July 4, 2025

The following is a press release:

As job losses continue to rise across Europe due to globalisation, restructuring, and rapid economic shifts, regions — being particularly vulnerable — are also best placed to respond. With thousands of workers across the EU at risk of imminent job displacement, the European Committee of the Regions (CoR) adopted an opinion during the plenary session on 3 July, calling for urgent improvements to the European Globalisation Adjustment Fund for Displaced Workers (EGF). To ensure the Fund can meet today’s challenges, local and regional leaders urge for it to become more accessible to smaller and medium enterprises’ workers, sufficiently funded and better aligned with regional needs.

CoR members welcomed the European Commission’s proposal to expand the scope of the EGF to cover workers facing imminent job displacement, a key demand of the previous CoR opinion on this instrument. This expansion strengthens the emergency nature of the Fund, already supporting workers before they lose their job.

Broader EGF expansion, lower job loss threshold

Local and regional leaders want the Fund to be accessible from a threshold of 150 redundancies, instead of the 200 proposed by the Commission. This would better reflect the realities of less populated regions and economies dominated by small and medium-sized enterprises, making the fund more accessible. They also called for targeted support measures for employees of SMEs and subcontractors and simplification of the application process. Reduction of administrative burden on enterprises and Member States was also emphasised, including by allowing the Commission to request mobilisation of the annual budget earlier — at the start of each year.

CoR members called for closer involvement of local and regional authorities in the management of the Fund as they are best placed to identify skill needs on the ground and can help raise awareness for the support provided under the EGF. For better transparency, they called for clearer criteria on the financial health of companies: if there is reasonable doubt about their financial standing, they should be ineligible. They highlighted that the Fund should be fully aligned with the outcomes of the mid-term review of cohesion policy and should be better integrated with industrial transition pathways, which are crucial for achieving a green, digital, and resilient economy.

The EGF after 2027

Looking ahead, the CoR calls for the inclusion of the EGF in the next EU long-term budget, with sufficient and more stable funding that matches the Fund’s scope. As the EU faces deep economic shifts, the Fund’s budget must be resilient enough to respond effectively during economic downturns, not just in stable economic periods. Finally, CoR members highlighted the need for greater visibility of the Fund, so that workers, SMEs, and local authorities are aware of its existence and potential.

Quote

Rapporteur Christophe Rouillon (FR/PES), Mayor of Coulaines: “Workers across Europe are paying the price for global trade shocks, broken supply chains, and the pressures of green and digital transitions. Entire parts of local economies are being destabilised – particularly in the automotive sector and in services hit hard by the rise of artificial intelligence. Too many affected workers are blocked by bureaucratic hurdles and slow processes. We must urgently make the European Globalisation Adjustment Fund more accessible, visible, and responsive – by putting local and regional authorities, those closest to the realities on the ground, at the heart of its governance. We also call for the exclusion of predatory companies that abuse mass layoffs to maximise profits and increase shareholder payouts. No one should be left behind or abandoned in times of transition. The Fund must not become an empty shell or a distant promise. It must be strengthened to become a true instrument of protection, solidarity, and competitiveness – for all.”

Background

Video and photos from the debate

The European Globalisation Adjustment Fund for Displaced Workers (EGF) is a special EU instrument to express EU solidarity with European workers or the self-employed that were displaced due to restructuring, and to help them find new jobs. The EGF contributes to the creation of a more dynamic and competitive European economy by improving the skills and employability of displaced people, to help them find better work.

On 2 April, the Commission proposed to amend the European Social Fund Plus (ESF+) and the European Globalisation Adjustment Fund for Displaced Workers (EGF) to broaden their scope and make it easier to mobilise support for workers. Under the proposed changes, Member States would gain more flexibility to redirect ESF+ funding towards skills development in strategic sectors, such as defence and clean industries.

Contact

Theresa Sostmann

Tel: +32475999415

Theresa.Sostmann@cor.europa.eu