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On the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary

Full title

On the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary

Document BUDG-PR-791964 · COM(2026)0170 – C100198/2026 – 2026/0195(BUD)

Kind
Report parliamentary committee draft BUDG-PR-791964
Date
4 September 2026
Committee
Committee on Budgets
Rapporteur
Sandra Gómez López
Dossier
2026-0195
More facts (3)
Subject matter
EMPL
Reference
COM(2026)0170 – C100198/2026 – 2026/0195(BUD)
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In short

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This is a draft report by the Committee on Budgets on a Commission proposal to mobilise the European Globalisation Adjustment Fund for Displaced Workers for Spain, following an application for workers displaced in Galicia's automotive ancillary industry. The rapporteur agrees the conditions of the EGF Regulation are met and that Spain is entitled to EUR 2 725 100, which is 85 % of a total cost of EUR 3 206 000. The application concerns 671 displaced workers, of whom 400 residing in Galicia will be targeted beneficiaries, and the personalised services include profiling, guidance, training, job-search assistance, tutoring and financial support and incentives. The draft asks Spanish and regional authorities to ensure visibility of Union funding, calls for thorough final evaluations, and approves the decision annexed to the resolution.

Position. The rapporteur agrees with the Commission that the conditions of the EGF Regulation are met and that Spain is entitled to EUR 2 725 100, approves the decision annexed to the resolution, and calls for visibility of Union funding and thorough final evaluations.

Key points

  1. The draft report agrees with the Commission that the conditions of the EGF Regulation, in particular Article 4(2), point (a), are met and that Spain is entitled to a financial contribution of EUR 2 725 100.
  2. The contribution represents 85 % of the total cost of EUR 3 206 000, comprising EUR 3 046 000 for personalised services and EUR 160 000 for preparatory, management, information and publicity, control and reporting activities.
  3. The application relates to 671 displaced workers in Galicia's automotive ancillary industry, and 400 displaced workers residing in Galicia will be targeted beneficiaries.
  4. The draft notes that Galicia's car component enterprises direct 60 to 70 % of their production to the Union, and that in the Vigo area unemployment stands at 11,2 %, almost double the Union average of 5,8 %.
  5. It notes that eight in ten displaced workers have an educational attainment of post-secondary level or lower and one in four is aged over 54, and calls on Spanish and regional authorities to address social disparities and structural barriers to quality employment.
  6. Personalised services agreed with trade unions, regional authorities and social partners consist of information, intake and profiling, occupational guidance, training, job-search assistance, tutoring, and financial support and incentives.
  7. Spanish and regional authorities shall ensure the visibility of Union funding and highlight its added value by providing effective and targeted information to beneficiaries, regional and local authorities, social partners and the wider public.
  8. The draft calls for thorough final evaluations of the measures implemented, including how the funds were used, the reintegration of workers into the labour market, and whether the EGF objectives were achieved.
  9. Spain started providing personalised services on 1 September 2026 and incurring administrative expenditure on 1 July 2026, with eligibility running until 24 months and 31 months after the entry into force of the financing decision respectively.
  10. The Spanish authorities assured that equality of treatment and non-discrimination will be respected and that any double financing will be prevented.
  11. The draft reiterates that EGF assistance must not replace actions that are the responsibility of public authorities or companies under national law or collective agreements, and that the EGF is a limited, targeted and complementary mechanism.
  12. The draft approves the decision annexed to the resolution.

Who is affected

  • 671 displaced workers in Galicia's automotive ancillary industry, of whom 400 residing in Galicia will be targeted beneficiaries.
  • Spanish and regional authorities, which must ensure visibility of Union funding and address social disparities and structural barriers.
  • Trade unions, regional authorities and social partners, with whom the personalised services were agreed.
  • Public authorities and companies, whose responsibilities under national law or collective agreements EGF assistance must not replace.

