REPORT. EN United in diversity EN. European Parliament A8-0278/

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1 European Parliament Plenary sitting A8-0278/ REPORT on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Finland EGF/2017/002 FI Microsoft 2) (COM(2017)0322 C8-0193/ /2098(BUD)) Committee on Budgets Rapporteur: Petri Sarvamaa RR\ docx PE v02-00 United in diversity

2 PR_BUD_Funds CONTTS Page MOTION FOR A EUROPEAN PARLIAMT RESOLUTION... 3 ANNEX: DECISION OF THE EUROPEAN PARLIAMT AND OF THE COUNCIL... 7 EXPLANATORY STATEMT... 9 ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMT AND SOCIAL AFFAIRS ANNEX: LETTER OF THE COMMITTEE ON REGIONAL DEVELOPMT INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE PE v /17 RR\ docx

3 MOTION FOR A EUROPEAN PARLIAMT RESOLUTION on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (application from Finland EGF/2017/002 FI Microsoft 2) (COM(2017)0322 C8-0193/ /2098(BUD)) The European Parliament, having regard to the Commission proposal to the European Parliament and the Council (COM(2017)0322 C8-0193/2017), having regard to Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund ( ) and repealing Regulation (EC) No 1927/ (EGF Regulation), having regard to Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years , and in particular Article 12 thereof, having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management 3 (IIA of 2 December 2013), and in particular point 13 thereof, having regard to the trilogue procedure provided for in point 13 of the IIA of 2 December 2013, having regard to the letter of the Committee on Employment and Social Affairs, having regard to the letter of the Committee on Regional Development, having regard to the report of the Committee on Budgets (A8-0278/2017), A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis and to assist their reintegration into the labour market; B. whereas the Union s financial assistance to workers made redundant should be dynamic and made available as quickly and efficiently as possible; C. whereas Finland submitted application EGF/2017/002 FI/Microsoft 2 for a financial contribution from the EGF under the intervention criteria of point (a) of Article 4(1) of the EGF Regulation following redundancies in Microsoft Mobile Oy and 11 suppliers and downstream producers in Finland operating in the economic sector classified under the NACE Revision 2 Division 62 (Computer programming, 1 OJ L 347, , p OJ L 347, , p OJ C 373, , p. 1. RR\ docx 3/17 PE v02-00

4 consultancy and other activities); 1. Agrees with the Commission that the conditions set out in point (a) of Article 4(1) of the EGF Regulation are met and that Finland is entitled to a financial contribution of EUR under that Regulation, which represents 60 % of the total cost of EUR ; 2. Notes that Finland submitted the application on 1 February 2017, and that, following additional information provided by Finland, its assessment was finalised by the Commission on 21 June 2017; 3. Recalls that Microsoft acquired the mobile phone business of Nokia and that Microsoft Mobile Oy was established in 2014; notes that approximately 4700 Nokia employees were transferred to Microsoft Mobile Oy in Finland; 4. Notes that the main reason for the redundancies at Microsoft Mobile Oy is the worldwide competition in the mobile phone sector and the consequent loss of market share by Microsoft Mobile Oy and its Windows based operating system; notes that the decrease happened despite the fact that Microsoft Mobile Oy launched new mobile devices and invested into design, components and marketing; 5. Acknowledges, with regret, the challenges faced by EU mobile phone manufacturers; considers that appropriate support needs to be offered so that the affected workers can retrain so as to be better placed to find jobs in related or expanding industrial sectors; 6. Concludes that the redundancies are linked to the shift of manufacturing of mobile devices to lower wage countries; notes that the winners in the smartphone manufacture competition have been the US and Asia-based manufacturers using Android or ios operating system; 7. Recognises that the affected regions of Helsinki-Uusimaa, Länsi-Suomi and Etelä- Suomi have already experienced extensive redundancies by firms in the electronics and software sectors and that Länsi-Suomi and Etelä-Suomi have high regional unemployment rates (14,6 % and 17,5 % of the labour force respectively); notes that out of redundant workers eligible for the EGF contribution are expected to participate in the measures; 8. Notes that 92,5% of the targeted beneficiaries are years old and that many of the redundant workers are highly educated; notes that unemployment rates of highly educated people have increased considerably in all three regions; is concerned about the already difficult unemployment situation of highly skilled and educated people whose employment prospects would otherwise be traditionally good; 9. Notes that Finland is planning six types of measures: (i) coaching measures and other preparatory measures, (ii) employment and business services, (iii) training, (iv) start-up grants, (vi) pay subsidy, and (vii) allowances for travel and accommodation; notes that those actions constitute active labour market measures; notes that sufficient funds are allocated to control and reporting; 10. Notes that the income support measures correspond to 26,74 % of the overall package of personalised measures, below the maximum 35 % set out in the EGF Regulation, and PE v /17 RR\ docx

