Budget, EU – Baltic States, Financial Services, Legislation, Lithuania, Markets and Companies

The plans still need to be approved by the full Parliament and the Council of Ministers. If that happens, a total of 1,127 workers will get aid worth 1.8 million euros, of which the European Globalisation Fund will pay 1.2 million euros. Of the 1,127 workers, 491 used to work at 45 companies in the clothing sector and 636 were employed by 49 furniture manufacturing firms, writes LETA/ELTA.

The Lithuanian authorities argue that the clothing and the furniture sectors are suffering from declining demand as a result of the economic crisis. The textile sector in Europe has been weak for some time but the economic crisis has made things even worse for the industry. The furniture companies are also affected by a slowdown in construction activity.

Lithuania has one of the highest rates of unemployment in the EU, meaning alternative job opportunities are few and far between.

The aid measures include information on job opportunities, the development of personalised employment plans, job-search assistance, entrepreneurship and other training, and job-search and training allowances.

Three applications to the European Globalisation Adjustment fund have already been approved so far in 2010: one from Germany (former employees at the Karmann industry) and two from Lithuania (for construction workers and for ex-employees at the refrigerator producer Snaige).

If these two new proposals are adopted, a total of 8,761,966 euros will have been paid out from the 2010 EU budget under the Globalisation Fund, leaving a maximum of just over 491 million euros available under the Fund for the rest of the year.

The Budgets Committee, whose reports on the two proposals were drafted by Barbara Matera (EPP, IT), approved the plans by a show of hands. The full Parliament will vote on 25 March.