2014/817/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/2014/006 FR/PSA from France)

What it is

to mobilise the European Globalisation Adjustment Fund (EGF) to assist France which is dealing with redundancies in its car 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 provides that the EGF shall not exceed a maximum annual amount of EUR 150 million (2011 prices). 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 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006 (the 'EGF Regulation'). The European Parliament adopted by 579 votes to 81, with 9 abstentions, a resolution 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 12 704 605 in commitment and payment appropriations in order to assist France following redundancies in the automotive sector. Parliament 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. Application from France : France submitted application EGF/2014/006 FR/PSA for a financial contribution from the EGF, following 6 120 redundancies in Peugeot Citroën Automobiles ('PSA') operating in the NACE Rev. 2 division 29 ('Manufacture of motor vehicles, trailers and semi-trailers') with redundancies mainly located in the regions of Ile de France (the Aulnay plant) and Bretagne (the Rennes plant), with 2 357 workers targeted for EGF co-funded measures, during the reference period from 1 October 2013 to 31 January 2014. Parliament therefore 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. In this respect, France is entitled to a financial contribution under the EGF Regulation . Parliament welcomed the fact that, in order to provide workers with speedy assistance, the French authorities decided to initiate the implementation of the personalised services to the affected workers on 3 June 2013, well ahead of the final decision on granting the EGF support for the proposed coordinated package. Parliament noted that the French authorities submitted the application for EGF financial contribution on 25 April 2014, and that its assessment was made available by the Commission on 10 September 2014. It welcomed the speedy evaluation of less than five months. Nature of the redundancies : Parliament stressed that 6 120 redundancies will further aggravate the unemployment situation in the regions of Ile de France and Bretagne, where two of the affected plants are located since the Aulnay plant was the 8th largest employer in the city of Aulnay, and the redundancies reduce the numbers employed in the area by 13.6%. It…

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