5 that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities; 11. Highlights the importance of active labour market measures supported by the EGF; notes that in previous EGF cases providing face-to-face services for redundant workers has proven to be extremely useful; 12. Welcomes the use of the EURES network service to pass foreign job advertisements to Finnish jobseekers; welcomes the fact that the Finnish authorities are encouraging the redundant workers to fully benefit from their right to free movement; 13. Understands that the EGF-funded training measures will be complementary to those financed by a fund set up by the company to help former employees start small businesses in the IT and other sectors; welcomes this initiative; 14. Welcomes the fact that the Finnish authorities started providing the personalised services to the targeted beneficiaries on 12 July 2016, well ahead of the application for the EGF support for the proposed coordinated package; 15. Welcomes the fact that consultations have taken place with stakeholders including representatives of the Centres for Economic Development ( ELY centres ), the Employment and Economic Development ( TE ) offices of the regions concerned, Microsoft, the Technology Industries of Finland, Trade Union Pro, the Union of Professional Engineers in Finland and the Finnish Funding Agency for Innovation; 16. Recalls that the design of the coordinated package of personalised services supported by the EGF should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy; 17. Recognises that the current application is a continuation of a series of previous applications from Finland following the decline of Nokia (EGF/2007/003 FI/Perlos, EGF/2012/006 FI/Nokia Salo, EGF/2013/001 FI/Nokia, EGF/2015/001 FI/Broadcom, EGF/2015/005 FI/Computer Programming, EGF/2016/001 FI/Microsoft and EGF/2016/008 FI/Nokia Network Systems); 18. Notes that there is an on-going EGF intervention (EGF/2016/001 FI/Microsoft) targeted to support the employees made redundant from Microsoft earlier; stresses that the targeted beneficiaries of this proposal are separate from the beneficiaries of that case; 19. Notes that the Finnish authorities have provided assurances that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that they will be complementary with actions funded by the Structural Funds; 20. Recalls the importance of improving the employability of all workers by means of adapted training and the recognition of skills and competences gained throughout a worker's professional career; expects the training on offer in the coordinated package to be adapted not only to the needs of the dismissed workers but also to the actual business environment; RR\ docx 5/17 PE v02-00

6 21. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies by virtue of national law or collective agreements nor of measures for restructuring companies or sectors; notes that Finland has confirmed that the EGF contribution will indeed not replace them; 22. Asks the Commission to ensure public access to the documents related to EGF cases; 23. Approves the decision annexed to this resolution; 24. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union; 25. Instructs its President to forward this resolution, including its annex, to the Council and the Commission. PE v /17 RR\ docx

7 ANNEX: DECISION OF THE EUROPEAN PARLIAMT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from Finland EGF/2017/002 FI/Microsoft 2 THE EUROPEAN PARLIAMT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund ( ) and repealing Regulation (EC) No 1927/2006 1, and in particular Article 15(4) thereof, Having regard to the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management 2, and in particular point 13 thereof, Having regard to the proposal from the European Commission, Whereas: (1) The European Globalisation Adjustment Fund (EGF) aims to provide support for 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, as a result of a continuation of the global financial and economic crisis, or as a result of a new global financial and economic crisis, and to assist them with their reintegration into the labour market. (2) The EGF is not to exceed a maximum annual amount of EUR 150 million (2011 prices), as laid down in Article 12 of Council Regulation (EU, Euratom) No 1311/ (3) On 1 February 2017 Finland submitted an application to mobilise the EGF, in respect of redundancies in Microsoft Oy (Microsoft Mobile Oy) and 11 suppliers and downstream producers and cessations of activities. It was supplemented by additional information provided in accordance with Article 8(3) of Regulation (EU) No 1309/2013. That application complies with the requirements for determining a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) No 1309/2013. (4) The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR in respect of the application submitted by Finland. (5) In order to minimise the time taken to mobilise the EGF, this decision should apply from the date of its adoption, 1 OJ L 347, , p OJ C 373, , p Council Regulation (EU, Euratom) No 1311/2013 of 2 December 2013 laying down the multiannual financial framework for the years (OJ L 347, , p. 884). RR\ docx 7/17 PE v02-00

