PURPOSE: to mobilise the European Globalisation\nAdjustment Fund (EGF) in respect of redundancies in the\nconstruction of buildings in Spain.
\nPROPOSED ACT: Decision of the European Parliament and\nof the Council.
\nCONTENT: the European Globalisation Adjustment Fund\n(EGF) was established by Council Regulation No\n1927/2006 to provide additional support to\nredundant workers who suffer from the consequences of major\nstructural changes in world trade patterns and to assist them with\ntheir reintegration into the labour market.
\nThe Interinstitutional Agreement of 17 May 2006 on\nbudgetary discipline allows for the mobilisation\nof the European Globalisation Adjustment Fund (EGF) through a\nflexibility mechanism, within the annual ceiling of EUR 500 million\nover and above the relevant headings of the financial\nframework.
\nThe Commission services have carried out a thorough\nexamination of the application submitted by Spain to mobilise the\nEGF. The main elements of the assessment are as follows:
\nSpain:\napplication EGF/2011/017 ES/Aragón Construction: on\n28 December 2011, Spain submitted application EGF/2011/017\nES/Aragón construction for a financial contribution from the\nEGF, following redundancies in 377 enterprises operating in the\nNACE Revision 2 Division 41 ('Construction of buildings') in the\nNUTS II region of Aragón (ES24) in Spain. The application\nwas supplemented by additional information up to 23 March 2012.
\nIn order to\nestablish the link between the redundancies and the global\nfinancial and economic crisis, Spain argues that the construction\nsector has been severely affected by the crisis. Loans to the\nconstruction sector and to individuals have been drastically\nreduced and the demand for new houses decreased due to declining\nconsumer confidence and the lack of cash.
\nThe Commission\nrecognised in its Economic Recovery Plan that the construction\nindustry in the EU had seen demand plummet as a result of the\ncrisis. In 2009 construction output in Spain followed the same\nnegative trend as the EU-27 average. However, in 2010 and the first\nhalf of 2011 the downturn in the Spanish construction sector was\nfurther exacerbated.
\nThe Spanish\nauthorities argue that the financial and economic crisis has led to\na sudden collapse of the world economy with enormous impact on many\nsectors. The nature of the recession as far as the construction\nsector is concerned, with a sudden tightening of conditions for\naccess to financial credit and a dramatic slowdown in new orders,\nwas unprecedented in recent times. As a result of the crisis,\neconomic developments since 2008 have not been following the trends\nof previous years. The redundancies in the construction industry\ncould not therefore have been foreseen or easily prevented.
\nSpain submitted this\napplication under the intervention criteria of Article 2(b) of\nRegulation (EC) No 1927/2006, which requires at least 500\nredundancies over a nine-month period in enterprises operating in\nthe same NACE Revision 2 Division in one region or two contiguous\nregions at NUTS II level in a Member State. The application cites\n836 redundancies in 377 enterprises operating in the NACE\nRevision 2 Division 41 ('Construction of buildings') in the NUTS II\nregion of Aragón (ES24) during the nine-month reference\nperiod from 31 January 2011 to 31 October 2011.
\nAfter a thorough\nexamination of this application, the Commission has concluded in\naccordance with Article 10 of Regulation (EC) No 1927/2006 that the\nconditions for a financial contribution under this Regulation are\nmet.
\nOn the basis of the\napplication from Spain, the proposed contribution from the EGF to\nthe coordinated package of personalised services (including\nexpenditure to implement EGF) is EUR 1 300 000, representing 65 %\nof the total cost.
\nIMPACT ASSESSMENT: no impact assessment was carried\nout.
\nFINANCIAL IMPLICATIONS: considering the maximum\npossible amount of a financial contribution from the EGF under\nArticle 10(1) of Regulation (EC) No 1927/2006, as well as the scope\nfor reallocating appropriations, the Commission proposes to\nmobilise the EGF for the total amount referred to above, to be\nallocated under heading 1a of the financial framework.
\nThe proposed amount\nof financial contribution will leave more than 25 % of the maximum\nannual amount earmarked for the EGF available for allocations\nduring the last four months of the year, as required by Article\n12(6) of Regulation (EC) No 1927/2006.
