Mobilisation of the European Globalisation Adjustment Fund: redundancies in the retail sector in Greece

The Committee on Budgets adopted the report by Victor NEGRESCU (S&D, RO) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, to the amount of EUR 7 290 900 in commitment and payment appropriations in order to assist Greece following redundancies in the retail sector.

Members recalled that the Union set up 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.

Greek application: Greece submitted application EGF/2014/009 EL/Sprider Stores for a financial contribution from the EGF, following the dismissal of 761 workers, with all of the 761 dismissed workers expected to participate in the measures, in Sprider Stores S.A., an enterprise which operated in the retail sector in the regions of Central Macedonia and Attica of Greece.

The reference period was between 17 November 2013 and 17 March 2014.

Members agreed with the Commission that the intervention criteria set out in Article 4(1)(a) of the EGF Regulation are met and that, therefore, Greece is entitled to a financial contribution under that Regulation.

Members also welcomed the speedy evaluation by the Commission of less than five months.

They welcomed the fact that, in order to provide workers with speedy assistance, the Greek authorities decided to initiate the implementation of the personalised services to the affected workers on 1 September 2014, ahead of the final decision on granting the EGF support for the proposed coordinated package.

Coordinated package of personalised services: the personalised services which are to be provided to workers made redundant consist of the following actions which combine to form a co-ordinated package of personalised services: occupational guidance and career planning supports, training, retraining and vocational training, contribution to business start-up, job-search allowance and training allowance, mobility allowance.

New EGF: Members noted that the income supports measures will be strictly limited to a maximum amount of 35% of the overall package of personalised measures, as set out in the EGF Regulation and that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities.

They welcomed the adoption of the EGF Regulation which reflects the agreement reached between the Parliament and the Council to reintroduce the crisis mobilisation criterion, to increase Union financial contribution to 60% of the total estimated cost of proposed measures, to increase efficiency for the treatment of EGF applications in the Commission and by the Parliament and the Council by shortening time for assessment and approval, to widen eligible actions and beneficiaries by introducing self-employed persons and young people and to finance incentives for setting up own businesses.

Lastly, they recalled that in line with Article 7 of the EGF Regulation, the design of the coordinated package of personalised services should be compatible with the shift towards a resource-efficient and sustainable economy.