Commission welcomes political agreement on European Globalization Adjustment Fund for displaced workers

The Commission welcomes the political agreement reached on 16 December between the European Parliament and EU member states in the Council on the European Globalization Adjustment Fund for displaced workers (EGF). Pending its final approval, this agreement will allow the European Globalization Fund to continue supporting workers and self-employed persons whose activity has been lost. The EGF helps to fund personalised support measures that complement national support mechanisms, such as tailor-made training courses, re-skilling and up-skilling – particularly to gain digital skills, mentoring and career guidance, job-matching assistance and job search, the launch of a new business, and allowances for carers.

Under the new political agreement, the focus shifts from the cause of restructuring to its impact: more workers will be able to receive European support for restructuring situations as the main criterion to trigger the Fund will be that at least 200 workers are laid off (from 500 previously). Additionally, the costs of support services in Member States can be covered at a higher rate. Finally, thanks to the new eligibility rules, all reasons for restructuring, including the economic effects of the coronavirus crisis, as well as larger economic trends like decarbonisation and automation, can be eligible for support.

Jobs and Social Rights Commissioner Nicolas Schmit said: “In the current economic crisis, it is particularly important that we express solidarity with workers who face job losses due to restructuring. The European Globalisation Adjustment Fund for displaced workers can help them and the self-employed to find new job opportunities by funding their tailor-made training courses, re-skilling programmes – especially to gain digital skills, career guidance, and job-matching assistance. It can also be used to help start a new business. We must ensure that we protect the dignity of workers and provide everyone the best possible opportunities to gain the skills they need to thrive.”

Until 2027, the EGF will have an annual ceiling of €186 million. Once finalized, the Regulation on the EGF must be approved by the European Parliament and the Council to enter into force. A press release and a factsheet are available.

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