2010/0005(BUD)

Mobilisation of the European Globalisation Adjustment Fund: redundancies in automotive manufacturing industry in Germany

Procedure completed

2010/0005(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in automotive manufacturing industry in Germany
RoleCommitteeRapporteurShadows
Lead BUDG BÖGE Reimer (EPP)
Opinion EMPL
Lead committee dossier: BUDG/7/02159
Subjects
Links

Activites

  • 2010/04/08 Final act published in Official Journal
  • 2010/03/09 Budgetary text adopted by Parliament
    • T7-0042/2010 summary
    • Results of vote in Parliament
  • 2010/03/08 Draft budget approved by Council
  • #3000
  • 2010/03/08 Council Meeting
  • 2010/02/25 Budgetary report tabled for plenary, 1st reading
  • 2010/02/25 Budgetary report tabled for plenary, 1st reading
  • 2010/02/23 Vote in committee, 1st reading/single reading
  • 2010/02/08 Committee referral announced in Parliament, 1st reading/single reading
  • 2010/02/05 Committee draft report
  • 2010/01/22 Non-legislative basic document published
    • COM(2010)0007 summary
  • 2010/01/22 Date
  • 2010/01/22 Non-legislative basic document
    • COM(2010)0007 summary
    • DG Budget, LEWANDOWSKI Janusz
  • 2009/11/30 Document attached to the procedure
    • SEC(2009)1619 summary
    • DG Budget, LEWANDOWSKI Janusz

Documents

History

(these mark the time of scraping, not the official date of the change)

2012-02-09
activities added
  • date
    2009-11-30
    docs
    • url
      http://www.europarl.europa.eu/registre/docs_autres_institutions/commission_europeenne/sec/2009/1619/COM_SEC(2009)1619_EN.pdf
      text
      • In this document, the Commission gives a detailed analysis of the reasons for which it is proposing the mobilisation of the European Globalisation Adjustment Fund in favour Germany.

        The application relates to 2 476 redundancies in different parts of the Karmann group, of which 1 618 occurred during the reference period, 803 before the reference period and 55 after the reference period.

        In order to establish the link between the redundancies and structural changes in world trade patterns, Germany argues that the automotive manufacturing industry in the EU has been seriously impacted by a change in world trade patterns, in particular a significant reduction of the EU market share. The application cites a reduction in EU market share (in terms of the numbers of cars produced) from 32.1% in 2000 to 25.8% in 2008, to the advantage of the BRIC countries (Brazil, Russia, India and China), the market share of which increased from 8.9% in 2000 to 21.2% in 2008.

        The German authorities further argue that the impact of the structural changes in world trade has been exacerbated by the global financial and economic crisis and the ensuing reduction in demand for motor vehicles since the second half of 2008.

        In conclusion, it is the opinion of the Commission services that the 2 476 redundancies in Karmann can be linked to structural changes in world trade patterns, which have led to a significant reduction of the EU market share in the production of motor cars.

        Accordingly, the Commission's analysis leads it to conclude that it will approve EGF/2009/013 DE/Karmann submitted by Germany relating to the redundancies in Karmann, as evidence has been provided that these redundancies result from structural changes in world trade patterns which have led to a serious economic disruption, affecting the regional or local economy. A co-ordinated package of eligible personalised services has been proposed. It is proposed to deploy EUR 258 163 from the EGF.

      type
      Document attached to the procedure
      title
      SEC(2009)1619
    body
    EC
    commission
    • DG
      Budget
      Commissioner
      LEWANDOWSKI Janusz
    type
    Document attached to the procedure
  • date
    2010-01-22
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2010&nu_doc=0007
      text
      • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the automotive manufacturing sector in Germany.

        PROPOSED ACT: Decision of the European Parliament and of the Council.

        CONTENT: Regulation (EC) No 1927/2006 established the European Globalisation Adjustment Fund to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. This Regulation was last amended by Regulation (EC) N° 546/2009 which broadens temporarily the scope for application of EGF. The amended Regulation is applicable for applications received as of 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis. The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual ceiling of EUR 500 million.

        The Commission carried out a thorough examination of the application submitted by Germany:

        Germany: Case EGF/2009/013 DE/ Karmann: Germany submitted the application to the Commission on 13 August 2009 and supplemented it by additional information up to 23 October 2009. It was based upon the specific intervention criteria of Article 2(a) of Regulation (EC) No 1927/2006 which requires at least 500 redundancies over a four-month period in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers. The application concerns 2 476 redundancies in two companies of the enterprise Karmann GmbH (Wilhelm Karman GmbH and Karmann-Rheine GmbH & Co.KG), of whom 1 793 are targeted for EGF assistance.

