33 European Globalisation Adjustment
Fund
| Committee's assessment
| Politically important |
| Committee's decision | Not cleared from scrutiny; further information requested
|
| Document details | Proposal for a Decision on Commission expenditure in 2015 in connection with the European Globalisation Adjustment Fund
|
| Legal base | Article 175 TFEU; co-decision; QMV
|
| Department
Document numbers
| HM Treasury
(36792), 8003/15; COM(15) 156
|
Summary and Committee's conclusions
33.1 The European Globalisation Adjustment Fund is designed to
provide support for workers made redundant as a result of major
structural changes in world trade patterns due to globalisation,
in situations where these redundancies have a significant adverse
impact on the regional or local economy. In addition to Member
States' ability to apply for support from the Fund, the Commission
may apply annually for finance for "technical assistance"
of up to 0.5% of the Fund's current ceiling.
33.2 With this draft Decision the Commission is proposing
a European Globalisation Adjustment Fund contribution of €630,000
(£457,800) for technical assistance to administer the Fund,
which would be used for administrative expenditure.
33.3 The Government reiterates in its standard terms
the need for EU budgetary restraint, including in relation to
the European Globalisation Adjustment Fund. It then comments that,
in line with this approach, it will seek to ensure value for money
in respect of proposals for technical assistance.
33.4 The Commission has applied for a contribution
from the European Globalisation Adjustment Fund for technical
assistance annually since 2010. On a number of occasions the then
Government expressed to the predecessor Committee reservations
about the need for such contributions. So before we consider this
document again we should like to hear more precisely the current
Government's view of the value for money in regard to this present
proposal. Meanwhile the document remains under scrutiny.
Full
details of the documents: Proposal for
a Decision on the mobilisation of the European Globalisation Adjustment
Fund (EGF/2015/000 TA 2015 — Technical assistance at the
initiative of the Commission): (36792), 8003/15; COM(15) 156.
Background
33.5 The European Globalisation Adjustment Fund (EGF)
is designed to provide support for workers made redundant as a
result of major structural changes in world trade patterns due
to globalisation, in situations where these redundancies have
a significant adverse impact on the regional or local economy.
It was established in 2006 and has been renewed for the 2014-20
budgetary period by Regulation (EU) No. 1309/13 (the EGF Regulation),
which sets out the rules governing the use (mobilisation) of the
EGF.
33.6 The annual budgetary ceiling for the EGF is
€150 million (£109 million) in 2011 prices. In addition
to Member States' ability to apply for support from the Fund,
the Commission may apply annually for finance for "technical
assistance" of up to 0.5% of the current ceiling.
The document
33.7 With this draft Decision the Commission is proposing
an EGF contribution of €630,000 (£457,800) for technical
assistance to administer the Fund. It says that the contribution
would be used for administrative expenditure including:
· data
monitoring and gathering, including data on applications received;
· information
provision;
· IT improvements;
· meetings
and events; and
· public
procurement costs.
33.8 For 2015 0.5% of the annual EGF fund is €750,000
(£545,000) and presently the entire amount remains available.
The Government's view
33.9 In his Explanatory Memorandum of 27 May 2015
the Financial Secretary to the Treasury (Mr David Gauke) first
says in standard terms that:
· the
Government has been clear that it wants to see real budgetary
restraint in the EU over the coming years;
· reform
of EU spending is a priority, but recent action taken by the Government,
including the European Council agreement on the 2014-2020 Multiannual
Financial Framework, delivers important progress;
· this
secured a very substantial reduction in the size of the EGF over
the period 2014-2020;
· the
Government is committed to continue to work hard to limit EU spending,
reduce waste and inefficiency, and deliver the best possible deal
for taxpayers; and
· as part
of this, it is essential that EU expenditure is closely scrutinised
on the basis of value for money.
33.10 The Minister then comments that, in line with
this approach, the Government will seek to ensure value for money
in respect of proposals for EGF technical assistance.
Previous Committee Reports
None.
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