Mobilisation of the European Globalisation Adjustment Fund: redundancies in clothing sector in Lithuania

The Committee on Budgets adopted the report by Barbara MATERA (EPP, IT) on the proposal for a decision on mobilisation of the European Globalisation Adjustment Fund (EGF) to provide the sum of EUR 523 481 in commitment and payment appropriations to assist in respect of redundancies in the clothing manufacturing sector in Lithuania.

Members recall that the European Union established the EGF to provide appropriate 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. Given that Lithuania submitted an application to mobilise the EGF, in respect of redundancies in 45 companies in the clothing manufacturing sector and the application complies with the requirements for determining the financial contributions as laid down in the Regulation governing the fund, Members invite the institutions to approve the applications for the amounts required as soon as possible.

Members stress 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 insist that, in view of the increasing number of requests for assistance from the EGF, it is vital that the procedure is further improved. They therefore invite the Commission to examine the possibility of reducing the period of time between the requests submitted by Member States and the payment of the amounts and to keep Parliament informed thereof as soon as possible.

Members also:

• reiterate 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;
• 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;
• remind the Commission, in the context of mobilising the EGF, not to systematically transfer payment appropriations from the ESF, since the EGF was created as a separate specific instrument with its own objectives and deadlines;
• stress that 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.

Lastly, Members 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 Parliament's requests.