EGF: Commission proposes to grant Denmark 6.4 mn euro
By Sophie Petitjean | Monday 04 June 2012
The European Commission proposed, on 4 June, to mobilise the European Globalisation Adjustment Fund (EGF) to help Denmark cope with a second and final wave of redundancies from Odense Steel Shipyard. The proposed measure would provide €6.4 million in aid to assist redundant workers who face the greatest employability difficulties (550 of a total of 968). “Much of the shipbuilding industry is moving to low-cost areas, particularly in Asia, whose market share has grown tremendously since the run-up to the crisis,” commented Employment Commissioner László Andor.
According to the Community of European Shipyards Association (CESA), the global order book dropped by 20% between 2008 and 2009, and new orders declined by 37% during the same period.
The decision to close Odense Steel Shipyard was announced in August 2009. At the time, the yard proceeded with an initial wave of redundancies while agreeing a plan with the remaining workers for completion of the ships in progress. The Danish authorities applied for €14.2 million in aid from the European Union at the time, which was granted in August 2011. For the second and final wave of redundancies, the Danish authorities submitted a new request, this time in the amount of €6.4 million, to provide support to help another 550 workers get back into jobs.
The draft decision has been transferred to the budgetary authority (Parliament and Council) for approval.