European Globalisation Adjustment Fund for Displaced Workers
The EGF will support the socio-economic transformations caused by globalization and technological and environmental changes by helping redundant workers and the self-employed who have ceased their activities to adapt to structural change.
Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) | OJ L 153/48, 3.5.2021
The European Globalisation Adjustment Fund for Displaced Workers (EGF) is a special EU instrument to express EU solidarity with European workers or the self-employed that were displaced due to restructuring, and to help them find new jobs. The EGF contributes to the creation of a more dynamic and competitive European economy by improving the skills and employability of displaced people, to help them find better work. The EGF helps low-skilled and disadvantaged jobseekers deal with new challenges on the labour market.
As a general rule, the EGF can be activated when a single company (including its suppliers and downstream producers) lays off over 200 workers, by SMEs in various sectors in the same region or in a particular sector in one or more neighbouring regions.
The EGF has an annual budget of €210 million for 2021-2027. It can fund from 60% to 85% of the cost of projects designed to help workers made redundant find another job or set up their own businesses. National or regional authorities implement and manage EGF cases. Each project runs for two years.
The EGF adds to existing job market assistance services by providing personalised measures for the unemployed.
The EGF can co-finance measures such as
help with looking for a job
education, training and re-training
mentoring and coaching
entrepreneurship and business creation
It can also provide training or subsistence allowances or similar support, including allowances for carers, mobility and relocation allowances, and employers’ recruitment incentives. The EGF does not co-finance social protection measures such as pensions or unemployment benefits.
Who can benefit?
Individual workers made redundant can benefit from EGF projects. This includes self-employed, temporary and fixed-term workers. The EGF does not provide support to help companies stay in business, modernise or restructure.
Today, the European Commission proposed to support 303 workers dismissed by aluminium producer Alu Ibérica in the region of Galicia in Spain with €1.2 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF). The funding will help them find new jobs through tailored guidance and advice, vocational training and job-matching. Spain applied for […]
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