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Document 52011PC0387
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/028 NL/Overijssel Division18 from the Netherlands)
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/028 NL/Overijssel Division18 from the Netherlands)
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/028 NL/Overijssel Division18 from the Netherlands)
/* COM/2011/0387 final */
Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2010/028 NL/Overijssel Division18 from the Netherlands) /* COM/2011/0387 final */
EXPLANATORY MEMORANDUM Point 28 of the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[1] allows for the mobilisation of
the European Globalisation Adjustment Fund (EGF) through a flexibility
mechanism, within the annual ceiling of EUR 500 million over and
above the relevant headings of the financial framework. The rules applicable to the contributions
from the EGF are laid down in Regulation (EC) No 1927/2006 of the European
Parliament and of the Council of 20 December 2006 on establishing the European
Globalisation Adjustment Fund[2]. On 20 December 2010, the Netherlands submitted application EGF/2010/028
NL/Overijssel Division 18 for a financial contribution
from the EGF, following redundancies in nine
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media')[3] in the NUTS II region of Overijssel (NL21) in the Netherlands. This application is part of a package of four
interrelated applications, all of which concern redundancies in six different
NUTS II regions in the Netherlands in enterprises operating in the printing and
reproduction of recorded media sector. After a thorough
examination of this application, the Commission has concluded in accordance
with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a
financial contribution under this Regulation are met. SUMMARY OF THE APPLICATION AND ANALYSIS Key data: || EGF Reference no. || EGF/2010/028 Member State || Netherlands Article 2 || (c) Enterprises concerned || 9 NUTS II region || Overijssel (NL21) NACE Revision 2 Division || 18 ('Printing and reproduction of recorded media') Reference period || 16.1.2010 – 16.10.2010 Starting date for the personalised services || 16.1.2010 Application date || 20.12.2010 Redundancies during the reference period || 214 Redundant workers targeted for support || 214 Expenditure for personalised services (EUR) || 1 060 639 Expenditure for implementing EGF[4] (EUR) || 44 193 Expenditure for implementing EGF (%) || 4,0 Total budget (EUR) || 1 104 832 EGF contribution (65 %) (EUR) || 718 140 1.
The application was presented to the Commission
on 20 December 2010 and supplemented by additional information up to 7 March
2011. 2.
The application meets the conditions for
deploying the EGF as set out in Article 2(c) of Regulation (EC) No 1927/2006,
and was submitted within the deadline of 10 weeks referred to in Article 5 of
that Regulation. Link between the redundancies and major structural changes in world trade patterns due to globalisation or the global financial and economic crisis 3.
In order to establish the link between the
redundancies and the global financial and economic crisis, the Netherlands
argues that the economic crisis resulted in a substantial decrease in demand
for the graphic media industry. As a consequence the turnover in the graphic
industry decreased by 8,6 % in 2009. The orders from other economic
sectors for printed advertising material, which represents 35 % of the
total turnover of the printing and publishing sector, decreased dramatically
between 2008 and 2009 due to the reduction of budgets for media and advertising
activities induced by the economic crisis. The application cites several
examples. In the construction industry, the budget for information and
publicity was cut by 36,8 % following the start of the crisis; in the
financial sector by 33,2 % and in consumer electronics by 30,6 %. In
addition, the economic crisis negatively affected demand for various types of
printed media material: in 2009, demand for popular magazines decreased by 25,7 %,
for newspapers by 24,4 %, for commercial newspapers distributed free of
charge by 10,54 % and for professional magazines by 23,4 %. Demonstration of the number of
redundancies and compliance with the criteria of Article 2(c) 4.
The Netherlands submitted
this application under the intervention criteria of Article 2(c) of Regulation
(EC) No 1927/2006, which provides that, in small labour markets or in
exceptional circumstances, where duly substantiated by the Member State
concerned, an application for a contribution from the EGF may be considered
admissible even if the intervention criteria laid down in Article 2(a) and 2(b)
are not entirely met, when redundancies have a serious impact on employment and
the local economy. In this case the applicant must specify which of the main
intervention criteria its application fails to meet. 5.
The Netherlands has specified that the
application seeks to derogate from Article 2(b), where the required threshold
is at least 500 redundancies over a nine-month period in enterprises operating
in the same NACE Revision 2 Division in one region or two contiguous regions at
NUTS II level in a Member State. 6.
