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During the course of the worldwide financial crisis, the criteria for making use of the European Globalisation Fund were changed in the middle of this year: the funds are now also available to workers, who lost their jobs as a result of the global finance and economic crisis. So far, 21 applications for assistance from the European Globalisation Fund have been made, 8 more than in the last two years combined.
The condition for using the European Globalisation Fund (EGF) is making at least 500 workers in a company or in one resp. two adjoining regions redundant. In case of minor labour markets, this figure may, however, be lower.

So far, the Commission has already received 21 applications with a combined volume of almost € 156 million. The by far largest application came from the French car manufacturer Renault: the EGF will make about € 57 million available to support 3,582 workers, who have been made redundant. This equals € 15,900 per head. Austria too has already submitted its application to the Commission, which is in respect of the automobile industry in Styria: about € 5.7 million from the EGF shall be made available for 744 workers.

What is noticeable is the fact that 9 of the 34 applications made in 2007 to 2009 concern the textile industry (in particular in Italy and Belgium), followed by 8 applications from the automobile sector (in particular Spain and France) and 3 applications from the mobile telephony sector (in particular from Germany).

So far 15 of the 27 EU Member States have made an EGF application. With 5 applications each, Spain, Italy and Lithuania are the most frequent applicants. 12 of the 15 “old” Member States have already submitted one application during the last 3 years. Of the “new” Member States only 3 of the twelve applied for assistance, i.e. Bulgaria, Lithuania and Malta.

With an available budget framework of € 500 million annually, the volume for EGF measures is far away from being exhausted. One can, however, expect that further applications for assistance will be submitted for 2009.

The possibility to apply for financial assistance from the European Globalisation Fund within the scope of the global finance and economic crisis will continue until 31st December 2011.