Globalisation fund unemployment aid - a good tool, but far too slow

Published: 29 April 2010 y., Thursday

Piniginė
European Globalisation Adjustment fund (EGF) aid must be delivered faster and more simply to unemployed workers hit by the financial crisis or globalisation, concluded the Budgets and Employment committees after evaluating the fund on Wednesday.

On average, 212 days elapse between an application for EGF funding and the payment, says a Commission study: it takes the Commission 104 days to evaluate the application, 55 for Parliament and Council to decide and another 53 for the Commission to prepare the actual transfer. For most unemployed people needing help to find a new job, this is far too long.

Portuguese MEP Miguel Portas (GUE/NGL), rapporteur for the evaluation of the fund, called for a simplified procedure to speed things up. “If we put these three operations together, I think we would be able to respond in half the time”, he said.

 

Peter Stub Jørgensen, of the Commission's Employment Directorate General, said that the Commission was now able to reduce its processing time by 22 days.

60% success rate in Lithuania

Representatives from Austria, Belgium, France, Lithuania and Portugal told MEPs on the two committees about their experiences with the fund.

“We very much appreciate the response from the European institutions to our situation... In Lithuania, we lack money in our own budget [to help the people who lose their jobs], so we need the EU money” said Nijolė Mackevičienė, Head of the EU Structural Support Department at Lithuania's Ministry of Social Security and Labour.

Lithuania has applied for EGF aid five times to date. By the end of the first measure, targeting unemployed textile workers from the company Alytaus Tekstilė, 60% of participants had found a new job.

Representatives from the other countries agreed that the fund is a good tool, but also described various problems to do with late payments.

Big differences between countries

After hearing the testimonies, MEPs wished to investigate further how to speed up and simplify the process, how to finance the fund in the future, why some countries apply so often while 11 Member States have never applied and also why the sums received per unemployed person differ so much. Last autumn, former Nokia workers in Germany received support worth an average of €4,200 each, whereas a few months earlier, former textile workers in the Portuguese Norte and Centro regions had each received support worth an average of  €550.

“I would like to know more about the role of the Member States - is the fund used automatically when all the criteria are in place? I know for France, some times this is not the case. What is approach of the Member States?” asked Estelle Grelier (S&D, FR).

 Marije Cornelissen (Greens/EFA, NL) asked “What would happen without the globalisation fund? Is it really necessary? It is appreciated, that is clear, but would these workers not have gotten help without it?”.

Where the money goes

Anne Jensen (ALDE, DK) was worried about whether the funding actually reaches the people who need it. “How can we be sure that the money does not disappear in bureaucratic costs? Can we simplify things in the future?” she asked.

Elisabeth Morin-Chartier (EPP, FR), who is leading the Employment Committee's evaluation, wanted to have a closer look on the connections between the EGF and other programmes, such as the Life-Long Learning programme.

Miguel Portas plans to present his draft evaluation report to the Budgets Committee in June.

 

Šaltinis: europa.eu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Zapatero will analyse EU economic strategy with Merkel

The President of the Spanish Government, José Luis Rodríguez Zapatero, will meet this Monday with the German Chancellor, Angela Merkel, to analyse the future EU economic and employment strategy EU2020 before the Twenty-seven approve its basic lines at the Spring European Council. more »

MEPs set out fisheries reform priorities

The planned overhaul of the EU common fisheries policy should take better account of the huge differences across European fleets and fisheries, give greater responsibility to fishing regions, address the problem of fleet overcapacity and improve the traditional quota system, according to a non-binding report adopted by Parliament on Thursday. more »

Stronger European economic governance and tougher rules for the Stability Pact needed

The EMU framework and economic governance within the eurozone need to be revamped. more »

Young people to be a priority when EP starts work on 2011 budget

Young people should be a priority in EU action next year, it emerged on Tuesday, as the Budgets Committee started work on the EU's 2011 budget. more »

“Support for regional policy is our priority”, President of the European Investment Bank tells MEPs

European Investment Bank (EIB) support for EU regional policy is crucial for tackling the economic crisis, EIB President Philippe Maystadt told the Regional Development Committee on Monday. more »

Globalisation fund: Budgets Committee backs aid to Germany and Lithuania

Three thousand former car, refrigerator and construction workers in Germany and Lithuania could get €7.6 million in EU globalisation adjustment fund aid for training, self-employment and professional orientation under plans approved by the Budgets Committee on Tuesday. more »

European ministers will focus their discussions on the impact of the crisis on Greek agriculture and the future of the Common Agricultural Policy

Today, 22 February, the EU Council of Agriculture and Fishing in Brussels, under the chairmanship of the Spanish Minister, Elena Espinosa, will analyse the impact of the economic crisis on the Greek agricultural sector, which has experienced a drop in prices and income, with small farms that pose an obstacle for the producer for negotiating with large distribution chains. more »

Around 260 cities are hoping to establish municipal policies to tackle the crisis

Municipal policies to tackle the crisis and their application at EU level will be discussed during the three days of the summit entitled, “Networked Local Governments for a New Europe”, which will bring together representatives from 260 cities in Barcelona. more »

EBRD promotes energy efficiency projects in Moldova

The EBRD is promoting energy efficiency and renewable energy projects in Moldova, helping the economy to reduce its energy intensity with a new €20 million credit line for on-lending to local private companies. more »

EBRD supports ice-cream producer in Turkmenistan

The EBRD is lending $1.2 million to Salkyn, one of the largest ice cream producers in Turkmenistan, to help the company expand its distribution network and build up its brand. more »