EGF Launch Meeting

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Meeting of the Contact Persons of the European
Globalisation adjustment Fund (EGF) 06 March
2008 Hotel Bedford, Brussels
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• Item 1
• Welcome
• And adoption of the Agenda

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• Reimbursement of travel expenses
• The Commission will reimburse
• First-class rail travel for journeys of less
  than 400 km (one way, according to official
  distance by rail)
• Economy class air travel for distances of more
  than 400 km.

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• Reimbursement of travel expenses
• The reimbursement will be made
• For one participant per Member State
• Into the bank account specified on your Expert
  Identification Sheet, or if you have a sticker,
  the bank account specified in the Commissions
  accounting system.

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• Reimbursement of travel expenses
• Participants must provide
• A completed Reimbursement Form
• A completed Expert Identification Sheet, if they
  do not have stickers
• Their ticket (to be photocopied)
• The first two may be sent after the meeting, but
  within a very few days!

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• Reimbursement of travel expenses
• The meeting secretary will come around during
  the meeting to take the necessary forms, and your
  tickets.
• She will return your tickets after photocopying
  them.
• If you have only an electronic ticket, please
  provide a print-out, and the boarding pass that
  you received for the flight to Brussels.

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• Item 2
• Presentation of applications received to date

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• Specificities
• of the cases
• approved by
• the Commission

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• EGF Applications received so far ( 1,000)
• France Peugeot suppliers 2,558
• France Renault suppliers 1,258
• Germany BenQ 12,766
• Finland Perlos 2,028
• Italy textile sector, Sardinia 12,039
• Italy textile sector, Piemonte 9,287
• Italy textile sector, Lombardy 14,661
• Malta textile sector 681
• Portugal automobile sector 2,426
• Spain Delphi 8,318
• Italy textile sector, Tuscany 12,631

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• Analysis of the lessons learnt from the cases
  approved by the Commission

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• More detailed information needed on measures
• National and EU measures already available
• Complementarity of the EGF measures with these
• Description of each measure and the need for it
• Explanation if necessary, why this is an active
  labour market policy measure
• Costing of the measure per person
• Estimate of the number of persons to benefit, and
  the likely duration per person on average
• If a measure is particularly expensive,
  explanation why this is so and why the measure is
  useful

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• Recruitment subsidies
• Paid to workers who manage to be recruited for a
  contract of indefinite duration
• Paid to employers who recruit EGF supported
  workers for a contract of indefinite duration

• Reflections
• if the contract is ended prematurely, after the
  end of the EGF implementation period
• reimbursement of EGF funding to the Member
  State?

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• Service vouchers
• e.g. for childcare, for food and travel
• aim to facilitate participation of redundant
  workers in active labour market policy measures,
  such as training, job search, guidance etc.

• Reflections
• Are they active labour market policy measures?
• ? Need to show that they are an integral part of
  an active measure
• (In the case of childcare, how did the worker
  solve the problem before becoming redundant?)

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• Private co-financing
• Not excluded by the EGF Regulation
• Would need to be included as an integral part of
  the MS contribution
• No requests including private co-financing as
  part of the MS contribution have been received so
  far

• Reflections
• Reimbursement goes to MS account
• MS needs to satisfy the Commission that the
  private co-funder would receive the same
  proportion back as originally contributed
• Private co-funding would be audited in the same
  way as public co-funding

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Example of EGF with public / private co-financing
EGF reimbursement to MS must be split in the
same proportion
MS expenditure
15
30
70
35
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• Update of the 'Frequently Asked Questions' (FAQ)

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• New items in the FAQ
• Delocalisation to another Member State
• Workers made redundant before the reference
  period
• Possibility of including private co-financing
• Informal consultation between Commission and
  Member State in advance of a formal application
• Timeline for an application
• Member State contribution to evaluation

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Timelines for EGF applications (average for the 4
or 6 cases)
Days
70 86 69 35 260
End of reference period ? complete
application Complete application ? Commission
approval Commission approval ? Budgetary
Authority approval Budgetary Authority approval ?
payment Total
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• Item 3
• Preparation of an application to the EGF
  (presentation by Lithuania)

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• Item 4
• Implementation of an EGF contribution (Two
  presentations by Germany)

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• Item 5
• Minimum Audit and Control Requirements for the EGF

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Audit of the European Globalisation Adjustment
Fund

• Bedford Hotel
• March 6, 2008
• Brussels
• Vincent WIDDERSHOVEN Head of Unit I2
• Tereza MARKOVA External Auditor, Unit I2

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On-the-spot checks strategyLegal basis (1)

• Article 18 of Regulation (EC) No 1927/2006
• Management and financial control
• Article 19 of Regulation (EC) No 1927/2006
• Reimbursement of financial contribution

