2014/698/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/2014/001 EL/Nutriart from Greece)

What it is

to mobilise the European Globalisation Adjustment Fund (EGF) to assist Greece following redundancies in the food industry. PROPOSED ACT: Decision of the European Parliament and of the Council. CONTENT: Article 12 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) within the annual ceiling of EUR 150 million (2011 prices) over and above the relevant headings of the financial framework. The rules applicable to financial contributions from the European Globalisation Adjustment Fund (EGF) are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006 . The Committee on Budgets adopted the report by Georgios KYRTSOS (EPP, EL) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, providing a total amount of EUR 6 096 000 in commitment and payment appropriations in order to assist Greece which is facing redundancies in the food industry. Members recalled that the European Union has 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. Greece submitted its application for a financial contribution from the EGF, following redundancies in Nutriart S.A and 25 providers and downstream producers and 24 self-employed people whose activity ceased and was dependent on the primary enterprise in Greece with 508 workers targeted for EGF co-funded measures, during the reference period from 16 July 2013 to 16 November 2013. Members asked the institutions to speed up mobilisation of the Fund for the amount requested, agreeing with the Commission that the conditions 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. Redundancies : Members considered that the redundancies were linked to global financial and economic crisis, referring to the fact that the Greek economy has experienced a cumulative fall of 5% in its GDP since 2008 and despite the fact that it slowly emerges out of recession it is still unable to create new job opportunities and reduce the unemployment rate which is at a historical record of 26-27% of the working population. They noted that these events giving rise to the redundancies were related to: (i) the decrease of available household income that affected in a very negative way the consumption of a different range of products ― (due to the increase in the tax burden, decreasing salaries of both private and public employees and rising unemployment) ― resulting in a huge drop of purchasing power; (ii) the delayed payments by most of the Nutriart’s clients; and (iii) the drastic reduction of loans to enterprises and individuals due to the effort of the Greek banking system to reduce…

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