Text · Report parliamentary committee draft
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 Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper
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 Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper
Document BUDG-PR-796159 · COM(2026)0555 – C100209/2026 – 2026/0254(BUD)
- Kind
- Report parliamentary committee draft BUDG-PR-796159
- Date
- 23 September 2026
- Committee
- Committee on Budgets
- Rapporteur
- Aura Salla
- Dossier
- 2026-0254
More facts (2)
- Formats
- Official page PDF Word
- Reference
- COM(2026)0555 – C100209/2026 – 2026/0254(BUD)
In short
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The rapporteur's draft report backs Finland's request for money from the European Globalisation Adjustment Fund for Displaced Workers after job losses in paper manufacturing in Etelä-Suomi and Helsinki-Uusimaa. It agrees Finland is entitled to EUR 1 102 560, which is 60 % of total costs of EUR 1 837 600, and approves the draft decision on the mobilisation. The money covers 351 displaced workers and pays for job-search training, vocational training, start-up grants, an AI recruitment pilot, pay subsidies, a mobility allowance and a business-creation allowance. The report asks for measures tailored to older workers and workers from manufacturing, for visibility of EU funding, and for thorough final evaluations of the measures.
Position. The rapporteur proposes that Parliament agree with the Commission that the EGF conditions are met, that Finland is entitled to EUR 1 102 560, and that the annexed decision on mobilisation be approved.
Key points
- Parliament agrees with the Commission that the conditions in the EGF Regulation, in particular Article 4(2), point (b), are met and that Finland is entitled to EUR 1 102 560.
- The contribution is 60 % of total costs of EUR 1 837 600: EUR 1 769 600 for personalised services and EUR 68 000 for preparatory, management, information, publicity, control and reporting activities.
- The application concerns 351 targeted beneficiaries made redundant in the paper manufacturing sector, coming from 4 enterprises.
- Finland submitted the application on 19 May 2026; the Commission finalised its assessment on 8 September 2026 and notified Parliament the same day.
- The report notes the strong forest-industry base of South Karelia and warns that the displacements risk worsening structural and prolonged unemployment, stressing the need for reskilling and a competitive European manufacturing base.
- It notes that short of 90 % of the displaced workers are men and half are aged over 54, and calls for measures tailored to older workers and workers with a manufacturing background.
- Personalised services, agreed with experts, regional stakeholders and social partners, are job-search training and career coaching, vocational training, self-employment grants and allowances, an AI-based pilot on recruitment needs, pay subsidies and a mobility allowance.
- Finnish and regional authorities must ensure the visibility of Union funding and provide effective and targeted information to beneficiaries, regional and local authorities, social partners and the wider public.
- The report calls for thorough final evaluations of the measures, covering how funds were used, the reintegration of workers and whether the EGF objectives were achieved.
- Finland started providing services and incurring administrative expenditure on 1 January 2026; eligibility runs from that date until 24 months and until 31 months after entry into force of the financing decision, respectively.
- EGF assistance must not replace actions that public authorities or companies owe under national law or collective agreements, and cannot replace structural economic policies.
- Parliament approves the decision annexed to the resolution.
Who is affected
- 351 displaced paper manufacturing workers in Etelä-Suomi and Helsinki-Uusimaa, who receive personalised services and allowances.
- Older workers and workers with a manufacturing background, for whom measures should be tailored.
- Finnish and regional authorities, which must ensure visibility of Union funding and provide information.
- South Karelia and Lohja-Karkkila Employment Areas, which provide national pre-financing and co-funding.
Figures and deadlines
- EUR 1 102 560: financial contribution from the EGF to Finland.
- 60 %: share of total costs covered by the EGF contribution.
- EUR 1 837 600: total cost of the measures.
- EUR 1 769 600: expenditure for personalised services.
- EUR 68 000: expenditure for preparatory, management, information and publicity, control and reporting activities.
- 351: targeted beneficiaries / displacements.
- EUR 30 million (in 2018 prices): maximum annual amount of the EGF.
