EUROPEAN COMMISSION
Brussels, 16.7.2026
COM(2026) 170 final
2026/0195(BUD)
Proposal for a
DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary
EXPLANATORY MEMORANDUM
CONTEXT OF THE PROPOSAL
1.The rules applicable to financial contributions from the European Globalisation Adjustment Fund for Displaced Workers (EGF) are laid down in Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 1 .
2.On 7 April 2026, Spain submitted an application EGF/2026/002 ES/Galicia automotive ancillary for a financial contribution from the EGF, following displacements in the automotive ancillary industry (which comprises the economic sectors classified under the NACE Revision 2 divisions listed in the summary of the application, here below) in the NUTS 2 region of Galicia (ES11) in Spain.
3.Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of Regulation (EU) 2021/691, that the conditions for awarding a financial contribution from the EGF are met.
SUMMARY OF THE APPLICATION
|
EGF application |
EGF/2026/002 ES/Galicia automotive ancillary |
|
Member State |
Spain |
|
Region(s) concerned (NUTS 2 level 2) |
Galicia (ES11) |
|
Date of submission of the application |
7 April 2026 |
|
Date of acknowledgement of receipt of the application |
21 April 2026 |
|
Date of request for additional information |
21 April 2026 |
|
Deadline for provision of the additional information |
13 May 2026 |
|
Deadline for the completion of the assessment |
28 July 2026 |
|
Intervention criterion |
Article 4(2), point (c), of Regulation (EU) 2021/691 |
|
|
20 |
|
Sector(s) of economic activity (NACE Revision 2 division) 3 |
Division 25 (Manufacture of fabricated metal products, except machinery and equipment), Division 27 (Manufacture of electrical equipment), Division 28 (Manufacture of machinery and equipment), Division 29 (Manufacture of motor vehicles, trailers and semi-trailers), Division 74 (Other professional, scientific and technical activities) |
|
Reference period (four months): |
15 September 2025 – 15 January 2026 |
|
Number of displacements during the reference period (a) |
313 |
|
Number of displacements before or after the reference period (b) |
358 |
|
Total number of displacements (a + b) |
671 |
|
Total number of eligible beneficiaries |
671 |
|
Total number of targeted beneficiaries |
400 |
|
Budget for personalised services (EUR) |
3 046 000 |
|
Budget for implementing EGF 4 (EUR) |
160 000 |
|
Total budget (EUR) |
3 206 000 |
|
EGF contribution (85 %) (EUR) |
2 725 100 |
ASSESSMENT OF THE APPLICATION
Procedure
4.Spain submitted application EGF/2026/002 ES/Galicia automotive ancillary within 12 weeks of the date on which the intervention criteria set out in Article 4 (2), point (c) of Regulation (EU) 2021/691 were met, on 7 April 2026. The Commission acknowledged receipt of the application and requested additional information from Spain on 21 April 2026. Such additional information was provided within 15 working days of the request. The deadline of 50 working days of the receipt of the complete application within which the Commission should finalise its assessment of the application's compliance with the conditions for providing a financial contribution expires on 28 July 2026.
Eligibility of the application
Enterprises and beneficiaries concerned
5.The application relates to 313 workers whose activity has ceased in the automotive ancillary sectors listed in the above summary. The jobs displaced are located in the NUTS 2 region of Galicia (ES11).
