Mobilisation of the European Globalisation Adjustment Fund: redundancies in footwear industry in Portugal

The Committee on Budgets adopted the report drafted by Barbara MATERA (EPP, IT) on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 1 449 500 in commitment and payment appropriationsin respect of redundancies in footwear industry in Portugal.

Members recall that the European Union has set up the appropriate legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

Given that Portugal has requested assistance in respect of a case concerning 974 redundancies, of which 680 have been targeted for assistance, which affected one enterprise located mainly in the municipality of Santa Maria Da Feira and which also affected the contiguous municipality of Ovar, both located respectively within two NUTS II region Norte and Centro in Portugal, and that this application fulfils the eligibility criteria set up by the EGF Regulation, Members request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount.

Members recall the institutions’ commitment to ensuring a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have suffered redundancies as a result of globalisation and the financial and economic crisis.

They also recall that:

• assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
• the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds.

Members welcome the fact that, following repeated requests from the Parliament, for the first time the 2011 budget shows payment appropriations of EUR 47 608 950 on the EGF budget line 04 05 01. This dedicated allocation will avoid transfers from other budget lines, as happened in the past, which could be detrimental to the achievement of the various policies objectives.

Lastly, they welcome the reinforcement of the EGF budget line 04.05.01 by EUR 50 million through Amending budget No 3/2011, which will be used to cover the amount needed for this application.