- EUR 37,21: daily allowance towards business creation, paid five days a week for a maximum of 12 months.
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Motion for a european parliament resolution
on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displace Workers following an application from Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper
–having regard to the Commission proposal to the European Parliament and the Council (COM(2026)0555 – C100209/2026),
–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,
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, to assist their rapid reintegration into the labour market or their career transitions and to provide training to better equip workers with skills aligned to the labour market needs; whereas this assistance is made through a financial support given to workers;
B.whereas Finland submitted application EGF/2026/0004 FI/Etelä-Suomi and Helsinki-Uusimaa paper for a financial contribution from the EGF following 351 displacements in the economic sector classified under the NACE Revision 2 division 17 (Manufacture of paper and paper products), in the regions of Etelä-Suomi (FI1C) and Helsinki-Uusimaa (FI1B), with 346 displacements within a reference period from 1 October 2025 to 1 April 2026, and 5 displacements outside the reference period, coming from 4 different enterprises operating in the paper manufacturing sector;
C.whereas the application is based on the intervention criteria of Article 4(2), point (b), of the EGF Regulation; whereas for the 5 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 operational costs of the Finnish paper industry have been rising for the past years due to geopolitical and economic challenges in raw material supply, high energy and manufacturing costs compared with global competitors, growing trade tensions and increasing regulatory and administrative burdens and lower demand due to digitalisation; whereas, the closing of the border and sanctions against Russia due to its war of aggression against Ukraine resulted in the cessation of imports of Russian wood , which had a significant impact on the region of South Karelia, pushing sourcing of raw materials farther and at higher cost; whereas this led to significant waves of job displacements in the past two years;
E.whereas South Karelia and Lohja-Karkkila Employment Areas are providing the national pre-financing and co-funding of the measures;
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 the labour market or support their career transitions while offering them skills training to facilitate their reintegration and develop and strengthen digital skills;
1.Agrees with the Commission that the conditions set out in the EGF Regulation and in particular in Article 4(2), point (b), thereof are met and that Finland is entitled to a financial contribution of EUR 1 102 560 under that Regulation, which represents 60 % of the total cost of EUR 1 837 600, comprising expenditure for personalised services of EUR 1 769 600 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 68 000;
2.Notes that the Finnish authorities submitted the application on 19 May 2026, and that, following the receipt of additional information from Finland, the Commission finalised its assessment on 8 September 2026 and notified it to Parliament on the same day;
3.Recalls that the application relates to 351 targeted beneficiaries, who were made redundant in the paper manufacturing sector;
4.Draws attention to the strong manufacturing base of the South Karelia region and the significant focus on the forest industry and its spillover effects on supply and service chains; highlights that the job displacements related to the paper manufacturing sector risk worsening a situation of structural and prolonged unemployment, above all for workers with manufacturing background; stresses, in this context, the importance of maintaining a strong and competitive European manufacturing base and creating the conditions for companies to adapt to structural change, invest and remain competitive; recognises the need for considerable reskilling and retraining, in region of South Karelia where the unemployment rate is already above national average;
5.Notes that short of 90 % of the displaced workers are men and half are aged over 54, hence facing greater barriers to re-entering the labour market; calls for these measures to be tailored to the specific needs of older workers and workers with a manufacturing background, in order to support their rapid reintegration into decent and sustainable employment within or outside their initial sector of activity;
6.Recalls that, in agreement with experts, regional stakeholders and social partners, personalised services to be provided to the displaced workers consist of the following measures: job-search training and career coaching; vocational training; self-employment grants and allowances; AI-based pilot project on recruitment needs; pay subsidies; mobility allowance;
7.Stresses that the Finnish 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 Finland started providing both personalised services to the targeted beneficiaries and incurring administrative expenditure to implement the EGF on 1 January 2026 and that the period of eligibility for a financial contribution from the EGF will therefore 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.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 and cannot replace structural economic policies that sustain economic growth, promote a business-friendly environment, and protect Union enterprises, economic operators and their workers;
12.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;
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 Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper
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,
(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 19 May 2026, Finland 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 sector classified under the Statistical classification of economic activities in the European Community ('NACE') Revision 2 Division 17 (Manufacture of paper and paper products) in the Nomenclature of Territorial Units for Statistics ('NUTS') level 2 regions of Etelä-Suomi (FI1C) and Helsinki-Uusimaa (FI1B) in Finland. 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 1 102 560 in respect of the application submitted by Finland.