\nBy presenting this\nproposal to mobilise the EGF, the Commission initiates the\nsimplified trialogue procedure, as required by Point 28 of the\nInterinstitutional Agreement of 17 May 2006, with a view to\nsecuring the agreement of the two arms of the budgetary authority\non the need to use the EGF and the amount required. The Commission\ninvites the first of the two arms of the budgetary authority that\nreaches agreement on the draft mobilisation proposal, at\nappropriate political level, to inform the other arm and the\nCommission of its intentions. In case of disagreement by either of\nthe two arms of the budgetary authority, a formal trialogue meeting\nwill be convened.
\nThe Commission\npresents separately a transfer request in order to enter in the\n2012 budget specific commitment appropriations, as required in\nPoint 28 of the Interinstitutional Agreement of 17 May 2006.
\nThe Committee on Budgets adopted the report drafted by\nJuan Andrés NARANJO ESCOBAR (EPP, ES) on the mobilisation of\nthe European Globalisation Adjustment Fund for an amount of EUR\n1 300 000 in commitment and payment appropriations to\nassist Spain in respect of redundancies in construction of\nbuildings.
\nMembers recall that the European Union has set up the\nappropriate legislative and budgetary instruments to provide\nadditional support to workers who are suffering from the\nconsequences of major structural changes in world trade patterns\nand to assist their reintegration into the labour market. Given\nthat Spain has requested assistance for 836 redundancies, 320 of\nwhich are targeted for assistance, in 377 enterprises operating in\nthe NACE Revision 2 Division 41 ('Construction of buildings') in\nthe NUTS II region of Aragón (ES24) in Spain, Members\nrequest the institutions involved to make the necessary efforts to\nimprove procedural and budgetary arrangements in order to\naccelerate the mobilisation of the EGF for the requested amount.\nMoreover, they agree with the Commission that the conditions set\nout in Article 2(b) of the EGF Regulation are met and that,\ntherefore, Spain is entitled to a financial contribution under\nthat Regulation.
\nMembers note that the region of Aragón has been\nhard hit in the past by mass dismissals and that Spain has\nsubmitted two EGF applications for the Aragón region before:\nEGF/2008/004 ES Castilla y León &\nAragón (1 082 redundancies in the\nautomotive industry of which 594 occurred in Aragón) and\nEGF/2010/016 ES Aragón\nretail (1 154 redundancies in the retail sector).
\nThey welcome the fact that the region builds on the\nexperience with the EGF and quickly assists workers in several\nsectors. They firmly believe that the anticipated EGF assistance\ncan further contribute to preventing the risk of depopulation in\nthe region of Aragón (currently comprising between 3 and 54\ninhabitants per km²) by effectively encouraging the\npopulation to remain in this territory.
\nThey also note that the Spanish authorities decided to\nstart the implementation of the measures well ahead of the final\ndecision on granting the EGF support for the proposed coordinated\npackage.
\nIn addition, they welcome:
\nIn this respect, they highlight the fact that lessons\nshould be learned from the preparation and implementation of this\nand other applications addressing mass dismissals in a high number\nof SMEs in one sector, in particular, in terms of the eligibility\nof self-employed and owners of the SMEs for EGF support in the\nfuture regulation.
\nMembers:
\nMoreover, Members welcome the fact that following\nrequests from Parliament, the 2012 budget shows payment\nappropriations of EUR 50 000 000 on the EGF budget line 04 05 01.\nThey recall that the EGF was created as a separate specific\ninstrument with its own objectives and deadlines and that it\ntherefore deserves a dedicated allocation, which will avoid there\nbeing transfers from other budget lines, as happened in the past,\nwhich could be detrimental to the achievement of the policy\nobjectives of the EGF.
\nMembers regret the decision of the Council to block\nthe extension of the \"crisis derogation\", which allows\nprovision of financial assistance to workers made redundant as a\nresult of the current financial and economic crisis in addition to\nthose losing their job because of changes in global trade patterns,\nand which allows an increase in the rate of Union cofinancing to\n65% of the programme costs, for applications submitted after the 31\nDecember 2011 deadline. They call on the Council to reintroduce\nthis measure without delay.
