2011/2158(BUD)

Mobilisation of the European Globalisation Adjustment Fund: redundancies in the automotive sector in France

Procedure completed

2011/2158(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the automotive sector in France
RoleCommitteeRapporteurShadows
Lead BUDG MATERA Barbara (EPP)
Opinion EMPL
Lead committee dossier: BUDG/7/06525
Subjects
Links

Activites

  • 2012/01/10 Final act published in Official Journal
  • 2011/12/15 Budgetary text adopted by Parliament
    • T7-0579/2011 summary
    • Results of vote in Parliament
  • 2011/11/24 Draft budget approved by Council
  • #3127
  • 2011/11/24 Council Meeting
  • 2011/11/23 Budgetary report tabled for plenary, 1st reading
    • A7-0396/2011 summary
  • 2011/11/23 Budgetary report tabled for plenary, 1st reading
    • A7-0396/2011 summary
  • 2011/11/09 Deadline Amendments
  • 2011/10/31 Committee draft report
  • 2011/09/13 Committee referral announced in Parliament, 1st reading/single reading
  • 2011/07/11 Non-legislative basic document published
    • COM(2011)0420 summary
  • 2011/07/11 Date
  • 2011/07/11 Non-legislative basic document
    • COM(2011)0420 summary
    • DG Budget, LEWANDOWSKI Janusz

Documents

Votes

A7-0396/2011 - Barbara Matera - Résolution

2011/12/15
Position Total ALDE ECR EFD GUE/NGL NI PPE S&D Verts/ALE correctional
For 448 51 0 13 2 11 207 164 0 0
Against 87 1 44 5 15 8 10 1 3 0
Abstain 90 23 0 1 10 3 10 0 43 0
AmendmentsDossier
21 2011/2158(BUD) Mobilisation of the European Globalisation Adjustment Fund: redundancies in the automotive sector in France
2011/08/09 BUDG 10 amendments...
source: PE-472.113
2011/09/11 BUDG 11 amendments...
source: PE-475.905

History

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

2012-02-09
activities added
  • date
    2011-07-11
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2011&nu_doc=0420
      text
      • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the automotive sector in France.

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

        CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 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 European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

        The Commission services have carried out a thorough examination of the application submitted by France to mobilise the EGF. The main elements of the assessment are as follows:

        France:EGF/2009/019 FR/Renault: on 9 October 2009, France submitted application EGF/2009/019 FR/Renault for a financial contribution from the EGF, following redundancies in Renault s.a.s. and seven of its subsidiaries in France. The application was supplemented by additional information up to 10 February 2011.

        In order to establish the link between the redundancies and the global financial and economic crisis, France argues that Renault suffered from the increasing cost of credit and the hardening of credit conditions from 2008 onwards, which seriously affected the ability of the enterprise to fund its own activities in the short term as well as its investment plans or the future. At the same time, consumers also felt the tightening of credit and the effects of the global financial and economic crisis, leading to anxiety about job security and the postponement of vehicle purchases. Despite the temporary measures introduced by some Member States (e.g. scrappage schemes), registrations of new Renault cars in Europe dropped by 6.5% between 2007 and 2008. This downward tendancy accelerated during the fourth quarter of 2008, when new registrations dropped from -15.2% in October 2008 to - 27.5% in December 2008 compared with the same period of 2007.

        France submitted this application under the 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 and downstream producers. The application cites 1 384 redundancies in Renault s.a.s. and six suppliers during the four-month reference period from 1 April 2009 to 31 July 2009 and a further 3 061 redundancies in Renault s.a.s. and seven suppliers outside the reference period, but included in the same voluntary redundancy plan.

        All of these redundancies were calculated in accordance with the first indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006. After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

        On the basis of the application from France, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 24 493 525, representing 65% of the total cost.

        IMPACT ASSESSMENT: no impact assessment was carried out.

        FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

        The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12(6) of Regulation (EC) No 1927/2006.

        By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF 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. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

        The remaining amount of payment appropriations initially entered on the budget line 04.0501 after adoption by both arms of the budgetary authority of the proposals submitted to date for mobilising the EGF is EUR 808 079 and is therefore not sufficient to cover the amount of EUR 24 493 525 needed for the present application. As a reinforcement of the EGF budget line 04.0501 by EUR 50 000 000 is foreseen through AB2/2011, this budget line will be used to cover the amount of EUR 24 493 525 needed for the present application.

      title
      COM(2011)0420
      type
      Non-legislative basic document published
      celexid
      CELEX:52011PC0420:EN
    body
    type
    Non-legislative basic document published
  • body
    EP
    date
    2011-07-11
    type
    Date
  • date
    2011-07-11
    docs
    • url
      http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2011&nu_doc=0420
      text
      • PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) in respect of redundancies in the automotive sector in France.

