Improved Globalisation Fund will help more European workers who lose their jobs
European Commission - IP/08/1985 16/12/2008
Brussels, 16 December 2008
The European Commission today moved to help people made redundant as a result of the economic crisis by improving the European Globalisation adjustment Fund (EGF). The proposal to revise the EGF aims to bring its operations closer into line with its objective of solidarity towards workers who have lost their jobs – in particular in these times of economic crisis. The new proposals will make the EGF a more effective crisis response instrument, helping more people to find their way back into the labour market.
"The Globalisation Fund has already helped more than 15,000 redundant workers in the 2 years since it has been launched. Our objective now is to strengthen its role as an early intervention instrument as part of Europe's response to the financial and economic crisis. We want to ensure the EGF can be used when people lose their jobs as a result of the crisis, and we want to help more redundant workers to find new jobs as quickly as possible," said Vladimír Špidla, Commissioner for Employment, Social Affairs and Equal Opportunities.
In its European Economic Recovery Plan of 26 November 2008 (IP/08/1771), the Commission announced its intention to revise the EGF to extend its scope as part of the Europe's crisis response package and to make it a more effective intervention instrument, in line with the fundamental principles of solidarity and social justice.
To achieve the objective of showing solidarity towards workers who lose their jobs, the proposal makes changes to the existing EGF regulation (1927/2006) which should allow it to help a larger number of redundant workers back into the labour market.
The changes should enhance the performance of the Fund by:
The European Globalisation Adjustment Fund is a response to a specific, European-scale crisis caused by globalisation. The Fund is an expression of EU solidarity with European workers left vulnerable because of the impact of globalisation. It provides one-off, time-limited individual support, geared directly to the redundant workers.
Its objective is to reintegrate workers into the labour market, when they had been made redundant due to globalisation. It has at its disposal a potential maximum of EUR 500 million per year, an amount which may be reviewed in the light of the implementation of the revised Regulation.
The EGF contributes directly to the creation of a more dynamic and competitive European economy by improving the skills and employability of redundant workers, and facilitating the general up-skilling of the European labour force, leading towards better quality and higher value-added work.
Annual report on the European Globalisation adjustment Fund (EGF) 2 July 2008:
European Globalisation Fund website
Video News Release: Facing up to a globalised world – The European Globalisation Fund