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EU Globalisation Fund pays €13.8 million to help 2,161 redundant workers in Denmark, Spain and the Netherlands

06/12/2010

The European Commission has made payments to Denmark, Spain and the Netherlands from the European Globalisation adjustment Fund (EGF).

The total amount of €13.8 million will help 2,161 dismissed workers back into employment, following their redundancy in four sectors: the manufacture of machinery and equipment, production of textiles and of semiconductors.

€10.1 million will help 1,149 dismissed workers in Denmark (i.e. 1,010 former workers of the Danfoss Group and 139 former workers of Linak A/S). The redundancies reflect the impact of the recession in the engineering sector and the abrupt drop in demand for mechanical and electronic machinery.

€1.8 million will help 500 Spanish redundant workers (i.e. 500 in 82 enterprises operating in the clothing sector). The dismissals are a consequence of the global economic crisis. Tight credit conditions, low consumer confidence and declining purchasing power explain the drop in demand and the difficulties experienced by the sector.

€1.8 million will help 512 former workers of NXP Semiconductors Netherlands BV. The redundancies are a consequence of structural changes in world trade patterns, in particular a significant decline in the EU market share for the production of semi-conductors.

These payments follow the EU budgetary authorities, the European Parliament and the Council of the EU approval last October 20th, 2010. The relevant proposals for funding were made by the European Commission on 2, 20 and 31 August.