DRAFT REPORT. EN United in diversity EN. European Parliament 2018/2059(BUD)

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1 European Parliament Committee on Budgets 2018/2059(BUD) DRAFT 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 France EGF/2017/009 FR Air France) (COM(2018)0230 C8-0161/ /2059(BUD)) Committee on Budgets Rapporteur: Alain Lamassoure PR\ docx PE v01-00 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... 6 EXPLANATORY STATEMT... 8 PE v /10 PR\ 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 France EGF/2017/009 FR Air France) (COM(2018)0230 C8-0161/ /2059(BUD)) The European Parliament, having regard to the Commission proposal to the European Parliament and the Council (COM(2018)230 C8-0161/2018), 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 (A8-0000/2018), 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 France submitted application EGF/2017/009 FR/Air France for a financial contribution from the EGF, following redundancies in the economic sector classified under the NACE Revision 2 Division 51 (Air transport) in the NUTS level 2 regions of Île-de-France (FR10) and Provence-Alpes-Côte d'azur (FR82) in France; 1 OJ L 347, , p OJ L 347, , p OJ C 373, , p. 1. PR\ docx 3/10 PE v01-00

4 D. whereas the application is based on the intervention criteria of point (a) of Article 4(1) of the EGF Regulation, which requires at least 500 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and / or self-employed persons whose activity has ceased; 1. Agrees with the Commission that the conditions set out in Article 4(1) of the EGF Regulation are met and that France is entitled to a financial contribution of EUR under that Regulation, which represents 60 % of the total cost of EUR ; 2. Notes that the French authorities submitted the application on 23 October 2017, and that, following the provision of additional information by France, the Commission finalised its assessment on 23 April 2018 and notified it to Parliament on the same day; 3. Recalls that this is the second application from France for a financial contribution from the EGF in relation to redundancies at Air France, following application EGF/2013/014 FR/Air France in December 2013 and a positive decision thereon 1 ; 4. Notes that France argues that the redundancies are linked to major structural changes in world trade patterns due to globalisation and more particularly, the serious economic disruption undergone by the international air transport sector, notably the decline of the Union s market share in the face of a spectacular rise of three major companies in the Persian Gulf, which receive state aid and subsidies; 5. Recalls that, on 8 June 2017, the Commission adopted a proposal for a regulation on safeguarding competition in air transport 2 which seeks to ensure fair competition between Union air carriers and third country air carriers; 6. Recalls that the redundancies that occurred at Air France are expected to have a significant adverse effect on the local economy, which has issues related with long-term unemployment and the redeployment for workers aged 50+; 7. Notes that the application relates to workers made redundant at Air France, the majority of whom are between 55 and 64 years old; further notes that 47.6% of the redundant workers are women; acknowledges, in view of this, the importance of active labour market measures co-funded by the EGF for improving the chances of reintegration in the labour market of these groups; 8. Notes that France is planning five types of actions for the redundant workers covered by this application: (i) advisory services and vocational guidance for workers, (ii) vocational training, (iii) contribution for business recovery or business start-up, (iv) jobsearch allowance, (v) mobility allowance; 1 Decision (EU) 2015/44 of the European Parliament and of the Council of 17 December 2014 on the mobilisation of the European Globalisation Adjustment Fund, in accordance with 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 (application EGF/2013/014 FR/Air France, from France) (OJ L 008, , p. 18). 2 COM(2017)0289. PE v /10 PR\ docx

5 9. Acknowledges that the coordinated package of personalised services has been drawn up in consultation with the representatives of the targeted beneficiaries and the social partners; 10. Stresses that the French authorities have confirmed that the eligible actions do not receive assistance from other Union funds or financial instruments; 11. Reiterates that assistance from the EGF must not replace actions which are the responsibility of companies, by virtue of national law or collective agreements, or measures for restructuring companies or sectors; 12. Calls on the Commission to urge national authorities to provide more details, in future proposals, on the sectors which have growth prospects and are therefore likely to hire people, as well as to gather substantiated data on the impact of the EGF funding, including on the quality of jobs and the reintegration rate achieved through the EGF; 13. Recalls its appeal to the Commission to assure public access to all the documents related to EGF cases; 14. Approves the decision annexed to this resolution; 15. 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; 16. Instructs its President to forward this resolution, including its Annex, to the Council and the Commission. PR\ docx 5/10 PE v01-00

