Explanatory Memorandum to COM(2010)7 - 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)7 - Mobilisation of the European Globalisation Adjustment Fund. |
|---|---|
| source | COM(2010)7  |
| date | 22-01-2010 |
The Commission services have carried out a thorough examination of the application submitted by Germany in accordance with Regulation (EC) N° 1927/2006 and in particular with Articles 1, 2, 3, 4, 5 and 6 thereof.
Case EGF/2009/013 DE/ Karmann
1. Germany submitted the application to the Commission on 13 August 2009 and supplemented it by additional information up to 23 October 2009. It was based upon the specific intervention criteria of Article 2(a) of Regulation (EC) No 1927/2006 which requires at least 500 redundancies over a four-month period in an enterprise in a Member State, including workers made redundant in its suppliers or downstream producers and was submitted within the deadline of 10 weeks referred to in Article 5 of that Regulation.
2. The application concerns 2 476 redundancies in two companies of the enterprise Karmann GmbH (Wilhelm Karman GmbH and Karmann-Rheine GmbH & Co.KG), of whom 1 793 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/2009/013 DE/Karmann submitted by Germany relating to the redundancies in the enterprise Karmann GmbH involved in the automotive manufacturing industry, as evidence has been provided that these redundancies result from major structural changes in world trade patterns. A co-ordinated package of eligible personalised services has been proposed of which the requested contribution of the EGF is EUR 6 199 341 (see next page).
Financing
The total annual budget available for the EGF is EUR 500 million.
An amount of EUR 258 163 has already been mobilised for prior application in 2010 leaving an amount of EUR 499 741 837 available. The Commission's proposed allocation under the Fund is based on the information made available by Germany.
On the basis of the application for support from the Fund submitted by Germany and in which the automotive manufacturing sector is affected, the contribution from the EGF to the coordinated package of personalised services to be funded is of EUR 6 199 341, representing 65 % of the total cost.
Considering the maximum possible amount of a contribution from the EGF 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.