Mobilisation of the European Globalisation Adjustment Fund: technical assistance

2022/0015(BUD)

PURPOSE: to mobilise the European Globalisation Adjustment Fund (Technical Assistance at the initiative of the Commission).

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

CONTENT: the objectives of the European Globalisation Adjustment Fund for displaced workers (EGF) are to demonstrate solidarity and promote decent and sustainable employment in the EU by supporting redundant workers and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

The annual allocation to the EGF should not exceed a maximum of EUR 186 million (in 2018 prices). Regulation (EU) 2021/691 provides that a maximum of 0.5% of the maximum annual allocation to the EGF may be spent each year on technical assistance at the initiative of the Commission.

The COVID-19 pandemic not only disrupted the implementation of the EGF interventions, but also created uncertainty in the overall functioning, in particular of those activities that required a physical presence. Therefore, in 2021, the Commission did not request support for technical assistance. The proposal for 2022 is adapted to the current situation.

It is proposed that the EGF be mobilised to provide an amount of EUR 290 000 in commitment and payment appropriations to be allocated to technical assistance on the initiative of the Commission.

Technical assistance to be funded and estimated cost breakdown (administrative expenditure: EUR 190 000; technical expenditure: EUR 100 000)

Administrative support includes meetings of the EGF contact persons expert group, the organisation of a seminar with the participation of the EGF implementing bodies and social partners, information actions to raise public awareness of the EGF and enhance its visibility, while technical support includes the maintenance and updating of an electronic data exchange system, as well as the monitoring and collection of data on applications received, paid and wound up and on measures proposed and implemented.

Funding

Currently, the full amount for 2022 is still available. The proposed amount corresponds to 0.14% of the maximum amount of the annual budget available for the EGF in 2022.

The proposed decision to mobilise the EGF will be taken jointly by the European Parliament and the Council, as foreseen in the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council and the Commission on budgetary discipline, cooperation in budgetary matters and sound financial management, and on new own resources, including a roadmap for the establishment of new own resources.

At the same time as it presents this proposal for a decision to mobilise the EGF, the Commission will present to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary line for the amount of EUR 290 000.

Appropriations from the EGF budget line will be used to cover the amount of EUR 290 000 needed for technical assistance.