The European Globalisation Adjustment Fund is a European solidarity fund which was created in 2007 with the aim of helping European workers who lost their jobs. On January 1st, 2021 it was renamed “European Globalisation Adjustment Fund for Displaced Workers” in order to be more adapted to the new issues regarding the global pandemic and to include relocations as a negative consequence for the workers. You can find this information here.
The European Parliament had to accept the launch of this new tool in April 2021. It approved the Council proposal in its first reading and it will be consulted also in future, every time this fund is planned to be used.
How does EGF work?
This form of solidarity is managed at a national level and can be applied for all the countries in the European Union. The European Commission is in charge of this fund and can decide when to use it. On a larger scale, it reboots the European economy by creating a more dynamic job market and increasing the number of qualified workers.
The European Fund can be used in case of massive layoffs in a specific sector or in a company. During the period from 2014 to 2020, the budget was set at 150 million euros, but got increased to 210 million euros for the period from 2021 to 2027. This change can be linked to the Covid-19 pandemic that caused more issues and seriously affected the whole job market in the European Union.
The EGF budget provides for training allowances, mobility allowances and subsistence allowances in order to develop new skills. It also provides a job search assistance and funds for the dismissed workers who would like to start their own business. However, it cannot provide pensions.
The Fund proved particularly useful for supporting the aeronautics and car industry within the European Union:
The aeronautic sector has been seriously impacted by the pandemic, mostly because of travel restrictions. Airbus was among the companies struggling most with the stagnant economic situation. In November 2021, the European Union released 3.7 million euros through the EGF to help the 297 dismissed workers from the Airbus Company to get a new job or to start their own business. Some of them will receive a raise in their salaries even if they do not find an equivalent job compared to the one they used to have.
The car industry has also been very impacted in the last years by Covid-19. In fact, the pandemic caused the reduction of production in Europe and as a result, 450 workers have been dismissed between 2020 and 2021. In January 2022, 2.8 million euros have been released in order to support these workers in the Nissan Company in Catalonia.
Agentschap Innoveren & Ondernemen. 2022. European Globalisation Adjustment Fund (EGF) | EU Funding Overview. [ONLINE] Available at: https://eufundingoverview.be/funding/european-globalisation-adjustment-fund-egf [Accessed 03 February 2022].
eufunds.gov.mt. 2021. European Globalisation Adjustment Fund for Displaced Workers. [ONLINE] Available at: https://eufunds.gov.mt/en/EU%20Funds%20Programmes/Other%20Programmes/Pages/European-Globalisation-Adjustment-Fund-for-Displaced-Workers.aspx. [Accessed 3 February 2022].
European Globalisation Adjustment Fund: €3.7 million to support almost 300 dismissed Airbus workers in France – EU monitor. 2022. European Globalisation Adjustment Fund: €3.7 million to support almost 300 dismissed Airbus workers in France – EU monitor. [ONLINE] Available at: https://www.eumonitor.eu/9353000/1/j9vvik7m1c3gyxp/vlo1hg93whx9?ctx=vg9pl67j6rzj&tab=2&n=17&start_tab1=56. [Accessed 03 February 2022].
European Globalisation Adjustment Fund: €2.8 million to support dismissed workers in the Spanish car industry | EU Commission Press | PubAffairs Bruxelles. 2022. European Globalisation Adjustment Fund: €2.8 million to support dismissed workers in the Spanish car industry | EU Commission Press | PubAffairs Bruxelles. [ONLINE] Available at: https://www.pubaffairsbruxelles.eu/european-globalisation-adjustment-fund-e2-8-million-to-support-dismissed-workers-in-the-spanish-car-industry-eu-commission-press/. [Accessed 03 February 2022].
European Globalisation Adjustment Fund for Displaced Workers (EGF) – Employment, Social Affairs & Inclusion – European Commission. 2022. European Globalisation Adjustment Fund for Displaced Workers (EGF) – Employment, Social Affairs & Inclusion – European Commission. [ONLINE] Available at: https://ec.europa.eu/social/main.jsp?langId=en&catId=326. [Accessed 03 February 2022].
Texts adopted – Mobilisation of the European Globalisation Adjustment Fund: application EGF/2021/002 IT/Air Italy – Italy – Tuesday, 14 December 2021. 2022. Texts adopted – Mobilisation of the European Globalisation Adjustment Fund: application EGF/2021/002 IT/Air Italy – Italy – Tuesday, 14 December 2021. [ONLINE] Available at: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0492_EN.html. [Accessed 03 February 2022].
Työ- ja elinkeinoministeriö. 2022. The European Globalisation Adjustment Fund for Displaced Workers – Ministry of Economic Affairs and Employment. [ONLINE] Available at: https://tem.fi/en/european-globalisation-adjustment-fund. [Accessed 03 February 2022].
Written by Cécile Mayeres
She holds a Master’s degree in Translation and Cross-Cultural Communication with a specialization in European mobility. She now does a traineeship in Communication at the Terminology Coordination Unit