Mobilisation of the European Globalisation Adjustment Fund: redundancies in the car production sector in France

PURPOSE: to mobilise the European Globalisation Adjustment Fund to cover the cost of redundancies in the French car production sector.

LEGISLATIVE ACT: Decision 2007/726/EC of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in application of 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.

CONTENT: the European Union has created a European Globalisation Adjustment Fund to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the Fund within the annual ceiling of EUR 500 million. Regulation (EC) No 1927/2006 (EGF Regulation) contains the provisions whereby the Fund may be mobilised. France submitted applications to mobilise the Fund, concerning two cases of redundancies in the automobile sector: Peugeot SA and Renault SA.

In this context, the Parliament and the Council decided that, for the general budget of the European Union for the financial year 2007, the European Globalisation Adjustment Fund shall be mobilised for a total amount of EUR 3 816 280.