Site icon Epthinktank

European Globalisation Adjustment Fund 2014-20

6 language versions available in PDF format
Europäischer Fonds zur Anpassung an die Globalisierung 2014-2020
Fondo Europeo de Adaptación a la Globalización 2014-20
Le Fonds européen d’ajustement à la mondialisation pendant la période 2014-2020
Fondo europeo di adeguamento alla globalizzazione 2014-2020
Europejski Fundusz Dostosowania do Globalizacji (2014-20)
European Globalisation Adjustment Fund 2014-20

Through its European Globalisation Adjustment Fund (EGF), the EU supports redundant workers, co-financing tailor-made services aimed at reintegrating them in the labour market. In trilogue, Parliament and Council negotiators have agreed on new rules for the EGF up to 2020.

EGF: overview and main data

© tashatuvango / Fotolia

Operational since 2007, the Fund can intervene in case of mass job losses due to major changes in global trade patterns. From May 2009 to December 2011, it could also address mass redundancies caused by the global economic crisis, with a significant increase in the number of applications. The EGF supports packages of tailored active labour-market measures designed by Member States (MS) to help affected workers acquire new skills and find new jobs. So far, 20 MS have submitted 113 requests for EGF aid to the Commission (EC). These cases related to services for 102 411 workers in more than 30 different sectors. Total EU contributions paid under the scheme have amounted to €416 million. A 2011 evaluation carried out for the EC identified both positive results and shortcomings in the functioning of the EGF. In 2012, the EC received MS’ final reports on 41 cases. These had an average re-integration rate of 50% when funding ended. A repeated criticism, including from the European Court of Auditors (ECA), concerns the length of time taken for the procedures.

Budget and intervention criteria

In June 2011, the EC proposed to continue the Fund as a solidarity tool beyond 2013. The February 2013 European Council agreed to keep the EGF outside the ceilings of the 2014-20 Multiannual Financial Framework (MFF), but to cut its maximum annual budget from the current €500 million to €150 million (in 2011 prices). As one of the EU flexibility instruments outside the MFF ceilings, it can be mobilised only in case of a specific crisis, and on an MS’ request. The EC must submit each individual case to the budgetary authority for approval, if it meets the EGF criteria (currently set in Regulation (EC) No 1927/2006 as reviewed in 2009). The intervention threshold (500 redundancies) applies either to an enterprise in an MS (including its suppliers and downstream producers) or to companies active in a single economic activity, in no more than two adjacent NUTS2 regions. In exceptional cases, aid can be given even if the threshold is not reached.

2014-20: what changes

Following up a 2011 resolution on the EGF’s future, in January 2013 the EP’s Employment and Social Affairs Committee (rapporteur Marian Harkin, ALDE, Ireland) adopted a report with over 100 amendments to the EC proposal. This served as a basis for the EP’s negotiators in trilogue, with agreement reached in September 2013, which now comes to plenary.

Key points of the deal for 2014-20 include:

Exit mobile version