\nThe European Parliament adopted by 583 votes to 68,\nwith 22 abstentions, a resolution approving the proposal for a\ndecision on the mobilisation of the European Globalisation\nAdjustment Fund for an amount of EUR 1 300 000 in commitment and payment\nappropriations to assist Spain in respect of redundancies in\nthe construction of buildings.
\nParliament recalls\nthat the European Union has set up the appropriate legislative and\nbudgetary instruments to provide additional support to workers who\nare suffering from the consequences of major structural changes in\nworld trade patterns and to assist their reintegration into the\nlabour market. Given that Spain has requested assistance for 836\nredundancies, 320 of which are targeted for assistance, in 377\nenterprises operating in the NACE Revision 2 Division 41\n('Construction of buildings') in the NUTS II region of\nAragón (ES24) in Spain, Members request the institutions\ninvolved to make the necessary efforts to improve procedural and\nbudgetary arrangements in order to accelerate the mobilisation of\nthe EGF for the requested amount. Moreover, they agree with the\nCommission that the conditions set out in Article 2(b) of the EGF\nRegulation are met and that, therefore, Spain is entitled to a\nfinancial contribution under that Regulation.
\nParliament notes\nthat the region of Aragón has been hard hit in the past by\nmass dismissals and that this is not the first EGF intervention in\nthis regard (EGF/2008/004\nES Castilla y León & Aragón and EGF/2010/016\nES Aragón).
\nIt welcomes the\nfact that the region builds on the experience with the EGF and\nfirmly believes that the anticipated EGF assistance can further\ncontribute to preventing the risk of depopulation in the region of\nAragón (currently comprising between 3 and 54 inhabitants\nper km²) by effectively encouraging the population to\nremain in this territory.
\nIn\nthis context, Parliament welcomes the allocation to Spain of the\namounts put forward in the proposal. It:
\nRevision of the EGF: Parliament welcomes the fact that following its\nrepeated requests, the sum of EUR 50 million in payment\nappropriations has been allocated to the budget line 04 05 01 for\nthe EGF. It recalls that the EGF was created as a separate specific\ninstrument with its own objectives and deadlines and that it\ntherefore deserves a dedicated allocation, which will avoid there\nbeing transfers from other budget lines, as happened in the past.\nIt regrets the decision of the Council to block the extension of\nthe \"crisis derogation\". This derogation makes provision for\nfinancial assistance to workers made redundant as a result of the\ncurrent financial and economic crisis in addition to those losing\ntheir job because of changes in global trade patterns. It also\nallows an increase in the rate of Union cofinancing to 65% of the\nprogramme costs for applications submitted after the 31 December\n2011 deadline. It calls on the Council to reintroduce this measure\nwithout delay.
\nParliament\nhighlights the fact that lessons should be learned from the\npreparation and implementation of this and other applications\naddressing mass dismissals in a high number of SMEs in one sector,\nin particular, in terms of the eligibility of self-employed and\nowners of the SMEs for EGF support in the future\nregulation.
\nPURPOSE: to mobilise the European Globalisation\nAdjustment Fund (EGF) in respect of redundancies in the\nconstruction of buildings in Spain.
\nPROPOSED ACT: Decision of the European Parliament and\nof the Council.
\nCONTENT: the European Globalisation Adjustment Fund\n(EGF) was established by Council Regulation No\n1927/2006 to provide additional support to\nredundant workers who suffer from the consequences of major\nstructural changes in world trade patterns and to assist them with\ntheir reintegration into the labour market.
\nThe Interinstitutional Agreement of 17 May 2006 on\nbudgetary discipline allows for the mobilisation\nof the European Globalisation Adjustment Fund (EGF) through a\nflexibility mechanism, within the annual ceiling of EUR 500 million\nover and above the relevant headings of the financial\nframework.
