The European Anti-Shock Fund soon to be created. Factsheet…
(Archives) Helping employees who are victims of the shocks of globalization, the idea seems utopian. However it is becoming reality… Details.
It was the Hewlett-Packard affair, which had seen the American computer company land several thousand employees and the reactions, particularly in France, which had followed, which convinced Europe to act… in a more visible way. In October 2005, at Hampton Court, the 25 Heads of State and Government gave the green light to what was to be the "European Globalization Adjustment Fund".
As explained by Roselyne Bachelot (UMP / PPE), the rapporteur for the file in the European Parliament "Europe benefits from globalisation, it makes sense to accompany it, to come to the aid of workers who are victims of the shocks of globalisation. (…) We must also learn the lessons of the referendum a year ago. Europe has appeared to be distant from the citizen and does not take into account the extraordinary changes that the production apparatus and employees are undergoing throughout Europe.". An approach that has garnered near-consensus in the European Parliament. Last Thursday, in Strasbourg, Socialist, Conservative, Liberal, Green and even some skeptical MPs voted as one man on a first draft regulation, in a parliamentary committee.
When will it be triggered?
The Fund will only intervene for very large social plans: concerning at least 1000 employees of the same company or 1000 employees of the same sector (automotive, shipbuilding, etc.). One condition: that these dismissals are the consequence of a "severe economic disruption"at the level of world trade,"or relocation to third countries".
What measures will be funded?
Job search assistance, training, business creation or the resumption of activities by employees, micro-credits and also additional allowances for employees who are ready to change region, leave for training or to accept a loss of salary.
How will it be funded?
Brussels has devised an ingenious system. To supply the 500 million euros per year of the Fund, no additional budget will be necessary. Each year, we will simply draw on the unused lines. A kind of social European kitty.
When does it start?
If all goes well, the Fund could start at the beginning of 2007. Several meetings are taking place over the next few days between diplomats and MPs to find a quick compromise.
Who presents the case?
It is normally the Member State that submits the application to the European Commission that will verify that all the conditions are met.
(NGV)