Mobilisation of the European Globalisation Adjustment Fund: redundancies in textiles and automobile sectors

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) for two cases of redundancies in the textiles sector (Malta) and the automobile sector (Portugal).

LEGISLATIVE ACT: Decision 2008/370/EC 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.

CONTENT: the European Globalisation Adjustment Fund was established to provide additional support to workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with 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.

On 12 September 2007, Malta submitted an application to deploy the Fund, in respect of redundancies in the textile sector, specifically for workers made redundant by VF (Malta) Ltd and Bortex Clothing Industry Co Ltd. Moreover, on 9 October 2007, Portugal submitted an application to deploy the Fund, in respect of redundancies in the automobile sector, specifically for workers made redundant by Opel in Azambuja, Alcoa Fujikura in Seixal and Johnson Controls in Portalegre. Both applications comply with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006 (EGF Regulation).

This Decision therefore stipulates that for the general budget of the European Union for the financial year 2008, the European Globalisation Adjustment Fund shall be mobilised to provide the sum of EUR 3 106 882 in commitment and payment appropriations.