On Thursday, MEPs approved the Commission’s proposal to mobilise €1.8 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 420 workers who lost their jobs following the decision by Austrian motorcycle manufacturer KTM Gruppe to cease production. The report was adopted with 584 votes in favour, 39 against and 13 abstentions.
A €3 million package will help those affected return to work, through career counselling, job-search assistance, skills training, and training allowances. The EGF will cover 60% (€1.8 million), with the remaining 40% (€1.2 million) funded by the Austrian public employment service. KTM, once among Europe’s leading motorcycle brands, faced significant financial losses and a sharp drop in sales in 2024. Ongoing supply chain disruptions led to insolvency proceedings and production to stop in April 2025. The company later secured funding, avoiding bankruptcy and allowing production to resume under cost-saving measures.
Background
Under the EGF Regulation 2021-2027, the fund supports displaced workers and self-employed people who have lost their jobs due to unexpected major restructuring events. Member states can apply for EU funding when at least 200 workers are made redundant within a defined reference period. If the application meets the EGF criteria, the Commission proposes mobilising funds, which must be approved by the European Parliament and the Council. According to the Commission, the EGF has helped more than 181,000 people in 20 member states, supporting 186 cases with €727 million disbursed.
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