Brussels, 24/06/2009 (Agence Europe) - On Wednesday 24 June, the European Commission approved an application from Spain for assistance of €3.3 million from the European Globalisation adjustment Fund (EGF). The application will now be sent to the European Parliament and Council for decision. If approved, the money requested will help get 1,100 redundant textile sector workers back into employment.
The Spanish application relates to 1,720 redundancies in 46 small and medium-sized enterprises in Cataluña. The funding will help the 1,100 most disadvantaged of these redundant workers back into employment. Following the end of the World Trade Organisation Multi-Fibre Arrangement at the end of 2004, imports of textile and clothing articles into the EU from lower-cost countries almost doubled. EU producers, including those in Spain, were faced with a very competitive market. In addition, much of the production has been relocated from the EU to low-cost countries, China and India in particular. In the last four years, employment in the textiles sector in Cataluña has shrunk by one-third, with some 14,624 jobs lost. In the same period, the number of businesses has declined by a quarter, a loss of 712 firms.
The total estimated cost of the assistance package for the textile workers of Cataluña, which will include career guidance, vocational training, support for entrepreneurship and skills recognition and certification for the redundant workers is €6.6 million. The European Globalisation adjustment Fund has been asked to fund €3.3 million. (G.B./transl.rt)