The application cites 214 redundancies in nine
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media')[5] in the NUTS II region of Overijssel (NL21) during
the nine-month reference period from 16 January 2010 to
16 October 2010. Of these redundancies 198 occurred in three enterprises and were
calculated in accordance with the first indent of the second paragraph of
Article 2 of Regulation (EC) No 1927/2006. A further 16 redundancies occurred
in six enterprises and were calculated in accordance with the second indent of the
same paragraph. 7.
The Dutch authorities argue that this
application meets the requirements for a submission under Article 2(c) of
Regulation (EC) No 1927/2006 citing exceptional circumstances: it covers
further redundancies in the same NACE 2 Division during the same reference
period as the redundancies covered by application EGF/2010/030 NL/Noord-Holland
and Flevoland Division 18 that was submitted by the Netherlands under Article
2(b) of Regulation (EC) No 1927/2006. In addition, Overijssel constitutes a
contiguous region at NUTS II level with Flevoland. The exceptionality of the
case lies in the combination of these factors, which together pose an unusual
and difficult situation for the workers and the region concerned. 8.
According to the Netherlands, Overijssel is in a
very difficult situation. In
this province the unemployment rate increased by 175 % due to the impact
of the economic and financial crisis and reached 7,2 % in October 2010,
while the national average is 6,8 %. Between January 2008 and January
2010, 17,5 % of the jobs in the graphic media industry in Overijssel were
lost. In addition, forecasts state that the labour market of Overijssel will further
shrink due to the crisis in the technical industries and the construction
sector which will have a huge impact on the job finding chances of unemployed
workers. 9.
At the same time, the graphics sector in the
Netherlands has suffered from large-scale redundancies, as is also shown by the
three other interrelated EGF applications submitted by
the Netherlands, which show a high number of redundancies in enterprises in the
graphics sector in other parts of the Netherlands. Moreover, in 2009 the
Netherlands successfully applied for EGF co-funding to support workers made
redundant in the same sector and in the same NUTS II region[6]. 10.
The Commission services therefore consider that
the redundancies in question have a serious impact on employment and the local
economy and that the difficult economic and labour
market situation in Overijssel and the further redundancies
in other NUTS II level regions of the Netherlands due to the same cause and
during the same period in the same NACE Revision 2 Division combine to meet the criteria of Article 2(c) of Regulation (EC) No
1927/2006. 11.
This interpretation is also in line with the
statement of the Commission on the occasion of the adoption of Regulation (EC)
No 546/2009[7]
according to which "in cases where an EGF application under Article
2(b) is submitted by a Member State, if further redundancies have occurred in
another NUTS II level region of the same Member State due to the same cause and
during the same period in the same NACE 2 Division, the Commission considers
that an application for EGF assistance for the latter workers can be made under
Article 2(c) citing exceptional circumstances"[8]. Explanation of the unforeseen nature
of those redundancies 12.
The Dutch authorities argue that the financial
and economic crisis and its impact on the sector could not have been foreseen.
The application states that before the crisis the printing and publishing
industry in the Netherlands went through an expensive restructuring process in
order to remain competitive with enterprises from outside the EU. The sector
was transformed from a demand driven to a supply oriented industry which meant
a great deal of effort to prepare employees for the new way of working. The
current crisis bears the risk of cancelling out the benefits of the heavy
investments and efforts made by the sector. Identification of the dismissing
enterprises and workers targeted for assistance 13.
The application relates to 214 redundancies all
of whom are targeted for assistance in the following nine enterprises. Enterprises and number of dismissals SMG, Hasselt (SchuttersMagazijnGroep) || 10 Drukkerij Schippers, Wijhe || 1 Eproh Etiketten BV, Ommen || 1 Jellema Druk, Almelo || 2 VK Print, Harfsen || 1 OLBO, Hardenberg || 1 Thieme Rotatie Zwolle BV, Zwolle || 65 Plantijn Casparie Zwolle BV, Zwolle || 76 Thieme Deventer || 57 Total enterprises: 9 || Total dismissals: || 214 14.
The break-down of the targeted workers is as
follows: Category || Number || Percent Men || 139 || 65,0 Women || 75 || 35,0 EU citizens || 201 || 93,9 Non EU citizens || 13 || 6,1 15-24 years old || 39 || 18,2 25-54 years old || 117 || 54,7 55-64 years old || 54 || 25,2 > 64 years old || 4 || 1,9 15.
Nine of the targeted workers are disabled. 16.