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On-the-spot checks strategyTypes of spot checks
(2)

• System checks
• Identify weaknesses in management and control
  systems
• Assess adequacy of internal controls
• Verify that the financed actions have been
  properly carried out
• Financial checks verify whether
• Financial contribution from the EC was used
  exclusively for the purposes described in the
  application
• Expenditure declared was incurred during the
  period of eligibility
• Expenditure declared is based on verifiable
  supporting documents, is correct and regular
• The submitted documents on the execution of the
  financial contribution are accurate, complete and
  provide reliable financial and other information
  on the activities implemented

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On-the-spot checks strategyAnnouncement phase
(3)

• Announcement of the check 1st step
• Mission announcement
• Annex to complete List of authorities
• Management and financial control (name, address,
  city, function)
• Implementation of eligible actions (name,
  address, city, type of action provided, action
  already initiated yes/no, estimated number of
  workers targeted)
• Detailed agenda 2nd step
• Detailed programme of the visits (indicative
  dates and selected bodies)
• If applicable, documents to be prepared for the
  purposes of the check
• Duration of the spot check
• one week foreseen
• Availability of a representative of the MA to
  facilitate the organisation of the check
• Interpretation
• Ensured via Commission services

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On-the-spot checks strategyProvisional content
of the system check (4/1)

• Application criteria a trigger for the EGF
• Compliance with criteria laid down in Art. 2
• Verification of notices to redundant workers
• Internal controls effectiveness (Art. 22 (a) of
  IR)
• Segregation of tasks, authorization
• Control strategy, including controls at the
  beneficiary level
• Adequate audit trails and data integrity in data
  systems
• Procedures for monitoring of performance
• Follow up of identified internal control
  weaknesses
• Assessment of the sound functioning of the
  control system
• Controls regarding prevention, detection and
  correction of irregularities
• Audit trail of eligible actions down to the
  lowest possible level
• Initiation/tendering (public procurement)/executio
  n/recording
• payments/monitoring/disclosure

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On-the-spot checks strategyProvisional content
of the system check (4/2)

• Documentation
• Existence of verifiable supporting documents and
  completeness of documentation
• Impact on eligibility of actions and eligibility
  of expenditure
• Complementarity
• Actions do not receive assistance from other
  Community financial instruments
• EGF actions do not replace actions, which are the
  responsibility of companies by virtue of national
  law or collective agreements
• Compliance with laws and regulations
• Requirements on information and publicity
• Principle of non-discrimination

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On-the-spot checks strategyProvisional content
of the financial check (5/1)

• Eligibility of expenditure declared
• Expenditure is based on verifiable supporting
  documents
• Expenditure incurred during the period of
  eligibility
• Expenditure is correct and regular
• Statement justifying expenditure is accurate and
  complete
• Reconciliation of bookkeeping with the statement
  justifying expenditure
• Audit trail down to the lowest possible level
  reconciliation of expenditure
• The authorities accounting records correspond to
  supporting documents
• Audit trail down to the lowest possible level
  financed actions properly carried out
• Reconciliation between financed actions and
  corresponding expenditure

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On-the-spot checks strategyProvisional content
of the financial check (5/2)

• Underlying controls
• Legality and regularity of financial transactions
• Accounting procedures/control mechanisms
• Detection of irregularities/corrective measures

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On-the-spot checks strategyExecution phase
on-the-spot (6)

• Duration one week foreseen
• Bodies to visit MA, PA, AA, IB, selected
  implementing bodies
• Access to documents
• Detail description of the management and control
  system (workflows/tasks/interactions between
  bodies/functions vested etc.)
• Guidelines/manuals issued for bodies involved in
  EGF implementation
• Workflow of activities (walkthroughs/sample
  checks)
• Extracts from relevant national legislation,
  collective agreements
• Lists of redundant workers/notices
• Lists of companies providing personalized
  services
• Documents regarding tendering/procurement of
  services
• Supporting documents for estimated costs/real
  costs incurred
• Documents from internal/external audit bodies
• Wrap-up meeting
• Presentation of preliminary and provisional
  findings

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On-the-spot checks strategyReporting phase (7)

• Preparation of a draft report
• summarizes findings and prioritized
  recommendations
• submitted to unit B4 for comments
• Contradictory procedure
• deadline to be determined
• deadline specified in the accompanying letter to
  the draft report
• Preparation of the final report
• inclusion of the comments from the auditee
  received within the contradictory procedure
• if applicable, the reply by the EC

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• Adaptation of the application form
• In order to simplify the job of completing an
  application, and to speed up the analysis of
  applications, the Commission has designed a table
  that Member States should complete, identifying
  the key responsibilities in the audit and control
  system.

