On Wednesday 25 February, the EU Council and European Parliament reached a provisional agreement on a regulation aimed at extending the scope of the European Globalisation Adjustment Fund for Displaced Workers (EGF), according to a press release.
These new rules will apply until the end of 2027, when the current EGF programme expires (see EUROPE 13763/4). Under the revised regulation approved by the two co-legislators at this first and last trilogue, workers, including those of the affected company’s suppliers and producers, who are at imminent risk of losing their jobs due to restructuring, will also have access to support from the fund.
At present, this support is reserved for people who have already been made redundant as a result of restructuring.
The agreed text also provides sufficient guarantees, in particular the possibility for Member States to carry out prior checks on companies’ financial and administrative capacities. Member States will also be able to provide pre-financing to companies in instalments.
In order to reach as many workers as possible, Parliament has ensured that the new rules also cover workers employed by the suppliers and downstream producers of the companies concerned, provided that the applicant company agrees to include them in its application to the Member State, says a press release.
The co-legislators agreed that at least 40% of the fund’s annual ceiling should be reserved for applications relating to the cessation of activity of redundant workers or self-employed workers and that this amount should not exceed €4 million per application for workers at risk of redundancy.
A deadline of 14 weeks will be set after the company notifies the public authorities of the redundancies in order to apply for assistance from the fund in case of imminent job losses.
Support measures eligible for funding from the European fund include training, skills certification, job search assistance and career advice. (Original version in French by Solenn Paulic)