On Monday, the Committee on Budgets approved Germany’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 Germany”.
Following years of financial losses, a number of restructuring and downsizing measures and a dedicated recovery plan were launched in 2018. In 2021, Vallourec S.A. in France decided to sell its tube mills in Mülheim an der Ruhr, in the Ruhr area, and to move offshore production to Brazil. The sale failed, leading to the definitive closure of the sites and resulting in the remaining workforce losing their jobs by 1 January 2025.
National co-financing
The support is aimed at facilitating the reintegration of the affected workers into the labour market, acknowledging the structural shifts in the global steel industry and the local impact on employment. The total cost of the proposed measures is €4.97 million, with the EGF covering 60% (€2.98 million) and the remaining funds provided by German national sources.
Tailor-made support for dismissed workers
The support includes guidance, including counselling and vocational orientation, job search assistance like job scouting and participation in job fairs, as well as training offers. Former workers can also receive funding of up to €22 000 to start their own business. They can receive allowances when they participate in support measures such as training courses, and bonus payments or salary top-ups when they start a new job.
Next steps
The draft report by rapporteur Jens Geier (S&D, DE) recommending that Parliament approve the aid was passed by 26 votes, none against and no abstentions. Approval by plenary is expected during the 22-25 April plenary session in Strasbourg.
Background
The European Globalisation Adjustment Fund for Displaced Workers (EGF) is a special EU instrument to express EU solidarity with European workers or the self-employed that were dismissed due to restructuring, and to help them find new jobs. As a general rule, the EGF can be activated when a single company (including its suppliers and downstream producers) lays off over 200 workers, by SMEs in various sectors in the same region or in a particular sector in one or more neighbouring regions. The EGF has an annual budget of €210 million for 2021-2027. It can fund from 60% to 85% of the cost of projects designed to help workers made redundant find another job or set up their own businesses. National or regional authorities implement and manage EGF cases. Each project runs for two years.
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