Mobilisation of the European Globalisation Adjustment Fund: redundancies in the automotive sector in Portugal

PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the automotive sector in Portugal.

NON-LEGISLATIVE ACT: Decision 2012/4/EU 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/2011/005 PT/Norte-Centro Automotive from Portugal).

CONTENT: the European Parliament and the Council have decided to mobilise an amount of EUR 1 518 465 in commitment and payment appropriations in respect of redundancies in the automotive sector in Portugal.

More specifically, this amount shall assist Portugal in respect of redundancies in three enterprises operating in the NACE Revision 2 Division 29 ("Manufacture of motor vehicles, trailers and semi-trailers") in the NUTS II regions of Norte (PT11) and Centro (PT16).

Given that this application complies with the requirements for determining the financial contributions as laid down in Regulation (EC) No 1927/2006, the European Parliament and the Council have decided to grant the above-mentioned amount.

To recall, 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. 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 direct result of the global financial and economic crisis.