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

"The ocean of tomorrow": €34 million dedicated to multidisciplinary research projects to reconcile maritime activities with the preservation of seas and oceans

The European Commission launched "The ocean of tomorrow " call for research proposals. Oceans cover about 70% of the Earth's surface, but human activity is increasing environmental pressure on them. more »

Georgian businesses get additional access to finance

The EBRD is stepping up its support to the real economy in Georgia with new funds for on-lending to local businesses. more »

Lithuania's Ambassador to Germany discussed how to renew the crediting of the export of goods to Lithuania

Lithuania’s Ambassador to Germany and Special Representative for EU External Relations in the German Foreign Office discussed the situation regarding the decision of private credit insurance company in Germany Euler Hermes to apply the rating of a maximum risk country for Lithuania. more »

Parex banka signs subordinated debt agreement with the EBRD

Peter Reiniger Business Group Director for Central Europe and the Western Balkans from the European Bank for Reconstruction and Development visited Latvia to sign subordinated loan agreement with Parex banka. more »

28 million EU support for the promotion of agricultural products

The European Commission has approved 16 programmes in 12 Member States to provide information on and to promote agricultural products in the European Union. more »

Support for struggling dairy industry

New measures to help farmers through recession as milk prices tumble. more »

Bernanke sees economic signs of life

Federal Reserve Chairman Ben Bernanke said the outlook for the long-suffering U.S. economy appears to be improving. more »

International support to modernize water sector in Kyrgyzstan

The Swiss Government and the EBRD are providing €11.8 million to improve the supply of water to some 1 million people living in Bishkek, the capital of the Kyrgyz Republic. more »

The European Commission allocates €70 million for key investment projects in the EU’s Neighbourhood

The Neighbourhood Investment Facility (NIF), a key instrument of the intensified European Neighbourhood Policy (ENP), will benefit in 2009 from a €70 million contribution by the European Commission. more »

EBRD supports construction sector in Romania

In response to the impact of the global crisis on the Romanian construction sector, the EBRD is supporting Lafarge Ciment (Romania) S.A. with a €20 million loan in Romanian lei to finance the company’s operations and to support its working capital requirements. more »