Budgets Committee approves EU aid for redundant Spanish workers

Redundant workers in wood product manufacturing in Castilla y León (pictured) and in the food and beverage services industry in Aragón could get a total of €1.66 million in European Globalization Adjustment Fund (EGF) aid to help them find new jobs under plans approved by the Parliament's Budgets Committee on Thursday. The aid still has to be approved by Parliament as a whole and the Council of Ministers.

Wood products in Castilla y León

Workers in three firms in the Castilla y León region were made redundant due to shrinking global demand for builders' joinery and carpentry wood products. Firms in the region lost 37% of their export market in 2008-2011;and by 2013 22.3% of them had closed shop.

This resulted in more than 500 redundancies, exacerbating unemployment problems in a scarcely-populated region whose local economy is heavily dependent on wood products.

The €700,000-worth of EGF aid will help about 400 of those made redundant to find new jobs through information sessions, occupational guidance, job search assistance and promotion of entrepreneurship.

Food and beverages services in Aragón

Spain requested EGF support for the ailing food and beverages service sector in Aragón, a region particularly heavily hit when former customers cut back on eating and drinking out in response to the financial and economic crisis. While the decline in the sector averaged 3.5% in Spain as a whole, in Aragón it reached 11%.

The €960,000 in EGF support will help 280 redundant workers to find new jobs through counselling, re-training and job-search assistance.

Background

The European Globalization Adjustment Fund was set up to provide additional support for workers made redundant as a result of major structural changes in world trade patterns due to globalization or the financial crisis and to help them find new jobs. Between 2014 and 2020, the annual ceiling of the fund is €150 million. Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training. In most cases, national authorities have already started the measures and will get their costs reimbursed by the EU when their applications are finally approved.