Study On European Globalisation Adjustment Fund

As globalization intensifies, bilateral, multilateral and other trade agreements signed, trade liberalization is becoming more deeply involved in the countries which are facing the domestic industrial structure adjustment, this situation will inevitably make some industrial enterprises impacted go bankrupt, and workers lose their jobs. Thanks to the impact of economic globalization, European countries'exports reduced and imports increased substantially, labor market is facing great challenges. Besides that, background EU's inherent system does not meet the demand for labor adjustment assistance, can't make a timely, efficient response to the crisis of globalization. In this context, Globalization Adjustment Fund (EGF) came into being.EGF is the EU response to the impact of economic globalization, to strengthen the internal unity and cooperation, which provides one-off, time limited individual support for tailor-made services to help workers affected by globalization with active labor market policy(ALMP), It provides up to (?)500 million support per annum to workers in Europe affected by'trade adjustment redundancies'. The aim of the fund is to provide support in the form of tailored re-integration measures for up to 50000 workers per year made redundant due to changing world trade patterns, international competition and resultant restructuring. Unlike the Structural Funds, it will provide an EU funding stream designed specifically to deal with rapid, rather than medium or long-term economic change. While the fund is still in the early stages of implementation, but in a relatively short period of time it have helped the unemployed re-employ and provided other short-term life support, easing the economic situation of labor market due to unforeseen changes, to some extent, resolved the social contradictions. In the long term it will also be a positive impact on labor markets and can gain long-term benefits. in particular, a better implementation of social funds are well prepared, and this is Globalization Adjustment Fund and the embodiment of social funds complement each other. The activities of the EGF are coherent and compatible with the other Community policies and comply with its acquis, especially the interventions of the Structural Funds, while making a genuine contribution to the Community's social policies. So far, three years of EGF implementation, more Member States and the affected industries involved, a lot of regions, industries, enterprises have received assistance, easing the process of adjustment.China is in the process of system transformation and growth of dramatic structural change. Many enterprises have high dependence on foreign trade, once the international market fluctuates, such as reduced external demand or imports increase would give a serious negative impact on our economy, resulting in a series of social problems. Moreover, China's labor assistance system is not perfect, our government has always advocated harmonious development. Therefore, learning from the successful experience of developed countries in Europe is important.