On Tuesday, the Committee on Budgets approved Belgium’s request for support from the European Globalisation Adjustment Fund for Displaced Workers (EGF). MEPs acknowledged that “the COVID-19 pandemic and the Russian war of aggression against Ukraine have reduced economic competitiveness and have a negative impact on economic growth in Belgium”.
In recent years, Makro Cash & Carry Belgium NV faced financial losses and sales dropped further during the pandemic. The company was declared bankrupt in January 2023, resulting in 1,431 jobs lost in Belgium. 421 workers in Wallonia will benefit from the EGF aid, while the Flemish regional authorities do not think there is a need for an EGF top-up of the support available to former Makro workers in Flanders. Unemployment in Wallonia (8.8%) is higher than in Flanders (3.1%), according to Statbel.
The total estimated cost of these measures is €3.2 million, with 85% (€2.8 million) covered by the EGF and the remaining 15% (€499,000) financed by the Walloon region.
The EGF support package includes advisory services, job search assistance, and skills training in vocational, digital or language skills. In addition, the dismissed workers can receive guidance on starting their own business and benefit from start-up grants of up to €15,000. Additional allowances are available for dismissed workers participating in job-search, training and education activities, as well as support for self-employed people in the initial months of launching a business.
Next steps
The draft report by rapporteur Petri Sarvamaa (EPP,FI) recommending that Parliament approve the aid was passed by 26 votes, none against and no abstentions. Approval by plenary is expected during the 20-23 November 2023 plenary session in Strasbourg.
Background
Under the EGF regulation 2021-2027, the Fund supports displaced workers and self-employed people who have lost their activity. EGF support is available for people affected by all types of unexpected major restructuring events, including the economic effects of the COVID-19 pandemic and Russia’s unjustified invasion of Ukraine, as well as larger economic trends like decarbonisation and automation. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.
Overall, since 2007, the EGF has made available €688 million in 177 cases, offering help to almost 168,000 people in 20 member states. EGF-supported measures add to national active labour market measures.
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