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DRAFT REPORT (COM(2024)0035 – C90040/2024 – 2024/0044(BUD))

On the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers (application from Denmark – EGF/2023/004 DK/Danish Crown)

BUDG-PR-759752

Committee on Budgets · Rapporteur: Janusz Lewandowski

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This is a draft report by the Committee on Budgets on the proposal to mobilise the European Globalisation Adjustment Fund for Displaced Workers for Denmark, following the closure of Danish Crown's slaughterhouse in Sæby. The rapporteur agrees with the Commission that the conditions of Article 4(2)(a) of the EGF Regulation are met and that Denmark is entitled to EUR 1 882 212, which is 60 % of the total cost of EUR 3 137 021. The application concerns 751 displacements, with 390 targeted beneficiaries expected to take part in personalised services such as motivation, retention, general training, upskilling and a training or job-search allowance. The report approves the decision annexed to the resolution and asks the President to sign it and forward the resolution to the Council and the Commission.

Committee position. The rapporteur agrees with the Commission that the conditions for an EGF contribution are met and that Denmark is entitled to EUR 1 882 212. He approves the annexed decision and asks the President to sign and forward it.

Key points

  1. The rapporteur agrees with the Commission that the conditions in Article 4(2)(a) of the EGF Regulation are met and that Denmark is entitled to EUR 1 882 212.
  2. The contribution represents 60 % of the total cost of EUR 3 137 021, comprising EUR 2 878 001 for personalised services and EUR 259 020 for preparatory, management, information, publicity, control and reporting activities.
  3. Denmark submitted the application on 6 December 2023; the Commission finalised its assessment on 29 February 2024 and notified Parliament the same day.
  4. The application relates to 751 displaced workers from the closure of Danish Crown's slaughterhouse in Sæby, with 390 targeted beneficiaries expected to participate in the measures.
  5. Most displaced workers have low formal qualifications (46 %) or outdated qualifications and skills (40 %), and 305 (41 %) are of a migrant background and not fluent in Danish.
  6. The coordinated package of personalised services was drawn up by Denmark in consultation with targeted beneficiaries, their representatives and social partners.
  7. Personalised services consist of motivation, retention, training on general competences, upskilling/reskilling training, and a training and job-search allowance.
  8. Denmark started providing personalised services on 16 October 2023, so the eligibility period runs from that date until 24 months after the financing decision enters into force.
  9. Denmark started incurring administrative expenditure on 1 June 2023, so such expenditure is eligible from that date until 31 months after the financing decision enters into force.
  10. The Danish authorities confirmed that the eligible actions receive no other Union funding and that equality of treatment and non-discrimination will be respected.
  11. The rapporteur reiterates that EGF assistance must not replace actions that are the responsibility of companies under national law or collective agreements.
  12. The rapporteur approves the decision annexed to the resolution and instructs the President to sign it, arrange its publication and forward the resolution to the Council and the Commission.

Who is affected

  • Denmark: receives EUR 1 882 212 from the EGF for 390 targeted beneficiaries.
  • Displaced workers of Danish Crown and two suppliers and downstream producers: 751 affected, 390 expected to participate in measures.
  • Danish Crown (Danish Crown A/S): its slaughterhouse in Sæby closed, causing the displacements.

Figures and deadlines

  • EUR 1 882 212: EGF contribution to Denmark, 60 % of total cost.
  • EUR 3 137 021: total cost of the proposed actions.
  • EUR 2 878 001: expenditure for personalised services.
  • EUR 259 020: expenditure for preparatory, management, information, publicity, control and reporting activities.
  • 751: total displacements in the application.
  • 692: displacements within the reference period from 19 May 2023 to 19 September 2023.
  • 59: displacements before or after the reference period.
  • 390: targeted beneficiaries expected to participate in the measures.

Legal basis: Article 8 of Council Regulation (EU, Euratom) 2020/2093 as amended by Regulation (EU, Euratom) 2024/765.