Changes from report parliamentary committee draft to plenary report

Currently, the European Globalisation Adjustment Fund (EGF) is an emergency fund to be used to support displaced workers who have lost their job due to structural economic transformations. This support enables the most vulnerable workers who lose their job in large scale restructuring events to find new employment as soon as possible. However, the change in production models related to the twin digital and green transition can further increase the amount of restructuring processes. This increases pressure on companies who already need to invest in these transitions. At the same time, international trade developments put further pressure on our European companies, who might have to change operational organisation because of it.

For these reasons and to protect both the strategic independence of the European Union and European jobs, enterprise closures and redundancies should be avoided at all costs. Therefore, proactive, specific and targeted support for workers in companies undergoing restructuring should also be possible under the EGF. This support should enable workers to find new employment in the same company but in a new function, or to find employment in another company. Keeping skilled workers can also support companies undergoing restructuring to continue their European activities.

Given the importance of aligning the EGF support to the Union’s broader strategic goals, this Regulation needs to make sure the available EGF support goes to companies whose restructuring process strengthens the twin digital and green transition and that support goes to the workers affected by imminent job displacement. This will increase the Fund’s role in driving sustainable innovation and skills development. This safeguards the use of public funds and ensures the EGF becomes a tool not only of mitigation but also of transformation.

One of the most significant additions introduces eligibility for workers in direct suppliers and downstream users of enterprises undergoing restructuring, as they are also covered in current EGF support. This reflects the complex interdependencies within modern value chains and acknowledges that the ripple effects of restructuring often extend beyond the core enterprise. To maintain accountability and ensure targeted intervention, the additions require proof of a demonstrated causal link between these workers and the primary restructuring event.

To ensure the targeted packages are specifically designed for the workers affected by imminent job displacement, the early and meaningful involvement of workers and their representatives is paramount. Therefore, applicable national legislation on social dialogue should always be respected during the entire process. The amendments promote transparency and fairness during restructuring and safeguard workers’ rights to participate in decisions that affect their futures. The draft also proposes an enhanced role for social partners in designing the coordinated support packages, ensuring that training and upskilling measures are tailored, effective, and relevant to regional labour markets

To reduce administrative burden for both Member States and companies, the additions also propose the use of standardized templates, centralized guidance and increased clarity on State aid rules.

In summary, these additions respond to both the evolving nature of job displacement and the Union’s strategic priorities. They aim to make the EGF more inclusive, future-oriented, and integrated with EU social and industrial policy, ensuring it remains a vital mechanism for supporting workers in transition.