Budgets Committee approves €3.7 million in EU aid for redundant workers in Italy

On 18 September, the Budgets Committee approved €3.7 million in European Globalisation Adjustment Funds to help find new jobs for 1,500 workers in Italy made redundant due to globalisation or the economic downturn caused by the crisis. The decision still needs to be endorsed by the Parliament as a whole and Council.

Loss of automotive market share

De Tomaso Automobili S.p.A, a maker of high-end automobiles in the Torino and Livorno provinces, went bankrupt in July 2012 as feeble growth in its market segment coincided with the European car sector's loss of global market share and the credit tightening that followed the economic and financial crisis.

The carmaker had to make 1,030 workers redundant. Of these, roughly 1,010 are expected to take up the measures designed to help them back into work.

Slack demand in Italy's ICT sector

Computer and electronic product manufacturers Anovo Italia S.p.A. and Jabil CM S.r.l. the Lombardy region were hit by dwindling demand for information technology products in Italy due to the economic and financial crisis and a strong competition from low-cost countries. The companies had to close their operations in 2011, ending the employment of 529 workers.

Italy applied for help for the two Lombard companies in December 2011 and for De Tomaso Automobili in November 2012. The Italian authorities will receive €1,164,930 to help the redundant workers in Lombardy, and another €2,594,672 to help those formerly employed by De Tomaso Automobili.

The aid in both cases was approved by 33 votes to two, with no abstentions.

Background

The European Globalisation Adjustment Fund contributes to packages of tailor-made services to help redundant workers find new jobs. The annual ceiling of the fund is €500 million.

Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started the measures and will get their costs reimbursed from the EU when their applications are finally approved.

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