Brintons (Vouzela)

Subject: Brintons (Vouzela)

Brintons – Indústria de Alcatifas Lda is a manufacturer of carpets and rugs for hotels, cruise ships, casinos, airports and shopping centres which has had a factory in Vouzela, Portugal, since 1991. Around two years ago, the company had more than 200 employees. It now has just 90, half of whom are on furlough.

The Portuguese factory’s four most productive looms have been dismantled and are to be sent to industrial units in India, where production will now take place.

Brintons is part of the Brintons Limited group owned by private equity firm the Carlyle Group.

In view of the above, can the Commission answer the following:

1. Has Brintons Lda received EU funds, for example from the SURE instrument? Did the Portuguese Government request support from the European Globalisation Adjustment Fund for these workers?

2. What mechanisms are available to prevent companies that have received EU funds from relocating?

Answer given by Mr Schmit on behalf of the European Commission

(15 June 2022)

Concerning the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE), it has provided loan support for short-time work schemes, similar measures and, as an ancillary, health-related measures in Portugal.

SURE acts as a second line of defence to help Member States protect jobs and workers.

It is non-intrusive, respecting national competences regarding the design of social security systems and measures in this field, including which individuals or companies receive support. The Commission does not request this detailed information from Member States as it would exceed the scope of the SURE Regulation (1).

Concerning the European Globalisation Adjustment Fund (EGF), the Commission has not received an application from Portugal requesting funding to support workers laid-off by Brintons.

The Honourable Member may wish to refer to the EGF contact persons (2) for Portugal to find out if an application is planned.

The Common Provisions Regulation includes provisions to prevent the relocation of companies receiving European Structural and Investment funds (ESIF).

Under Article 71 of Regulation (EU) No 1303/2013 (3), an operation comprising investment in infrastructure or productive investment shall repay the contribution from the ESIF, if within five years or within the period set out in state aid rules, the productive activity is relocated outside the programme area. This applies to the 2014-2020 programming period (until the end of 2023).

A similar provision, under Article 65 of Regulation (EU) 2021/1060 (4), applies for the 2021-2027 programming period.

⋅1∙ Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for temporary support to mitigate unemployment risks in an

emergency (SURE) following the COVID-19 outbreak, OJ L 159, 20.5.2020, p. 1‐7. ⋅2∙ The relevant EGF contact details can be found on the EGF website under ‘How to Apply’:

https://ec.europa.eu/social/main.jsp?catId=581&langId=en

⋅3∙ Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional

Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006, OJ L 347, 20.12.2013, p. 320‐469. ⋅4∙ Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional

Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy, OJ L 231, 30.6.2021, p. 159‐706.








| | )Also, expenditure supporting relocation is not eligible for a contribution from the funds (5) and, when selecting operations, national authorities must ensure that operations do not include activities that were part of an operation subject to relocation (6).

⋅5∙ Article 66 of Regulation (EU) No 2021/1060.

⋅6∙ Article 73.2 (h) of Regulation (EU) No 2021/1060