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Funding from globalisation fund for Portugal & Malta approved by MEPs
11 Apr '08
3 min read
Over €2.4 million for Portuguese automobile workers:
The European Parliament also recommends giving the go-ahead to the transfer of €2 425 675 to retrain 1549 Portuguese workers laid off by three automobile companies (Alcoa Fujikura, Johnson Controls and a factory belonging to Opel Portugal). The plan of the Portuguese authorities, expected to cost a total of €4.8 million, provides for vocational retraining, aid for entrepreneurship and certification of the employees' qualifications.
MEPs ask for more detail:
During a debate in the budgets and employment committees on 10 March, some MEPs expressed reservations about the scale of the administrative costs, which represent 10% of the total sum requested by the Maltese authorities.
Some MEPs, notably from the Greens/EFA group, also voiced concern about the structure of the Portuguese plan, arguing that to grant a subsidy that which was largely equivalent to salary compensation was in breach of the regulation and could set a dangerous precedent.
In the end, however, the European Parliament decided that the use of the EGAF was justified in both cases. MEPs nevertheless adopted an amendment expressing concern about the measures used to reduce the number of people left without a job and needing support from the fund. They ask the Commission and the Portuguese authorities to ensure that the principle of not using the Fund for salary compensation is respected.
The EGAF, which was designed to help workers who lose their jobs following shifts in world trade patterns, came into operation in 2007. Three Member States have received funding from it so far: France, Germany and Finland. Further applications made by Italy, Portugal and Spain are in the pipeline.
The European Parliament also recommends giving the go-ahead to the transfer of €2 425 675 to retrain 1549 Portuguese workers laid off by three automobile companies (Alcoa Fujikura, Johnson Controls and a factory belonging to Opel Portugal). The plan of the Portuguese authorities, expected to cost a total of €4.8 million, provides for vocational retraining, aid for entrepreneurship and certification of the employees' qualifications.
MEPs ask for more detail:
During a debate in the budgets and employment committees on 10 March, some MEPs expressed reservations about the scale of the administrative costs, which represent 10% of the total sum requested by the Maltese authorities.
Some MEPs, notably from the Greens/EFA group, also voiced concern about the structure of the Portuguese plan, arguing that to grant a subsidy that which was largely equivalent to salary compensation was in breach of the regulation and could set a dangerous precedent.
In the end, however, the European Parliament decided that the use of the EGAF was justified in both cases. MEPs nevertheless adopted an amendment expressing concern about the measures used to reduce the number of people left without a job and needing support from the fund. They ask the Commission and the Portuguese authorities to ensure that the principle of not using the Fund for salary compensation is respected.
The EGAF, which was designed to help workers who lose their jobs following shifts in world trade patterns, came into operation in 2007. Three Member States have received funding from it so far: France, Germany and Finland. Further applications made by Italy, Portugal and Spain are in the pipeline.
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