\nThe Commission services have carried out a thorough\nexamination of the application submitted by Spain to mobilise the\nEGF. The main elements of the assessment are as follows:
\nSpain:\napplication EGF/2011/017 ES/Aragón Construction: on\n28 December 2011, Spain submitted application EGF/2011/017\nES/Aragón construction for a financial contribution from the\nEGF, following redundancies in 377 enterprises operating in the\nNACE Revision 2 Division 41 ('Construction of buildings') in the\nNUTS II region of Aragón (ES24) in Spain. The application\nwas supplemented by additional information up to 23 March 2012.
\nIn order to\nestablish the link between the redundancies and the global\nfinancial and economic crisis, Spain argues that the construction\nsector has been severely affected by the crisis. Loans to the\nconstruction sector and to individuals have been drastically\nreduced and the demand for new houses decreased due to declining\nconsumer confidence and the lack of cash.
\nThe Commission\nrecognised in its Economic Recovery Plan that the construction\nindustry in the EU had seen demand plummet as a result of the\ncrisis. In 2009 construction output in Spain followed the same\nnegative trend as the EU-27 average. However, in 2010 and the first\nhalf of 2011 the downturn in the Spanish construction sector was\nfurther exacerbated.
\nThe Spanish\nauthorities argue that the financial and economic crisis has led to\na sudden collapse of the world economy with enormous impact on many\nsectors. The nature of the recession as far as the construction\nsector is concerned, with a sudden tightening of conditions for\naccess to financial credit and a dramatic slowdown in new orders,\nwas unprecedented in recent times. As a result of the crisis,\neconomic developments since 2008 have not been following the trends\nof previous years. The redundancies in the construction industry\ncould not therefore have been foreseen or easily prevented.
\nSpain submitted this\napplication under the intervention criteria of Article 2(b) of\nRegulation (EC) No 1927/2006, which requires at least 500\nredundancies over a nine-month period in enterprises operating in\nthe same NACE Revision 2 Division in one region or two contiguous\nregions at NUTS II level in a Member State. The application cites\n836 redundancies in 377 enterprises operating in the NACE\nRevision 2 Division 41 ('Construction of buildings') in the NUTS II\nregion of Aragón (ES24) during the nine-month reference\nperiod from 31 January 2011 to 31 October 2011.
\nAfter a thorough\nexamination of this application, the Commission has concluded in\naccordance with Article 10 of Regulation (EC) No 1927/2006 that the\nconditions for a financial contribution under this Regulation are\nmet.
\nOn the basis of the\napplication from Spain, the proposed contribution from the EGF to\nthe coordinated package of personalised services (including\nexpenditure to implement EGF) is EUR 1 300 000, representing 65 %\nof the total cost.
\nIMPACT ASSESSMENT: no impact assessment was carried\nout.
\nFINANCIAL IMPLICATIONS: considering the maximum\npossible amount of a financial contribution from the EGF under\nArticle 10(1) of Regulation (EC) No 1927/2006, as well as the scope\nfor reallocating appropriations, the Commission proposes to\nmobilise the EGF for the total amount referred to above, to be\nallocated under heading 1a of the financial framework.
\nThe proposed amount\nof financial contribution will leave more than 25 % of the maximum\nannual amount earmarked for the EGF available for allocations\nduring the last four months of the year, as required by Article\n12(6) of Regulation (EC) No 1927/2006.
\nBy presenting this\nproposal to mobilise the EGF, the Commission initiates the\nsimplified trialogue procedure, as required by Point 28 of the\nInterinstitutional Agreement of 17 May 2006, with a view to\nsecuring the agreement of the two arms of the budgetary authority\non the need to use the EGF and the amount required. The Commission\ninvites the first of the two arms of the budgetary authority that\nreaches agreement on the draft mobilisation proposal, at\nappropriate political level, to inform the other arm and the\nCommission of its intentions. In case of disagreement by either of\nthe two arms of the budgetary authority, a formal trialogue meeting\nwill be convened.
\nThe Commission\npresents separately a transfer request in order to enter in the\n2012 budget specific commitment appropriations, as required in\nPoint 28 of the Interinstitutional Agreement of 17 May 2006.