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

        CONTENT: the European Globalisation Adjustment Fund (EGF) was established by Council Regulation No 1927/2006 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 European Globalisation Adjustment Fund (EGF) through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.

        The Commission services have carried out a thorough examination of the application submitted by France to mobilise the EGF. The main elements of the assessment are as follows:

        France:EGF/2009/019 FR/Renault: on 9 October 2009, France submitted application EGF/2009/019 FR/Renault for a financial contribution from the EGF, following redundancies in Renault s.a.s. and seven of its subsidiaries in France. The application was supplemented by additional information up to 10 February 2011.

        In order to establish the link between the redundancies and the global financial and economic crisis, France argues that Renault suffered from the increasing cost of credit and the hardening of credit conditions from 2008 onwards, which seriously affected the ability of the enterprise to fund its own activities in the short term as well as its investment plans or the future. At the same time, consumers also felt the tightening of credit and the effects of the global financial and economic crisis, leading to anxiety about job security and the postponement of vehicle purchases. Despite the temporary measures introduced by some Member States (e.g. scrappage schemes), registrations of new Renault cars in Europe dropped by 6.5% between 2007 and 2008. This downward tendancy accelerated during the fourth quarter of 2008, when new registrations dropped from -15.2% in October 2008 to - 27.5% in December 2008 compared with the same period of 2007.

        France submitted this application under the 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 and downstream producers. The application cites 1 384 redundancies in Renault s.a.s. and six suppliers during the four-month reference period from 1 April 2009 to 31 July 2009 and a further 3 061 redundancies in Renault s.a.s. and seven suppliers outside the reference period, but included in the same voluntary redundancy plan.

        All of these redundancies were calculated in accordance with the first indent of the second paragraph of Article 2 of Regulation (EC) No 1927/2006. After a thorough examination of this application, the Commission has concluded in accordance with Article 10 of Regulation (EC) No 1927/2006 that the conditions for a financial contribution under this Regulation are met.

        On the basis of the application from France, the proposed contribution from the EGF to the coordinated package of personalised services is EUR 24 493 525, representing 65% of the total cost.

        IMPACT ASSESSMENT: no impact assessment was carried out.

        FINANCIAL IMPLICATIONS: considering the maximum possible amount of a financial contribution from the EGF under Article 10(1) of Regulation (EC) No 1927/2006, as well as the scope for reallocating appropriations, the Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.

        The proposed amount of financial contribution will leave more than 25% of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12(6) of Regulation (EC) No 1927/2006.

        By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Interinstitutional Agreement of 17 May 2006, with a view to securing the agreement of the two arms of the budgetary authority on the need to use the EGF 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. In case of disagreement by either of the two arms of the budgetary authority, a formal trialogue meeting will be convened.

        The remaining amount of payment appropriations initially entered on the budget line 04.0501 after adoption by both arms of the budgetary authority of the proposals submitted to date for mobilising the EGF is EUR 808 079 and is therefore not sufficient to cover the amount of EUR 24 493 525 needed for the present application. As a reinforcement of the EGF budget line 04.0501 by EUR 50 000 000 is foreseen through AB2/2011, this budget line will be used to cover the amount of EUR 24 493 525 needed for the present application.

      title
      COM(2011)0420
      type
      Non-legislative basic document
      celexid
      CELEX:52011PC0420:EN
    body
    EC
    commission
    • DG
      Budget
      Commissioner
      LEWANDOWSKI Janusz
    type
    Non-legislative basic document
  • date
    2011-09-13
    body
    EP
    type
    Committee referral announced in Parliament, 1st reading/single reading
    committees
  • date
    2011-10-31
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE469.852
      type
      Committee draft report
      title
      PE469.852
    body
    EP
    type
    Committee draft report
  • body
    EP
    date
    2011-11-09
    type
    Deadline Amendments
  • date
    2011-11-23
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2011-0396&language=EN
      text
      • The Committee on Budgets adopted the report drafted by Barbara MATERA (EPP, IT) on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 24 493 525 in commitment and payment appropriations in respect of redundancies in the automotive sector in France.

        Members recall that the European Union has set up the appropriate 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.

        Given that France has requested assistance in respect of a case concerning 4 445 redundancies, of which 3 582 targeted for assistance, in the enterprise Renault s.a.s. and seven of its suppliers from the automotive industry, Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF for the requested amount.