In terms of occupational categories, the
break-down is as follows: Category || Number || Percent Manager || 15 || 7,0 Professional || 43 || 20,1 Technicians || 45 || 21,0 Clerical support workers || 26 || 12,1 Service and sales workers || 26 || 12,1 Plant and machine operators and assemblers || 59 || 27,6 17.
In accordance with Article 7 of Regulation (EC)
No 1927/2006, the Netherlands has confirmed that a policy of equality between
women and men as well as non-discrimination has been applied, and will continue
to apply, during the various stages of the implementation of and, in particular,
in access to the EGF. Description of the territory
concerned and its authorities and stakeholders 18.
The territory concerned covers the province of
Overijssel. It is the fourth largest province and the seventh most populous
province of the Netherlands with a population density of 335 inhabitants per km2.
The service sector represents 71,8 % of total employment in Overijssel;
while the industrial sector represents 23,4 % and the agriculture 4,8 %. 19.
The main authorities concerned are the Ministry
for Social Affairs and Employment (SZW) and the Training Fund for the graphics
and media sector (A&O Fonds Grafimedia) on behalf of Raad for Overleg in de
Grafimedia Branche-ROGB (Council for consultation in the graphics and media
sector). Other relevant stakeholders are the Institute for creative industry
(GOC); the public organisation responsible for allowances (UWV werkbedrijf);
UWV mobility centre; ROC van Twente (government vocational training centre at regional
level) and the Dentioncollege; the organisation for SMEs (MKB-ondernemingen);
the social partner organisations: FNV Kiem (trade union), CNV Media (trade
union), Koninklijk Verbond van Grafische Ondernemingen-KVGO (employers'
organisation) for the district De Groote Veenen; and NUV (employers'
organisation). Expected impact of the redundancies
as regards local, regional or national employment 20.
The economic situation of the province of
Overijssel deteriorated in 2009 and its economic growth was negative
(-4,2 %) compared with the previous year. In this province the unemployment
rate increased from 5,3 % in October 2008 to 7,2 % in October 2010
and it is higher than the national average (6,8 %). Of the almost
2 000 graphic media enterprises in the Netherlands 7,3 % are located
in this province and represent 9,9 % of the jobs in the graphic media
sector. 21.
The Dutch authorities argue that the
redundancies in the graphics sector will aggravate the unemployment situation,
which has already deteriorated as a result of the economic and financial crisis.
In October 2010 there were 40 % more unemployed job-seekers in the graphic
media industry in Overijssel than in 2008, before the crisis. In addition
forecasts indicate that in the next years the construction sector and the
engineering industry will further shrink. This will reduce substantially the
chances of finding a new job as construction represents 9 % of the GDP in
Overijssel and construction and engineering together, represent 23,4 % of
the total jobs. Co-ordinated package of personalised
services to be funded and a breakdown of its estimated costs, including its
complementarity with actions funded by the Structural Funds 22.
The following types of measures are proposed,
all of which combine to form a coordinated package of personalised services
aimed at re-integrating the workers into the labour market. They will be
offered to the dismissed workers through a mobility centre, called Creative
Career Centre (C3). Preparatory activities –
Intake and registration: This covers an initial interview in order to register the dismissed
worker and to identify the most suitable types of measures. –
Information and helpdesk: This relates to collective meetings and a helpdesk function to
provide information to the dismissed workers about the available measures. Counselling –
Work to work counselling: This job to job accompaniment covers an individualised programme
including screening, the establishment of a career and vocational action plan,
labour market orientation and initial counselling at the new workplace. –
Outplacement: This
seeks to give active support to dismissed workers in their exploration of new
job opportunities. –
Job interview training: This covers the analysis of available job vacancies, support for
the drafting of a CV and an application letter and preparation for job
interviews. –
Guidance for starting one's own company: The accompaniment towards business creation seeks to assist
dismissed workers who envisage creating their own business. This covers the
provision of legal advice, assistance for the elaboration of a business plan,
support on administrative requirements. Training –
'Education': This covers vocational
training and re-training, management and social skills training and specific
technical re-training for workers whose technical training has become obsolete. –
Recognition of prior experience (APL): This covers the evaluation of prior knowledge and experience of
individual workers as well as the identification of areas where further
training is required. 23.
The expenditure for implementing the EGF, which
is included in the application in accordance with Article 3 of Regulation (EC)
No 1927/2006, covers management and control activities as well as
information and publicity. 24.
