1.   With the aim of stimulating economic growth and creating more jobs in the European Union, this Regulation establishes the EGF to enable the Community to provide support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation where these redundancies have a significant adverse impact on the regional or local economy.

The period of implementation of the EGF shall be linked to the financial framework, from 1 January 2007 to 31 December 2013.

2.   This Regulation lays down rules regarding the operation of the EGF in order to facilitate re-integration into employment of workers affected by trade-related redundancies.

1.   The Member State(s) shall submit an application for a contribution from EGF to the Commission within a period of 10 weeks from the date on which the conditions set out in Article 2 for mobilising the EGF are met. The application may be supplemented subsequently by the Member State(s) concerned.

2.   The application shall include the following information:

3.   Having regard to the actions implemented by the Member State(s), the region, the social partners and the enterprises concerned by virtue of national law or collective agreements, and paying particular attention to actions funded by the European Social Fund (the ESF), the information provided under paragraph 2 shall include a summary description of the actions taken and planned by the national authority and enterprises concerned, including an estimate of their cost.

4.   The Member State(s) concerned shall also provide statistical and other information, at the most appropriate territorial level, which the Commission requires to assess the fulfilment of the intervention criteria.

5.   On the basis of the information provided under paragraph 2 and any additional information submitted by the Member State(s) concerned, the Commission shall assess, in consultation with those Member State(s), whether the conditions for making a financial contribution under this Regulation are met.

1.   A contribution from the EGF shall not replace actions which are the responsibility of companies by virtue of national law or collective agreements.

2.   A contribution from the EGF shall complement actions of the Member State(s) at national, regional and local level, including those co-financed by the Structural Funds.

3.   A contribution from the EGF shall provide solidarity and support for individual workers made redundant as a result of structural changes in world trade patterns. The EGF shall not finance the restructuring of companies or sectors.

4.   In accordance with their respective responsibilities, the Commission and the Member State(s) shall ensure the coordination of the assistance from Community funds.

5.   The Member State(s) shall ensure that the specific actions receiving a contribution from the EGF shall not also receive assistance from other Community financial instruments.

1.   At the initiative of the Commission, subject to a ceiling of 0,35 % of the financial resources available for that year, the EGF may be used to finance monitoring, information, administrative and technical support, audit, control and evaluation activities necessary to implement this Regulation.

2.   Such tasks shall be executed in accordance with the Financial Regulation, as well as the implementing rules applicable to this form of implementation of the budget.

1.   The Member State(s) concerned shall provide information on and publicise the funded actions. The information shall be addressed to the workers concerned, local and regional authorities, social partners, the media and the general public. It shall highlight the role of the Community and ensure that the contribution from the EGF is visible.

2.   The Commission shall set up an Internet site, available in all Community languages, to proviefused applications, highlighting the role of the budgetary authority.

1.   The Commission shall, on the basis of the assessment carried out in accordance with Article 5(5), particularly taking into account the number of workers to be supported, the proposed actions and the estimated costs, evaluate and propose as quickly as possible the amount of financial contribution, if any, that may be made within the limits of the resources available.

The amount may not exceed 50 % of the total of the estimated cost referred to in Article 5(2)(d).

2.   Where on the basis of the assessment carried out in accordance with Article 5(5) the Commission has concluded that the conditions for a financial contribution under this Regulation are met, it shall immediately initiate the procedure set out in Article 12.

3.   Where on the basis of the assessment carried out in accordance with Article 5(5) the Commission has concluded that the conditions for a financial contribution under this Regulation are not met, it shall notify the Member State(s) concerned as soon as possible.

1.   The arrangements for the EGF shall comply with the provisions of point 28 of the Interinstitutional Agreement.

2.   Appropriations concerning the EGF shall be entered in the general budget of the European Union as a provision through the normal budgetary procedure as soon as the Commission has identified sufficient margins and/or cancelled commitments.

3.   Where the Commission has concluded that a financial contribution should be made from the EGF, it shall submit to the budgetary authority a proposal to authorise appropriations corresponding to the amount determined in accordance with Article 10 and a request for the transfer of the amount to the EGF budget line. Proposals may be grouped into batches.

Transfers concerning the EGF shall be carried out pursuant to Article 24(4) of the Financial Regulation.

4.   A proposal pursuant to paragraph 3 shall include the following:

5.   At the same time as it presents its proposal, the Commission shall initiate a trilogue procedure, possibly in simplified form, to seek the agreement of both arms of the budgetary authority on the need to use the EGF and the amount required.

