Brussels, 06/08/2008 (Agence Europe) - On Wednesday 6 August 2008, the European Commission decided to provide aid to help the 600 worst affected Lithuanian textile workers made redundant by Alytaus Tekstile in Alytus, southern Lithuania, which went into liquidation in July 2007, making 1,089 workers redundant. The Lithuanian government requested €298,994 in aid from the European Globalisation Fund (EGF) to help the 600 worst affected find work. The European Commission approved the request, but it now has to be submitted to the European Parliament and Council of the EU for the final decision. Other people made redundant have already found work, said a European Commission spokesperson. In a press release, EU Employment Commissioner Vladimír Špidla said: "All corners of the EU are feeling the effects, both positive and negative, of globalisation. I am glad that workers in our newer Member States are also benefiting from the help the EGF can provide."
The EGF may provide financial aid when more than 1,000 workers of an enterprise or a regional industry are made redundant due to major structural changes in world trade patterns leading to substantially increased imports into the EU or a rapid decline in EU market share, explains the European Commission. In the Alytaus case, the ending of the Multi Fibre Arrangement led to a sharp increase in imports of textile products from low-wage economies, largely in Asia, adds the Commission.
There have been 12 applications to the EGF so far. The Alytaus Tekstilë application is the eighth approved by the Commission, which is currently examining four requests from the textile industry in Italy. Six of the eight requests approved by the Commission have already been given the go-ahead by the Council and the EP (for a total €21.71 million, which provided aid for 6,910 workers). Another request, approved on 23 July 2008 for €10.5 million to help 1,589 workers, is still awaiting the final decision. €500 million is available each year under the EGF in the event of significant need. (A.B. /transl fl)