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European Globalization Adjustment Fund: helping redundant workers

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Parliament has updated the European Globalisation Adjustment Fund, making it more accessible and better equipped to tackle global crises.

The European Globalization Adjustment Fund is one of the ways the EU is helping to tackle unemployment. Globalization can cause significant structural changes to world trade, which can lead to workers being laid off.

To support people losing their jobs due to globalisation or the economic fallout from major crises, such as the Covid-19 pandemic, the EU created the European Globalization Adjustment Fund in 2006. It is an emergency solidarity fund, which is used whenever there is a need for it. The fund co-finances projects to help workers find new jobs or set up their own business.

Find out what the EU does to manage globalization MEPs secured these changes to the European Globalisation Adjustment Fund: 

  • Threshold for applications for support lowered to 200 dismissed workers (down from 500) 
  • Possibility to apply for a one-time investment of €22,000 to start a business or to finance employee take-overs 
  • Childcare allowance for child carers when taking part in training or looking for a job 
Background

On 16 January 2019, MEPs voted in favour of plans to reform the fund for the post-2020 period. The aim was to broaden the fund's scope to offer assistance in case of major restructuring events linked to digitalisation, automation and the transition to a low-carbon economy. After successfully negotiating the changes to the fund with the Council in December 2020, MEPs adopted the regulation in April 2021.

The fund will be crucial in helping dismissed workers during these difficult times. It is now better equipped to help us face the challenges ahead and it will cover any type of redundancies following restructuring

Vilija Blinkevičiūtė (S&D, Lithuania)

MEP in charge of steering the proposals through Parliament Share this quote: 

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Brexit

Germany’s Merkel urges pragmatic approach to Northern Ireland

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German Chancellor Angela Merkel (pictured) called on Saturday for a “pragmatic solution” to disagreements over part of the Brexit deal that covers border issues with Northern Ireland, Reuters Read more.

Prime Minister Boris Johnson said Britain will do "whatever it takes" to protect its territorial integrity in a trade dispute with the European Union, threatening emergency measures if no solution was found.

The EU has to defend its common market, Merkel said, but on technical questions there could be a way forward in the dispute, she told a news conference during a Group of Seven leaders' summit.

"I have said that I favour a pragmatic solution for contractual agreements, because a cordial relationship is of utmost significance for Britain and the European Union," she said.

Referring to a conversation she had with U.S. President Joe Biden about geopolitical issues, Merkel said they agreed that Ukraine must continue to remain a transit country for Russian natural gas once Moscow completes the controversial Nord Stream 2 gas pipeline under the Baltic Sea.

The $11 billion pipeline will carry gas to Germany directly, something Washington fears could undermine Ukraine and increase Russia's influence over Europe.

Biden and Merkel are due to meet in Washington on July 15, and the strain on bilateral ties caused by the project will be on the agenda.

The G7 sought on Saturday to counter China's growing influence by offering developing nations an infrastructure plan that would rival President Xi Jinping's multi-trillion-dollar Belt and Road initiative. L5N2NU045

Asked about the plan, Merkel said the G7 was not yet ready to specify how much financing could be made available.

“Our financing instruments often are not as quickly available as developing countries need them,” she said

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Brexit

'Whatever it takes', UK's Johnson warns EU over post-Brexit trade

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Britain will do "whatever it takes" to protect its territorial integrity in a trade dispute with the European Union, Prime Minister Boris Johnson said on Saturday (12 June), threatening emergency measures if no solution was found, write Elizabeth Piper and Michel Rose.

The threat by Johnson seemed to break a temporary truce in a war of words over part of the Brexit deal that covers border issues with Northern Ireland, the focus for tensions since Britain completed its exit from the EU late last year.

Despite US President Joe Biden encouraging them to find a compromise, Johnson used a G7 summit to indicate no softening in his position on what is called the Northern Ireland protocol that covers border issues with the British province.

"I think we can sort it out but ... it is up to our EU friends and partners to understand that we will do whatever it takes," Johnson told Sky News.

"I think if the protocol continues to be applied in this way, then we will obviously not hesitate to invoke Article 16," he added, referring to a safeguard clause that allows either side to take measures if they believe the agreement is leading to economic, societal or environment difficulties.

"I've talked to some of our friends here today, who do seem to misunderstand that the UK is a single country, a single territory. I just need to get that into their heads."

His comments came after he met French President Emmanuel Macron, German Chancellor Angela Merkel and top EU officials Ursula von der Leyen and Charles Michel at a Group of Seven summit in southwestern England.

The EU told the British government once again that it must implement the Brexit deal in full and introduce checks on certain goods moving from Britain to Northern Ireland. Britain repeated its call for urgent and innovative solutions to ease the friction.

