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

Commission approves Latvian support scheme for banks

The European Commission has approved under EC Treaty state aid rules a Latvian support scheme to stabilise financial markets by providing guarantees to eligible banks to ensure their access to financing. more »

China celebrates 30 years of reform

Gathering in Beijing, China's political elite gather to celebrate three decades of China's economic reform and market liberalisation. more »

Deals on climate and economy sealed in Brussels

After two days of intense negotiations, European leaders reached agreement on how to achieve the EU’s ambitious climate change goals and endorsed a €200bn plan to revive the flagging EU economy. more »

U.S. Senate blocks auto rescue

Detroit won't get its bailout, as the U.S. Senate blocked the measure to rescue America's big three car makers. more »

MEPs probe reasons behind world food crisis

The world is facing “an acute food crisis”. That was the verdict of a report adopted by MEPs in the Agriculture Committee on 8 December. more »

Commission proposes ways to deliver cheaper and more competitive food prices in Europe

The European Commission has agreed a Communication that aims to improve the functioning of the food supply chain in order to lower prices for consumers. more »

World Bank: 2009 will be grim

The World Bank's 2009 Global Economic Prospects report is projecting world growth will shrink to 0.9 percent next year. more »

Democrats submit auto loan plan

Prospects for a federal aid package to help the US auto industry advanced on Monday. more »

More regulation on the way in shadow of declining economy

A new report from Aite Group LLC explores possible regulatory and legislative responses to the current financial crisis, with particular attention paid to three key topics: consumer lending, risk management and deposit relationships. more »

Market, economic changes make this significant time for ATMs

A new report from Mercator Advisory Group's Retail Banking Practice focuses on the ATM and the multifaceted role it plays in the retail banking market. more »