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Europe Daily Bulletin No. 12091
Contents Publication in full By article 16 / 26
SOCIAL AFFAIRS / Social affairs

Maria Arena wants wider scope for European Globalisation Adjustment Fund

Belgian MEP Maria Arena (S&D) wants greater scope of action for the future European Globalisation Adjustment Fund (EGF), which she also wants to be renamed, as she explained when presenting her report on Thursday 6 September to the European Parliament’s employment and social affairs committee (EMPL). 

The MEP feels the EGF should not concentrate solely on measures for adjustment to the impact of globalisation, but also to the impact of ecological and technological transition, which reinforce the consequences of globalisation. The MEP gives the example of the car sector, which faces all three types of transition at once.  Hence the MEP suggests renaming the EGF the European Fund for Accompanying Transitions (EFT). 

Another major innovation introduced by the MEP is the giving the Fund the possibility of financing measures to boost employment and socio-economic prospects by helping  public players (social partners, regional authorities and local associations), in collaboration with private players, to assess the economic and social situation of their region. She said she had the impression the fund was walking on one leg, rather than two, because of its current solely curative aim.  She said that workers wouldn’t find work if work doesn’t exist, therefore more structural action needs to be supported as well. 

The two big proposals were given a rather positive welcome by the MEPs.  Shadow rapporteur Tom Vandenkendelaere (EPP, Belgium) stressed the need to fight against any deepening of inequalities among generations in the face of digitalisation of the economy and society.  He said he "understood" Arena’s approach and wanted to discuss modalities.  He insisted, however, that overlaps must be avoided and the fund’s scope of action needs further clarification. 

MEP Czesław Hoc (CRE, Poland), speaking on behalf of shadow rapporteur Arne Gericke (CRE, Germany), laid emphasis on avoiding any abuse of the fund by big companies.   A viewpoint shared by the other shadow rapporteur, Laura Agea (ELDD, Italy), who feared that the fund would strengthen delocalisation in one direction. 

The latter MEP wondered about the pertinence of setting a threshold for the number of workers (250 rather than the current 500  – see EUROPE 12030), which would not cover the situation of many SMEs in Italy.  An objection that Élisabeth Morin-Chartier (EPP, France) seemed to share.  She spoke of the case of companies in her constituency which were directly affected by globalisation, but which employed less than thirty people. 

Two other broad viewpoints were noted by the MEPs: the need to discuss the European Social Fund plus (ESF+) and the EGF, the first being a preventative tool and the second curative.  Several individuals, starting with Morin-Chartier, were concerned about lack of communication about the fund.  The MEP explained that some local officials in France didn’t know that the fund existed, although they were responsible for activating it. 

The lodging of amendments is scheduled for 14 September at the latest.  A round table on the fund will take place on 9 October. (Original version in French by Pascal Hansens)

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