Brussels, 12/10/2011 (Agence Europe) - For the very first time, the European Parliament has rejected a request for funding under the European Globalisation Fund since it was put in place in 2006. On Tuesday 11 October 2011, the EP's Budgets Committee rejected the request for €24.5 million for 3,582 former workers at the Renault car company in France.
The rejection was orchestrated by French social democrats, backed by some ECR and Green MEPs. The EPP backed a resolution tabled by Italian MEP Barbara Matera (EPP) expressing great surprise at the result of the vote. Matera said on Wednesday 12 October that the rejection of the request had been the fruit of irresponsible behaviour, taking workers hostage and using them for political ends. French European Affairs Minister Jean Leonetti slammed political manoeuvring by French socialists and their joining forces with eurosceptics. A press release issued by Leonetti says the French MEPs had acted improperly and in a totally hypocritical way when one considers the fact that socialist leaders claim to want to increase protection for workers.
The disagreement hinges on the fact that some of the workers took voluntary redundancy and early retirement (70 or so in total) and the fact that French pensions rules changed in 2010, increasing the retirement age from 60 to 62. The French request, however, is for jobs lost in 2009 and this had generated uncertainty about workers who had opted for early retirement under the old rules. In the light of these concerns, the socialist MEPs called for the European Commission to carry out a further assessment of the situation and to freeze some of the funding (nearly €7 million).
The EP's legal department says that such a solution is not possible under the EGF and therefore the S&D's amendment was rejected and the resolution itself was rejected by the EP's Budgets Committee by 20 to 16, with 2 abstentions. The money will not be paid out, although the request has not been cancelled as such. Various other solutions are possible at the EP and the Commission may issue a new proposal. A meeting of the EP/Commission/Council of Ministers budget authorities may be convened shortly to try to find a solution. (JK/transl.fl)