Mobilisation of the European Globalisation Adjustment Fund: technical assistance

The Committee on Budgets adopted the report by Jean-Marc GERMAIN (S&D, FR) on the proposal for a decision of the European Parliament and of the Council on mobilising the European Globalisation Adjustment Fund (EGF) for displaced workers to provide an amount of EUR 170 000 in commitment and payment appropriations for technical assistance at the initiative of the Commission under the general budget of the European Union for the financial year 2025.

The European Globalisation Adjustment Fund (EGF) is intended to provide additional support to workers suffering from the consequences of major structural changes in world trade patterns. The EU had first extended the scope of the EGF to provide financial support in case of any major restructuring event, and thus covering economic effects of the COVID-19 crisis. The adoption of the new EGF Regulation in 2021 further expanded the scope of the EGF to major restructuring events caused by the transition to a low-carbon economy or as a consequence of digitisation or automation, while also reducing the required threshold for the activation of the EGF from 500 dismissed workers to 200.

Moreover, the MFF revision reduces the maximum annual amount of the EGF from EUR 186 million to EUR 30 million (in 2018 prices).  All institutions need to ensure that, despite these cuts, workers made redundant can count on Union solidarity via support of the EGF.

Members agreed with the mobilisation of EUR 170 000 and the measures proposed by the Commission to be financed as technical assistance. They welcomed the continued work on the standardised procedures for EGF applications and management using the functionalities of the electronic data exchange system (Shared Fund Management Common System - SFC), which allows for the simplification and faster processing of applications, and better reporting.

Technical assistance

The requested amount of EUR 170 000 represents approximately 0.49% of the annual maximum amount of the EGF and is intended to cover the following activities:

- expert group meetings;

- networking seminar;

- information activities;

- electronic data exchange system;

- monitoring and data gathering.

The Commission is called on to:

- continue to invite Parliament systematically to these meetings and seminars;

- adapt the best practices which were developed during the times of the COVID-19 pandemic, in particular measures that can help to accelerate an inclusive green and digital transition and support core priorities of the Union, such as gender equality;

- regularly update and expand the EGF website to increase the visibility of European solidarity demonstrated by the EGF to the general public and increase the transparency of Union action.

- systemically check the compliance of Member States with the EGF Regulation.