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

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 Finland — EGF/2026/003 FI/Valmet Automotive (2026/0220(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 5 May 2026, Finland submitted an application EGF/2026/003 FI/Valmet Automotive for a financial contribution from the European Globalisation Adjustment Fund for Displaced Workers (EGF), following displacements in Valmet Automotive and five subcontractors and suppliers in Finland; whereas the primary enterprise operates in the economic sector classified under the NACE Revision 2 division 29 (Manufacture of motor vehicles, trailers and semi-trailers),where the redundancies are located in the NUTS 2 region of Länsi-Suomi (FI19);

B. Whereas Finland submitted the application under the intervention criteria of Article 4(2)(a) 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 2 December 2025 to 2 April 2026) in an enterprise in a Member State, including workers displaced in suppliers and downstream producers; 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 the total number of eligible beneficiaries is 260, whose activity has ceased in the economic sectors indicated above; whereas the application relates to 239 displaced workers whose activity has ceased in Valmet Automotive and one of its suppliers;

D. Whereas on 24 July 2026 the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland to support the reintegration in the labour market of 239 targeted beneficiaries;

E. Whereas the financial situation and employment in Valmet Automotive, a contract manufacturer of the automobile industry, has always been dependent on fixed-term contracts with large car manufacturers, and therefore, subject to fluctuations; whereas, due to the global downturn in the automobile industry that has continued for several years, the company has run into difficulties and has had to gradually reduce its personnel, from just under 3 200 in the early 2020’s to approximately 1 300 before the latest redundancies; whereas, after the end of the two-model contract with Mercedes-Benz in 2025, the factory no longer had any orders, forcing it to new staff reductions; whereas, in the co-operation negotiations in November 2025, the company announced that it would dismiss a maximum of 235 people and temporarily lay-off 860 people; whereas the company's difficult situation has naturally also affected the entire subcontracting chain;

F. Whereas the new large-scale lay-offs and redundancies at the Valmet Automotive Uusikaupunki car factory, by far the region’s largest employer, have hit hard the entire region; whereas strong dependence on the car plant in the Vakka-Suomi sub-region poses significant challenges to the already difficult situation in the region; whereas the unemployment rate in Vakka-Suomi rose to 12,2 % in December 2025, 1,7 percentage points higher than year before; whereas among young jobseekers (under 25 years of age), the unemployment rate reached 17,3 %, an increase of 4,2 percentage points year-on-year;

G. Whereas Valmet Automotive has sought to expand its operations into new fields, whereas it has signed a letter of intent with Patria, Finland’s leading defence technology company, and received a small order for the assembly of armoured vehicles; whereas, if Valmet Automotive is successful in its transition to defence and security technology, the company may be able to re-hire a considerable portion of its displaced employees; whereas it is therefore essential for both the company and the Uusikaupunki region to maintain the working capacity of these persons and to keep them and their families in the region; whereas this is especially important for the immigrant workers on work-related residency permit;

H. Whereas Finland has indicated that the co-ordinated package of personalised services has been drawn up in consultation with the social partners, in compliance with Article 7(4) of the EGF Regulation;

I. 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 Article 4(2)(a) of the EGF Regulation are met and that Finland is entitled to a financial contribution of EUR 410 310 under that Regulation, which represents 60 % of the total cost of EUR 683 850, comprising expenditure for personalised services of EUR 663 850 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 20 000;

3.Notes the fact that Finland 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 Finland has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

5.Notes that personalised services to be provided to the workers consist of the following measures: (a) job-seeking training, (b) job and career coaching, (c) vocational training, (d) occupational safety and competence cards, (e) language training, (f) start-up grant, and (i) incentives and allowances;

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; welcomes the fact the ICT training and additional support are foreseen within vocational guidance services and some of the trainings on offer and related allowances cater for the dissemination of the skills required in the digital industrial age and in a resource-efficient economy;

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.