Decision (EU) 2016/990 on the mobilisation of the European Globalisation Adjustment Fund (application from Greece — EGF/2015/011 GR/Supermarket Larissa)

What it is

to mobilise the European Globalisation Adjustment Fund (EGF) to assist Greece in respect of redundancies in the retail sector. PROPOSED ACT: 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) 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 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/2006. The Committee on Budgets adopted the report by Liadh NÍ RIADA (GUE/NGL, IE) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 6 468 000 in commitment and payment appropriations to assist Greece in respect of 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 or of the global financial and economic crisis and to assist their reintegration into the labour market. Greek application : Greece submitted application EGF/2015/011 GR/Supermarket Larissa for a financial contribution from the EGF, following dismissals in the economic sector classified under the NACE Revision 2 Division 47 (retail trade, except of motor vehicles and motorcycles) in the NUTS level 2 regions of Central Macedonia (Κεντρική Μακεδονία) and Thessalia (Θεσσαλία). Members noted that 557 dismissed workers, as well as 543 young people not in employment, education or training (NEETs) under the age of 30 from the same regions are expected to participate in the measures. They recalled that the workers were dismissed following the bankruptcy and closure of Supermarket Larissa ABEE. The application was submitted under the intervention criteria of point (a) of Article 4(1) of the EGF Regulation, which requires at least 500 workers being dismissed over a reference period of four months in an enterprise in a Member State, including workers dismissed by suppliers and downstream producers and / or self-employed persons whose activity has ceased. Nature of the redundancies : Members noted that, as a consequence of the deep recession of the Greek economy followed by a decline of household consumption and purchasing power, the volumes of retail trade of food, beverages and tobacco were more than 30 % lower in 2015 than the early-crisis volumes of 2008. They noted that the sales of Supermarket Larissa followed the same downwards trend. Members also noted that Supermarket Larissa, a cooperative of small grocery stores founded in 1986, with 42 shops and 600 workers, could not overcome its losses and had to close its shops during the second quarter of 2014. They pointed out that this was not prevented…

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