Commission aims to strenghten the European Globalisation Adjustment Fund for Displace Workers

The Commission welcomes the political agreement reached by the European Parliament and EU Member States on its proposal to strengthen the European Globalisation Adjustment Fund for Displaced Workers (EGF). The EGF is an EU solidarity instrument for workers who have lost their job due to major restructuring, for instance the closing of a factory or the bankruptcy of a company.

The fund contributes directly to creating a more dynamic and competitive European economy. It helps workers by improving their skills and making it easier for them to find new jobs.  It offers tailored packages of services: workers receive personalised support to acquire the skills needed to move into new roles or jobs, helping them navigate economic and industrial transitions.

Since 2007, the EGF has intervened in 186 cases, allocating €727 million helping 181,167 people in 20 different Member States.  According to Commission data for 2023-2024, 81% of these dismissed workers have found a new job within 18 months of receiving EGF support.

Key improvements under the revised EGF include:

• Anticipatory support for at-risk workers: Companies undergoing restructuring may request EGF assistance for employees at risk of job loss, ensuring timely intervention before dismissals occur. This also includes workers affected in suppliers or downstream producers.
• This means, the new rules will enable earlier mobilisation of assistance to workers facing imminent job loss, in turn broadening the support and scope of the fund to help more people into new employment.
• Also, the fund will now facilitate the   upskilling within European companies undergoing restructuring, leading to better quality jobs. EGF support includes education, skills training, and guidance to transition into new roles and careers.

Next steps

The European Parliament and the Council must now formally adopt the political agreement. Once adopted, companies can request Member States to apply for EGF support for affected employees in line with the revised rules, which will apply until the end of 2027, when the current EGF expires.

Background

In April 2025, the Commission proposed to extend the scope of the EGF, as a flagship initiative of the Action Plan for the European automotive sector and the Action Plan for the European steel and metals industry. The new rules also align with the objectives of the Union of Skills and the European Competitiveness Compass.

For more information: European Commission