Figures and deadlines

  • EUR 2 725 100, the financial contribution from the EGF for Spain, representing 85 % of the total cost.
  • EUR 3 206 000, the total cost, comprising EUR 3 046 000 for personalised services and EUR 160 000 for other activities.
  • 671 displaced workers in Galicia's automotive ancillary industry; 400 targeted beneficiaries residing in Galicia.
  • 60 to 70 % of production directed to the Union by Galicia's car component enterprises.
  • Unemployment of 11,2 % in the Vigo area, against a Union average of 5,8 %.
  • Up to EUR 400 participation incentive; up to EUR 340 per training course for commuting expenses; EUR 0.26/km for private vehicle mileage; up to EUR 20 daily allowance for carers; EUR 200 per month for up to six months as outplacement incentive.
  • Personalised services started on 1 September 2026 and administrative expenditure on 1 July 2026; eligibility until 24 months and 31 months after entry into force of the financing decision respectively.

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Motion for a european parliament resolution

(COM(2026)0170 – C100198/2026 – 2026/0195(BUD))

The European Parliament,

–having regard to the Commission proposal to the European Parliament and the Council (COM(2026)0170 – C100198/2026),

–having regard to 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) and repealing Regulation (EU) No 1309/2013 ("EGF Regulation"), as amended by Regulation (EU) 2026/1139,

–having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027, as amended by Regulation (EU, Euratom) 2024/765, and in particular Article 8 thereof,

–having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 9 thereof,

–having regard to the European Pillar of Social Rights,

–having regard to the letter from the Committee on Employment and Social Affairs,

–having regard to the report of the Committee on Budgets (A10-0000/2026),

A.whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural events and changes in world trade patterns or who are affected by imminent job displacement in enterprises undergoing restructuring, and to assist their reintegration into the labour market or their career transitions; whereas this assistance is made through financial support given to workers;

B.whereas Spain submitted application EGF/2026/002 ES/Galicia automotive ancillary for a financial contribution from the EGF following 671 displacements in the economic sectors classified under the NACE Revision 2 divisions 25 (Manufacture of fabricated metal products, except machinery and equipment), 27 (Manufacture of electrical equipment), 28 (Manufacture of machinery and equipment), 29 (Manufacture of motor vehicles, trailers and semi-trailers) and 74 (Other professional, scientific and technical activities) in the region of Galicia (ES11), with 313 total displacements within a reference period from 15 September 2025 to 15 January 2026, consisting of displaced workers from 20 different enterprises, and 358 displacements outside the reference period;

C.whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation; whereas for the 358 displacements whose activity ceased before or after the four-month reference period, a clear causal link can be established with the event that triggered the cessation of activity for the displaced workers during the reference period, in accordance with Article 6 of the EGF Regulation;

D.whereas the economic situation of Spain’s car components industry has been worsening since 2024 with a steady decline in revenue and employment reflecting a general restructuring in the customer markets of Spain’s car component suppliers and its workforce; whereas, notwithstanding these challenges, Galicia retains a strong automotive base with significant employment, investment and exports capacity;

F.whereas the requirements laid down in Union and national legislation concerning collective redundancies have been met;

G.whereas financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment or support their career transitions while offering them skills training to facilitate their reintegration, while preparing them for a greener and more digital European economy;

H.whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices);

1.Agrees with the Commission that the conditions set out in the EGF Regulation and in particular in Article 4(2), point (a), thereof are met and that Spain is entitled to a financial contribution of EUR 2 725 100 under that Regulation, which represents 85 % of the total cost of EUR 3 206 000, comprising expenditure for personalised services of EUR 3 046 000 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 160 000;

2.Notes that the Spanish authorities submitted the application on 7 April 2026, and that, following the receipt of additional information from Spain, the Commission finalised its assessment on 16 July 2026 and notified it to Parliament on 24 August 2026;

3.Notes that the application relates to 671 displaced workers who were made redundant in Galicia’s automotive ancillary industry; notes further that 400 displaced workers, residing in the region of Galicia, will be targeted beneficiaries;