8 HAVE ADOPTED THIS DECISION: Article 1 For the general budget of the Union for the financial year 2017, the European Globalisation Adjustment Fund shall be mobilised to provide the amount of EUR in commitment and payment appropriations. Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption]. Done at, For the European Parliament The President For the Council The President Date to be inserted by the Parliament before the publication in OJ. PE v /17 RR\ docx

9 EXPLANATORY STATEMT I. BACKGROUND The European Globalisation Adjustment Fund has been created in order to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns. According to the provisions of Article 12 of Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial framework for the years and of Article 15 of Regulation (EU) No 1309/2013 9, the Fund may not exceed a maximum annual amount of EUR 150 million (2011 prices). The appropriate amounts are entered into the general budget of the Union as a provision. As concerns the procedure, according to point 13 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management 10, in order to activate the Fund the Commission, in case of a positive assessment of an application, presents to the budgetary authority a proposal for mobilisation of the Fund and, at the same time, a corresponding request for transfer. In the event of disagreement, a trilogue shall be initiated. II. Finland s application and the Commission s proposal On 21 June 2017, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland in order to support the reintegration in the labour market of workers following redundancies in Microsoft (Microsoft Mobile Oy) and 11 suppliers and downstream producers in the NACE Rev. 2 division 62 (Computer programming, consultancy and other activities) mainly in the NUTS 11 level 2 regions of Helsinki-Uusimaa (Uusimaa) (FI1B1), Länsi-Suomi (Pirkanmaa) (FI197) and Etelä-Suomi (Varsinais-Suomi) (FI1C1). Enterprises and number of dismissals within the reference period Microsoft Mobile Oy Manpower Group Solutions 14 Accenture Oy 5 Sale Nordic Oy 1 HCL Technologies Ltd 3 Spellpoint Oy 1 ISS Palvelut OyManpower Symbio Finland Oy 3 20 Tieto Oy 2 JOT Automation Oy 1 Varamiespalvelu-Group Oy 1 Lionbridge Oy 6 Total no. of enterprises: 12 Total no. of dismissals: Total no. of self-employed persons whose activity has ceased: 0 Total no. of eligible workers and self-employed persons: This is the fourth application to be examined under the 2017 budget and the second one in NACE Revision 2 Division 62 (Computer programming, consultancy and other activities) sector to date. It concerns workers made redundant and refers to the mobilisation of a RR\ docx 9/17 PE v02-00

10 total amount of EUR from the EGF for Finland. The application was sent to the Commission on 1 February 2017 and supplemented by additional information within six weeks of the Commission s request. The Commission finalised its assessment on 21 June 2017 and has concluded, in accordance with all applicable provisions of the EGF Regulation, that the application meets the conditions for a financial contribution from the EGF, as referred to in Article 4(1)(a) of the EGF Regulation. The ICT sector is highly susceptible to changes in global economy, due to high competition, rapid technological progress and innovations, mergers, acquisitions and outsourcing. The competition between employees from the EU and from outside the EU is intensive. Employees in the European ICT sector are ageing and less educated than their American and Asian counterparts. Finnish ICT professionals are facing increasingly global competition compared to employees in any other sector. The six types of measures which are to be provided to workers made redundant consist of: Coaching measures and other preparatory measures: These measures will include job seeking training, support to labour mobility (EURES services), individual guidance (job coaching), career coaching and expert assessments. Employment and business services: This measure will include supporting independent job seekers, assessment of competencies, try-outs and recruitment events. Training: This measure will include vocational, continuing and change training, reeducation, entrepreneurial and labour mobility related training. Start-up grants are to promote the creation of business activity and self-employment of individual persons. The purpose of the start-up grant is to ensure an income for an aspiring entrepreneur during the estimated time required to launch and establish a full-time business. Pay subsidy will be available for the redundant workers to support employment in a new job or an apprenticeship, by reducing the new employer s payroll costs for a limited time period. The pay subsidy is between 30 and 50 % of the worker's payroll costs for a limited period (6-24 months). Allowances for travel, overnight and removal costs: A job-seeker may be granted an allowance for travel and accommodation costs incurred for job-seeking, or travel and accommodation costs for participation in training measures and compensation for removal expenses. The above-mentioned measures are personalised and targeted at the dismissed worker, while entrepreneurship measures are targeted to a limited number of persons with realistic business projects. According to the Commission, the described measures constitute active labour market measures within the eligible actions set out in Article 7 of the EGF Regulation. These actions do not substitute passive social protection measures. Finland has provided all necessary assurances regarding the following: the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, PE v /17 RR\ docx

