European Parliament negotiators and EU member states have reached a political agreement on new rules to strengthen the European Globalisation Adjustment Fund for Displaced Workers.
The fund, known as the EGF, provides support such as training and career guidance to people who lose their jobs due to major restructuring or economic change, the European Commission said in a release on Thursday.
Under the agreed changes, companies going through restructuring will be able to request EGF assistance for employees who are at risk of losing their jobs, allowing support to start before dismissals take place.
Workers employed by suppliers and downstream producers affected by the same restructuring would also be covered.
The revised rules also allow EGF support to be used to help workers gain new skills within companies undergoing restructuring, including education, skills training and guidance to move into new roles
Formal approval needed before new rules apply
The European Parliament and the Council of the EU still need to formally adopt the agreement before the revised rules can take effect, the Commission said.
Once adopted, companies will be able to ask member states to apply for EGF support for affected employees under the updated framework.
The revised rules would apply until the end of 2027, when the current EGF expires.
Since 2007, the EGF has been used in 186 cases, with €727 million allocated to help 181,167 people in 20 member states.
Commission data for 2023–2024 showed 81% of dismissed workers supported by the EGF found a new job within 18 months.