The personalised services presented by the Dutch
authorities are active labour market measures within the eligible actions
defined by Article 3 of Regulation (EC) No 1927/2006. The Dutch authorities
estimate the total costs of these services at EUR 1 060 639 and
the expenditure for implementing the EGF at EUR 44 193 (4 % of
the total amount). The total contribution requested from the EGF is EUR 718 140
(65 % of the total costs). Actions || Estimated number of workers targeted || Estimated cost per worker targeted (EUR) || Total costs (EGF and national cofinancing) (EUR) Personalised services (first paragraph of Article 3 of Regulation (EC) No 1927/2006) Intake and registration || 214 || 193 || 41 302 Information and helpdesk || 214 || 86 || 18 404 Work to work counselling || 80 || 3 623 || 289 840 Outplacement || 64 || 4 485 || 287 040 Job interview training || 64 || 1 421 || 90 944 Guidance for starting one's own company || 11 || 4 526 || 49 786 Education || 90 || 2 487 || 223 830 Recognition of prior experience (APL): || 21 || 2 833 || 59 493 Sub total personalised services || || 1 060 639 Expenditure for implementing EGF (third paragraph of Article 3 of Regulation (EC) No 1927/2006) Management || || 11 048 Information and publicity || || 11 048 Control activities || || 22 097 Sub total expenditure for implementing EGF || || 44 193 Total estimated costs || || 1 104 832 EGF contribution (65 % of total costs) || || 718 140 25.
The Netherlands confirms that the measures
described above are complementary with actions funded by the Structural Funds. ESF
measures are available only for workers in employment while EGF actions aim to
bring back to employment workers already made redundant. The managing authority
for the EGF, which is also managing authority for the ESF, has put in place the
necessary control procedures to eliminate any risk of double funding. Date(s) on which the personalised
services to the affected workers were started or are planned to start 26.
The Netherlands started the personalised
services to the affected workers included in the co-ordinated package proposed
for co-financing to the EGF on 16 January 2010. This date therefore represents
the beginning of the period of eligibility for any assistance that might be
awarded from the EGF. Procedures for consulting the social
partners 27.
The social partners were consulted through the
Foundation Labour Market and Training Fund for the graphics and media sector
(Arbeids & Opleidingsfonds Grafimedia branche), which in the light of the
crisis agreed on the creation of a mobility centre for the sector named C3
(Creative Career Centre). The aim of this mobility centre is to coordinate the
various active labour market measures in consultation with the social partners. 28.
The Dutch authorities confirmed that the
requirements laid down in national and EU legislation concerning collective
redundancies have been complied with. Information on actions that are
mandatory by virtue of national law or pursuant to collective agreements 29.
As regards the criteria contained in Article 6
of Regulation (EC) No 1927/2006, the Dutch authorities in their application: · confirmed that the financial contribution from the EGF does not
replace measures which are the responsibility of companies by virtue of
national law or collective agreements; · demonstrated that the actions provide support for individual workers
and are not to be used for restructuring companies or sectors; · confirmed that the eligible actions referred to above do not receive
assistance from other EU financial instruments. Management and control systems 30.
The Netherlands has notified the Commission that
the financial contribution will be managed and controlled by the same bodies that
manage and control the European Social Fund (ESF) funding in the Netherlands.
The Agency for Social Affairs and Employment (Agentschap SZW) will be the
intermediate body for the managing authority. Financing 31.
On the basis of the application from the Netherlands,
the proposed contribution from the EGF to the coordinated package of
personalised services is EUR 718 140, representing 65 % of the
total cost. The Commission's proposed allocation under the Fund is based on the
information made available by the Netherlands. 32.
Considering the maximum possible amount of a financial
contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006,
as well as the scope for reallocating appropriations, the Commission proposes
to mobilise the EGF for the total amount referred to above, to be allocated
under heading 1a of the financial framework. 33.
The proposed amount of financial contribution will
leave more than 25 % of the maximum annual amount earmarked for the EGF
available for allocations during the last four months of the year, as required
by Article 12(6) of Regulation (EC) No 1927/2006. 34.
The aggregated amount of EGF contributions for
EGF applications referring to exceptional circumstances for 2011, including the
amount proposed in the present Proposal, will not exceed 15 % of the
annual maximum amount of the EGF, as required by Article 2(c) of Regulation
(EC) No 1927/2006. 35.
