Mobilisation of the European Globalisation Adjustment Fund: application EGF/2026/003 FI/Valmet Automotive – Finland
The European Parliament adopted by 601 votes to 57, with 9 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 for Displaced Workers following an application from Finland – EGF/2026/003 FI/Valmet Automotive.
As a reminder, on 5 May 2026, Finland submitted an application to mobilise the EGF in respect of workers’ displacements in Valmet Automotive and five sub-contractors and suppliers in Finland.
Parliament approved the decision annexed to the resolution to mobilise an amount of EUR 410 310 in commitment and payment appropriations to assist displaced workers in the automotive industry in Finland.
The financial contribution represents 60% of the total cost of EUR 683 850, comprising expenditure for personalised services of EUR 663 850 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 20 000.
Events leading to redundancies
The financial situation and employment in Valmet Automotive, a contract manufacturer of the automobile industry, has always been dependent on fixed-term contracts with large car manufacturers, and therefore subject to fluctuations.
Due to the global downturn in the automobile industry that has continued for several years, the company has run into difficulties and has had to gradually reduce its personnel, from just under 3 200 in the early 2020’s to approximately 1 300 before the latest redundancies.
After the end of the two-model contract with Mercedes-Benz in 2025, the factory no longer had any orders, forcing it to new staff reductions. In the co-operation negotiations in November 2025, the company announced that it would dismiss a maximum of 235 people and temporarily lay-off 860 people. The company's difficult situation has naturally also affected the entire subcontracting chain.
Beneficiaries
The application relates to 260 targeted beneficiaries who were made redundant by Valmet Automotive and five subcontractors and suppliers.
The resolution noted that 95% of the displaced workers have an educational attainment of post-secondary level or lower, with 27.5% being aged over 54. The Finnish authorities are called on to take measures to address social disparities and structural barriers leading to exclusion of work force, such as low level of education and age. Parliament welcomed that Valmet Automotive has signed a multi-year agreement covering the manufacturing of armoured vehicles potentially allowing for the re-hiring of a considerable portion of its displaced workers while hopefully others could also find employment in the maritime industry in the city of Turku in the future.
Personalised services
The personalised services to be provided to workers include the following measures: (i) job-seeking training; (ii) job and career coaching; (iii) vocational training; (iv)occupational safety and competence cards; (v) language training; (vi) start-up grants; (vii) incentives and allowances.
Finland started providing personalised services to the targeted beneficiaries and incurring administrative expenditure to implement the EGF on 23 March 2026, and that the period of eligibility for a financial contribution from the EGF will therefore be from that date until 24 months and until 31 months after the date of the entry into force of the financing decision, respectively.
Lastly, Parliament noted that the Finnish authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, and that any double financing will be prevented. Assistance from the EGF must not replace actions that are the responsibility of public authorities or companies under national law or collective agreements.