An application for financial aid targeted at redundant Spanish auto workers has been approved by the European Commission.
Spain requested EUR2.7m (US$3.5m) through the auspices of the European Globalisation Adjustment Fund (EGF), with the application now being sent to the European Parliament and Council for a decision.
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Some 2,330 staff have been made redundant by 23 auto companies in Spain’s north east Catalonia region, with the financial package destined to help 1,429 employees back into work.
“The car industry has suffered enormously because of the financial and economic crisis”, said EU Commissioner for Employment, Social Affairs and Inclusion, László Andor.
“We welcome the Spanish application for EGF funding and I am confident the planned measures funded through the EGF will help these workers find a new job quickly.”
The Spanish application concerns dismissals related to the global financial crisis that saw car registrations plummet 28% in 2008, while sales of vehicles manufactured domestically for export fell 9.6%.
The scale of the crisis can be gauged by the fact Catalonian automotive redundancies increased 42% in 2008 and by 157% last year.
The total estimated cost of the package of EGF is approximately EUR4.2m, of which the European Globalisation adjustment Fund will pay EUR2.7m.
The EGF was established by the European Parliament and the Council at the end of 2006. It forms part of Europe’s response to the financial and economic crisis.
Reports last week indicated Chinese manufacturer Chery Automobile could build a plant in Catalonia.
