布鲁盖尔-A-better-Globalisation-Fund_8页_268kb

Summary of the A Better Globalisation Fund Report

Core Content

The European Globalisation Adjustment Fund (EGF) was established in 2006 as a response to the challenges posed by globalisation, particularly for workers affected by trade-induced mass layoffs. The fund is designed to support active labour market policies in EU Member States, with a maximum annual budget of €500 million from 2007 to 2013. The report argues that the EGF must be structured with clear, objective rules to ensure its effectiveness and political legitimacy, rather than relying on discretionary decision-making that could lead to lobbying and political posturing.

Main Points

• Objective of the EGF: To assist workers displaced by trade, especially those affected by large-scale redundancies, by funding active labour market policies.
• Political Context: The EGF was seen as a way to balance the "good cop/bad cop" division of labour between the EU and Member States, where the EU handles liberalisation and Member States manage social protection.
• Economic Rationale: Since trade policy is decided at the EU level, it is economically justified for the EU to support trade-displaced workers, even though such support could be achieved through bilateral arrangements.
• Displacement Impact: Trade-related layoffs represent about 10% of all layoffs in the EU, with around 57,000 cases of mass layoffs expected annually.
• Regional Differences: The US has lower unemployment rates and higher re-employment rates than continental Europe, with more significant wage losses for displaced workers in the US.
• Worker Characteristics: Older workers, those with lower education, and those with less vocational training face greater difficulty in adjusting to displacement, leading to larger income losses.

Key Recommendations

• Strengthen Eligibility Rules: Define clear and objective criteria for eligibility to prevent political manipulation and ensure fair allocation.
• Focus on Effective Policies: The EGF should concentrate on two specific active labour market policies: wage insurance and mobility allowance.
• Scientific Evaluation: Establish a rigorous, ex-post evaluation mechanism to assess the impact of the EGF and inform its future extension or reform.
• Transparency and Simplicity: The policies should be transparent, simple, and easily monitored and evaluated to ensure efficiency and public trust.

Proposed Policies

Wage Insurance

• Definition: A financial top-up to displaced workers who accept a lower wage to find a new job.
• Scope: Up to two-thirds of the wage difference between the old and new job, for a maximum of two years.
• Purpose: Provide a financial incentive to encourage workers to accept new jobs rather than remain unemployed.
• Potential Impact: Could increase the activity rate among displaced workers from 57% to 75%, with a 50% wage insurance potentially covering around 150,000 workers annually.

Mobility Allowance

• Definition: A lump-sum payment to workers who move for a new job, with an additional two months for cross-border moves.
• Amount: Equivalent to two months' gross pay for intra-EU moves, and four months for cross-border moves.
• Purpose: To reduce the financial and emotional burden of relocation and encourage mobility.
• Rationale: Without such support, workers might prefer lower-paying jobs in their home regions over higher-paying jobs elsewhere.

Budgetary Considerations

• The €500 million annual budget may be sufficient to support a limited number of displaced workers, depending on the generosity of the benefits.
• The report suggests that the EGF could potentially be scaled up in the future, especially with the reform of the larger European Social Fund, which has an annual budget of around €10 billion.

Political and Social Sustainability

• The EGF is crucial for maintaining the political and social sustainability of globalisation in the EU.
• It must be perceived as a genuine effort to support workers, not just a political gimmick.
• A scientific evaluation of the fund's performance is essential to justify its continuation and to guide future policy improvements.

Conclusion

To ensure the EGF is effective and credible, the report advocates for clear, objective rules, targeted support mechanisms, and rigorous evaluation. These measures would help the EGF fulfill its role as a European response to globalisation, supporting displaced workers in a fair and efficient manner.