        IMPACT ASSESSMENT: non applicable.

        FINANCIAL IMPLICATIONS: the total annual budget available for the EGF is EUR 500 million. An amount of EUR 258 163 has already been mobilised for prior application in 2010 leaving an amount of EUR 499 741 837 available. The Commission's proposed allocation under the Fund is based on the information made available by Germany. On the basis of the application for support from the Fund submitted by Germany and in which the automotive manufacturing sector is affected, the contribution from the EGF to the coordinated package of personalised services to be funded is of EUR 6 199 341, representing 65% of the total cost.

        By presenting this proposal to deploy the Fund, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Inter-institutional Agreement of 17 May 2006, in view of securing the agreement of the two arms of the budgetary authority on the need to use the Fund and the amount required. The Commission invites the first of the two arms of the Budgetary Authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions.

      title
      COM(2010)0007
      type
      Non-legislative basic document published
      celexid
      CELEX:52010PC0007:EN
    body
    type
    Non-legislative basic document published
  • body
    EP
    date
    2010-01-22
    type
    Date
  • date
    2010-01-22
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2010&nu_doc=0007
      text
      • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the automotive manufacturing sector in Germany.

        PROPOSED ACT: Decision of the European Parliament and of the Council.

        CONTENT: Regulation (EC) No 1927/2006 established the European Globalisation Adjustment Fund to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. This Regulation was last amended by Regulation (EC) N° 546/2009 which broadens temporarily the scope for application of EGF. The amended Regulation is applicable for applications received as of 1 May 2009 to include support for workers made redundant as a direct result of the global financial and economic crisis. The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the EGF within the annual ceiling of EUR 500 million.

        The Commission carried out a thorough examination of the application submitted by Germany:

        Germany: Case EGF/2009/013 DE/ Karmann: Germany submitted the application to the Commission on 13 August 2009 and supplemented it by additional information up to 23 October 2009. It was based upon the specific intervention criteria of Article 2(a) of Regulation (EC) No 1927/2006 which requires at least 500 redundancies over a four-month period in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers. The application concerns 2 476 redundancies in two companies of the enterprise Karmann GmbH (Wilhelm Karman GmbH and Karmann-Rheine GmbH & Co.KG), of whom 1 793 are targeted for EGF assistance.

        IMPACT ASSESSMENT: non applicable.

        FINANCIAL IMPLICATIONS: the total annual budget available for the EGF is EUR 500 million. An amount of EUR 258 163 has already been mobilised for prior application in 2010 leaving an amount of EUR 499 741 837 available. The Commission's proposed allocation under the Fund is based on the information made available by Germany. On the basis of the application for support from the Fund submitted by Germany and in which the automotive manufacturing sector is affected, the contribution from the EGF to the coordinated package of personalised services to be funded is of EUR 6 199 341, representing 65% of the total cost.

        By presenting this proposal to deploy the Fund, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Inter-institutional Agreement of 17 May 2006, in view of securing the agreement of the two arms of the budgetary authority on the need to use the Fund and the amount required. The Commission invites the first of the two arms of the Budgetary Authority that reaches agreement on the draft mobilisation proposal, at appropriate political level, to inform the other arm and the Commission of its intentions.

      title
      COM(2010)0007
      type
      Non-legislative basic document
      celexid
      CELEX:52010PC0007:EN
    body
    EC
    commission
    • DG
      Budget
      Commissioner
      LEWANDOWSKI Janusz
    type
    Non-legislative basic document
  • date
    2010-02-05
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE438.417
      type
      Committee draft report
      title
      PE438.417
    body
    EP
    type
    Committee draft report
  • date
    2010-02-08
    body
    EP
    type
    Committee referral announced in Parliament, 1st reading/single reading
    committees
  • date
    2010-02-23
    text
    • The Committee on Budgets adopted the report by Reimer BÖGE (EPP, DE) on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (EGF) for a total amount of EUR 6 199 341 in commitment and payment appropriations to assist Germany in respect of redundancies in the automotive manufacturing sector.

      MEPs recall that the European Union set up the appropriate legislative and budgetary instruments to provide additional support to workers who suffer from the consequences of major structural changes in world trade patterns and to assist their reintegration into the labour market.