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(No Transcript)
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Under each group of functions a list of
activities should be shown. For example Group
1 Dissemination of information on funded
activities Definition and operation of rules to
the access to the aids Coordination of management
functions Preparation of manuals/guidelines for
implementation of actions (including allocation
of tasks and duties)
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• Item 6
• Corrigendum of the EGF Regulation

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• Legal-linguistic revision of Reg. 1927/2006
• No difference in substance or in Reg. number
• Official Journal L48, 22.02.2008, page 82
• Article 2(c) maintained
• Regulation applies from 1 January 2007
• New errors in Art 2(c) and Art 9.2 notified
• This revision will not affect any applications
  already submitted
• For new applications, please use the corrected
  text of the Regulation

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• Item 7
• Annual Report on the EGF in 2007 overview of
  Commission plans

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• Requirements of EGF Regulation (Art. 16)
• By 1 July of each year, and for the first time in
  2008
• Presented to the European Parliament and to the
  Council
• Quantitative and qualitative report on the
  activities of the EGF in the previous year
• Focusing mainly on the results achieved by the
  EGF
• Containing information on
• applications submitted
• decisions adopted
• actions funded, including their complementarity
  with actions funded by the Structural Funds,
  notably the ESF
• the winding-up of financial contribution made
• Documenting the requests that have been refused
  owing to a lack of sufficient appropriations or
  to non-eligibility

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• The Commission proposes an
• Annual Report covering
• Overview of the Fund in 2007
• Applications received in 2007
• Profile of the workers benefiting from EGF
  assistance
• Actions funded
• Results achieved
• Technical Assistance activities undertaken by the
  Commission
• Financial report
• Winding up of financial contributions made (from
  2009)
• Policy Considerations

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• The Annual Report will be
• Factual it is not the Commissions intention to
  use the report as a publicity tool
• Short it will contain the information required
  by the EGF Regulation in a concise format
• Presented to the European Parliament and to the
  Council by 1 July 2008
• Transmitted to the Economic and Social Committee,
  the Committee of the Regions, and the Social
  partners, for information

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• Policy Considerations
• In addition to the requirements of the EGF
  Regulation, the Commission may use the Annual
  Report to introduce a number of Policy
  Considerations to the Parliament and the Council.

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• Should the EGF continue to target only trade
  related redundancies?
• Should the definition include intra-EU
  delocalisations?
• How can the timing / unpredictability issues be
  addressed?
• Should and could eligibility be broadened to
  include investment?

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• Issues that may be raised
• Definition of a redundancy
• Reasoned explanation about the level of budgeted
  costs
• Use of the EGF contribution (deadline)
• Technical assistance at the initiative of the
  Commission
• Inclusion of redundancies occurring before or
  after the reference period
• Private co-financing

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• Item 8
• Communications and the EGF website

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EGF Communication Activities

1. Social Agenda EGF Special Feature
2. EGF Video
3. EGF Website development and utilisation

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Social Agenda Magazine

• DG EMPLs quarterly periodical
• Circulation of 46,000
• Global
• Available online
• January Issue has EGF special, including

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Social Agenda Magazine (2)

• Specific EGF content
• Editorial by Nikolaus Van der Pas, Director
  General, DG EMPL
• The EGF, one year on
• Timeline of an application
• Anatomy of an application/applications so far
• Mini-feature on German EGF case
• Interview with Reimer Böge, Chairperson of
  European Parliaments Budget Committee

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EGF Video (1)

• Facing up to a globalised world the EGF
• Disseminated to 1,000 journalists /TV programmes
  in EU-27 and beyond
• Subsequent targeted dissemination (sell in)
• Customised web page (in EN FR)
• And the results?

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EGF Video (2)
Requests 38 TV requests from22 countriesplus CNBC Europe and Euronews
Broadcasts 11 confirmed broadcasts from8 countries
Re-broadcasts 12 confirmed re-broadcasts
Est. audience 2,010,000 viewers (minimum)
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EGF Website (1)

• EGF Website over 5,000 hits (Nov 2007-Jan 2008)
• Most popular docs(1,300 hits)
• Contact persons information
• Application guidance
• Information on applications (as they progress)
• EGF leaflet (most popular after EN, DE, FR is
  Romanian)

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EGF Website (2)

• Holds up-to-date information about applications
• Member State Voices
• Library we want your information /
  recommendations for our library
• Always welcome recommendations for content on the
  EGF site so email us at
• empl-egf-info_at_ec.europa.eu
• or directly to the Communications Officer
• martin.piper_at_ec.europa.eu

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• Item 9
• Any Other Business