Mobilisation of the European Globalisation Adjustment Fund: redundancies in car industry in Sweden and Austria, and in construction sector in the Netherlands

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) following redundancies in car industry in Sweden and Austria, and in the construction sector in the Netherlands.

LEGISLATIVE ACT: Decision 2009/1006/EC of the European Parliament and of the Council on 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 Parliament and the Council have decided to mobilise the European Globalisation Adjustment Fund for an amount EUR 15 931 423 in commitment and payment appropriations under the framework of the 2009 budget.

This amount shall provide assistance to:

·        Sweden which submitted an application to mobilise the EGF, in respect of redundancies in automotive sector, for an amount of EUR 9 839 674;

·        Austria which submitted an application to mobilise the EGF, in respect of redundancies in the automotive sector, for an amount of EUR 5 705 635;

·        The Netherlands which submitted an application to mobilise the EGF, in respect of redundancies in the construction sector, for an amount of EUR 386 114.

In the light of the examination of these applications, and considering the maximum possible amount of a grant from the Fund established in accordance with Article 10 of Regulation (EC) No 1927/2006 (EGF Regulation) as well as the scope for reallocating appropriations, the European Parliament and the Council have decided to grant the abovementioned amount.

To recall, the European Globalisation Adjustment Fund (EGF) was established to provide additional support to redundant 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 EGF within the annual ceiling of EUR 500 million. The scope of the EGF was broadened for applications submitted from 1 May 2009 to include support for workers made redundant as a result of the global financial and economic crisis.