4.Notes that Galicia’s car component enterprises have a strong export orientation, directing 60 to 70 % of their production to the Union; regrets that a combination of factors including the weaker-than-expected European demand and trade and supply chain disruptions resulted in structural adjustments across the car sector’s value chain in Galicia, causing temporary layoff schemes and redundancies, insolvency proceedings, and liquidations; notes that in the territory most affected by redundancies, the Vigo area, unemployment stands at 11,2 % - almost double the Union average (5,8 %);

5.Notes that eight in ten displaced workers have an educational attainment of post-secondary level or lower, with one in four being aged over 54, facing greater barriers to re-entering the labour market; calls on the Spanish and regional authorities to address social disparities and structural barriers preventing displaced workers from accessing quality employment, including unequal access to education and age-related discrimination; takes note that the automotive industry in Galicia employs a high proportion of skilled and specialised workers and that the regional labour market has a limited capacity to immediately re-employ such specialised workers;

6.Recalls that, in agreement with trade unions, regional authorities and social partners, personalised services to be provided to the displaced workers consist of the following measures: information, intake phase and workers’ profiling; occupational guidance; training; job-search assistance; tutoring; financial support and incentives;

7.Stresses that the Spanish and regional authorities shall ensure the visibility of the Union funding and highlight its added value by providing effective and targeted information to beneficiaries, regional and local authorities, social partners, and the wider public;

8.Calls for thorough final evaluations of the measures implemented, including how the funds were used, the reintegration of workers into the labour market, and whether the EGF objectives were achieved;

9.Notes that Spain started providing personalised services to the targeted beneficiaries and incurring administrative expenditure to implement the EGF on 1 September 2026 and 1 July 2026, respectively, and that the period of eligibility for a financial contribution from the EGF will be from that date until 24 months and until 31 months after the date of the entry into force of the financing decision, respectively;

10.Notes that the Spanish authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the proposed actions and their implementation, and that any double financing will be prevented;

11.Reiterates that assistance from the EGF must not replace actions that are the responsibility of public authorities or companies under national law or collective agreements; recalls that the EGF is a limited, targeted and complementary mechanism;

12.Approves the decision annexed to this resolution;

13.Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

14.Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

Back matter, 2

Parts that accompany the text rather than belong to it: explanatory statement, annexes, opinions appended by other committees. Collapsed.

Annex: decision of the european parliament and of the council 20 blocks

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to 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) and repealing Regulation (EU) No 1309/2013, and in particular Article 15(1), first subparagraph, thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 9 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

(2)The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 amended by Council Regulation (EU, Euratom) 2024/765, and Article 16 of Regulation (EU) 2021/691.

(3)On 7 April 2026, Spain submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers’ displacements in the economic sectors classified under the Statistical classification of economic activities in the European Community ('NACE') Revision 2 Division 25 (Manufacture of fabricated metal products, except machinery and equipment), Division 27 (Manufacture of electrical equipment), Division 28 (Manufacture of machinery and equipment), Division 29 (Manufacture of motor vehicles, trailers and semi-trailers), and Division 74 (Other professional, scientific and technical activities) in the Nomenclature of Territorial Units for Statistics ('NUTS') level 2 region of Galicia (ES11) in Spain. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council.

(4)The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 2 725 100 in respect of the application submitted by Spain.

(5)In order to minimise the time taken to mobilise the EGF, this Decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2026, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 2 725 100 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption]* .

Done at Brussels,

For the European Parliament For the Council

The President The President

Explanatory statement 21 blocks

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020, the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Spain’s application and the Commission's proposal

On 7 April 2026 Spain submitted an application EGF/2026/002 ES/Galicia automotive

ancillary for a financial contribution from the EGF, following 671 redundancies in the automotive ancillary industry in the region of Galicia. This is the second such application of 2026, and the eighth to be examined under the 2026 budget.

Following the assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 16 July 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Spain for tailored measures to support the reintegration in the labour market of 400 targeted beneficiaries, i.e. workers in the automotive ancillary industry in Galicia made redundant. In total, EUR 2 725 100 will be mobilised from the EGF, representing 85% of the total costs of the proposed actions.