6 ANNEX: DECISION OF THE EUROPEAN PARLIAMT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund following an application from France EGF/2017/009 FR/Air France 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 23 October 2017, France submitted an application to mobilise the EGF, in respect of redundancies in Air France in France. 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 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). PE v /10 PR\ docx

7 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 France. (5) In order to minimise the time taken to mobilise the EGF, this decision should apply from the date of its adoption, HAVE ADOPTED THIS DECISION: Article 1 For the general budget of the Union for the financial year 2018, 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. PR\ docx 7/10 PE v01-00

8 I. Background EXPLANATORY STATEMT 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 2, 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 3, 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. France s application and the Commission's proposal On 23 April 2018, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of France to support the reintegration in the labour market of workers made redundant by one enterprise operating in the economic sector classified under the NACE Revision 2 Division 51 (Air transport). The redundancies made by Air France are mainly located in the NUTS level 2 regions of Île-de-France (FR10) and Provence-Alpes-Côte d'azur (FR82) in France. The proposal was transmitted to the European Parliament on 23 April This is the sixth application to be examined under the 2018 budget and the third in the economic sector classified under the NACE Revision 2 Division 51 (Air transport) since the establishment of the EGF. It concerns workers made redundant and refers to the mobilisation of a total amount of EUR from the EGF for France. The application was sent to the Commission on 23 October 2017 and supplemented by additional information by 1 February The Commission finalised its assessment on 23 April 2018 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) of the EGF Regulation. 1 OJ L 347, , p OJ L 347, , p OJ C 373, , p. 1. PE v /10 PR\ docx

9 France argues that the redundancies are linked to major structural changes in world trade patterns due to globalisation and more particularly, the serious economic disruption undergone by the international air transport sector, notably the decline of the EU s market share. The French authorities attribute the most damaging effects of the globalisation of air transport on the EU companies to the very strong increase in capacity of Emirates, Qatar Airways and Etihad Airways which continues since The largest number of redundancies occurred in Ile-de-France (76,2 %) and in Provence- Alpes-Côte d' Azur PACA (11,7 %), territories that have issues related with long-term unemployment and job seekers aged 50+. This age group represents 79 % of the total number of redundancies. A large number of redundant workers are also women (47.6 %). Active labour market measures co-funded by the EGF are all the more important for improving the chances of reintegration in the labour market of these groups. The five types of actions to be provided to redundant workers and for which EGF co-funding is requested consist of: Advisory services and vocational guidance for workers: The workers will be accompanied and oriented towards their projects for redeployment as workers or self-employed persons. The participants will avail of job-to-job counselling and guidance, job search support, coaching, information on available training, promotion of entrepreneurship and advice on business start-up, etc. Vocational training: The workers will be proposed various types of trainings which are tailored to their needs, as identified by the counsellors providing the advisory services. Particular attention will be paid to the 'parcours encadrés' which are vocational trainings of long duration on jobs in demand. Contribution for business recovery or business start-up: Workers who start their own businesses (business recovery or start-up) will receive up to EUR to cover setting-up costs, investment in assets and current expenditure. The contribution will be paid in various instalments once certain milestones have been reached. Job-search allowance: This monthly allowance, paid until the end of the redeployment leave, amounts to 70 % of the worker's last gross salary. This amount is calculated based on the assumption of the workers' full-time participation in active labour market measures; if participation is lower extent, the EGF will pay workers an allowance which is proportionate to their actual participation. Mobility allowance: The targeted worker who accepts a job, involving a change of residence of more than 100 km from the current place of residence, will receive a lump sum of EUR to cover the necessary expenditure. This amount will be increased by EUR 500 for the non-separated spouse, PACS partner 1 or domestic partnership ('concubinage') and additional EUR 500 per child. 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 and do not substitute passive social protection measures. 1 Partners bound by a civil solidarity pact (pact civil de solidarité (PACS)). PR\ docx 9/10 PE v01-00

10 The French authorities have 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, the requirements laid down in national and EU legislation concerning collective redundancies have been complied with, the dismissing enterprise, which has 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 financial contribution from the EGF will comply with the procedural and material Union rules on State aid. France has notified the Commission that the source of national pre-financing or co-funding is Air France. The financial contribution will be managed by the Délégation générale à l emploi et à la formation professionnelle (DGEFP) of the Ministry of Labour, Employment, Vocational Training and Social Dialogue, in particular by the unit Fonds national de l'emploi (DGEFP - MFNE). III. Procedure In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR from the EGF reserve ( ) to the EGF budget line ( ). This is the sixth 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 from the Fund. PE v /10 PR\ docx