The Budgets Committee of the European Parliament approved €930,000 in EU aid for 417 Belgian workers who were made redundant after the closure of chip manufacturer BelGaN in July 2024.
The aid, drawn from the European Globalisation Adjustment Fund for Displaced Workers (EGF), will cover 85% of the costs of measures such as counselling, skills training, vocational guidance and job-search assistance. Belgian authorities began providing support shortly after the layoffs.
Rising energy, material and labour costs forced BelGaN to cease operations, resulting in the loss of 417 jobs. MEPs noted in a draft report that the redundancies raised the annual unemployment rate by 9% in and around Oudenaarde, East Flanders, particularly affecting medium- and highly skilled workers.
The full Parliament is due to vote on the funding in its first session of October in Strasbourg.
Under the 2021–2027 EGF regulation, EU aid is available to workers and self-employed people who lose their jobs due to major restructuring events, including the economic impact of the COVID-19 pandemic, Russia’s invasion of Ukraine, or broader structural changes such as decarbonisation and automation.
Since 2007, the fund has been used in 183 cases, allocating €709 million to more than 172,000 people in 20 EU countries, according to the Commission.
