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28/06/2013

Has the European Globalisation Adjustment Fund delivered EU added value in re-integrating redundant workers?

ECA Special Report n. 7/2013
Luxembourg: Publications Office of the European Union, 2013 - ISBN 978-92-9237-625-3  


Between March 2007 and December 2012, the European Globalisation Fund paid out over € 600 million to workers who had lost their jobs in mass redundancies caused by shifting patterns in world trade. The auditors found that most eligible workers were offered personalised and well-coordinated assistance. But all the audited cases included income support measures which would have been paid by the Member States anyway. Income support represented 33 % of the reimbursed costs in all the cases examined. In addition, no adequate data existed to measure how effective the funds were in getting the laid-off workers back into jobs. 
In their recommendations, the auditors say that the Globalisation Fund could be replaced by an adapted European Social Fund framework in order to bring support to workers more quickly. “The evidence gathered during the audit did not convince us that the Globalisation Fund is the best way to deliver this much-needed specific support,” said Ville Itälä, the ECA Member responsible for the report, “It would be more effective simply to adjust the Social Fund to deal with these problems”. The Globalisation Fund was designed to address short-term and ad-hoc emergency situations. Support includes training, aid for self-employment, coaching and outplacement. The Fund co-finances measures at a rate of 50 % or 65 %, with the balance being provided by the Member State concerned.

author(s): European Court of Auditors
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