By presenting this proposal to mobilise the EGF,
the Commission initiates the simplified trialogue procedure, as required by
Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to
securing the agreement of the two arms of the budgetary authority on the need
to use the EGF and the amount required. The Commission invites the first of the
two arms of the budgetary authority that reaches agreement on the draft
mobilisation proposal, at appropriate political level, to inform the other arm
and the Commission of its intentions. In case of disagreement by either of the
two arms of the budgetary authority, a formal trialogue meeting will be
convened. 36.
The Commission presents separately a transfer
request in order to enter in the 2011 budget specific payment appropriations,
as required in Point 28 of the Interinstitutional Agreement of 17 May 2006. Source of payment appropriations 37.
An amount of EUR 6 024 454
remains available on the EGF Budget line 04.0501 after adoption by both arms of
the Budgetary Authority of three Decisions totalling an amount of EUR 10 371 321,
and taking into account the six cases currently discussed by the Budgetary
Authority for a total amount of EUR 31 213 175. This available
amount will be used to cover the amount of EUR 718 140 needed for the
present application. Proposal for a DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL on the mobilisation of the European
Globalisation Adjustment Fund in accordance with point 28 of the
Interinstitutional Agreement of 17 May 2006 between the European Parliament,
the Council and the Commission on budgetary discipline and sound financial
management (application EGF/2010/028 NL/Overijssel Division18 from the
Netherlands) THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the
Functioning of the European Union, Having regard to the Interinstitutional
Agreement of 17 May 2006 between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management[9], and in particular point 28
thereof, Having regard to Regulation (EC) No
1927/2006 of the European Parliament and of the Council of 20 December 2006
establishing the European Globalisation Adjustment Fund[10], and in particular Article
12(3) thereof, Having regard to the proposal from the European
Commission[11], Whereas: (1) The European Globalisation
Adjustment Fund (EGF) was established to provide additional support for workers
made redundant as a result of major structural changes in world trade patterns due
to globalisation and to assist them with their reintegration into the labour
market. (2) The scope of the EGF was
broadened for applications submitted from 1 May 2009 to include support for
workers made redundant as a direct result of the global financial and economic
crisis. (3) The Interinstitutional
Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual
ceiling of EUR 500 million. (4) The Netherlands submitted
an application to mobilise the EGF, in respect of redundancies in nine
enterprises operating in the NACE Revision 2 Division 18 ('Printing and
reproduction of recorded media') in the NUTS II region of Overijssel (NL21), on
20 December 2010 and supplemented it by additional
information up to 7 March 2011. This application
complies with the requirements for determining the financial contributions as
laid down in Article 10 of Regulation (EC) No 1927/2006. The Commission,
therefore, proposes to mobilise an amount of EUR 718 140. (5) The EGF should, therefore,
be mobilised in order to provide a financial contribution for the application
submitted by the Netherlands. HAVE ADOPTED THIS DECISION: Article 1 For the general budget of the European
Union for the financial year 2011, the European Globalisation Adjustment Fund
(EGF) shall be mobilised to provide the sum of EUR 718 140 in
commitment and payment appropriations. Article 2 This Decision shall be published in the Official
Journal of the European Union. Done at [Brussels/Strasbourg], For the European Parliament For
the Council The President The
President [1] OJ C 139, 14.6.2006, p. 1. [2] OJ L 406, 30.12.2006, p. 1. [3] Regulation (EC) No 1893/2006 of the European Parliament
and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1). [4] In accordance with the third paragraph of Article 3
of Regulation (EC) No 1927/2006. [5] Regulation (EC) No 1893/2006 of the European
Parliament and of the Council of 20 December 2006 establishing the statistical
classification of economic activities NACE Revision 2 and amending Council
Regulation (EEC) No 3037/90 as well as certain EC regulations on specific
statistical domains (OJ L 393, 30.12.2006, p. 1). [6] EGF/2009/029 Gelderland and Overijssel Division 18. This application was approved by the Budgetary Authority on 24
November 2010 (2010/743/EU) (OJ L 318, 4.12.2010, p. 40) [7] Regulation (EC) No 546/2009 of the European
Parliament and of the Council of 18 June 2009 amending Regulation (EC)
No 1927/2006 on establishing the European Globalisation Adjustment Fund (OJ
L 167, 29.6.2009, p. 26). [8] Council of the European Union, 10304/09 ADD1, 8.6.2009. [9] OJ C 139, 14.6.2006, p. 1. [10] OJ L 406, 30.12.2006, p. 1. [11] OJ C […], […], p. […].