"I am delighted that we have been able to recommend these two cases to the Budgetary Authority. We have responded to a real need at EU level, where, in this case, the car sector has felt the downside of globalisation and where the result has been a significant number of people losing their jobs. The new Fund is there as an instrument of solidarity to provide assistance when required. Together with the Member States, we can use the EGF to help redundant workers find their way back into employment quickly", said Commissioner Vladimír Špidla.
The EGF is part of the European policy on restructuring which allows for a reaction to dismissals due to globalisation which could not have been anticipated. It may give a financial contribution in cases where more than 1000 workers in a sector are made redundant due to major structural changes in world trade patterns leading to substantially increased imports into the EU or a rapid decline in EU market shares. The Commission has now examined the applications and considers that a contribution from the EGF is justified. The budgetary authority (the Council of the European Union and the European Parliament) has been asked to authorise the funding.
The EGF was established by the European Parliament and the Council at the end of 2006 to provide help for people who have lost their jobs due to globalisation. In 2005 Commission President José Manuel Barroso launched the idea to create an instrument of solidarity to help workers affected by redundancies resulting from changes in world trade patterns find their way back into employment. The two decisions are the first since the Fund became operational.