Proposal for transfer of appropriations No DEC 18/2019 within Section III - Commission - of the general budget for 2019
1. Doc 12777 is a request for the mobilisation of the European Globalisation Adjustment Fund (EGF). The EGF provides funding to cover redundancies caused by offshoring of jobs to third countries, a serious shift in Union trade in goods and services, or a rapid decline of the Union market share in a given sector.
2. The rules applicable to financial contributions from the EGF are laid down in Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on the European Globalisation Adjustment Fund (2014-2020) and repealing Regulation (EC) No 1927/20061 (the ‘EGF Regulation’).
3. On 20 June 2019, Belgium submitted an application for a financial contribution of EUR 1,632,028 (£1,445,536) from the EGF, following 1,019 redundancies from Carrefour following the closure of a hypermarket.
4. The Belgian claim is that the events giving rise to the closure is the increase in online shopping from non-EU sellers. It further argues that digitalisation and the changing patters of consumer habits have had a deleterious impact on retail trade. The growth of online sales has contributed to the decline in non-food products in Carrefour hypermarkets (the turnover of non-food products declined by 6% in 2017, and by 19% since 2010), undermining profitability of this type of store.
5. The proposed intervention is to aid those made redundant (and without precise future plans for redeployment) through retraining, advice, guidance, or assistance to set-up or take over a business etc.