(5) In order to minimise the time taken to mobilise the EGF, this Decision should apply from the date of its adoption,
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 1 102 560 in commitment and payment appropriations.
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]* .
Explanatory statement 19 blocks
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.
On 19 May 2026 Finland submitted an application EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper for a financial contribution from the EGF, following 351 redundancies in the paper manufacturing sector in the regions of Etelä-Suomi and Helsinki-Uusimaa. This is the fourth such application of 2026, and the tenth 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 8 September 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland for tailored measures to support the reintegration in the labour market of 351 targeted beneficiaries, i.e. workers in the paper manufacturing sector in the regions of Etelä-Suomi and Helsinki-Uusimaa made redundant. In total, EUR 1 102 560 will be mobilised from the EGF, representing 60 % of the total costs of the proposed actions.
The Commission deemed the Finnish application admissible under the intervention criteria of Article 4(2) (b) of the EGF Regulation, which requires the cessation of activity of at least 200 workers to be displaced over a reference period of six months in enterprises operating in the same economic sector defined at NACE Revision 2 division level and located in one region or two contiguous regions defined at NUTS 2 level in a Member State.
EGF co-funding has been requested for the following seven types of actions, to be provided to redundant workers:
a. Job search training and career coaching: The participants receive information about the support services available for jobseekers, and training to strengthen their pathway into the labour market. Their skills will be assessed by experts, with particular focus on digital skills. Job search activities and job coaching measures will be provided to identify new employment opportunities. The service is provided by both PES and external experts, and includes individual and group-based activities.
b. Vocational training: The training is either group-based or individual, based on the needs of the participant and the regional labour market. Each participant is provided with a personal competence development plan, so that the training can be tailored according to existing skills-sets and individual goals. It is also possible to obtain various certificates and licenses, such as the occupational safety card, hot work card, etc.
c. Start-up grant: The grant is intended for start-up and early-stage development costs to support workers who start a business or a self-employed activity. It is paid based on the actual costs incurred and cannot be allocated to salary expenses or personal livelihood of the individual. This measure is applied only in South Karelia.
d. Survey and AI solution for recruitment and skills needs: The South Karelia Employment Area will carry out an AI-based pilot to identify recruitment needs and skills demands in the regional labour market, enabling the matching of the target group with these needs, and finding skills gaps that can be addressed through training.
e. Pay subsidy: Pay subsidies lower the recruitment threshold by reducing the new employer’s payroll costs. The aim is to help the jobseekers find employment in the open labour market and to improve their professional skills. The amount of pay subsidy is generally 50 % of the payroll costs; the length of the subsidised period depends on the employment contract and the duration of the preceding unemployment period.
f. Mobility allowance: The allowance is intended to encourage taking-up work further away from home, by compensating for commuting and moving expenses.
g. Allowance towards business creation: To secure the livelihood of the workers during setting up business, a daily allowance of EUR 37,21, paid five days a week, will be granted for a maximum of 12 months. This measure is applied only in Lohja.
In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 1 102 560 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).
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Sources & citation
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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 Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper”. Text, 23 September 2026. docId BUDG-PR-796159. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/BUDG-PR-796159 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/BUDG-PR-796159 (CC BY 4.0).
BibTeX
@misc{epw-text-budg-pr-796159,
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 Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper}},
year = {2026},
date = {2026-09-23},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/BUDG-PR-796159}},
url = {https://news.eu-parl.st-solutions.dev/texts/BUDG-PR-796159},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId BUDG-PR-796159. Data: EP Open Data API: document record (CC BY 4.0)}
}