Confidence in times of global economic crisis

The term "credit crunch" has become quite common nowadays and is synonymous with the global economic situation. It is the reality we are living in and there is not much difference between the credit crunch we are experiencing now and the recessions that plague our economies every 15 years or so. Needless to say, during these periods many companies, large or small, have to make so-called trade adjustments, which, many a time, result in redundancies. The European Globalisation Fund was set up to minimise the impact of these redundancies by providing a one-time individual support scheme aimed to help the affected workers adjust until they find alternative employment.

The European Globalisation Fund does not merely hand out a monetary package to the workers but cooperates in job search assistance and provides for the necessary re-training of redundant personnel. It also helps those willing to start their own business and promotes self-employment. In addition, it aims to help those who have to move to a different area in order to find employment.

It is important to note that this is not a social security funding scheme, but only intended to supplement the national government's initiatives in finding alternative employment. In this sense, individuals cannot apply personally to benefit from the fund but all applications have to be made by the national authorities. This is done when a member state becomes aware that large-scale redundancies are in the offing and, therefore, has to submit a plan. A member state can receive up to 50 per cent of the cost of the action plan.

A report dealing with the European Globalisation Fund, and in relation to which I have been appointed spokesman for the EPP-Ed group, is suggesting that the total annual assistance is increased from the original €500 million to a €1 billion in order to be able to address as many problems as possible. This is crucial if we want to safeguard the employment sector at this delicate stage where estimates are predicting zero or negative economic growth in the upcoming months.

Even though our country has not been hit hard by this credit crunch, which may result in a full-blown recession in some countries, it is of utmost importance to have a contingency plan and be prepared for the worst.

Thanks to membership of the European Union and to the introduction of the euro, we have managed to keep our economy stable, unlike some countries, such as Iceland, that have had their economies practically wiped out and are now asking to join the eurozone even before becoming member states. Nevertheless, this does not mean that we can just sit back and relax. Global trade patterns are changing and we have to adapt or else risk falling behind.

With all the negative aspects of the prevailing situation known to us and given that we were not as hard hit as other countries, it is also an opportunity to capitalise on the situation and promote our businesses as much as possible. Many multinational companies have emerged from recessions and previous credit crunches, and we should make the best of the situation we are now in.

We have to be innovative and we have to be bold. We have many challenges ahead of us. Our country has one major asset: its work force. Our workers are productive, open to challenges and can adapt to different situations. With the right attitude, we can ride the storm and emerge even stronger and the backing we have from the European Union can only empower us to achieve our goals.

Mr Casa is a Nationalist member of the European Parliament.

david@davidcasa.eu, www.davidcasa.eu