Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-12-15-Speech-4-008-000"
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"en.20111215.3.4-008-000"2
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"Madam President, Commissioner, ladies and gentlemen, almost 23 million people in Europe are unemployed today, and more than 113 million people are living under the threat of poverty and exclusion.
Ladies and gentlemen, the European Commission’s economic forecasts show that no substantial recovery in labour market conditions in Europe is expected before 2013. These assessments, together with the strain being put on Member State budgets by fiscal consolidation efforts, must therefore lead us to conclude that it is necessary to extend the current expiry date before the end of this month, which will be active from 1 January 2012.
Unfortunately, however, the debate on this proposal in the Council on 2 December resulted in several delegations – Netherlands, Germany, Sweden, Denmark, United Kingdom, Latvia, Czech Republic and Slovakia – opposing this proposal by the Commission, blocking the extension of this derogation.
I would like to sum up, Madam President, by saying that this action on the part of the Council is nothing short of irresponsible. Public opinion sees the fund as an important instrument of solidarity providing financial support to our citizens and redundant workers. We cannot allow the Council to block a further extension, and therefore I hope that all of my fellow members will decide to symbolically support the report that will help the 3 500 workers made redundant by Renault at today’s vote.
Against this background, the European Union plays a crucial role in funding areas of social investment that are difficult for Member States to support at a time when their finances are under extreme pressure as a result of the financial crisis that is having such tremendous effect on us all.
Every year, instruments such as the European Social Fund, European Globalisation Adjustment Fund, and Progress Programme – to mention but a few – provide support for millions of European citizens, promoting self-entrepreneurship and job mobility.
The European Globalisation Adjustment Fund (EFG) is a relatively new fund, which was established principally to provide support to workers made redundant as a result of changes in world trade patterns by cofinancing active labour market policies.
In the light of the rapid escalation of the economic and financial crisis in 2008, the European Commission proposed a temporary derogation to the EGF, which was due to finish at the end of this year, in order to extend its scope and be able to offer support to workers made redundant as a direct consequence of the economic crisis as well as increasing the EGF cofinancing rate from 50% to 65% for Member States.
My personal experience as standing rapporteur for the opinion of the Committee on Budgets for the EGF has allowed me to see that adopting this amendment has allowed a more extensive use of the fund.
In fact, in the 28 months of life of the EGF before this derogation was introduced, only – just think – 15 applications for funding were presented involving ‘only’ 18 000 redundant workers. However, since the derogation was approved this number has quadrupled.
Member States have also indicated that without the temporary derogation it would be impossible to support 45 000 workers made redundant by companies as a result of the economic and financial crisis.
Furthermore, with the increase in the cofinancing rate to 65%, the cost of funding to Member States has enabled them to provide immediate support for their workers and companies."@en1
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