\nThe European Parliament adopted by 583 votes to 68,\nwith 22 abstentions, a resolution approving the proposal for a\ndecision on the mobilisation of the European Globalisation\nAdjustment Fund for an amount of EUR 1 300 000 in commitment and payment\nappropriations to assist Spain in respect of redundancies in\nthe construction of buildings.
\nParliament recalls\nthat the European Union has set up the appropriate legislative and\nbudgetary instruments to provide additional support to workers who\nare suffering from the consequences of major structural changes in\nworld trade patterns and to assist their reintegration into the\nlabour market. Given that Spain has requested assistance for 836\nredundancies, 320 of which are targeted for assistance, in 377\nenterprises operating in the NACE Revision 2 Division 41\n('Construction of buildings') in the NUTS II region of\nAragón (ES24) in Spain, Members request the institutions\ninvolved to make the necessary efforts to improve procedural and\nbudgetary arrangements in order to accelerate the mobilisation of\nthe EGF for the requested amount. Moreover, they agree with the\nCommission that the conditions set out in Article 2(b) of the EGF\nRegulation are met and that, therefore, Spain is entitled to a\nfinancial contribution under that Regulation.
\nParliament notes\nthat the region of Aragón has been hard hit in the past by\nmass dismissals and that this is not the first EGF intervention in\nthis regard (EGF/2008/004\nES Castilla y León & Aragón and EGF/2010/016\nES Aragón).
\nIt welcomes the\nfact that the region builds on the experience with the EGF and\nfirmly believes that the anticipated EGF assistance can further\ncontribute to preventing the risk of depopulation in the region of\nAragón (currently comprising between 3 and 54 inhabitants\nper km²) by effectively encouraging the population to\nremain in this territory.
\nIn\nthis context, Parliament welcomes the allocation to Spain of the\namounts put forward in the proposal. It:
\nRevision of the EGF: Parliament welcomes the fact that following its\nrepeated requests, the sum of EUR 50 million in payment\nappropriations has been allocated to the budget line 04 05 01 for\nthe EGF. It recalls that the EGF was created as a separate specific\ninstrument with its own objectives and deadlines and that it\ntherefore deserves a dedicated allocation, which will avoid there\nbeing transfers from other budget lines, as happened in the past.\nIt regrets the decision of the Council to block the extension of\nthe \"crisis derogation\". This derogation makes provision for\nfinancial assistance to workers made redundant as a result of the\ncurrent financial and economic crisis in addition to those losing\ntheir job because of changes in global trade patterns. It also\nallows an increase in the rate of Union cofinancing to 65% of the\nprogramme costs for applications submitted after the 31 December\n2011 deadline. It calls on the Council to reintroduce this measure\nwithout delay.
\nParliament\nhighlights the fact that lessons should be learned from the\npreparation and implementation of this and other applications\naddressing mass dismissals in a high number of SMEs in one sector,\nin particular, in terms of the eligibility of self-employed and\nowners of the SMEs for EGF support in the future\nregulation.
\nThe Committee on Budgets adopted the report drafted by\nJuan Andrés NARANJO ESCOBAR (EPP, ES) on the mobilisation of\nthe European Globalisation Adjustment Fund for an amount of EUR\n1 300 000 in commitment and payment appropriations to\nassist Spain in respect of redundancies in construction of\nbuildings.
\nMembers recall that the European Union has set up the\nappropriate legislative and budgetary instruments to provide\nadditional support to workers who are suffering from the\nconsequences of major structural changes in world trade patterns\nand to assist their reintegration into the labour market. Given\nthat Spain has requested assistance for 836 redundancies, 320 of\nwhich are targeted for assistance, in 377 enterprises operating in\nthe NACE Revision 2 Division 41 ('Construction of buildings') in\nthe NUTS II region of Aragón (ES24) in Spain, Members\nrequest the institutions involved to make the necessary efforts to\nimprove procedural and budgetary arrangements in order to\naccelerate the mobilisation of the EGF for the requested amount.\nMoreover, they agree with the Commission that the conditions set\nout in Article 2(b) of the EGF Regulation are met and that,\ntherefore, Spain is entitled to a financial contribution under\nthat Regulation.