11 the requirements laid down in national and EU legislation concerning collective redundancies have been complied with, the dismissing enterprises, which have continued their activities after the lay- offs, have complied with their legal obligations governing the redundancies and provided for their workers accordingly, the proposed actions will not receive financial support from other Union funds or financial instruments and any double financing will be prevented, the proposed actions will be complementary with actions funded by the Structural Funds, the financial contribution from the EGF will comply with the procedural and material Union rules on State aid. III. Procedure In order to mobilise the Fund, the Commission will submit to the Budget Authority a proposal for a transfer of appropriations to the relevant budgetary line for the amount of EUR This is the fourth transfer proposal for the mobilisation of the Fund transmitted to the Budgetary Authority to date during The trilogue procedure shall be initiated in the event of disagreement, as provided for in Article 15(4) of the EGF Regulation. According to an internal agreement, the Employment and Social Affairs Committee should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications to the Fund. RR\ docx 11/17 PE v02-00

12 ANNEX: LETTER OF THE COMMITTEE ON EMPLOYMT AND SOCIAL AFFAIRS CF/jb D(2017)27397 Mr Jean Arthuis Chair of the Committee on Budgets ASP 09G205 Subject: Opinion on the mobilisation of the European Globalisation Adjustment Fund (EGF) for the case EGF/2017/002 FI/Microsoft 2 Dear Chair, The Committee on Employment and Social Affairs (EMPL) and its Working Group on the EGF examined the mobilisation of the EGF for the case EGF/2017/002 FI/Microsoft 2 and adopted the following opinion. The EMPL committee and its Working Group are in favour of the mobilisation of the Fund concerning this request. In this respect, the EMPL committee presents some remarks without, however, putting into question the transfer of the payments. The deliberations of the EMPL committee are based on the following considerations: A) Whereas this application is based on Article 4(1)(a) of Regulation (EU) No 1309/2013 (EGF Regulation) and relates to workers made redundant in Microsoft Oy (Microsoft Mobile Oy) and 11 suppliers and downstream producers, operating in the economic sector classified under the NACE Revision 2 Division 62: Computer programming, consultancy and other activities; B) Whereas, in order to establish the link between the redundancies and major structural changes in world trade patterns due to globalisation, Finland argues that the main reason behind the workforce reductions is worldwide competition in the mobile phone sector and the consequent loss of market share by Microsoft Mobile Oy (and its Windows-based operating system). C) Whereas 74% of the workers targeted by the measure are men and 26% are women; whereas 92,5% of the targeted beneficiaries are aged between 30 and 54 years, 2,5% between 25 and 29 years and 5% between 55 and 64 years; D) Whereas this is the eighth EGF application from Finland related to the decline of Nokia. PE v /17 RR\ docx

13 Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution concerning the Finnish application: 1. Agrees with the Commission that the intervention criteria set out in Article 4(1)(a) of the Regulation (EU) No 1309/2013 are met and that, therefore, Finland is entitled to a financial contribution of EUR under this Regulation which represents 60% of the total cost of EUR ; 2. Notes that the Commission respected the deadline of 12 weeks from the reception of the completed application from the Finnish authorities until finalising its assessment of its compliance with the conditions for providing a financial contribution, on 21 June 2017, and notified it to Parliament on the same day; 3. Recognises that the affected regions of Helsinki-Uusimaa, Länsi-Suomi and Etelä-Suomi have already experienced extensive lay-offs by firms in the electonics and software sectors and that the latter two regions have high regional unemployment rates (14,6% and 17,5% of the labour force respectively); 4. Expresses concern at the growing unemployment rate amongst highly-educated people; 5. Acknowledges, with regret, the challenges faced by EU mobile phone manufacturers; considers appropriate support needs to be offered so that the affected workers can retrain so as to be better placed to find jobs in related or expanding industrial sectors; 6. Notes that the EGF co-funded personalised services for the redundant workers include coaching measures and other preparatory measures, employment and business services, training, start-up grants, pay subsidies, and allowances for travel and accommodation; 7. Welcomes the consultations with stakeholders including representatives of the Centres for Economic Development ( ELY centres ), the Employment and Economic Development ( TE ) offices of the concerned regions, Microsoft, the Technology Industries of Finland, Trade Union Pro, Union of Professional Engineers in Finland and of the Finnish Funding Agency for Innovation; 8. Understands that the EGF-funded training measures will be complementary to those financed by a fund set up by the company to help former employees start small businesses in the IT and other sectors; welcomes this initiative; 9. Notes that the income supports measures will be 26,74% of the overall package of personalised measures, below the maximum 35% set out in the Regulation; and that these actions are conditional on the active participation of the targeted beneficiaries in job-search or training activities; 10. Notes that the Finnish authorities have provided assurances that the proposed actions will not receive financial support from other Union funds or financial instruments, that any double financing will be prevented and that they will be complementary with actions funded by the Structural Funds; RR\ docx 13/17 PE v02-00