The Commission deemed the Spanish application admissible under the intervention criteria of Article 4(2) (a) of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months, in an enterprise in a Member State, including workers displaced in suppliers and downstream.

EGF co-funding has been requested for the following six types of actions, to be provided to redundant workers:

a) Information, intake phase and workers’ profiling: Information sessions outlining the objectives, content, and timelines of the support package. Participants will be informed about the resources and support available to help them in their reskilling and employability enhancement. Applications for participation will be collected during these sessions.

The intake phase will involve collaboration with Galicia’s leading social partners—including UGT-Galicia, CCOO-Galicia (trade unions), and the Galician Employers’ Confederation (CEG)—as well as the regional public employment services. The engagement of these sectoral stakeholders will help workers to clarify their professional expectations to remain in the sector, redesign their career paths, or pursue professional reorientation.

A workers’ profiling phase will follow. Through individual interviews, each participant’s socio-professional situation, educational background, employment expectations, aptitudes, skills, experience, and interests will be assessed.

b) Occupational guidance - focused on employment or self-employment - will be provided throughout the implementation period. The measure includes job-search assistance and soft-skills workshops.

c) Training: The training offer will include: (1) Cross-cutting training covering training in both basic and advanced digital competencies, industrial digitalisation, including fundamentals of Industry 4.0 and 5.0, industrial data literacy, MES and SCADA, process automation via RPA, and industrial automation (e.g., PLCs), occupational risk prevention, training on sustainability applied to production processes, and foreign languages. (2) Up-skilling aligned with CEAGA’S Report on Training and Employment in Galicia’s Automotive Sector (November 2025) and the Galicia Automotive Master Plan 2025–202732. (3) Reskilling aimed at providing a new professional qualification will focus on courses related to key sectors such as aeronautics, renewable energy, transport, and warehousing, and infrastructure and industrial maintenance, which demonstrates a strong capacity to absorb industrial profiles. (4) Training towards entrepreneurship will be provided for those aiming at self-employment.

d) Intensive job-search assistance, including active search of the local and regional employment opportunities (also for self-employed persons) and job-matching.

e) Tutoring after reintegration into work: The workers reintegrated into employment will be guided during the first months to prevent possible problems arising in their new jobs.

f) Financial support and incentives: (1) Participation incentive. Workers who engage with the measures and follow their agreed reintegration pathway will receive up to EUR 400, paid either as a lump sum or in instalments. (2) Financial support for commuting expenses. Eligible expenses will include costs for public transport or private vehicle mileage (EUR 0.26/km), tolls, parking, meals, and accommodation, up to a maximum of EUR 340 per training course. (3) Financial support for carers of dependent persons. A daily allowance of up to EUR 20 will be provided to participants with caring responsibilities (e.g., for children, the elderly, or disabled dependents), to offset additional costs incurred when attending training. (4) Outplacement incentives. Those who return to employment—either as employees or as self-employed—will receive EUR 200 per month for a maximum of six months. This incentive aims to encourage workers, particularly older individuals, to remain in the labour market and secure rapid re-employment.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 2 725 100 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Development should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.

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Licensed CC BY 4.0.
Retrieved
25 September 2026

Cite as

European Parliament (2026). “DRAFT REPORT on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary”. Text, 4 September 2026. docId BUDG-PR-791964. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/BUDG-PR-791964 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/BUDG-PR-791964 (CC BY 4.0).
BibTeX
@misc{epw-text-budg-pr-791964,
  author = {{European Parliament}},
  title = {{DRAFT REPORT on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary}},
  year = {2026},
  date = {2026-09-04},
  howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/BUDG-PR-791964}},
  url = {https://news.eu-parl.st-solutions.dev/texts/BUDG-PR-791964},
  urldate = {2026-09-25},
  publisher = {EU Parl Watch Research},
  note = {Text. docId BUDG-PR-791964. Data: EP Open Data API: document record (CC BY 4.0)}
}