Brussels, 21/10/2009 (Agence Europe) - On Wednesday 21 October, the European Commission approved applications from Austria and Sweden for assistance for their car sector workers from the European Globalisation Adjustment Fund (EGF).
The application will now be sent to the European Parliament and the Council who have to approve the release of the funds. The Austrian application - for €5,706,635 - was submitted after 744 employees were made redundant from nine manufacturers of motor vehicles, trailers and semi-trailers located in the Austrian region of Styria. The EGF assistance is targeted at the 400 workers with the greatest difficulties in getting back into the labour market. The total estimated cost of the package is almost €8.8 million, with the European Union being asked for €5.7 million.
The Swedish application relates to 4,687 redundancies in total, with 2,258 from Volvo Cars and 2,429 from 23 of its suppliers and downstream producers. The funding will help the 1,500 most disadvantaged of these dismissed workers back into employment. The total estimated cost of the EGF assistance package is €15 million, with the European Commission being asked to fund €9.8 million. The region of Västsverige, where 73% of the redundancies occurred, is suffering not only from the redundancies from VOLVO CARS but also those from SAAB and VOLVO AB and their suppliers. The number of unemployed workers in the region in March 2009 was 60% higher than in March 2008.
The redundancies are a consequence of the rapid decline in demand for cars caused by the financial and economic crisis. The two applications will now be put to the European Parliament and the Council of the European Union for decision.
At the same time, the European Investment Bank decided on Wednesday to grant a new raft of loans to the car industry to help it through the crisis it is facing. €400 million have been allocated to Saab and €200 million to Renault. EUROPE will return later to this. (G.B./O.L./transl.rt)