European Globalisation Adjustment Fund, who gets it and who pays the bill?

Press conference by László Andor, Member of the EC, on the Annual Report on the European Globalisation Adjustment Fund (EC Audiovisual Services, 14/11/2013)

Press conference by László Andor, Member of the EC, on the Annual Report on the European Globalisation Adjustment Fund (EC Audiovisual Services, 14/11/2013)

The Budgets Committee of the European Parliament (EP) announced yesterday that they approved financial aid to the Netherlands, Greece, Romania and Spain, whose workers were laid off as redundant due to globalisation or the financial crisis. It seems that the applications of the authorities of each country to the EU were fruitful, however it remains to be seen if the EP as a whole and the Council of Ministers will support this decision.

European Globalisation Adjustment Fund

The fund that will support the workers who were characterized as redundant was set up by the EU in the end of 2006 to help workers remain in employment or find a new job. The measures that are implemented in order to achieve these goals are training programmes, occupational guidance or economic aid (such as micro-credits) to start their own company. The annual budget of the fund is calculated to 150 million euros for the period between 2014 to 2020.

Construction sector in the Netherlands

The first case comes from the land of tulip and more specifically its construction sector. The Netherlands applied for support from the European Globalisation Adjustment Fund (EGF) following the dismissal of 562 workers from 89 SME’s located in the provinces of Gelderland and Overijssel, where construction is one of the major employers. Thus, the EGF approved a financial aid of 1,625 million euros which will cover the reintegration into employment of 475 workers. The total package is estimated to 2.7 million euros, the rest will be covered by the Dutch government.

Greece: the case of Nutriart and its suppliers

It has been almost a year since the bankruptcy of the baking company Nutriart where more than five hundred people were left without a job. The EFG approved the application of the Greek government for support and will provide funds of 6,096 million euros to be given for the re-training of those 508 people in the regions of Attica and central Macedonia.  It needs to be mentioned though that EFG covers the 60% of the total cost, while the remaining 40% must be generated by national funds which are not in excess.

Steel producers in Romania

The steel product maker SC Mechel Campia Turzii SA and the downstream producer SC Mechel Reparatii Targoviste SRL laid off 1.000 Romanian workers a couple of years ago. The excuse was that the demand for finished and semi-finished products fell by a great extent because of China’s imports, a situation that forced the companies to downsize. The Romanian authorities applied for EU support for the aforementioned people. The decision was delayed but finally announced. EFG’s financial aid is reaches 3,571 million euros, half the amount that is needed to pay for vocational guidance and new business start-ups.

Spain: Food and beverage industry and wood product manufacturing

Spain applied for EGF’s support after the dismissal of 904 workers in 661 SME’s operating in the food and beverage services industry in the region of Aragón. The redundancies claimed to be an outcome of the poor spending on bars, restaurants and cafes in the beginning of the global financial crisis. Therefore, EGF will provide the amount of 960,000 euros for counselling, re-training and job-search assisting of the 280 redundant workers.

Apart from the region of Aragón, Spain also requested help from the EGF for Castilla y León where 500 workers in three wood product manufacturing firms were fired due to shrinking global demand for builders’ joinery and carpentry wood products. The region which is highly linked to this sector suffers from serious unemployment problems. The EGF plans to provide 700,000 euros meant to help 400 of these workers who will try to catch up  with their careers once again.

EU’s final decision and the delay of funds’ approval

There are two drawbacks in this project. First of all, the time that has passed in order to make the final decision is very long. In some cases (Romania), we observe a period of more than two years in between the application and the final decision. This delay is a matter the EU bodies have to take into great consideration. Of course things cannot be ideal but must stay within reasonable deadlines. Let’s just consider the workers who lost their job and are struggling to make ends meet without any help from their country or the EU. Why should they suffer that long?

Moreover, another issue that needs to be pointed out is the amount of money provided by the EGF. Of course, the funds are more than welcome in such turbulent times and we should give some credit to this; however these funds stand only for half of the total cost of the financial package. I mention it because there are countries that cannot support their own basic needs, let alone contributing to this programme.

