2014/253/EU: Decision on the mobilisation of the European Globalisation Adjustment Fund, in accordance with Point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (application EGF/2012/004 ES/Grupo Santana from Spain)

What it is

to mobilise the European Globalisation Adjustment Fund (EGF) to assist Spain regarding redundancies in the automotive sector. PROPOSED ACT: Decision of the European Parliament and of the Council. CONTENT: the EGF shall not exceed a maximum annual amount of EUR 150 million (2011 prices), as laid down in Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020. Regulation (EC) No 1927/2006 established the European Globalisation Adjustment Fund (EGF) in order 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 Committee on Budgets adopted the report by Frédéric DAERDEN (S&D, BE) on the proposal for a decision on the mobilisation of the European Globalisation Adjustment Fund (EGF) for the amount of EUR 1 964 407 in commitment and payment appropriations to assist Spain regarding redundancies in the automotive sector. Members recalled that the European 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. Given that Spain submitted its application for a financial contribution from the EGF, following 330 redundancies in Grupo Santana and 15 suppliers and downstream producers with 285 workers targeted for EFG co-funded measures, during the reference period from 15 November 2011 to 15 March 2012, Members agreed with the Commission that the conditions set out in Article 2(c) of the EGF Regulation are met. Therefore, Spain is entitled to a financial contribution under the EGF Regulation. Members considered that the redundancies in Grupo Santana and 15 suppliers and downstream producers are linked to major structural changes in world trade patterns due to globalisation, referring to a reduction of the EU share in world motor vehicle production and the rapid growth in Asian markets which EU producers are less able to benefit from. They noted that the 330 layoffs within the reference period and the additional 689 redundancies are related to the same collective dismissal procedure before and after the four-month reference period which have had a significantly negative impact on employment and the economy at local level and aggravates an already fragile economic situation of the affected territory. Noting that this is yet another EGF application addressing dismissals in the automotive sector and that with 17 applications this sector has been subject to the most numerous EGF applications, Members stressed that this demonstrates the need for a Union industrial strategy and illustrates how the EGF assists workers in restructuring process. They welcomed the fact that, in order to provide workers with speedy assistance, the Spanish authorities decided to initiate the implementation of the personalised services to the affected workers on 1 August 2011, ten months before EGF application submission and well ahead of the final decision on…

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