6.   On 1 September each year, at least one quarter of the annual maximum amount of the EGF shall remain available in order to cover needs arising until the end of the year.

7.   Once the appropriations are made available by the budgetary authority, the Commission shall adopt a decision on a financial contribution.

1.   Following adoption of the decision in accordance with Article 12(7), the Commission shall pay the financial contribution to the Member State(s) concerned in a single instalment, in principle within 15 days.

2.   The Member State(s) shall use the financial contribution, as well as any interest earned thereon, within 12 months of the application pursuant to Article 5.

1.   No later than six months after the expiry of the period specified in Article 13(2), the Member State(s) concerned shall present a report to the Commission on the execution of the financial contribution, including information on the type of actions and main outcomes, together with a statement justifying the expenditure and indicating, whenever appropriate, the complementarity of actions with those funded by the ESF.

2.   No later than six months after the Commission has received all the information required under paragraph 1, it shall wind up the financial contribution from the EGF.

1.   By 1 July of each year, and for the first time in 2008, the Commission shall present to the European Parliament and to the Council a quantitative and qualitative report on the activities under this Regulation in the previous year. The report shall focus mainly on the results achieved by the EGF and shall in particular contain information relating to applications submitted, decisions adopted, actions funded, including their complementarity with actions funded by the Structural Funds, notably the ESF, and the winding-up of financial contribution made. It shall also document those requests that have been refused owing to a lack of sufficient appropriations or to non-eligibility.

2.   The report shall be transmitted, for information, to the European Economic and Social Committee, the Committee of the Regions and the social partners.

1.   The Commission shall carry out at its own initiative and in close cooperation with the Member States:

2.   The results of the evaluation shall be transmitted, for information, to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and to the social partners.

1.   Without prejudice to the Commission's responsibility for implementing the general budget of the European Communities, the Member States shall take responsibility in the first instance for the management of actions supported by the EGF and the financial control of the actions. To that end, the measures they take shall include:

2.   The Member State(s) shall make the financial corrections required where an irregularity is ascertained. The corrections made by the Member State(s) shall consist in cancelling all or part of the Community contribution. The Member State(s) shall recover any amount lost as a result of an irregularity detected, repay it to the Commission and, where the amount is not repaid in the time allowed by the Member State(s) concerned, default interest shall be due.

3.   The Commission, in its responsibility for the implementation of the general budget of the European Communities, shall take every step necessary to verify that the actions financed are carried out in accordance with the principles of sound and efficient financial management, in compliance with the Financial Regulation. It is the responsibility of the Member State(s) concerned to ensure that it has smoothly functioning management and control systems. The Commission shall satisfy itself that such systems are in place.

To that end, without prejudice to the powers of the Court of Auditors or the checks carried out by the Member State(s) in accordance with national laws, regulations and administrative provisions, Commission officials or servants may carry out on-the-spot checks, including sample checks, on the actions financed by the EGF with a minimum of one working day's notice. The Commission shall give notice to the Member State concerned with a view to obtaining all the assistance necessary. Officials or servants of the Member State concerned may take part in such checks.

4.   The Member State shall ensure that all supporting documents regarding expenditure incurred are kept available for the Commission and the Court of Auditors for a period of three years following the winding-up of the financial contribution received from the EGF.

1.   In cases where the amount of the actual cost of an action is less than the estimated amount quoted pursuant to Article 12, the Commission shall require the Member State(s) to reimburse a corresponding amount of the financial contribution received.

2.   Where the Member State(s) fails to comply with the obligations stated in the decision on a financial contribution, the Commission shall take the necessary steps to require the Member State(s) to reimburse all or part of the financial contribution received.

3.   Prior to the adoption of a decision under paragraphs 1 or 2, the Commission shall conduct a suitable examination of the case and shall, in particular, allow the Member State(s) a specified period of time in which to submit its comments.

4.   If, after completing the necessary verifications, the Commission concludes that the Member State(s) is or are not complying with its obligations under Article 18(1), it shall, if no agreement has been reached and the Member State has not made the corrections in a period set by the Commission, and taking account of any comments made by the Member State, decide within three months from the end of the period referred above to make the financial corrections required by cancelling all or part of the contribution from the EGF to the action in question. Any amount lost as a result of an irregularity detected shall be recovered and, where the amount is not repaid in the time allowed by the Member State(s) concerned, default interest shall be due.