Independent MEP Marian Harkin today (6 November) urged EU leaders to renew the EU Globalisation Fund beyond 2014, arguing that it is "a vital expression of solidarity for Irish and EU workers".

MEPs on the EU Parliament's Employment Committee today overwhelmingly backed Harkin's report which aims to maintain the fund from 2014 to 2020.

Harkin noted that "the Globalisation Fund can help to upskill and retrain redundant workers or facilitate the start-up of new businesses. Given the high rate of unemployment across the EU it can provide a safety net for the targeted workers".

However, the Ireland North & West MEP expressed her concerns about the blocking minority in the European Council to the continuation of the fund, which puts its future in doubt.

"The message from the Employment Committee today is that it strongly supports a continuation of the Fund, viewing it as an important EU response to both the current economic crisis and the longer-term issue of redundancies caused by globalisation or an unexpected crisis".

 EGF has been good for Ireland 

In particular, Harkin outlined how the EGF has been used by Ireland on 4 different occasions for redundancies at Dell, Waterford Glass, SR Technics and the construction sector.

 "We have in fact applied for assistance for almost 10,000 workers at an average of about €6000 per worker, which has meant a contribution of some €34 million from the EU. This kind of investment is very valuable and it is crucial that it remains in place for the future," she added.

Harkin's report proposes a number of improvements which should enable the EGF to intervene faster, including simplified aid application procedures and faster implementation, as well as higher co-financing rates for Member States.

MEPs also voted to extend the EGF's scope to include workers with fixed-term contracts, temporary agency workers and owner-managers of micro, small and medium-sized enterprises and self-employed (including farmers).

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Background Note: The European Globalisation Adjustment Fund (EGF) was set up by the EU in late 2006 to help workers find new jobs and develop new skills when they have lost their jobs as a result of:

• changing global trade patterns, e.g. when a large company shuts down or a factory is moved to outside the EU or
• the global financial and economic crisis

Marian Harkin MEP is the European Parliament Draftsperson for the EGF fund post-2014.