Malta's stand adopted in final compromise

EU member states yesterday agreed to support Malta's position on a new EU redundancies fund, known as the European Globalisation Fund (EGF), aimed at supporting workers who lose their jobs due to globalisation.

In adopting the rules setting the new fund, the EU Council accepted to remove the threshold of a minimum of 1,000 redundancies for small member states, thus making it possible for Malta to benefit, should the case arise.

Although still setting a threshold for member states to qualify for EU financial assistance, the Council decided that this should not apply in the case of small economies.

"In the case of small labour markets or in exceptional circumstances, duly substantiated by the member state concerned, an application for a contribution from the European Globalisation Fund may be considered admissible even if the conditions laid down in subparagraphs (a) and (b) of the regulation (1,000 redundancies) are not entirely met, when redundancies have a serious impact on employment and the local economy," a proviso in the new regulations lays down.

During negotiations in Brussels over the past months, Malta insisted with that its special economic circumstances should be given due weight.

The EGF, proposed by the Commission last year as an answer to massive redundancies resulting from globalisation, will be providing up to €500 million annually to help reintegrate into the labour market workers made redundant because of certain trade patterns.

Originally, the Commission proposed that member states should become eligible only if there is a minimum of 1,000 redundancies in one company. However the Maltese government lobbied for a very low threshold or no threshold at all if the EU truly wanted to treat small economies, like Malta's, on an equal footing as the other member states.

A government spokesman expressed satisfaction that member states accepted Malta's arguments and decided to remove the threshold for small economies. The spokesman said Maltese MEPs were consulted on the issue and collaborated to reach this consensus at the European Parliament stage.

The fund will come on stream on January 1, 2007.