Parliament approved, with 578 votes, 47 against, and 16 abstentions, Belgium’s request for €931,690 in EU aid through the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 417 workers following the closure of chip manufacturer BelGaN in July 2024.
Rising energy, material, and labour costs increased pressure on the company, leading to its closure and the loss of 417 jobs. The funding is set to help the laid-off workers with counselling, vocational orientation, skills training and the search for new jobs. The EGF retroactively covers 85% of the estimated cost of these measures retroactively, as Belgian authorities began providing support shortly after the layoffs.
Background
Under the EGF regulation 2021-2027, the fund supports workers and self-employed people who have lost their job due to unexpected major restructuring events. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period. If the application meets the EGF criteria, then the Commission proposes mobilising funds, which must be approved by the European Parliament and the Council. The EGF does not co-finance social protection measures such as pensions or unemployment benefits. According to the Commission, the EGF has been used in 183 cases since 2007, allocating €709 million to provide help to more than 172,000 people in 20 EU countries.
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