Opinion on Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain —

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain — GF/2026/002 ES/Galicia automotive ancillary (2026/0195(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Employment and Social Affairs has been asked to submit an opinion to your committee and decided to send the opinion in the form of a letter.

The Committee on Employment and Social Affairs considered the matter, and, at its meeting of 10 September 2026, it decided to submit the opinion set out below to the Committee on Budgets, as the committee responsible.

Yours sincerely,

Li Andersson

A. Whereas on 7 April 2026, Spain submitted an application EGF/2026/002 ES/Galicia automotive ancillary for a financial contribution from the European Globalisation Adjustment Fund for Displaced Workers (EGF), following displacements in the automotive ancillary industry (which comprises the economic sectors classified under the NACE Revision 2 divisions listed in the summary of the application, here below) in the NUTS 2 region of Galicia (ES11) in Spain;

B. Whereas Spain submitted the application under the intervention criteria of Article 4(2)(c) of Regulation (EU) 2021/691, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months (in this case from 15 September 2025 to 15 January 2026) in enterprises operating in the same or different economic sectors defined at NACE Revision 2 level and located in the same region defined at NUTS 2 level in a Member State; whereas there were 313 displaced workers in the NUTS 2 region of Galicia (ES11); whereas, following its 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;

C. Whereas in addition to the workers already referred to, the eligible beneficiaries include 358 displaced workers from the same enterprises whose activity ceased before or after the reference period of four months; whereas all these workers ceased their activity within the six months before the start of the reference period on 15 September 2025 and/or between the end of the reference period and the day before the adoption of this proposal, pursuant to Article 6(1)(b) of the EGF Regulation; whereas the total number of eligible beneficiaries is 671;

D. Whereas on 16 July 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Spain to support the reintegration in the labour market of the displaced workers;

E. Whereas since 2024, Spain’s car components industry has been steadily worsening; whereas, in October 2025, the sector’s employers' association (Sernauto) revised its year-end forecasts, projecting a near 2% decline in revenue and a 1% drop in employment (3 000 jobs), marking the second consecutive year of aggregate decline; whereas, in 2024, the sector recorded EUR 41 238 billion in sales, a 0,7 % contraction year-on year and a 0,7 % reduction in direct employment, alongside significant declines in productive investment (-12.3 %) and R&D (-2 %); whereas, these figures confirm that the adjustment is not cyclical but rather reflects a restructuring of margins and volumes in the customer markets of Spain’s car component suppliers;

F. Whereas the strong export orientation of Galicia’s car component enterprises —which direct 60-70 % of their production to the EU— means any fluctuation in European demand directly impacts their activity, workload, and job stability; whereas the combination of weaker-than-expected European demand, trade and supply chain disruptions —which undermine stable purchasing and new model launches— and the redirection of investment towards electrified platforms and higher electronic content is leading to job cuts in the Vigo area (Stellantis, its auxiliary network, and component suppliers);

G. Whereas the labour cost per vehicle indicator, which relates total labour expenditure to units produced, has become a critical variable in times of electrification and tightening margins; whereas countries with low labour cost, like Morocco (EUR 90 per vehicle) and Türkiye (EUR 350), are absorbing much of the new industrial capacity, whereas mid-cost countries like Spain (EUR 850) must maintain competitiveness through efficiency gains, specialisation, and stronger logistics —adding further pressure, especially in lower-margin segments;

H. Whereas the combination of all these factors has forced structural adjustments across the car sector’s value chain in Galicia, resulting in temporary layoff schemes and redundancies (e.g. at Stellantis, Akwel Vigo Spain, or CTAG), insolvency proceedings, and liquidations (e.g. Cablerías Auto S.L. or Troqueles y Moldes de Galicia);

I. Whereas the estimated number of displaced workers expected to participate in the measures is 400;

J. Whereas Spain has indicated that the co-ordinated package of personalised services has been drawn up in consultation with the trade unions, in compliance with Article 7(4) of the EGF Regulation;

K. Whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027.

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution:

1.Recalls that the objective of the EGF is to demonstrate solidarity with, and provide support to beneficiaries; considers that 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 within or outside their initial sector of activity; stresses the importance of preparing and supporting workers for the urgently needed green and digital transitions of the European economy and society; reiterates in this context the important role the Union plays, including through the EGF, in contributing to the financing of necessary qualifications for the just transition in line with the European Green Deal;

2.Agrees with the Commission that the conditions set out in the EGF Regulation 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);

3.Notes the fact that Spain has provided all necessary assurances that the requirements laid down in national and EU legislation concerning collective redundancies have been complied with and that the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation;

4.Stresses that Spain has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

5.Notes the personalised coordinated package to be provided to displaced workers consists of the following measures: (a) occupational guidance, (b) training. (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 2025–2027. (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), (c) intensive job-search assistance, (d) tutoring after reintegration into work, and (e) 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);

6.Stresses in particular the importance of Article 7(2) of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age;

7.Recalls the possibility for special time-limited measures within the coordinated package including, inter alia, to pay childcare allowances, as provided in Article 7(2)(b) of the EGF regulation to facilitate job seekers’ participation in the activities proposed.