GLOBALISATION ADJUSTMENT FUND : COMMISSION TO UPGRADE EGF.

PositionEuropean Commission on European Globalisation Adjustment Fund

On 16 December, the European Commission presented a proposal for the revision of the regulation on the European Globalisation Adjustment Fund (EGF). Established in late 2006, the fund has an annual budget ofa500 million. The aim of the revision is to turn the EGF into a "more effective early intervention" crisis response instrument; to enlarge its scope to cover staff redundancies caused by the current financial crisis; and to bring the fund "closer to its solidarity objective". To date, the fund has disburseda67 million (of whicha35.16 million went to the textile industry in Italy).

The Commission's revision forms part of the European economic recovery plan, presented on 26 November. The main changes proposed to the EGF's founding Regulation 1927/2006 serve four objectives. Through its amendments, the Commission wants to turn the EGF into an effective crisis response instrument that has the potential to help the reintegration into the labour market of workers made redundant due to the economic crisis.

The proposal also seeks to lower the eligibility threshold for EGF assistance from 1,000 to 500 redundant workers. Furthermore, the Commission's amendments aim to enable the fund to contribute up to 75% of the cost of the applicant member state's action plan (as opposed to 50% today). The aim here is to "better reflect the emergency nature of the contribution" and to make it easier for member states to apply for assistance. Finally, the duration of EGF assistance...

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