Text · Opinion parliamentary committee draft
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring
Full title
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring
Document BUDG-PA-774408 · COM(2025)0140 – C100060/2025 – 2025/0073(COD)
- Kind
- Opinion parliamentary committee draft BUDG-PA-774408
- Date
- 15 July 2025
- Committee
- Committee on Budgets
- Rapporteur
- Johan Van Overtveldt
- Dossier
- 2025/0073(COD)
More facts (3)
- Formats
- Official page PDF Word
- Subject matter
- EMPL
- Reference
- COM(2025)0140 – C100060/2025 – 2025/0073(COD)
In short
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This draft opinion assesses the budgetary impact of a proposal to broaden the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support workers facing imminent job displacement. It finds the proposal budget-neutral but warns that reduced annual funds and broader criteria risk exhausting resources, and rejects changes to the mobilisation procedure that bypass the budgetary authority.
Position. The Committee on Budgets rejects the proposed change to the mobilisation procedure and proposes maintaining case-by-case mobilisation, while requesting coordination to avoid overlap with other funds.
Key points
- The proposal is compatible with the MFF Regulation and the enlarged scope will be covered within the maximum amount set for the EGF.
- The maximum annual EGF amount was reduced from EUR 186 million to EUR 30 million; broadening criteria risks exhausting this amount and causing a backlog.
- Tripling the maximum amount for technical assistance further limits funds for active labour market measures.
- Additional human resources of EUR 1 431 000 per year in 2025, 2026 and 2027 are needed, covered by redeployment.
- The change to the mobilisation procedure could reduce time to financing decisions but shortens the eligibility period; the current six-week deadline is not detrimental.
- The proposal is compatible with the IIA but the drastic simplification runs counter to interinstitutional cooperation and changes the EGF's nature.
- There is a contradiction between the decreased maximum annual amount and the broader scope, regarding sound financial management.
- Rejects the proposed change to the mobilisation procedure, especially a single mobilisation based on estimates; proposes maintaining case-by-case mobilisation.
- Additional reporting requirements on estimates of assistance needed are an unnecessary administrative burden for Member States.
- Requests the Commission to coordinate measures to ensure assistance comes from the most appropriate instrument and avoid overlap, particularly with the European Social Fund Plus.
Who is affected
- Workers affected by imminent job displacement in enterprises undergoing restructuring, who would become eligible for EGF support.
- Member States, which face additional reporting requirements and would see changes in the mobilisation procedure.
- The budgetary authority, whose oversight role is undermined by the proposed mobilisation procedure changes.
Figures and deadlines
Text
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Back matter, 2
Parts that accompany the text rather than belong to it: explanatory statement, annexes, opinions appended by other committees. Collapsed.
Budgetary assessment 19 blocks
for the Committee on Employment and Social Affairs on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring
The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:
A.whereas the proposal aims to broaden the scope of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to also allow for support to workers affected by imminent job displacement;
B.whereas the proposal does not modify existing budgetary commitments and remains within the limits of the overall allocations for the period 2021-2027 and is therefore budget-neutral;
C.whereas the proposal includes changes to the EGF mobilisation procedure that put an end to the regular involvement of the budgetary authority and therefore severely undermine its oversight role;
1.Determines that the proposal is compatible with the MFF Regulation; notes that the proposed enlargement of the scope of support will be covered within the maximum amount set for this special instrument;
2.Recalls, however, that in the framework of the recent mid-term review of the MFF, the maximum amount available annually for the EGF had been substantially reduced from EUR 186 million to EUR 30 million; considers that the proposed broadening of the intervention criteria now carries a significant risk of exhausting this amount in a given year, potentially leading to a backlog of financing decisions;
3.Notes that the proposed tripling of the maximum amount for technical assistance at the initiative of the Commission implies a further limitation of funds available for active labour market measures;
4.Notes that the proposal requires additional human resources of EUR 1 431 000 per year in 2025, 2026 and 2027, for six establishment plan posts and three external staff; notes that the additional needs will be covered by redeployment within the DG or other Commission services;
5.Notes additionally that while the change to the mobilisation procedure could reduce the time between the application for assistance from the EGF and the financing decision by the Commission, the eligibility period for co-financed measures would at the same time become shorter in absolute terms; considers that the current six-week deadline for a decision by the budgetary authority is not detrimental to the swift provision of support;
6.Determines that the proposal is compatible with the letter of the IIA; notes, however, that the aims of the IIA include the improvement of interinstitutional cooperation on budgetary matters; considers that the proposed drastic simplification of the mobilisation procedure runs counter to that goal and would change the nature of the EGF as a stand-alone thematic special instrument that is implemented with the close involvement of the budgetary authority;
7.Considers that the proposal is compatible with the budgetary principles laid down in the Financial Regulation; notes, nevertheless, a degree of contradiction, in terms of sound financial management, between the recent decrease of the maximum annual amount available for the EGF and the proposed broadening of the EGF’s scope;
8.Rejects the proposed change to the mobilisation procedure, and in particular the introduction of a single mobilisation of the maximum annual amount based on estimates by Member States for the support needed until the end of the year; proposes maintaining the practice of a case-by-case mobilisation of the EGF on the basis of an assessment of the material conditions for support;
9.Considers that the additional reporting requirements related to the estimate of assistance needed in the following year constitute an unnecessary additional administrative burden for the Member States, with limited usefulness in terms of reliable evidence-based decision-making;
10.Requests that the Commission take the appropriate coordination measures to ensure that assistance to workers threatened by restructuring events is provided from the most appropriate support instrument depending on the specific circumstances and the national or regional programme architecture and to avoid any risk of overlap, in particular between the EGF and the European Social Fund Plus.
