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European Globalisation Adjustment Fund (EGF)

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EGF was established by Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006.

Main target of EGF is to help redundant workers and self-employed persons  - whose activity has ceased as a result of a)major structural changes in world trade patterns due to globalisation, b)the results of the global financial and economic crisis -  to find a new job, as soon as possible. During the Programming Period 2007-2013 the total financial assistance for the Member States has been amounted at 500 million euros, annually. For the Programming Period 2014-2020, the annual funding addressed to all Member States amounts at 150 million euros.

Why we need the EGF
Despite the fact that the trade liberalization may favor, in general, development and employment, it may also cause losses of jobs. Also, the global financial and economic crisis has caused the same negative results concerning the sustainability of job positions.
All Member States, small and large, old and new ones, affected by the aforementioned impacts, have the right to be assisted by EGF.

What are the differences between EGF and Structural Funds interventions?
E.U. Structural Funds provide assistance towards the prevention and management of changes through funding activities which have long term strategic options, i.e. lifelong  learning. On the other hand, EGF, provides one-off and temporary personalised support, in order to assist – according to the new Regulation being in force by 01.01.2014 -  workers made redundant and  self-employed persons whose activity has ceased, as a result of major structural changes in world trade patterns due to globalisation or as a  result of the continuation of the global financial and economic crisis or of a new one global financial and economic crisis.

What is the role of EGF?
EGF funds active measures of the labour market targeted at the support of redundant people. Especially for the Programming Period 2014-2020, EGF funds:

  • tailor-made training and retraining programmes, including information and communication technology skills and certification of acquired experience, job search assistance, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion, aid for self employment, business start-ups and employee take-overs, and co-operation activities
  • special time-limited measures, such as job-search allowances, employers' recruitment incentives, mobility allowances, subsistence or training allowances (including allowances for carers)
  • measures to stimulate in particular disadvantaged, older and young unemployed persons to remain in or return to the labour market.

EGF acts in a complementary way in relation to the support measures provided by the employers and the national employment authorities. It does not fund passive social protection measures, like pensions or unemployment subsidies, being in the field of responsibility of Member States. Beyond this, during the Programming Period 2014-2020, EGF includes a specialized target by providing support to young people “not in employment, education or training” (NEETs), who are under the age of 25.

How it works?
Applications for funding can be submitted only by Member States. The procedure includes the stages described below:

  • Each Member State in which redundancies take place, motivates the Authorities and Services responsible for the implementation of EGF, in order to conduct a “plan” of assistance targeted to the people who have been fired.
  • As a next step, an application for co funding by EGF is submitted to the Services of European Committee by the Member State. In the Programming Period 2014-2020, applications can include actions addressed to young people under the age of 25 who are not in employment, education or training (NEETs).
  • European Committee evaluates the application and – in case of a positive result – forwards it to the Authorities of EU, being responsible for EU budget (European Council and European Parliament).
  • If the European Council and European Parliament approve the proposal, the Member State can receive the Community’s co funding for the relevant national action plan.

Who can benefit?
During the Programming Period 2007-2013, only workers being under a status of redundancy could be beneficiaries. During the 2014-2020 Programming Period, the beneficiaries are expanded, adding:

  • Self employed persons.
  • Young people under the age of 25 who are not in employment, education or training (NEETs).

A common point in both Programming Periods is that the assistance is not limited  to the workers of the company or sector directly affected. If the suppliers of the company face similar problems, then their employees can also benefit. EGF concerns small and medium enterprises (SMEs) as well as large and multinational enterprises. It should be noted that EGF does not finance the restructuring of enterprises or industries.

How EGF is combined with other EU Funds, like Structural Funds?
European Union’s Structural Funds, especially European Social Fund (ESF) allocate their resources to multi annual programs including strategic long term objectives, mainly for prevention and managing of changes and reengineering, through various interventions and policies, like life long learning. EGF aims to address a specific crisis affecting all of Europe. It provides one-off and temporary personalized assistance to persons who have lost their jobs.

Contact information
Individuals and enterprises affected by the problem of redundancies, should contact the competent national authorities.
In Greece, the National Authority responsible for EGF, is:
ESF Actions Coordination and Monitoring Authority (EYSEKT)
Ministry of Labour, Social Security and Welfare
Contact Person: Mr. Odysseas Rouskas
Tel.: + 0030 210 52 71 444
Fax: + 0030 210 52 71 420
e mail: orouskas@mou.gr

 

See also: EGF actions in Greece

Related files

Last modification date: 13/01/2014

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