Europees Parlement blokkeert aanvraag Frankrijk voor Europees Fonds voor aanpassing aan de Globalisering (en)

Parliament's Budgets Committee on Tuesday blocked a French application for €24.5 million in EU Globalisation Adjustment Fund (EGF) aid to help former Renault employees in France. The money was to benefit 3,582 former workers at the car manufacturer and seven of its suppliers, who left the companies under a voluntary redundancy plan, either to retire early or for retraining.

In committee, a majority of MEPs requested further clarifications about Renault's voluntary redundancy plan. They also wanted further assurances as to how the money would benefit the redundant workers.

MEPs were also concerned about new retirement legislation that entered into force in France after it applied for the EGF aid. They feared that this new law might negatively affect the status of the staff who left voluntarily for early retirement.

To dispel these concerns, MEPs demanded that the Commission services carry out an additional audit. Pending this audit, all the money should be put in reserve, they said. Paying out only parts of the requested aid to France would be impossible legally.

The resolution, drafted by Barbara Matera (EPP, IT), was rejected, with 16 votes in favour, 20 against and 2 abstentions. Without the resolution, the money cannot be transferred.

Next steps

Following the committee's blocking of the money transfer, the Commission will now have to submit a new proposal to Parliament and the Council. The matter is likely to be discussed by Parliament, Commission and Council at a budget "trilogue" meeting.

Background

The EGF was established to provide additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation or the financial crisis and help reintegrate them in the labour market. Its annual ceiling is €500 million.

After Parliament's repeated requests that the EGF be given its own budget, for the first time the 2011 budget shows payment appropriations of €47,608,950 on the EGF budget line. This was achieved by means of an amending budget.