Decision (EU) 2018/1675 on the mobilisation of the European Globalisation Adjustment Fund following an application from the Netherlands — EGF/2018/001 NL/Financial service activities

What it is

to mobilise the European Globalisation Adjustment Fund (EGF) to assist the Netherlands faced with redundancies in the financial services industry. PROPOSED ACT: Decision of the European Parliament and of the Council. CONTENT: the rules applicable to financial contributions from the European Globalisation Adjustment Fund 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. In this context, the Commission considered the request to mobilise the EGF to assist the Netherlands and stated the following: The Committee on Budgets adopted the report by Ivana MALETIĆ (EPP, HR) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, for a total of EUR 1 192 500 in commitment and payment appropriations, to assist the Netherlands facing redundancies in the financial services sector. The European Globalisation Adjustment Fund is intended to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns. Dutch application : the Netherlands submitted an application for a financial contribution from the EGF following 1 324 redundancies in the economic sector covered by the ‘financial services activities, except insurance and pension funding’ in the NUTS level 2 regions of Friesland, Drenthe and Overijssel in the Netherlands. Given that the redundancies that occurred in 20 enterprises operating in the Dutch banking sector are expected to have a significant adverse effect on the local economy, Members considered that that the conditions laid down in Article 4(1) of the EGF Regulation have been met and that the Netherlands is entitled, within the framework of the general budget of the Union for the 2018 financial year, to a financial contribution of EUR 1 192 500, representing 60% of the total cost of EUR 1 987 500 . Reasons for the redundancies : the Netherlands argued that the financial and economic crisis has had a serious impact on the services and operations of Dutch banks . The low level of interest rates, introduced in response to the financial crisis, stricter regulatory conditions, the substantial decline in the mortgage market and the credit provision to small and medium-sized enterprises (SMEs) have led to a decline in profitability and created an urgent need to reduce costs. As a result, banks have reduced their staff, mainly by closing regional branches and converting to online banking. Members regretted that the financial sectors in other Member States are under similar pressure and suggested that Member State governments consider whether the EGF could play a useful role in enabling employees to adjust to these changes. Personalised package of services : Members noted that the Netherlands is planning seven types of actions for the redundant workers covered by this application: intake, job search assistance, mobility pool, entrepreneurship promotion training and coaching, training and re-training, outplacement assistance, entrepreneurship promotion grant.

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