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European Commission - Press release

Ten years of European solidarity via the European Globalisation Adjustment Fund

Brussels, 7 March 2017

Ten years ago, the European Globalisation adjustment Fund (EGF) began its operations. The fund is a practical demonstration of European solidarity, as it gives financial support to Member States to help workers and companies to adjust in response to changing patterns of trade.

Commissioner for Employment, Social Affairs, Skills and Labour Mobility, Marianne Thyssen, said: "The European Globalisation adjustment Fund is one of the most concrete expressions of European solidarity and an essential instrument to support workers who have lost their jobs as a result of changing trade patterns. During the last ten years we were able to support more than 140,000 people. It has a clear added-value because it tops up national support mechanisms for workers involved in mass lay-offs, and funds measures that are tailored to workers' specific needs in order to help them move on."

The European Globalisation adjustment Fund was set up specifically to help workers affected by closures of factories or the decline of certain economic sectors. In addition, where regions of high youth unemployment are affected by redundancies eligible for EGF support, Member States can, until the end of 2017 and under certain conditions, include young people not in employment, education or training (NEETs), to be added to the workers targeted for EGF measures. In that sense, the EGF also directly contributes to the creation of a more dynamic and competitive European economy by improving the skills and employability of vulnerable workers and young people.

Since its establishment in 2007, the Commission has received 148 applications from 21 Member States, totalling almost €600 million of EGF co-funding in support of 138,888 redundant workers and 2,944 persons not in employment, education or training (NEETs).

In order to benefit from financial support of the European Globalisation adjustment Fund, Member States have to make a request. The EU can co-fund up to 60% of the cost of reintegrating workers made redundant into the labour market. More specifically, the EGF co-finances projects including measures such as job search support, careers advice; education, training and re-training; mentoring and coaching; entrepreneurship and business creation.

Background

The European Globalisation adjustment Fund has been up and running since January 2007. The first application arrived from France on 9 March 2007 regarding 1,345 redundancies in subcontractors of Peugeot SA (PSA), resulting from increased competition in the small car market, particularly from Asia.

For the period 2014-2020, the Fund has an average of €170 million financial support available every year. Since 2014, the categories of eligible workers have been broadened: in addition to permanent staff, now fixed-term workers, temporary workers and self-employed people are also eligible. In addition, where regions of high youth unemployment are affected by redundancies eligible for EGF support, Member States can, until the end of 2017 and under certain conditions, include young people not in employment, education or training (NEETs), to be added to the workers targeted for EGF measures. So far three Member States (Greece, Ireland and Belgium) have made use of this provision and provided support to almost 3 000 NEETs.

 

 

Examples of EGF solidarity*

Member State

Sweden

Belgium

France

The case

Partial or complete closure of various Ericsson sites (Borås, Karlskrona, Kista/Stockholm, Kumla, Linköping and Gothenburg)

Final shutdown of the Ford production plant in Genk

Dismissal of 5,213 workers in Air France, mostly in the regions of Ile-de-France, Midi-Pyrénées and Provence-Alpes-Côte d'Azur (PACA)

Year

2016

2015

2014

EGF-contribution

€3,957,918

€ 6.2 million

€25.9 million

Workers benefited

4,500

5,111

3,886

Measures put in place

- Counselling and career guidance,

- Sheltered and supported employment and rehabilitation measures for beneficiaries with health conditions or impairments

- Education and training

- Individual job search assistance and general information services

- Variety of training courses and hiring bonuses.

- Active career guidance

- Vocational training

- Contributions to business start-up and the relevant allowances.

Context of the redundancies

Stagnating growth and increasingly tough competition from Asian producers

 

Shrinking EU share in the global market for passenger vehicles, aggravated by the economic and financial crisis +  import restrictions in third countries

Decrease in the EU market share in air transport, compared to fast growing share of the Middle East Region.

* The complete overview of EGF-funded cases can be found here.

 

The EGF's effectiveness and sustainability have been demonstrated in the mid-term evaluation carried out in 2011. Its impact and added value were ascertained in the ex-post evaluation published in 2015. These two reports are also available on the EGF website.

Every two years, the Commission presents a report on the activities of the EGF. These biennial reports are also published on the EGF website. The mid-term evaluation 2014-2020 is currently ongoing. The Commission will present the evaluation to the European Parliament and the Council by 30 June 2017.

The EGF is a support tool that can help Member States facing negative consequences of changing trade patterns. It complements other sources of EU funding which support economic development at national and regional level, helping to build more resilient economic structures to anticipate and respond proactively to changing situations, such as the European Social Fund (ESF). The ESF is Europe's main instrument for supporting jobs, helping people get better jobs and ensuring fairer job opportunities for all EU citizens. With a total budget of €80 billion for the period 2014-2020, it funds tens of thousands of local, regional and national employment-related projects throughout Europe: from small projects run by neighbourhood charities to help local disabled people find suitable work, to nationwide projects that promote vocational training among the whole population.

For more information

 

 

IP/17/443

Press contacts:

General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email


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