Amendments 27 blocks
As part of its budgetary assessment, the Committee on Budgets also submits the following amendments to the proposal:
| Text proposed by the Commission | Amendment |
|---|---|
| 17a. This Regulation has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Where, on the basis of the assessment carried out in accordance with Article 8 or Article 8a, the Commission concludes that the conditions for a financial contribution under this Regulation are met, it shall immediately adopt a decision on a financial contribution as set out in Article 15 (6). | 3. Where, on the basis of the assessment carried out in accordance with Article 8 or Article 8a, the Commission concludes that the conditions for a financial contribution under this Regulation are met, it shall immediately initiate the procedure as set out in Article 15. |
| Text proposed by the Commission | Amendment |
|---|---|
| (13. Article 15 is replaced by the following: | (13. Article 15(3) is replaced by the following: |
| ‘Article 15 | 3. The Commission proposal for a decision to mobilise the EGF shall include the assessment carried out in accordance with Article 8(6) or Article 8(a) (9), together with a summary of the information on which that assessment is based and the reasons justifying the amounts proposed in accordance with Article 13(1). |
| Budgetary procedure and implementation | |
| ‘1. To ensure that the assistance is provided as soon as possible to the eligible beneficiaries, the Commission shall submit a proposal to mobilise the EGF to the European Parliament and to the Council in accordance with paragraphs 2 or 3. | |
| 2. The Commission shall submit its proposal for a decision to mobilise the EGF to the European Parliament and the Council where it has received one application for EGF support and at least one of the following conditions is met: | |
| a) The Commission assesses, following application or information received from the Member States, that one of the conditions set out in Article 4 paragraph 2, 3 or 4, is met; | |
| b) The Commission is informed of the cessation of activities leading to job losses of more than 1 000 workers; | |
| c) The Commission is informed of large-scale restructuring events with imminent displacement affecting more than 1 000 workers. | |
| 3. The Commission may request the full mobilisation of the maximum annual amount for the EGF by the end of February every year. The Commission proposal shall include the following elements, based on information provided by the Member States: | |
| (i) the number of potential applications from each Member State concerned; | |
| (ii) the sectors of activities concerned; | |
| (iii) the estimated number of enterprises which could request Member States to apply for EGF assistance; | |
| (iv) the estimated number of workers displaced or at risk of imminent job displacement. | |
| At the same time as it submits its proposal for a decision to mobilise the EGF, the Commission shall submit to the European Parliament and to the Council a proposal for a transfer of the maximum annual amount to the relevant budgetary lines. | |
| When the maximum annual amount has not been mobilised under the first subparagraph of this paragraph, the Commission shall request the mobilisation of the EGF per application received. The Commission proposal for a decision to mobilise the EGF per application shall include the assessment carried out in accordance with Article 8(6) or Article 8(a) (9), together with a summary of the information on which that assessment is based and the reasons justifying the amounts proposed. At the same time as it submits its proposal for a decision to mobilise the EGF, the Commission shall submit to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary lines. | |
| 4. Member States shall provide the Commission with the information referred to in paragraph 2 by the end of December each year. | |
| 5. The decision to mobilise the EGF shall be taken jointly by the European Parliament and the Council. The budgetary transfer in relation to the EGF shall be made in accordance with Article 31 of the Financial Regulation. | |
| 6. Where the Commission has concluded that the conditions for providing a financial contribution from the EGF under Article 4 are met, it shall adopt a decision on a financial contribution. That decision shall constitute a financing decision within the meaning of Article 110 of the Financial Regulation. | |
| 7. When the maximum annual amount has been mobilised pursuant to the first subparagraph of paragraph 3, the Commission shall inform the European Parliament and the Council immediately upon the adoption of each financial contribution decision.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| Article 16 is replaced by the following: | deleted |
| ‘Article 16 | |
| Insufficient funds | |
| If the remaining commitment appropriations available in the EGF are not sufficient to cover the amount of assistance that is necessary for a financial contribution, the Commission may postpone the adoption of a financial contribution decision until commitment appropriations are available in the following year. The annual budgetary ceiling of the EGF shall be respected in all circumstances.’ |
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Sources & citation
Where the facts on this page come from, and how to cite it.
- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2025). “DRAFT BUDGETARY ASSESSMENT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring”. Text, 15 July 2025. docId BUDG-PA-774408. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/BUDG-PA-774408 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/BUDG-PA-774408 (CC BY 4.0).
BibTeX
@misc{epw-text-budg-pa-774408,
author = {{European Parliament}},
title = {{DRAFT BUDGETARY ASSESSMENT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring}},
year = {2025},
date = {2025-07-15},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/BUDG-PA-774408}},
url = {https://news.eu-parl.st-solutions.dev/texts/BUDG-PA-774408},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId BUDG-PA-774408. Data: EP Open Data API: document record (CC BY 4.0)}
}