The European Commission has presented on the 9th September a proposal for a Decision about the mobilisation of 10.7 Meuros of the European Globalisation Adjustment Fund based on the Interinstitutional Agreement of 17 May 2006 to Delphi and Alytaus Tekstile.

Background

The Interinstitutional Agreement of 17 May 2006 allows for the mobilisation of the European Globalisation Adjustment Fund through a flexibility mechanism, within the annual ceiling of EUR 500 million over and above the relevant headings of the financial framework. Eligibility rules applicable to the contributions from the Fund are laid down in Regulation (EC) No 1927/2006  of the European Parliament and the Council.

Case EGF/2008/02/ES/Delphi

The application was presented by the Spanish authorities to the Commission on  6 February 2008. It was based upon the specific intervention criteria of Article 2(a) of Regulation (EC) No 1927/2006 and was submitted within the deadline of 10 weeks referred to in Article 5 of that Regulation.

The application concerns 1,589 redundancies, of which 1,521 occurred in Delphi Automotive Systems España, S.L.U. in Puerto Real, bay of Cadiz, Andalucía (Spain), a manufacturer of components for the automobile industry that belongs to the US-based Delphi Automotive Systems Holding Inc. with headquarters in Troy – Michigan, and 68 amongst the suppliers to Delphi during the 4-months period of reference of Article 2(a) of Regulation (EC) No 1927/2006, lasting from 31 July 2007 to 30 November 2007.

Case EGF/2008/03/LT/Alytaus Tekstile

The application was presented to the Commission by the Lithuanian authorities on  8 May 2008. It was based upon the specific intervention criteria of Article 2(a) of Regulation (EC) No 1927/2006 and was submitted within the deadline of 10 weeks referred to in Article 5 of that Regulation.

The application concerns 1,089 redundancies following the closing down of Alytaus Tekstile, a textile manufacturing company during the 4-months reference period of Article 2(a) of Regulation (EC) No 1927/2006, lasting from 30 October 2007 to 29 February 2008.

Funding

The total annual budget available for the European Globalisation Adjustment Fund is EUR 500 million. An amount of EUR 3,106,882 has already been mobilised for two applications leaving an amount of EUR 496,893,118 available. The Commission's proposed allocation under the Fund is based on the information made available by the applicants:

• Spain: Delphi 10,471,778 Euros.
• Lithuania: Alytaus Tekstile 298,994 Euros.