“More flexible rules for the Globalization Fund”

(B2) ...This is Reimer's comment Boge, Chairman of the European Parliament's Finance Committee, during a visit on Monday 21 July to Joensuu (Finland) to verify the use of credits from the European Fund for Globalization Management in the two closed North Karelian factories of pearls (one of Nokia's suppliers that cut several thousand jobs last year). "The credits were granted quickly, even faster than the national aid. However, the rules should have been more flexible. The national legislation also partially limited the innovative use of the aid", commented the MEP (CSU - EPP), comments reported by the daily The country of Finland.

These words are in line with the analysis that this blog had already made (see here) and confirms certain proposals made by the European Commission in its first assessment of the Globalization Fund, drawn up on 2 July. They are especially interesting because the Member concerned was not a strong supporter of the Globalization Fund (to say the least) and if some of the "rigid" provisions which today prevent the Fund from functioning well, We owe them in large part to the German CDU-CSU - and to the members of the EP's "Finance" parliamentary committee, who did all they could to reduce the amplitude of the European Commission's proposal and the amendments of their colleagues from the EP's Employment Committee.

Ridiculous amount committed for the first half of 1
Indeed, for the first half of 2008, the Fund has (only) received three requests (Italy, Spain, Lithuania) for a total amount of approximately 15 million euros. Which is ridiculous in view of the challenges of the restructuring underway in many European companies and the maximum budget allocated to the Fund (500 million euros).

Avenues for reform
In its investigation report, the Commission has provided several avenues for optimizing the operation of the Fund: the simplification of the application procedures, "in order to give a rapid and clear answer to the Member States", and to review the Fund's regulations, by broadening their scope :
- redundancies caused by other events linked to globalisation, such as the evolution of technologies, changes in production patterns, access to raw materials or their prices (and not only "changes affecting trade" such as currently planned);
- more limited redundancies, by revising the eligibility threshold (number of workers concerned/duration of aid);
- to other companies in the geographical area concerned;
- by allowing the financing of mobility allowances granted to workers seeking employment in other Member States.

Nb: The Commission approved, on July 23, Spain's request for 10,5 million euros to help the 1589 workers made redundant by the automotive supplier Delphi and eight subcontractors.

(NGV)

(updated July 23 at 13 p.m.)