14 11. Welcomes Finland s confirmation that a financial contribution from the EGF will not replace actions the enterprise concerned is required to take by virtue of national law or pursuant to collective agreements; 12. Recalls that in line with Article 7 of the Regulation, the design of the coordinated package of personalised services should anticipate future labour market perspectives and required skills and should be compatible with the shift towards a resource-efficient and sustainable economy. Yours sincerely, Thomas HÄNDEL EMPL Chair PE v /17 RR\ docx

15 ANNEX: LETTER OF THE COMMITTEE ON REGIONAL DEVELOPMT Mr Jean ARTHUIS Chairman Committee on Budgets European Parliament Subject: Mobilisation of the European Globalisation Adjustment Fund Dear Mr Arthuis, A Commission proposal for a decision to mobilise the European Globalisation Adjustment Fund (EGF) has been referred for opinion to the Committee on Regional Development. I understand that it is intended that a report on this will be adopted in the Committee on Budgets on 31 August 2017: - COM(2017)0322 proposes an EGF contribution of EUR for 1248 workers made redundant in Microsoft Oy (Microsoft Mobile Oy) and 11 suppliers and downstream producers. The primary enterprise operates in the economic sector classified under the NACE Revision 2 Division 62 Computer programming, consultancy and other activities. The redundancies made by the Microsoft Mobile Oy are mainly located in the NUTS level 2 regions of Helsinki-Uusimaa, Länsi-Suomi and Etelä-Suomi. The rules applicable to financial contributions from the EGF are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund ( ) and repealing Regulation (EC) No 1927/2006. The Committee coordinators have assessed this proposal, and asked me to write to you reporting that the majority of this Committee has no objection to this mobilisation of the European Globalisation Adjustment Fund to allocate the above-mentioned amount as proposed by the Commission. Yours sincerely, Iskra MIHAYLOVA RR\ docx 15/17 PE v02-00

16 INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE Date adopted Result of final vote +: : 0: Members present for the final vote Substitutes present for the final vote Jonathan Arnott, Jean Arthuis, Richard Ashworth, Reimer Böge, Lefteris Christoforou, Gérard Deprez, Manuel dos Santos, André Elissen, José Manuel Fernandes, Eider Gardiazabal Rubial, Jens Geier, Iris Hoffmann, Monika Hohlmeier, John Howarth, Bernd Kölmel, Zbigniew Kuźmiuk, Vladimír Maňka, Siegfried Mureşan, Liadh Ní Riada, Jan Olbrycht, Younous Omarjee, Urmas Paet, Pina Picierno, Paul Rübig, Petri Sarvamaa, Jordi Solé, Patricija Šulin, Indrek Tarand, Isabelle Thomas, Inese Vaidere, Monika Vana, Daniele Viotti, Tiemo Wölken, Marco Zanni Anneli Jäätteenmäki, Giovanni La Via, Tomáš Zdechovský PE v /17 RR\ docx

17 FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE 33 + ALDE ECR F GUE/NGL PPE S&D Verts/ALE Jean Arthuis, Gérard Deprez, Anneli Jäätteenmäki, Urmas Paet Zbigniew Kuźmiuk Marco Zanni Liadh Ní Riada, Younous Omarjee Reimer Böge, Lefteris Christoforou, José Manuel Fernandes, Monika Hohlmeier, Giovanni La Via, Siegfried Mureşan, Jan Olbrycht, Paul Rübig, Petri Sarvamaa, Inese Vaidere, Tomáš Zdechovský, Patricija Šulin Eider Gardiazabal Rubial, Jens Geier, Iris Hoffmann, John Howarth, Vladimír Maňka, Pina Picierno, Isabelle Thomas, Daniele Viotti, Tiemo Wölken, Manuel dos Santos Jordi Solé, Indrek Tarand, Monika Vana 4 - ECR EFDD F Richard Ashworth, Bernd Kölmel Jonathan Arnott André Elissen 0 0 Key to symbols: + : in favour - : against 0 : abstention RR\ docx 17/17 PE v02-00

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