      Given that Germany requested assistance in respect of cases concerning redundancies in the automotive manufacturing industry which occurred in one enterprise - Karmann - and that the application fulfils the eligibility criteria set up by the EGF Regulation, MEPs request the institutions involved to make the necessary efforts to accelerate the mobilisation of the EGF for the requested amount.

      MEPs recall the institutions' commitment to ensure a smooth and rapid procedure for the adoption of the decisions on the mobilisation of the EGF, providing one-off, time-limited individual support geared to helping workers who have suffered redundancies as a result of globalisation. They stress that the European Union should use all its means to face the consequences of the global economic and financial crisis and that in this context, the EGF can play a crucial role in the reintegration of the workers made redundant into the labour market.

      In addition, MEPs recall that:

      • the EGF should support the reintegration of the individual redundant workers into employment and that assistance from the EGF shall not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
      • in the context of mobilising the EGF, the Commission should not systematically transfer payment appropriations from the ESF, since the EGF was created as a separate specific instrument with its own objectives and deadlines;
      • the functioning and the added value of the EGF should be evaluated in the context of the general assessment of the programmes and other various instruments created by the IIA of 17 May 2006, within the process of the 2007-2013 multiannual financial framework mid-term review.

      Furthermore, MEPs call on the Commission to include, in proposals for the mobilisation of the EGF, as well as in its annual reports, precise information on the complementary funding received from the European Social Fund (ESF) and other Structural Funds.

      Lastly, they note that the new Commission's proposals for a decision on the mobilisation of the EGF refer to a sole Member State's application, which is in line with European Parliament requests.

    body
    EP
    committees
    type
    Vote in committee, 1st reading/single reading
  • date
    2010-02-25
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2010-0020&language=EN
      type
      Budgetary report tabled for plenary, 1st reading
      title
      A7-0020/2010
    body
    type
    Budgetary report tabled for plenary, 1st reading
  • date
    2010-02-25
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2010-0020&language=EN
      type
      Budgetary report tabled for plenary, 1st reading
      title
      A7-0020/2010
    body
    EP
    type
    Budgetary report tabled for plenary, 1st reading
  • date
    2010-03-08
    body
    type
    Draft budget approved by Council
  • date
    2010-03-08
    body
    CSL
    type
    Council Meeting
    council
    Employment, Social Policy, Health and Consumer Affairs
    meeting_id
    3000
  • date
    2010-03-09
    docs
    body
    EP
    type
    Budgetary text adopted by Parliament
  • date
    2010-04-08
    text
    • PURPOSE: to mobilise the European Globalisation Fund (EGF) in respect of redundancies in the German automotive industry.

      LEGISLATIVE ACT: Decision 2010/201/EU of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management.

      CONTENT: by this decision, the European Parliament and the Council have decided that for the general budget of the European Union for the financial year 2010, the European Globalisation Adjustment Fund shall be mobilised to provide the sum of EUR 6 199 341 in commitment and payment appropriations.

      Given that this application complies with the requirements for determining the financial contributions as laid down in Article 10 of Regulation (EC) No 1927/2006 (EGF), Parliament and Council have agreed that the abovementioned amount should be granted to Germany to meet its request.

      To recall, the European Globalisation Adjustment Fund (EGF) aims to provide additional support to redundant workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market. The Interinstitutional Agreement of 17 May 2006 on budgetary discipline allows for the mobilisation of the Fund through a flexibility mechanism, within the annual ceiling of EUR 500 million. It should also be noted that the scope of the Fund's application was extended as of 1 May 2009 to include assistance to workers made redundant as a result of the global economic and financial crisis.

    type
    Final act published in Official Journal
    docs
committees added
  • body
    EP
    responsible
    True
    committee
    BUDG
    date
    2010-01-27
    committee_full
    Budgets
    rapporteur
    • group
      EPP
      name
      BÖGE Reimer
  • body
    EP
    responsible
    False
    committee_full
    Employment and Social Affairs
    committee
    EMPL
links added
other added
  • body
    EC
    dg
    Budget
    commissioner
    LEWANDOWSKI Janusz
procedure added
dossier_of_the_committee
BUDG/7/02159
reference
2010/0005(BUD)
title
Mobilisation of the European Globalisation Adjustment Fund: redundancies in automotive manufacturing industry in Germany
geographical_area
  • Germany FR
stage_reached
Procedure completed
subtype
Mobilisation of funds
type
BUD - Budgetary procedure
final
subject

code AGPLv3.0+, data ODBLv1.0, site-content CC-By-Sa-3.0
© European Union, 2011 – Source: European Parliament