Assessment of the European globalisation adjustment fund programme till 2013 at the local and regional level and recommendations for the new programming perspective 2014-2020

On 6 October 2011, the European Commission issued a new legislative proposal on the European Globalisation Adjustment Fund for the period 2014 - 2020. The European Globalisation Adjustment Fund (EGF) was set up by Regulation (EC) No 1927/2006 to demonstrate solidarity at EU level and to provide one-off, time-limited and tailor-made support to large numbers of workers made redundant within a short period of time. According to the new proposal, the EGF shall continue not to finance passive social protection measures, but rather a number of active labour measures that form part of a coordinated package of personalised services designed to reintegrate laid-off workers into the market. Support measures can include assistance with occupational guidance, job searching, mobility support, vocational training, further education and up-skilling programmes. A maximum amount of EUR 3bn. is earmarked for the EGF for the 2014 - 2020 period. The EGF has been rather effective in tackling local crises and in creating new opportunities for jobs especially when it is integrated with the ESF and it involves several stakeholders at local level. The main strength of the EGF is its capacity to provide intense individual support to the worker by offering an EU funding stream designed specifically to deal with rapid economic changes. Some other factors might harm the capacity of EGF to impact positively: the absence of national tools, the marginal role of regions and the delay in implementation. There are also "environmental" aspects, which might considerably limit the performance of EGF. These include low-skilled workers or a depressed local business climate. The main changes in the new proposal are: a) The extension of the scope of the EGF to new categories of workers (fixed-term contracts, temporary agency, self-employment) b) The inclusion of the agriculture sector c) The simplification and speeding up of the application phase d) A more result-oriented approach. Although the new proposal seems to address some of the main issues concerning the EGF's implementation, some measures of the proposal need to be revised. In general the role of the regions still seems to be marginal and not fully exploited while the required 50% co-financing can result in a disincentive for Member States to apply to the fund. More specifically, the introduction of agriculture among the eligible sectors might pose a problem in terms of the financial balance of the support provided; finally, the more result-oriented approach risks being a threat to rather than an opportunity to enhance the effectiveness of the EGF.