Therefore, a much more thorough discussion must be done by the EU in order to be more realistic, especially for countries in economic distress.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Basel III rules relaxed: Banks got it all but become more prone to crisis

Gender Equality as a platform to improve Medicine

Why Eurozone’s problems may end in a few months

European Youth Forum welcomes the European Commission’s proposed revision of the Union Code on Visas, however it does not go far enough

A Valentine’s Special: heart has nothing to do with it, it’s all Brain

Brexit Update: EU endorses unprecedented compromise to help Cameron out of the referendum mess he got himself into

“The markets have moved on renewables, policy makers must keep up”, A Sting Exclusive by Erik Solheim, Head of UN Environment

The G7 adopted dangerous views about Ukraine and Greece

More unemployment and lower wages to make European workers competitive?

Ukraine-EU deal sees the light but there’s no defeat for Russia

EU and African leaders to jointly tackle the migration crisis across the Mediterranean

EU to spend €6 billion on youth employment and training futile schemes

ECB to buy corporate bonds: Will government financing be the next step?

Economic recovery won’t tackle youth unemployment problem

Post-Brexit muddled times: the resignation of UK’s top ambassador and Theresa May’s vague plans

Fair completion rules and the law of gravity don’t apply to banks

Italy can stand the US rating agencies’ meaningless degrading

The European giant tourism sector in constant growth

A Sting Exclusive: “Our ambition is by 2020 Indonesia to become an emerging power of World’s Maritime Access”, reveals the Chargé d’Affaires at the Embassy of Indonesia in Brussels, treating WEF, ASEAN and EU-Indonesia relations on the eve of the World Economic Forum East Asia 2015 in Jakarta

Why lay people don’t expect anything good from G20

Why is Merkel’s Germany so liberal with the refugees? Did the last elections change that?

Russia won’t let Ukraine drift westwards in one piece

Eurozone: Negative statistics bring deflation and recession closer

No tears for Cyprus in Brussels and Moscow

Climate change and health: creating global awareness and using earth resources wisely

Global Citizen – Volunteer Internships

The EU stops being soft with 10 Downing Street about Brexit

Court of Auditors: EU spending infested with errors well above the materiality threshold of 2%

The three sins the EU committed in 2015

G20 LIVE: G20 Leaders’ Communiqué Antalya Summit, 15-16 November 2015

The European Parliament rewrites the EU budget in a bright day for the Union

EU members commit to build an integrated gas market and finally cut dependency on Russia

European Junior Enterprises to address the significant skills mismatch in the EU between school and employment

The Eurogroup offered a cold reception to IMF’s director for Europe

EU budget: Will Germany alone manage Britain’s gap?

From inconvenience to opportunity: the importance of international medical exchanges

Turkey presents a new strategy for EU accession but foreign policy could be the lucky card

The EU cuts roaming charges further while the UK weighs Brexit impact

How will EU look after French, Dutch and German Elections and what will be the implications for Youth Entrepreneurship?

IMF’s Lagarde to Peoples of the world: You have to work more for the banks!

Mental Health: starting with myself

IMF: How can Eurozone avoid stagnation

Progress in medical research: leading or lagging behind?

iSting: Change Europe with your Writing

19th EU-China Summit: A historical advance in the Chino-European rapprochement

EU-India summit: Will the EU manage to sign a free trade agreement with India before Britain?

Environmental labelling, information and management schemes are central to the circular economy

The ECB still protects the banks at the expense of the EU taxpayers

IMF: Sorry Greece, Ireland, Portugal we were wrong!

How wealthy people transmit this advantage to their children and grand children

European Youth Forum demands immediate action & binding agreement on climate change

Doctors vs. Industry 4.0: who will win?

Draghi will not hesitate to zero ECB’s basic interest rate

EU Commission – US hasten talks to avoid NGO reactions on free trade agreement

China’s New Normal and Its Relevance to the EU

SPB TV @ MWC14: The TV of the Future

Eurostat: Real unemployment double than the official rate

Creating shared value: an opportunity and challenge for entrepreneurship

WEF Davos 2016 LIVE: “We need more Schengen but reinforce control!”, France’s Minister of Economy Emmanuel Macron emphasises from Davos

EU is now giving Google new monopolies to the detriment of European citizens and Internet companies

More Stings?