Deal on the European Globalisation Adjustment Fund

On November 5, a compromise agreement on the European Globalisation Adjustment Fund reached by the European Parliament and the EU Council had been approved by Employment Committee MEPs of the European Parliament.

The deal approved by MEPs aims that The EU aid to redundant workers would continue in 2014-2020.
By contrast to EU structural funds, the EGF provides one-off, time-limited individual support geared to helping workers who have suffered redundancy as a result of globalization. This support may take the form of job-search allowances, mobility allowances, allowances for participating in lifelong learning and training activities.

With up to 3 billion euro available for the seven coming years, the European Globalisation Adjustment Fund will support during the next budget period, redundant workers to find new jobs and be extended to new categories of workers.
Thanks to Parliament, the EGF’s scope has been extended to make the aid available again to people who have lost their jobs as a result of the economic crisis. Actually, if the fund will continue to be used to mitigate the effects of the economic crisis, its support will goes to new categories of workers such as workers with fixed-term contracts, temporary agency workers and the self-employed.

As part of the EU response to the crisis, the EGF helps workers find new jobs and develop new skills when they have lost their jobs, when a large company shuts down or a factory is moved to outside the EU.
The EU programme, will help EU citizens, many to tackle difficulties on the labour market, improve their skills and be ready for new job opportunities. Moreover, if approved at the November plenary, the compromise agreement could provide aid on a temporary basis to young people as being “Not in Education, Employment or Training” and from the regions affected by redundancies.

According to the agreement, EGF aid is added to contributions from member states which part-finance schemes to get redundant workers back into work. Actually, the EGF share should meet 60% of the cost of measures such as job search assistance, training and support for business start-ups.
In order to take effect on 1st January 2014, the compromise agreement has to be formally approved by the EU Council and the full Parliament.