\nMembers note that the region of Aragón has been\nhard hit in the past by mass dismissals and that Spain has\nsubmitted two EGF applications for the Aragón region before:\nEGF/2008/004 ES Castilla y León &\nAragón (1 082 redundancies in the\nautomotive industry of which 594 occurred in Aragón) and\nEGF/2010/016 ES Aragón\nretail (1 154 redundancies in the retail sector).
\nThey welcome the fact that the region builds on the\nexperience with the EGF and quickly assists workers in several\nsectors. They firmly believe that the anticipated EGF assistance\ncan further contribute to preventing the risk of depopulation in\nthe region of Aragón (currently comprising between 3 and 54\ninhabitants per km²) by effectively encouraging the\npopulation to remain in this territory.
\nThey also note that the Spanish authorities decided to\nstart the implementation of the measures well ahead of the final\ndecision on granting the EGF support for the proposed coordinated\npackage.
\nIn addition, they welcome:
\nIn this respect, they highlight the fact that lessons\nshould be learned from the preparation and implementation of this\nand other applications addressing mass dismissals in a high number\nof SMEs in one sector, in particular, in terms of the eligibility\nof self-employed and owners of the SMEs for EGF support in the\nfuture regulation.
\nMembers:
\nMoreover, Members welcome the fact that following\nrequests from Parliament, the 2012 budget shows payment\nappropriations of EUR 50 000 000 on the EGF budget line 04 05 01.\nThey recall that the EGF was created as a separate specific\ninstrument with its own objectives and deadlines and that it\ntherefore deserves a dedicated allocation, which will avoid there\nbeing transfers from other budget lines, as happened in the past,\nwhich could be detrimental to the achievement of the policy\nobjectives of the EGF.
\nMembers regret the decision of the Council to block\nthe extension of the \"crisis derogation\", which allows\nprovision of financial assistance to workers made redundant as a\nresult of the current financial and economic crisis in addition to\nthose losing their job because of changes in global trade patterns,\nand which allows an increase in the rate of Union cofinancing to\n65% of the programme costs, for applications submitted after the 31\nDecember 2011 deadline. They call on the Council to reintroduce\nthis measure without delay.
\nPURPOSE: to mobilise the European Globalisation\nAdjustment Fund (EGF) in respect of redundancies in the\nconstruction of buildings in Spain.
\nPROPOSED ACT: Decision of the European Parliament and\nof the Council.
\nCONTENT: the European Globalisation Adjustment Fund\n(EGF) was established by Council Regulation No\n1927/2006 to provide additional support to\nredundant workers who suffer from the consequences of major\nstructural changes in world trade patterns and to assist them with\ntheir reintegration into the labour market.
\nThe Interinstitutional Agreement of 17 May 2006 on\nbudgetary discipline allows for the mobilisation\nof the European Globalisation Adjustment Fund (EGF) through a\nflexibility mechanism, within the annual ceiling of EUR 500 million\nover and above the relevant headings of the financial\nframework.
\nThe Commission services have carried out a thorough\nexamination of the application submitted by Spain to mobilise the\nEGF. The main elements of the assessment are as follows:
\nSpain:\napplication EGF/2011/017 ES/Aragón Construction: on\n28 December 2011, Spain submitted application EGF/2011/017\nES/Aragón construction for a financial contribution from the\nEGF, following redundancies in 377 enterprises operating in the\nNACE Revision 2 Division 41 ('Construction of buildings') in the\nNUTS II region of Aragón (ES24) in Spain. The application\nwas supplemented by additional information up to 23 March 2012.
\nIn order to\nestablish the link between the redundancies and the global\nfinancial and economic crisis, Spain argues that the construction\nsector has been severely affected by the crisis. Loans to the\nconstruction sector and to individuals have been drastically\nreduced and the demand for new houses decreased due to declining\nconsumer confidence and the lack of cash.
