT . Such analyses should include sufficient disaggregated data, particularly from a gender perspective, in order to combat gender inequalities more efficiently. [Am. 13]

(17a)

Eurofound’s European Restructuring Monitor (ERM) monitors in real time the reporting of large-scale restructuring events throughout the Union, based on a network of national correspondents. The ERM is very relevant to the EFT and should assist its operation in particular by helping to identify potential intervention cases at an early stage. [Am. 14]

(18)

Displaced workers and self-employed persons whose activity has ceased should have equal access to the EGF EFT independently of their type of employment contract or employment relationship. Therefore, displaced workers , regardless of the type and duration of their employment relationship, as well as self-employed persons whose activity has ceased should be regarded as possible EGF EFT beneficiaries for the purposes of this Regulation. [Am. 15]

(19)

Financial contributions from the EGF EFT should be primarily directed at active labour market measures and personalised services aimed at reintegrating beneficiaries rapidly into quality and sustainable employment in a future-oriented sector , either whether within or outside their initial sector of activity , but should also seek to promote self-employment and enterprise creation, including through the establishment of cooperatives . Measures should reflect the prospected prospective needs of the local or regional labour market. However, whenever relevant, the mobility of displaced workers should also be supported in order to help find new employment elsewhere. A particular focus shall should be laid on the dissemination of skills required in the digital age , and on overcoming gender stereotypes in employment, where appropriate . The inclusion of pecuniary allowances in a coordinated package of personalised services should be restricted. The financial contributions should complement and not replace any measures which are the responsibility of Member States and/or companies by virtue of national law or collective agreements. Companies could should be encouraged to participate in the national co-funding for the EGF EFT -supported measures. [Am. 16]

(19a)

When implementing and designing coordinated package of personalised services, aimed at facilitating the re-integration of the targeted beneficiaries, Member States should exploit and better target the aims of the Digital Agenda and the Digital Single Market Strategy with a view to addressing the serious gender gap within the ICT and science, technology, engineering and mathematics (STEM) sectors by promoting re-training and re-qualification of women into ICT and STEM sectors. When implementing and designing coordinated package of personalised services, Member States should also avoid perpetuating the domination of one gender in those industries and sectors where this has traditionally been the case. Increasing the representation of the less represented gender in different sectors, such as finance, ICT and STEM, would contribute towards the reduction of gender pay and pension gap. [Am. 17]

(20)

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 beneficiaries. Member States should strive towards the reintegration into quality and sustainable employment of the largest possible number of all beneficiaries participating in these measures as soon as possible within the six seven -month period before the final report on the implementation of the financial contribution is due. The design of the coordinated package of personalised services should take into account the underlying reasons for the redundancies where relevant and anticipate future labour market perspectives and required skills. The coordinated package should be compatible with the shift towards a climate-friendly and resource-efficient economy. [Am. 18]

(21)

Member States should pay particular attention to disadvantaged beneficiaries, including persons with disabilities, persons with dependent relatives, young and older unemployed persons, persons with a low level of qualifications, persons with a migrant background and those persons at risk of poverty, when designing the coordinated package of active labour market policy measures, given that those groups experience particular problems in re-entering the labour market. Notwithstanding, the principles of gender equality and of non-discrimination, which are among the Union’s core values and are enshrined in the European Pillar of Social Rights, should be respected and promoted when implementing the EGF EFT . [Am. 19]

(21a)

In the period between March 2007 and March 2017, the Commission received 148 applications for co-financing from the EGF from 21 Member States, for a total of almost EUR 600 million to help 138 888 displaced workers and 2 944 people not in employment, education or training (NEETs). [Am. 20]

(22)

In order to support beneficiaries effectively and rapidly, Member States should do their utmost to submit as a matter of urgency complete applications for a financial contribution from the EGF EFT and the Union institutions should do their utmost to assess them rapidly . In case the Commission requires further information for the assessment of an application, the provision of additional information should be limited in time. [Am. 21]

(22a)

To facilitate the implementation and the aims of this Regulation, more publicity should be given to the EFT and its possibilities, in particular at the level of the relevant authorities in the Member States. [Am. 22]

(22b)

The Commission should facilitate access to national and regional authorities through a dedicated helpdesk that would provide general information and explanations on procedures and on how to submit an application. That helpdesk should make available standard forms for statistics and further analysis. [Am. 23]

(23)

In the interest of beneficiaries and bodies responsible for implementation of the measures, the applicant Member State should keep all actors involved in the application process informed of the progress of the application and keep them engaged during the implementation process . [Am. 24]

(24)

In compliance with the principle of sound financial management, financial contributions from the EGF should not EFT cannot replace but rather should, where possible, complement support measures which are available for beneficiaries within the Union funds or other Union policies or programmes. Nor can the EFT’s financial contribution replace national measures or replace measures that are the responsibility of dismissing companies under national law or collective agreements and should instead create real European added value. [Am. 25]

(25)

Special provisions In light of the principle of equality, Member States should be included for ensure effective access to information about the EFT throughout their territory, including in rural areas. The Commission should, in particular, promote the dissemination of existing best practice, raise awareness of the EFT’s eligibility criteria and application procedures and do more to raise awareness of the EFT among Union citizens, in particular workers. Special provisions should be included for information and communication activities on EGF EFT cases and outcomes. [Am. 26]

(26)

To facilitate the implementation of this Regulation, expenditure should be eligible either from the date on which a Member State starts to provide personalised services or from the date on which a Member State incurs administrative expenditure for implementing the EGF EFT .

