Mobilisation of the European Globalisation Adjustment Fund: application EGF/2025/001 BE/BelGaN - Belgium
The European Parliament adopted by 578 votes to 47, with 16 abstentions, a resolution on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund (EGF) for workers made redundant following a request from Belgium - EGF/2025/001 BE/BelGaN.
Parliament approved the proposal for a decision to mobilise the EGF to provide a financial contribution of EUR 931 690 in commitment and payment appropriations from the EU budget for the financial year 2025, in response to the request submitted by Belgium following 417 redundancies at the company BelGaN BV in the province of East Flanders.
The contribution represents 85% of the total cost of EUR 1 096 107, which corresponds to the expenditure on personalised services of EUR 1 052 607 and to the expenditure to finance preparation, management, information and publicity activities, as well as control and reporting activities, for an amount of EUR 43 500.
Events leading to redundancies
Russia's aggressive war against Ukraine and rising inflation have impacted the cost of energy, materials, and labour, putting increasing pressure on margins at BELGaN, a company specialising in the manufacture of semiconductors for the automotive sector.
The European automotive and supplier industry is facing unprecedented pressure due to both external and internal challenges, such as distorted competition and high energy costs. The company has experienced a sharp decline in profitability due to cash flow constraints resulting from the transition from silicon-based chips to gallium nitride (GaN) technology. High production costs and insufficient investment have hampered operations during the transition period.
Beneficiaries
The application concerns 417 beneficiaries. Due to the layoffs at BelGaN, the annual unemployment rate in the Oudenaarde region has increased by 9%, particularly among highly and medium-skilled unemployed. At the same time, the number of job vacancies in the region has decreased by 22% due to a significant increase in the number of companies filing for bankruptcy over the past three years.
Personalised services
The personalised services to be provided to workers include the following measures: information sessions, outplacement, training and retraining, training at the workplace, job-fair, job-search assistance, job-scouting and job-matching with the objective of enabling workers to re-enter the labour market as quickly as possible, equipping them with high-quality skills and training relevant to prospective employers in the sector, while at the same time fostering their capacity to develop entrepreneurial initiatives and new projects.
Belgium started providing personalised services to the targeted beneficiaries on 8 August 2024 and the period of eligibility for a financial contribution from the GEF will therefore start from that date, for a period of 24 months after the date of entry into force of the decision annexed to this resolution.
Parliament called for comprehensive final evaluations of the implemented measures, including data on the number of workers successfully reintegrated into employment and feedback from beneficiaries on the quality and relevance of the support provided.
It stressed the need to ensure clear recognition and visibility of Union funding to highlight its added value and called for consistent and well-targeted communication to beneficiaries, regional and local authorities, social partners, the media, and the wider public.