BRUSSELS (Chatnewstv.com) — The Council of the European Union on Monday agreed on its position to broaden the scope of the European Globalisation Adjustment Fund for Displaced Workers (EGF), extending support to workers facing imminent job loss due to company restructuring.
The proposed regulation would amend the EGF rules until the current program expires at the end of 2027, allowing the fund to help prevent layoffs and assist workers in transitioning to new roles before they are formally dismissed.
Currently, the EGF is reserved for workers and self-employed people who have already lost their jobs. The fund finances active labor market measures such as training, skills certification, and job-search assistance.
Danish Minister for Employment Kaare Dybvad Bek stressed the timely nature of the revision amid global uncertainty.
“In a time of geopolitical turmoil, this revision of the Globalisation Fund is good news for European workers and companies,” Bek said. “By extending the support to workers facing imminent job displacement across Europe, the EU can help more workers and self-employed into new employment.”
Under the revised regulation, workers who are deemed at an “imminent risk of losing their job” as a result of company restructuring would gain early access to EGF support. This shift aims to equip people with new skills sooner, reducing the overall rate of dismissals.
Council’s Key Stipulations
The Council’s position seeks to clarify the scope for early access to support while introducing safeguards for member states and managing the fund’s resources:
Checks and Controls: Member states will have the option to carry out ex-ante (pre-approval) checks on a company’s financial and administrative capacity. The European Commission must consider these checks when making a funding decision.
Funding Limit: The Council established an upper limit of four million euros per year for the financial contribution to any single company. This cap is designed to prevent one company from depleting the EGF’s resources and ensure funding remains available across member states.
Reduced Burden: The Commission is mandated to produce non-binding guidance for both member states and companies to limit the administrative burden of the revised regulation.
The push to amend the EGF regulation was first announced in the Industrial Action Plan for the European Automotive sector in March 2025, part of the Commission’s efforts to support key industrial sectors facing economic disruptions and geopolitical challenges.
The next step will involve the European Parliament establishing its own position on the proposal. Following that, the two institutions will enter into negotiations to agree on the final legislative text.