(27)

In order to cover the needs arising especially during the first months of each year, when the possibilities for transfers from other budget lines are particularly difficult, an adequate amount of payment appropriations should be made available on the EGF EFT budget line in the annual budgetary procedure.

(27a)

In order to cover the needs arising especially during the first months of each year, where the options for transfers from other budget lines are particularly limited, an adequate amount of payment appropriations should be made available on the EFT budget line in the annual budgetary procedure. [Am. 27]

(28)

[The Multiannual Financial Framework and the Interinstitutional Agreement between the European Parliament, the Council and the Commission of [future date] on budgetary discipline, on cooperation in budgetary matters and on sound financial management (18) (‘the Interinstitutional Agreement’) determine the budgetary framework of the EGF EFT ].

(29)

In the interest of the beneficiaries, assistance should be made available as quickly and efficiently as possible. The Member States and the Union institutions involved in the EGF EFT decision-making process should do their utmost to reduce processing time and simplify procedures so as to ensure the smooth and rapid adoption of decisions on the mobilisation of the EGF EFT . Therefore, the Budgetary Authority shall in the future decide on transfer requests submitted by the Commission, not requiring a Commission Proposal for the mobilisation of the EGF anymore. [separate vote]

(30)

In the event of an enterprise closing down, displaced workers may be helped to take over some or all of the activities of their former employer and the Member State in which the enterprise is located may advance the funds that are required urgently to make this possible . [Am. 29]

(31)

In order to enable political scrutiny by the European Parliament and continuous monitoring by the Commission of results obtained with EGF EFT assistance, Member States should submit a final report on the implementation of the EGF EFT which should respond to clear monitoring requirements and contain a follow up of the beneficiaries and a gender equality impact assessment . [Am. 30]

(32)

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 the relevant provisions of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (the ‘Financial Regulation’) (19) or its successor Regulation. The Member States should justify the use made of the financial contribution received from the EGF EFT . In view of the short implementation period of EGF EFT operations, reporting obligations should reflect the particular nature of the EGF EFT interventions.

(32a)

The Member States should conduct effective communication activities in order to promote financial contributions from the EFT, emphasise that funding has come from the Union and raise the profile of activities financed by the Union under the EFT. [Am. 31]

(33)

Member States should also prevent, detect and deal effectively with any irregularities including fraud committed by beneficiaries. Moreover, in accordance with Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (20), and Council Regulations (Euratom, EC) No 2988/95 (21) and No 2185/96 (22), the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Council Regulation (EU) 2017/1939 (23), the European Public Prosecutor's Office may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (24) on the fight against fraud to the Union's financial interests by means of criminal law. Member States should take the necessary measures so that any person or entity receiving Union funds fully cooperates in the protection of the Union’s financial interests, grants the necessary rights and access to the Commission, the European Anti-Fraud Office (OLAF), the European Public Prosecutor's Office (EPPO) and the European Court of Auditors (ECA) and ensures that any third parties involved in the implementation of Union funds grant equivalent rights. Member States should report to the Commission on detected irregularities including fraud, and on their follow-up as well as on the follow-up of OLAF investigations.

(34)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013, Regulation (Euratom, EC) No 2988/95, Regulation (Euratom, EC) No 2185/96 and Regulation (EU) 2017/1939, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371. In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(35)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(36)

Pursuant to paragraph 22 and 23 of the Interinstitutional agreement of 13 April 2016 on Better Law-Making (25), there is a need to evaluate this Programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the Programme on the ground.

(37)

Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Programme will contribute to mainstream climate action in the Union's policies and to the achievement of an overall target of 25 % of the EU budget expenditures supporting climate objectives over the MFF 2021-2027 period, and an annual target of 30 % as soon as possible and at the latest by 2027 . Relevant actions will be identified during the fund's preparation and implementation, and reassessed in the context of its evaluation. [Am. 32]

(38)

Since the objectives of this Regulation cannot be sufficiently achieved by the Member States, but can rather, by reason of their scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on 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.

(39)

Considering the fact that the digital transformation of the economy requires a certain level of digital competence of the workforce, the dissemination of skills required in the digital age should be a mandatory horizontal element of any coordinated package of personalised services offered and should incorporate the aim of increasing the participation of women in STEM professions , [Am. 33]