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

AB Bank SNORAS business loan portfolio has increased by 74 million Litas

On 30th April this year, AB Bank SNORAS business loan portfolio, in comparison to 31st December 2008, i.e. during the first four months of this year, grew by 74 million Litas or 3.8 per cent, while the business loan portfolio of the most banks operating in Lithuania was decreasing. more »

UK car sellers' pitch to the city

London's financial district, Canary Wharf is transformed into a giant car showroom. Dozens of manufacturers and dealers have flocked to this part of the city to show off their latest models. more »

Russia overtakes Spain, U.K. as largest ATM market in Europe

In the latest edition of its 2009 survey, "ATMs and Cash Dispensers Central and Eastern Europe," Retail Banking Research Ltd. says the 15 countries it has tracked in CEE have once again shown exceptional growth. more »

Another Five Winners of the Danske Bankas Monthly Scholarship Award have been Announced

During the draw another five winners of the Danske Bankas monthly Scholarship award (a one off payment to the amount of 250 litas) were announced. more »

Commission approves Swedish state guarantees for Volvo Cars

The European Commission has authorised, under the EC Treaty’s rules on state aid, plans notified by Sweden to provide guarantees that would enable Volvo Personvagnar to access loans from the European Investment Bank. more »

EU and Southern African countries sign interim deal

The European Union signed an interim Economic Partnership Agreement (EPA) today with Botswana, Lesotho and Swaziland. more »

EU previews jobs strategy

Commission proposes to immediately free up €19bn in earmarked funds to fight unemployment as recession takes its toll. more »

From 1 July 2009 Danske Bankas will introduce new fees for bank services and operations

Danske Bankas would like to inform all present and future customers that, as of 1 July 2009, the cash withdrawing fee from Danske Bankas' ATM network in Lithuania is to change. more »

Food labels revisited

One day not so far in the future, Europeans may be able to buy a loaf of bread knowing where the flour came from. more »

GM bankruptcy seen near

General Motors is getting closer to filing what would be the largest industrial bankruptcy in US history. more »