        The EGF application submitted by France does not cover the Renault workers who opted for the early retirement scheme and to which the EGF aid could not be allocated under Regulation (EC) No 1927/2006, but saw their pension rights altered by the pension reform which came into force in the meantime. In this regard, Members consider that the efforts made by all parties involved to find a viable solution so that these former Renault workers can complement their pension rights should be noted.

        Whilst Members appreciate the improved procedure put in place by the Commission, following the Parliament's request for accelerating the release of grants, they note the lengthy assessment period in respect of this particular application. They hope that further improvements in the procedure will be reached in the framework of the upcoming reviews of the EGF.

        The report notes that that the first results on the efficiency of the measures targeting the dismissed workers should soon be available and note that the success rates are a key indicator of the efficiency of the fund. They call on the Commission for a strong and close monitoring and guidance in ensuring that the training on offer matches the local economic trends.

        Members recall the institutions’ commitment to ensuring 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 and the financial and economic crisis.

        Members recall that:

        • the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
        • the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds.

        In parallel, Members note the fact that, following repeated requests from the Parliament, for the first time the 2011 budget shows payment appropriations of EUR 47 608 950 on the EGF budget line 04 05 01. They recall that the EGF was created as a separate specific instrument with its own objectives and deadlines.

      type
      Budgetary report tabled for plenary, 1st reading
      title
      A7-0396/2011
    body
    type
    Budgetary report tabled for plenary, 1st reading
  • date
    2011-11-23
    docs
    • url
      http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A7-2011-0396&language=EN
      text
      • The Committee on Budgets adopted the report drafted by Barbara MATERA (EPP, IT) on the proposal for a decision of the European Parliament and of the Council on mobilisation of the European Globalisation Adjustment Fund for an amount of EUR 24 493 525 in commitment and payment appropriations in respect of redundancies in the automotive sector in France.

        Members recall that the European Union has set up the appropriate 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.

        Given that France has requested assistance in respect of a case concerning 4 445 redundancies, of which 3 582 targeted for assistance, in the enterprise Renault s.a.s. and seven of its suppliers from the automotive industry, Members request the institutions involved to make the necessary efforts to improve procedural and budgetary arrangements in order to accelerate the mobilisation of the EGF for the requested amount.

        The EGF application submitted by France does not cover the Renault workers who opted for the early retirement scheme and to which the EGF aid could not be allocated under Regulation (EC) No 1927/2006, but saw their pension rights altered by the pension reform which came into force in the meantime. In this regard, Members consider that the efforts made by all parties involved to find a viable solution so that these former Renault workers can complement their pension rights should be noted.

        Whilst Members appreciate the improved procedure put in place by the Commission, following the Parliament's request for accelerating the release of grants, they note the lengthy assessment period in respect of this particular application. They hope that further improvements in the procedure will be reached in the framework of the upcoming reviews of the EGF.

        The report notes that that the first results on the efficiency of the measures targeting the dismissed workers should soon be available and note that the success rates are a key indicator of the efficiency of the fund. They call on the Commission for a strong and close monitoring and guidance in ensuring that the training on offer matches the local economic trends.

        Members recall the institutions’ commitment to ensuring 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 and the financial and economic crisis.

        Members recall that:

        • the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements, nor measures restructuring companies or sectors;
        • the information provided on the coordinated package of personalised services to be funded from the EGF includes information on the complementarity with actions funded by the Structural Funds.

        In parallel, Members note the fact that, following repeated requests from the Parliament, for the first time the 2011 budget shows payment appropriations of EUR 47 608 950 on the EGF budget line 04 05 01. They recall that the EGF was created as a separate specific instrument with its own objectives and deadlines.

      type
      Budgetary report tabled for plenary, 1st reading
      title
      A7-0396/2011
    body
    EP
    type
    Budgetary report tabled for plenary, 1st reading
  • date
    2011-11-24
    body
    type
    Draft budget approved by Council
  • date
    2011-11-24
    body
    CSL
    type
    Council Meeting
    council
    Transport, Telecommunications and Energy
    meeting_id
    3127
  • date
    2011-12-15
    docs
    body
    EP
    type
    Budgetary text adopted by Parliament
  • date
    2012-01-10
    docs
    type
    Final act published in Official Journal
committees added
  • body
    EP
    responsible
    True
    committee
    BUDG
    date
    2011-07-12
    committee_full
    Budgets
    rapporteur
    • group
      EPP
      name
      MATERA Barbara
  • 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/7/06525
reference
2011/2158(BUD)
title
Mobilisation of the European Globalisation Adjustment Fund: redundancies in the automotive sector in France
geographical_area
  • France
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