Toelichting bij COM(2019)397 - Wijziging van Verordening (EU) nr. 1309/2013 betreffende het Europees Fonds voor aanpassing aan de globalisering (2014-2020)

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1. CONTEXTOFTHE PROPOSAL

Reasons for and objectives of the proposal

The aim of this proposal is to enable the European Globalisation Adjustment Fund ('the EGF') to support workers made redundant as a result of the likely economic disruptions caused by a withdrawal of the United Kingdom of Great Britain and Northern Ireland (the ‘United Kingdom’) from the Union without a withdrawal agreement.

The United Kingdom submitted on 29 March 2017 the notification of its intention to withdraw from the Union pursuant to Article 50 of the Treaty on European Union (TEU). Following a request by the United Kingdom, the European Council (Article 50) agreed on 11 April 20191 to extend further2 the period provided for in Article 50(3) TEU until 31 October 2019. Unless the United Kingdom ratifies the Withdrawal Agreement3 by 31 October 2019 or requests a third extension, to which the European Council (Article 50) agrees by unanimity, the United Kingdom will leave the Union without an agreement and then become a third country as of 1 November 2019. In the absence of a withdrawal agreement, such withdrawal is likely to have significant negative effects on some industries and services leading to people working in those sectors made redundant.

The purpose of the EGF is to support 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 a global financial and economic crises.

Under the globalisation criterion, the scope of the EGF covers redundancies caused by offshoring of jobs to third countries, a serious shift in Union trade in goods or services, or a rapid decline of the Union market share in a given sector. This proposal specifies that the scope of the EGF includes workers made redundant in areas, sectors, territories or labour markets suffering serious economic disruption due to the withdrawal of the United Kingdom from the Union without a withdrawal agreeement. Such a withdrawal will constitute an important change in the trade relations of the EU and the composition of the internal market, and can therefore be expected to have a significant impact on trade patterns, growth and jobs.

Consistency with existing policy provisions in the policy area and other Union policies

This proposal is part of the Union preparedness and contingency plan to mitigate the most significant disruptions caused by a withdrawal of the United Kingdom from the Union without a withdrawal agreement.

2. LEGALBASIS, SUBSIDIARITYAND PROPORTIONALITY

Legal basis

The legal basis is the Treaty on the Functioning of the European Union (TFEU), and in particular the third paragraph of Article 175.

European Council Decision (EU) 2019/584, OJ L 101, 11.4.2019, p. 1.

Following a request by the United Kingdom, the European Council decided a first extension on

22 March 2019 (European Council Decision (EU) 2019/476, OJ L 80I, 22.3.2019, p.

1).

Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the

European Union and the European Atomic Energy Community, OJ, C 144I, 25.4.2019, p. 1.

3

If specific actions prove necessary outside the Structural Funds and without prejudice to the measures decided upon within the framework of the other policies of the Union, Article 175(3) allows the European Parliament and the Council to take action in accordance with the ordinary legislative procedure and after consulting the European Economic and Social Committee and the European Committee of the Regions.

Subsidiarity (for non-exclusive competence)

Funding from the Union budget concentrates on activities whose objectives cannot be sufficiently achieved by the Member States alone, and where the Union intervention can bring additional value compared to action of Member States alone. The mobilisation of the EGF to fund measures aimed at assisting redundant workers find new employment respects the principle of subsidiarity, and it creates European added value.

It is standard practice for national labour market programmes to assist redundant workers, and the EGF does not aim to replace such programmes. In case of unexpected restructuring events that have a significant impact on the labour market, the regular national programmes are put at test. Therefore, because of the scale and effects of unexpected large-scale restructuring and as the EGF is an expression of solidarity across and between Member States, assistance can be better delivered at Union level. The support from EGF will make Union solidarity in exceptional circumstances more tangible for workers affected and for Union citizens in general.

The mobilisation of the EGF creates additional value by increasing the overall number of services offered to redundant workers, as well as the variety of services offered and their level of intensity. The EGF also allows to test innovative ideas, identify best practices and incorporate them into the national support package. EGF co-financed measures also contribute in general to improving the delivery of the support to the redundant workers.

Proportionality

In accordance with the principle of proportionality, the provisions of this proposal do not go beyond what is necessary to achieve its goals. The administrative burden on the Union and on the national authorities applying for EGF support has been limited to what is necessary for the Commission to exercise its responsibility for implementing the Union budget. Since the financial contribution is made to the Member State under the principle of shared management, the Member State will be required to report on how the financial contribution was used.

Choice

of the instrument

As this proposal is an amendment of Regulation (EU) No 1309/2013, it has to be a Regulation.

3. RESULTS        OF        EX-POST        EVALUATIONS,        STAKEHOLDER

CONSULTATIONSANDIMPACTASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

This proposal is adopted in the context of contingency measures to mitigate the most significant disruptions caused by a withdrawal of the United Kingdom from the Union without a withdrawal agreement. The European Commission analysed the risks and concluded that this proposal is necessary in order to ensure the effective response of the EGF so as to show solidarity with workers made redundant in the Union as a consequence of a withdrawal of the United Kingdom from the Union without a withdrawal agreement.


4. BUDGETARYIMPLICATIONS

Article 12 of Council Regulation (EU, EURATOM) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years 2014-2020 provides that the EGF may not exceed a maximum annual amount of EUR 150 million (in 2011 prices).

The present proposal does not modify the maximum annual amount of the EGF.

5. OTHERELEMENTS

Detailed explanation of the specific provisions of the proposal

The proposed amendment to Article 2 specifies that a withdrawal of the United Kingdom from the Union without a withdrawal agreement falls within the scope of the EGF. The aim is to ensure that the EGF can respond effectively by providing support to workers made redundant in the Union as a result of a withdrawal of the United Kingdom without a withdrawal agreement.