PURPOSE: to mobilise the European Globalisation Adjustment Fund (EGF) to finance technical assistance at the initiative of the Commission.
CONTENT: the Interinstitutional Agreement (IIA) of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management allows for the mobilisation of the European Globalisation Adjustment Fund (EGF) (point 28) within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework.
The rules applicable to the contributions from the EGF are laid down in Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund.
According to Article 8(1) of Regulation (EC) No 1927/2006, 0.35 % of the annual maximum amount of the EGF can be made available each year for technical assistance at the initiative of the Commission.
In this context, technical assistance to be funded and a break-down of its estimated costs are as follows (total estimated costs EUR 1 110 000):
- monitoring: the Commission is planning a series of parallel studies on the implementation of ongoing EGF cases. These studies will monitor implementation, strengths and weaknesses, extracting successes and learning for future cases, and providing the evaluators with useful grassroots material. The first ten such studies will be launched in 2010 at a cost of approximately EUR 25 000 each, i.e. a total of EUR 250 000;
- information: the EGF web site, which the Commission is required to set up and maintain under Article 9(2) of Regulation (EC) No 1927/2006, will be regularly updated and expanded, each new element also being translated into all EU languages. The press folder will be printed, and the annual report of the EGF will be produced, translated, printed and distributed. General awareness of the EGF and its visibility will be enhanced. The EGF will be covered in various Commission publications and audio-visual activities. Costs for these items are estimated at EUR 240 000 in 2010;
- creation of a knowledge base: a study aimed at collecting data on the stages of redundancy cases and the experiences for individual workers during both the dismissal and the re-employment phases, will be carried out by means of a service contract estimated at EUR 50 000;
- administrative and technical support: the Expert Group of Contact Persons of the EGF, with 27 members, one from each Member State, will be holding two meetings in 2010, budgeted at EUR 35 000 per meeting. The two meetings are together estimated at EUR 70 000;
- exchange of best practices: the Commission will be organising the exchange of successful practices among the Member States, enabling participants with experience of EGF implementation to network with each other, and be assisted by an expert preparing documentation and reports. This networking activity is estimated at EUR 200 000;
- evaluation: activities for the mid-term evaluation of the EGF will commence in 2010. The evaluation framework contracts were approved too late in 2009 for the EGF to have been able to start the work last year; hence the first commitments have been postponed, and will amount, as originally planned, to EUR 300 000.
Financing and procedure: the total annual budget available for the EGF is EUR 500 million. Article 8(1) of Regulation (EC) No 1927/2006 states that 0.35% of this amount (i.e. EUR 1 750 000) can be made available each year for technical assistance at the initiative of the Commission. Currently, the full amount for 2010 remains available; nothing has yet been allocated to technical assistance.
The Commission proposes to mobilise the EGF for the total amount referred to above, to be allocated under heading 1a of the financial framework.
By presenting this proposal to mobilise the EGF, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Inter-institutional 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 Commission presents separately a transfer request in order to enter in the 2010 budget specific commitment and payment appropriations, as required in Point 28 of the Interinstitutional Agreement of 17 May 2006.