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DRAFT REPORT (COM(2024)0030 – C90041/2024 – 2024/0049(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 following an application from Germany – EGF/2023/003 DE/Vallourec

BUDG-PR-759759

Committee on Budgets · Rapporteur: Jens Geier

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This is a draft report by the Committee on Budgets on a proposal to mobilise the European Globalisation Adjustment Fund for Displaced Workers for Germany, following 1 518 redundancies at Vallourec Deutschland GmbH. The rapporteur agrees with the Commission that the conditions of Article 4(2), point (a), of the EGF Regulation are met and that Germany is entitled to EUR 2 984 627, which is 60 % of the total cost of EUR 4 974 379. The report notes that 835 workers will be targeted beneficiaries and that the personalised services include training, guidance, job-search assistance, support for business creation, incentives and allowances. It stresses that the displaced workers' profiles do not match labour market needs and that up- and re-skilling them for a climate neutral economy is a challenge. The report approves the decision annexed to the resolution.

Committee position. The rapporteur agrees with the Commission that the conditions for a financial contribution are met and that Germany is entitled to EUR 2 984 627. The report approves the decision annexed to the resolution.

Key points

  1. The report agrees with the Commission that the conditions of Article 4(2), point (a), of the EGF Regulation are met and that Germany is entitled to a financial contribution of EUR 2 984 627.
  2. The contribution represents 60 % of the total cost of EUR 4 974 379, comprising EUR 4 783 057 for personalised services and EUR 191 322 for preparatory, management, information and publicity, control and reporting activities.
  3. The application relates to 1 518 workers made redundant at Vallourec Deutschland GmbH, of whom 835 will be targeted beneficiaries.
  4. The redundancies are expected to raise the unemployment rate in Mülheim and Düsseldorf by 11,6 % and 5,6 % respectively.
  5. The report points out that the workers' profiles do not match the skills sought on the job market, that 20,1 % of them are over 54 years of age, and that up- and re-skilling them is a challenge.
  6. It considers it a social responsibility of the Union to provide these workers with qualifications for the ecological and just transformation of Union industry in line with the European Green Deal.
  7. It welcomes the personalised services provided by the EGF, including upskilling measures, workshops, vocational orientation, job counselling and training allowances.
  8. It welcomes that Germany drew up the coordinated package of personalised services in consultation with targeted beneficiaries, their representatives and social partners, and acknowledges VAD's efforts to minimise the social impact of the closures.
  9. The personalised services consist of tailor-made training and retraining, occupational guidance, individual job-search assistance and targeted group activities, support towards and contribution to business creation, and incentives and allowances.
  10. Germany started providing personalised services on 1 December 2023, with eligibility from that date until 24 months after the entry into force of the financing decision; administrative expenditure is eligible from 1 January 2023 until 31 months after that date.
  11. The report stresses that the eligible actions do not receive assistance from other Union funds and that equality of treatment and non-discrimination will be respected.
  12. It reiterates that EGF assistance must not replace actions which are the responsibility of companies under national law or collective agreements, and approves the decision annexed to the resolution.

Who is affected

  • 1 518 workers made redundant at Vallourec Deutschland GmbH, of whom 835 are targeted beneficiaries.
  • The cities of Mülheim an der Ruhr and Düsseldorf, whose local economies and unemployment rates are affected.
  • Germany, which submitted the application and is entitled to the financial contribution.
  • Vallourec Deutschland GmbH, which agreed to set up a transfer company and offered early retirement and voluntary termination plans.

Figures and deadlines

  • 1 518 redundancies in the economic sector classified under NACE Revision 2 division 24.
  • Reference period for the application from 26 April 2023 to 26 August 2023.
  • At least 200 workers being made redundant over a reference period of four months under Article 4(2), point (a).
  • More than 1400 jobs lost since 2015 due to restructuring.
  • Displacement of the remaining workforce by 1 January 2025.
  • Maximum annual amount of the EGF reduced from EUR 186 million to EUR 30 million (in 2018 prices).
  • Financial contribution of EUR 2 984 627, representing 60 % of the total cost of EUR 4 974 379.
  • Grants of up to EUR 21 871 for business creation and a training allowance of EUR 1 296.

Legal basis: Article 4(2), point (a), of the EGF Regulation.