Report on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund, in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (application EGF/2011/020 ES/Comunidad Valenciana footwear from Spain)

(COM(2012)0204 – C7-0112/2012 – 2012/2089(BUD))

This report by Salvador GARRIGA POLLEDO (PPE, ES) was written for and adopted by the Committee on Budgets.

The European Globalisation Adjustment Fund (EGF) was created in order to provide assistance to workers affected by shifts in world trade patterns. The Committee on Budgets has proposed the mobilisation of EUR 1,631,565 in commitment and payment appropriations to aid the workers of the footwear industry in Spain.

The place particularly affected is the Comunidad Valenciana. 26% of employment in this area is manufacturing, and there have been 876 redundancies from the 'manufacture of leather and related products' sector between the 25th January 2011 and the 25th October 2011.

The manufacturing of leather and related products is an industry where China and India continue to dominate, providing cheaper produce for export. The industry is also experiencing increased competition from Vietnam and Indonesia. Between 2006 and 2009, imports from non-EU countries rose by 6% while exports from the EU decreased by 16.4%. In 2005 there were 27,125 footwear producers in the EU. By 2008 there were only 24,000 – a reduction of 11.58%. This 11.58% reduction in the number of firms had a direct impact on employment: 78,800 direct jobs - representing almost 20 % of the total - were lost in the sector during the period 2005 - 2008.

The Spanish authorities have tried to counter these shifts in world trade patterns by encouraging the production of high quality produce for export. However, this was prior to the economic crisis, which ended the sustainable turnover they had until then achieved.

The money from the EGF would go towards information and guidance sessions, intensive job search assistance, training in vocational skills related to the footwear sector, training for specific vocational qualifications, promotion of entrepreneurship, training in horizontal skills, training for recruitment, job-search allowance, support for setting up a business, contribution to commuting expenses and outplacement incentives.

The European Parliament voted to approve the report on the 12th June 2012 with 542 for, 66 against and 22 abstentions.

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Alternatively visit the website at www.europarl.europa.eu

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