Brussels, 08/11/2013 (Agence Europe) - EU aid to redundant workers will continue in 2014-2020 and will focus on new categories of workers, such as the self-employed and those on temporary contracts, according to the compromise between institutions on the European Globalisation Adjustment Fund (EGF) approved by the European Parliament's employment committee on Tuesday 5 November (see EUROPE 10945). “I am particularly pleased that we were successful in including workers made redundant by the current crisis (…). We also wanted to see real added value and ensure that member states do not use the fund to merely substitute for supports already in place”, said rapporteur Marian Harkin (ALDE, Ireland).
“This tool will continue to be used to mitigate the effects of the current economic crisis”, stated the chair of the employment and social affairs committee, Pervenche Berès (S&D, France).
Thanks to the Parliament, the EGF's scope has been extended to make the aid available again to people who have lost their jobs as a result of the economic crisis (the primary objective of the fund being to support those affected by globalisation). The threshold for triggering support from the fund is 500 redundancies. In addition, new categories of workers will be able to benefit from EGF aid, such as workers with fixed-term contracts, temporary agency workers and the self-employed.
Youth unemployment chapter. According to the compromise text, EGF aid could be made available temporarily to young people who are “not in education, employment or training (NEETS)” and who are from regions affected by redundancies.
Co-financing rates. EGF aid is added to contributions from member states which part-finance schemes to get redundant workers back into work. Under the terms of the agreement, the EGF share should cover 60% of the cost of the measures (job search assistance, training and support for business start-ups). The European Commission had initially proposed a co-financing rate of 50%. The Parliament wanted different co-financing rates according to the economic situation of the member states but it finally backed this compromise.
Cap for financial allowances. The Parliament ensured that EGF aid in the form of financial allowances will not exceed 35% of the costs. This means that the workers concerned will benefit from more training and career guidance. The member states will not be able to use EGF aid to replace unemployment benefit.
The EGF allocation will be €150 million per year for the 2014-2020 period. The agreement still has to be formally approved by Council and European Parliament. (LC/transl.fl)