PURPOSE: to enable the European Globalisation Adjustment Fund to support workers made redundant and self-employed persons as a result of the likely economic disruptions in the case of a Brexit without a withdrawal agreement.
LEGISLATIVE ACT: Regulation (EU) 2019/1796 of the European Parliament and of the Council amending Regulation (EU) No 1309/2013 on the European Globalisation Adjustment Fund (2014-2020).
CONTENT: the European Globalisation Adjustment Fund (EGF) was created in 2006 to enable the Union to show solidarity with workers who have lost their jobs as a result of major structural changes in world trade patterns as a result of globalisation. For the period 2014-2020, the scope of the Fund has been extended to include redundancies resulting from any new global financial and economic crisis.
The withdrawal of the United Kingdom from the Union without a withdrawal agreement is likely to have negative effects on a number of branches of industrial activity and services by leading to redundancies in the sectors concerned.
Accordingly, this Regulation amending Regulation (EU) No 1309/2013 extends the scope of the EGF by stipulating that redundancies resulting from a withdrawal of the United Kingdom from the Union without a withdrawal agreement shall fall within the scope of the Fund. It thus adds the withdrawal of the United Kingdom from the EU without agreement to other major causes of redundancies, such as the delocalisation of jobs, the substantial increase in imports into the Union or the rapid decline in the Union market share in a given sector.
ENTRY INTO FORCE: 01.11.2019
The Regulation shall apply from the day following the day on which the treaties cease to apply in the United Kingdom if no withdrawal agreement is concluded. However, this Regulation shall not apply if an agreement is reached by the date of the withdrawal of the United Kingdom.