The province has an open border with EU member Ireland so the Northern Ireland protocol was agreed as a way to preserve the bloc's single market after Britain left.

The protocol essentially kept the province in the EU’s customs union and adhering to many of the single market rules, creating a regulatory border in the Irish Sea between the British province and the rest of the United Kingdom.

Anti-Brexit protesters holding a banner and flags demonstrate outside the Houses of Parliament in London, Britain January 30, 2020. REUTERS/Antonio Bronic
Britain's Prime Minister Boris Johnson, European Commission President Ursula von der Leyen and European Council President Charles Michel remove their protective face masks as they meet during the G7 summit in Carbis Bay, Cornwall, Britain, June 12, 2021. REUTERS/Peter Nicholls/Pool

Since Britain exited the bloc's orbit, Johnson has unilaterally delayed the implementation of some provisions of the protocol, including checks on chilled meats such as sausages moving from the mainland to Northern Ireland, saying it was causing disruption to some supplies to the province.

"Both sides must implement what we agreed on," von der Leyen, European Commission president, said after meeting Johnson alongside Michel, the European Council president.

"There is complete EU unity on this," she said, adding that the deal had been agreed, signed and ratified by both Johnson's government and the bloc.

Germany's Merkel said the two sides could find pragmatic solutions on technical questions, while the EU protected its single market.

Earlier this week, talks between the two sets of negotiators ended in an exchange of threats over the so-called "sausage wars". An EU official said at the G7 that there was a need for the rhetoric to be toned down.

The head of the World Trade Organization said she hoped the tensions would not escalate into a trade war.

The United States has also expressed grave concern the dispute could undermine the 1998 Good Friday peace deal.

That agreement largely brought an end to the "Troubles" - three decades of conflict between Irish Catholic nationalist militants and pro-British Protestant "loyalist" paramilitaries in which 3,600 people were killed.

Though Brexit was not part of the formal agenda for the G7 summit in the English seaside resort of Carbis Bay, it has more than once threatened to cloud the meeting.

France's Macron offered to reset relations with Britain as long as Johnson stood by the Brexit deal - a characterisation of the meeting that was rejected by the British team. Read more.

Brexit has also strained the situation in Northern Ireland, where the pro-British "unionist" community say they are now split off from the rest of the United Kingdom and the Brexit deal breaches the 1998 peace deal. But the open border between the province and Ireland was a key principle of the Good Friday deal.

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Corporate tax rules

Big-tech companies to be given historical changes to their international tax agreements

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Recently, some of the richest landmarks and countries of the world, have come to an agreement concerning the closing of international tax loopholes that have been endorsed by the biggest multinational corporations. Some of these tech companies have the largest share prices within the stock market, such as Apple, Amazon, Google and so on.

While tech taxation has long been an issue that international governments have had to agree on between themselves, betting too shares similar problems, especially due to its increase in popularity and allowed legalisation globally. Here we have provided a comparison of new betting sites which follow through on the correct taxation laws and legalities necessary for international usage.

During the G7 summit- which our last reports spoke about the topic of Brexit and trade deals, representatives of the United States, France, Germany, United Kingdom, Canada, Italy and Japan, came to a unified agreement to support the global corporation tax rates of at least 15%. It was in agreement that this should happen as these corporations should pay taxes where their businesses are in operation, and to the land they operate in. Tax evasion has long been propagated using initiatives and loopholes found by corporation entities, this unanimous decision will put a stop to hold tech companies responsible.

This decision is believed to be years in the making, and the G7 summits have long wanted to reach an agreement to make history and reform the global taxation system for the rising innovation and digital age that is on the horizon. Making companies like Apple, Amazon and Google take accountability, will keep taxation in check for what is estimated to be the surge of their developments and involvement overseas. Rishi Sunak, the United Kingdom’s Chancellor of the Exchequer, has mentioned that we are in the economic crisis of the pandemic, companies need to hold their weight and contribute to the reformation of the global economy. Reformed taxation is a step forward in achieving that. Global tech companies such as Amazon and Apple have massively increased in shareholder prices for each quarter after the major drop last year, making tech one of the most sustainable sectors to obtain taxes from. Of course, not all would agree on such comments, being that taxation loopholes have long been a thing and issue of the past.

The deal agreed upon will put massive pressure on other countries during the G20 meeting that is to occur in July. Having a base of agreement from the parties of G7 makes it very likely that other countries will come to an agreement, with nations such as Australia, Brazil, China, Mexico etc. who are to be in attendance. Lower tax haven countries like Ireland will expect lower rates with a minimum of 12.5% where others may be higher depending. It was expected that the 15 percent tax rate would be higher at the level of at least 21%, and countries who agree with this believe that a base level of 15% should be set with possibilities of more ambitious rates depending on destination and region that multinational companies operate and pay taxes from.

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