Explanatory Memorandum to COM(2010)8 - Mobilisation of the European Globalisation Adjustment Fund - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2010)8 - Mobilisation of the European Globalisation Adjustment Fund. |
|---|---|
| source | COM(2010)8  |
| date | 22-01-2010 |
The Commission services have carried out a thorough examination of the application submitted by Lithuania in accordance with Regulation (EC) N° 1927/2006 and in particular with Articles 1, 2, 3, 4, 5 and 6 thereof.
Case EGF/2009/010 LT/Snaigė
1. Lithuania submitted the application to the Commission on 23 July 2009. It was based upon the specific intervention criteria Article 2(c) of Regulation (EC) No 1927/2006 which allows applicants to derogate from the requirements of Articles 2(a) and 2(b) in small labour markets or in exceptional circumstances when redundancies have a serious impact on employment and the local economy. Lithuania has specified that its application seeks to derogate from Article 2(a), where the normal threshold is at least 500 redundancies over a 4-month period. The redundancies in AB Snaigė took place in two major waves, peaking in November 2008 and February-March 2009, and there was no single four-month period that captured at least 500 redundancies, even though the total redundancies exceeded that figure by adding around six weeks to the reference period. The application was submitted within the deadline of 10 weeks referred to Article 5 of that Regulation.
2. The application concerns 651 redundancies of whom 480 are targeted for EGF assistance.
3. The detailed elements of the assessment are to be found in the Communication adopted by the Commission i.
On the basis of the conclusions of the above mentioned communication, it is proposed to accept application EGF/2009/010 LT/Snaigė submitted by Lithuania relating to the redundancies in AB Snaigė and two of its suppliers, as evidence of a direct and demonstrable link has been provided that these redundancies result from the global financial and economic crisis.A co-ordinated package of eligible personalised services has been proposed of which the requested contribution of the EGF is EUR 258 163 (see next page) .
Financing
The total annual budget available for the EGF is EUR 500 million. The Commission's proposed allocation under the Fund is based on the information made available by Lithuania.
On the basis of the application for support from the Fund submitted by Lithuania and in which AB Snaigė and two of its suppliers are affected, the contribution from EGF to the coordinated packages of personalised services to be funded is of EUR 258 163, representing 65 % of the total cost.
Considering the maximum possible amount of a contribution from the Fund established in accordance with Article 10 of Regulation (EC) No 1927/2006 as well as the scope for reallocating appropriations, the Commission proposes to deploy the EGF for the total amount referred above , to be allocated under heading 1a of the financial framework.
The requested amount of support will leave more than 25 % of the maximum annual amount earmarked for the EGF available for allocations during the last four months of the year, as required by Article 12 i of Regulation (EC) No 1927/2006.
By presenting this proposal to deploy the Fund, the Commission initiates the simplified trialogue procedure, as required by Point 28 of the Inter-institutional Agreement of 17 May 2006, in view of securing the agreement of the two arms of the budgetary authority on the need to use the Fund 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.