\nThe Commission\nrecognised in its Economic Recovery Plan that the construction\nindustry in the EU had seen demand plummet as a result of the\ncrisis. In 2009 construction output in Spain followed the same\nnegative trend as the EU-27 average. However, in 2010 and the first\nhalf of 2011 the downturn in the Spanish construction sector was\nfurther exacerbated.
\nThe Spanish\nauthorities argue that the financial and economic crisis has led to\na sudden collapse of the world economy with enormous impact on many\nsectors. The nature of the recession as far as the construction\nsector is concerned, with a sudden tightening of conditions for\naccess to financial credit and a dramatic slowdown in new orders,\nwas unprecedented in recent times. As a result of the crisis,\neconomic developments since 2008 have not been following the trends\nof previous years. The redundancies in the construction industry\ncould not therefore have been foreseen or easily prevented.
\nSpain submitted this\napplication under the intervention criteria of Article 2(b) of\nRegulation (EC) No 1927/2006, which requires at least 500\nredundancies over a nine-month period in enterprises operating in\nthe same NACE Revision 2 Division in one region or two contiguous\nregions at NUTS II level in a Member State. The application cites\n836 redundancies in 377 enterprises operating in the NACE\nRevision 2 Division 41 ('Construction of buildings') in the NUTS II\nregion of Aragón (ES24) during the nine-month reference\nperiod from 31 January 2011 to 31 October 2011.
\nAfter a thorough\nexamination of this application, the Commission has concluded in\naccordance with Article 10 of Regulation (EC) No 1927/2006 that the\nconditions for a financial contribution under this Regulation are\nmet.
\nOn the basis of the\napplication from Spain, the proposed contribution from the EGF to\nthe coordinated package of personalised services (including\nexpenditure to implement EGF) is EUR 1 300 000, representing 65 %\nof the total cost.
\nIMPACT ASSESSMENT: no impact assessment was carried\nout.
\nFINANCIAL IMPLICATIONS: considering the maximum\npossible amount of a financial contribution from the EGF under\nArticle 10(1) of Regulation (EC) No 1927/2006, as well as the scope\nfor reallocating appropriations, the Commission proposes to\nmobilise the EGF for the total amount referred to above, to be\nallocated under heading 1a of the financial framework.
\nThe proposed amount\nof financial contribution will leave more than 25 % of the maximum\nannual amount earmarked for the EGF available for allocations\nduring the last four months of the year, as required by Article\n12(6) of Regulation (EC) No 1927/2006.
\nBy presenting this\nproposal to mobilise the EGF, the Commission initiates the\nsimplified trialogue procedure, as required by Point 28 of the\nInterinstitutional Agreement of 17 May 2006, with a view to\nsecuring the agreement of the two arms of the budgetary authority\non the need to use the EGF and the amount required. The Commission\ninvites the first of the two arms of the budgetary authority that\nreaches agreement on the draft mobilisation proposal, at\nappropriate political level, to inform the other arm and the\nCommission of its intentions. In case of disagreement by either of\nthe two arms of the budgetary authority, a formal trialogue meeting\nwill be convened.
\nThe Commission\npresents separately a transfer request in order to enter in the\n2012 budget specific commitment appropriations, as required in\nPoint 28 of the Interinstitutional Agreement of 17 May 2006.
\nPURPOSE: to mobilise the European Globalisation\nAdjustment Fund (EGF) in respect of redundancies in the\nconstruction of buildings in Spain.
\nPROPOSED ACT: Decision of the European Parliament and\nof the Council.
\nCONTENT: the European Globalisation Adjustment Fund\n(EGF) was established by Council Regulation No\n1927/2006 to provide additional support to\nredundant workers who suffer from the consequences of major\nstructural changes in world trade patterns and to assist them with\ntheir reintegration into the labour market.
\nThe Interinstitutional Agreement of 17 May 2006 on\nbudgetary discipline allows for the mobilisation\nof the European Globalisation Adjustment Fund (EGF) through a\nflexibility mechanism, within the annual ceiling of EUR 500 million\nover and above the relevant headings of the financial\nframework.
