Ten years ago, the European Globalisation adjustment Fund (EGF) began its operations. The fund is a practical demonstration of European solidarity, as it gives financial support to Member States to help workers and companies to adjust in response to changing patterns of trade. Commissioner for Employment,
Social Affairs, Skills and Labour Mobility, Marianne , said: "The European Globalisation adjustment Fund is one of the most concrete expressions of European solidarity and an essential instrument to support workers who have lost their jobs as a result of changing trade patterns. During the last ten years we were able to support more than 140,000 people. It has a clear added-value because it tops up national support mechanisms for workers involved in mass lay-offs, and funds measures that are tailored to workers' specific needs in order to help them move on."
The was set up specifically to help workers affected by closures of factories or the decline of certain economic sectors. In addition, where regions of high youth unemployment are affected by redundancies eligible for EGF support, Member States can, until the end of 2017 and under certain conditions, include young people not in employment, education or training (NEETs), to be added to the workers targeted for EGF measures. In that sense, the EGF also directly contributes to the creation of a more dynamic and competitive European economy by improving the skills and employability of vulnerable workers and young people.
Since its establishment in 2007, the Commission has received 148 applications from 21 Member States, totalling almost €600 million of EGF co-funding in support of 138,888 redundant workers and 2,944 persons not in employment, education or training (NEETs).
In order to benefit from financial support of the European Globalisation adjustment Fund, Member States have to make a request. The EU can co-fund up to 60% of the cost of reintegrating workers made redundant into the labour market. More specifically, the EGF co-finances projects including measures such as job search support, careers advice; education, training and re-training; mentoring and coaching; entrepreneurship and business creation.
. The European Globalisation adjustment Fund has been up and running since January 2007. The first application arrived from France on 9 March 2007 regarding 1,345 redundancies in subcontractors of Peugeot SA (PSA), resulting from increased competition in the small car market, particularly from Asia.
For the period 2014-2020, the Fund has an average of €170 million financial support available every year. Since 2014, the categories of eligible workers have been broadened: in addition to permanent staff, now fixed-term workers, temporary workers and self-employed people are also eligible. In addition, where regions of high youth unemployment are affected by redundancies eligible for EGF support, Member States can, until the end of 2017 and under certain conditions, include young people not in employment, education or training (NEETs), to be added to the workers targeted for EGF measures. So far three Member States (Greece, Ireland and Belgium) have made use of this provision and provided support to almost 3 000 NEETs.