1. Economic and financial crisis
The Role of the EGF
(European Globalisation Adjustment Fund)
Directorate-General for Employment, Social Affairs and Equal Opportunities

2. Economic and Financial Crisis - the Role of the EGF
EGF: General overview
How does the EGF work?
Applicant?
Amount available?
Co-financing rate?
Co-funders?
Implementation period?
Member State(s)
(not companies or individuals)
€ 500 Mo/year max.
Up to 50%
Up to 65% ( )
Member States, companies
12 months
24 months
* Amendments to the EGF Regulation
29 April 2009
Economic and Financial Crisis - the Role of the EGF

3. EGF: General overview 17 applications submitted by 9 Member States
Finland (1)
Lithuania (1)
Germany (2)
Austria (1)
France (2)
Portugal (2)
Spain (3)
Italy (4) Malta (1)
29 April 2009
Economic and Financial Crisis - the Role of the EGF

4. Amount of EGF contributions
EGF: General overview
Amount of EGF contributions
More than € 65 Mo granted since 2007
Average contribution: ± € 5.6 Mo
Sectors and workers
Textiles, automotive, mobile phones
20,000 workers assisted
Textiles sector
8 applications for an amount of € 40.2 million
9,800 workers targeted for help
29 April 2009
Economic and Financial Crisis - the Role of the EGF

5. EGF: Intervention criteria
Art. 2 of Reg. (EC) 1927/2006:
Serious economic disruption due to major structural changes in world trade patterns
or the financial and economic crisis*
At least 1,000 redundancies:
500*
Period?
Companies?
Area?
4 months
1 enterprise + downstream producers and suppliers
A Member State
9 months
Companies of a NACE 2 sector
1 or 2 contiguous regions (NUTS II)
Smaller cases eligible under exceptional circumstances
* Amendments to the EGF Regulation
29 April 2009
Economic and Financial Crisis - the Role of the EGF

6. EGF: Definition of “redundancy”
Art. 2 of the new EGF Regulation:
Individual notice of dismissal
De facto termination of contract of employment before its expiry
Notification in writing to the public authority of projected collective redundancies
29 April 2009
Economic and Financial Crisis - the Role of the EGF

7. Economic and Financial Crisis - the Role of the EGF
EGF: Eligible Persons
Art. 3 of the new EGF Regulation:
Workers made redundant during the reference period
Workers made redundant before or after the reference period if:
Application based on art. 2(a) or assimilated 2(c);
Redundancies occurred after announcement of projected redundancies;
Redundancies linked to the ”globalisation” event.
29 April 2009
Economic and Financial Crisis - the Role of the EGF

8. EGF: Eligible Measures
Art. 3 of Reg. (EC) 1927/2006:
The EGF only co-finances active labour market measures
Training;
Job-search assistance;
Counselling and guidance;
Employment and recruitment incentives;
Mobility allowances
Micro-credit and Entrepreneurship promotion; …
The EGF co-finances neither passive measures nor companies restructuring
29 April 2009
Economic and Financial Crisis - the Role of the EGF

9. EGF: Application Process
Final Report
Submission
Payment
EC Analysis and Proposal
Period of Reference
(Redundancies)
Preparation
of application
Budgetary procedure
End of implementation
4 or 9
months
10 weeks
± 28 weeks
6 months
Implementation of EGF support
12 months
24 months*
Implementation of measures by the Member State
* Amendments to the EGF Regulation
29 April 2009
Economic and Financial Crisis - the Role of the EGF

10. Economic and Financial Crisis - the Role of the EGF
EGF: Contact information
List of EGF Contact Persons in every Member State
Commission services responsible for the EGF
Site:
Thank you!
29 April 2009
Economic and Financial Crisis - the Role of the EGF

11. EGF: Application Process
What to do before the redundancies occur?
Member States
Monitor mass-redundancy events
Stakeholders
Warn national authorities of incoming mass-redundancy events
29 April 2009
Economic and Financial Crisis - the Role of the EGF

12. EGF: Application Process
What to do during the preparation of an EGF application?
Member States
Gather data from local PES and companies concerned;
Contact the Commission services;
Start filling the EGF application form.
Stakeholders
Provide useful data for the EGF application:
Link between the redundancies and trade
Workers made redundant (gender, age, position…);
Suggest measures (training, recruitment incentives…).
or the current crisis*
* Amendments to the EGF Regulation
29 April 2009
Economic and Financial Crisis - the Role of the EGF