\nThe Commission services have carried out a thorough\nexamination of the application submitted by Spain to mobilise the\nEGF. The main elements of the assessment are as follows:
\nSpain:\napplication EGF/2011/017 ES/Aragón Construction: on\n28 December 2011, Spain submitted application EGF/2011/017\nES/Aragón construction for a financial contribution from the\nEGF, following redundancies in 377 enterprises operating in the\nNACE Revision 2 Division 41 ('Construction of buildings') in the\nNUTS II region of Aragón (ES24) in Spain. The application\nwas supplemented by additional information up to 23 March 2012.
\nIn order to\nestablish the link between the redundancies and the global\nfinancial and economic crisis, Spain argues that the construction\nsector has been severely affected by the crisis. Loans to the\nconstruction sector and to individuals have been drastically\nreduced and the demand for new houses decreased due to declining\nconsumer confidence and the lack of cash.
\nThe Commission\nrecognised in its Economic Recovery Plan that the construction\nindustry in the EU had seen demand plummet as a result of the\ncrisis. In 2009 construction output in Spain followed the same\nnegative trend as the EU-27 average. However, in 2010 and the first\nhalf of 2011 the downturn in the Spanish construction sector was\nfurther exacerbated.
\nThe Spanish\nauthorities argue that the financial and economic crisis has led to\na sudden collapse of the world economy with enormous impact on many\nsectors. The nature of the recession as far as the construction\nsector is concerned, with a sudden tightening of conditions for\naccess to financial credit and a dramatic slowdown in new orders,\nwas unprecedented in recent times. As a result of the crisis,\neconomic developments since 2008 have not been following the trends\nof previous years. The redundancies in the construction industry\ncould not therefore have been foreseen or easily prevented.
\nSpain submitted this\napplication under the intervention criteria of Article 2(b) of\nRegulation (EC) No 1927/2006, which requires at least 500\nredundancies over a nine-month period in enterprises operating in\nthe same NACE Revision 2 Division in one region or two contiguous\nregions at NUTS II level in a Member State. The application cites\n836 redundancies in 377 enterprises operating in the NACE\nRevision 2 Division 41 ('Construction of buildings') in the NUTS II\nregion of Aragón (ES24) during the nine-month reference\nperiod from 31 January 2011 to 31 October 2011.
\nAfter a thorough\nexamination of this application, the Commission has concluded in\naccordance with Article 10 of Regulation (EC) No 1927/2006 that the\nconditions for a financial contribution under this Regulation are\nmet.
\nOn the basis of the\napplication from Spain, the proposed contribution from the EGF to\nthe coordinated package of personalised services (including\nexpenditure to implement EGF) is EUR 1 300 000, representing 65 %\nof the total cost.
\nIMPACT ASSESSMENT: no impact assessment was carried\nout.
\nFINANCIAL IMPLICATIONS: considering the maximum\npossible amount of a financial contribution from the EGF under\nArticle 10(1) of Regulation (EC) No 1927/2006, as well as the scope\nfor reallocating appropriations, the Commission proposes to\nmobilise the EGF for the total amount referred to above, to be\nallocated under heading 1a of the financial framework.
\nThe proposed amount\nof financial contribution will leave more than 25 % of the maximum\nannual amount earmarked for the EGF available for allocations\nduring the last four months of the year, as required by Article\n12(6) of Regulation (EC) No 1927/2006.
\nBy presenting this\nproposal to mobilise the EGF, the Commission initiates the\nsimplified trialogue procedure, as required by Point 28 of the\nInterinstitutional Agreement of 17 May 2006, with a view to\nsecuring the agreement of the two arms of the budgetary authority\non the need to use the EGF and the amount required. The Commission\ninvites the first of the two arms of the budgetary authority that\nreaches agreement on the draft mobilisation proposal, at\nappropriate political level, to inform the other arm and the\nCommission of its intentions. In case of disagreement by either of\nthe two arms of the budgetary authority, a formal trialogue meeting\nwill be convened.
\nThe Commission\npresents separately a transfer request in order to enter in the\n2012 budget specific commitment appropriations, as required in\nPoint 28 of the Interinstitutional Agreement of 17 May 2006.
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