|
Enterprises and number of displacements within the reference period |
|||||
|
AKWEL VIGO SPAIN, S.L. |
85 |
METALES Y MUEBLES ESPECIALES SL |
5 |
||
|
ALUMAN SISTEMAS, S.L. |
3 |
NERVION INDUSTRIES, ENGINEERING AND SERVICES SL |
4 |
||
|
BORGWARNER EMISSIONS SYSTEMS SPAIN SL |
39 |
OFFSHORE WINDWAVES, SL |
6 |
||
|
CABLERÍAS AUTO, S.L. |
2 |
PEUGEOT CITROEN AUTOMOVILES ESPAÑA, SA |
6 |
||
|
CENTRO TECNOLÓGICO DE AUTOMOCIÓN DE GALICIA (CTAG) |
32 |
PREFABRICACION Y MONTAJES DEL NOROESTE SA |
1 |
||
|
DIMALNOX SL |
6 |
RUBÍ AUTOMOTIVE GALICIA, S.A.U. |
1 |
||
|
GKN DRIVELINE VIGO SA |
1 |
SISTEMAS TECNICOS DEL ACCESORIO Y COMPONENTES SL |
7 |
||
|
INDUSTRIAL DE ACABADOS SA |
9 |
STELLANTIS ESPAÑA, S.L. |
33 |
||
|
INGENIERIA Y MONTAJES RIAS BAJAS, SA |
8 |
TROQUELES Y MOLDES DE GALICIA, S.A.-TROMOSA |
58 |
||
|
MAGNA SEATING VIGO, S.A.U. |
2 |
WINDAR MP SL |
5 |
||
|
|
Total no. of displacements: |
313 |
|||
|
Total no. of eligible workers: |
313 |
||||
Intervention criteria
6.Spain submitted the application under the intervention criteria of Article 4(2), point (c), 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 enterprises operating in the same or different economic sectors defined at NACE Revision 2 level and located in the same region defined at NUTS 2 level in a Member State. There were 313 displaced workers in the NUTS 2 region of Galicia (ES11).
7.The reference period of four months for the application runs from 15 September 2025 to 15 January 2026.
Calculation of displacements and of cessation of activity
8.Pursuant to Article 6, first paragraph, point (a), in conjunction with Article 5, first paragraph, point (c) of Regulation (EU) 2021/691, the number of workers affected by job displacement during the reference period has been calculated from the date of the de facto termination of the contract of employment or its expiry.
Eligible beneficiaries
9.In addition to the workers already referred to, the eligible beneficiaries include 358 displaced workers from the same enterprises whose activity ceased before or after the reference period of four months. All these workers ceased their activity within the six months before the start of the reference period on 15 September 2025 and/or between the end of the reference period and the day before the adoption of this proposal, pursuant to Article 6, first paragraph, point (b), of Regulation (EU) 2021/691, as required by Article 6, second paragraph, of Regulation (EU) 2021/691. A clear causal link can be established with the event that triggered the cessations of activity of the displaced workers during the reference period as required by Article 6, second paragraph, of Regulation (EU) 2021/691.
10.The total number of eligible beneficiaries is 671.
Description of the events that led to the displacements and cessation of activity
11.Since 2024, Spain’s car components industry has been steadily worsening. In October 2025, the sector’s employers' association (Sernauto) revised its year-end forecasts, projecting a near 2% decline in revenue and a 1% drop in employment (3 000 jobs), marking the second consecutive year of aggregate decline 5 . In 2024, the sector recorded EUR 41 238 billion in sales, a 0,7% contraction year-on year and a 0,7% reduction in direct employment 6 , alongside significant declines in productive investment (-12.3%) and R&D (-2%). These figures confirm that the adjustment is not cyclical but rather reflects a restructuring of margins and volumes in the customer markets of Spain’s car component suppliers.
12.The strong export orientation of Galicia’s car component enterprises—which direct 60–70% of their production to the EU—means any fluctuation in European demand directly impacts their activity, workload, and job stability.
13.The combination of weaker-than-expected European demand, trade and supply chain disruptions—which undermine stable purchasing and new model launches—and the redirection of investment towards electrified platforms and higher electronic content is leading to job cuts in the Vigo area (Stellantis, its auxiliary network, and component suppliers).
14.The labour cost per vehicle indicator, which relates total labour expenditure to units produced, has become a critical variable in times of electrification and tightening margins. Countries with low labour cost, like Morocco (EUR 90 per vehicle) and Türkiye (EUR 350), are absorbing much of the new industrial capacity, whereas mid-cost countries like Spain (EUR 850) 7 must maintain competitiveness through efficiency gains, specialisation, and stronger logistics—adding further pressure, especially in lower-margin segments.
15.The combination of all these factors has forced structural adjustments across the car sector’s value chain in Galicia, resulting in temporary layoff schemes and redundancies (e.g. at Stellantis, Akwel Vigo Spain, or CTAG), insolvency proceedings, and liquidations (e.g. Cablerías Auto S.L. or Troqueles y Moldes de Galicia).
Expected impact of the displacements as regards the local, regional or national economy and employment
16.The automotive industry in Galicia employs a high proportion of skilled, specialised workers, including professionals in industrial engineering, product development, validation and testing, advanced manufacturing, automation, digitalisation, and technologies linked to electric mobility. The loss of a significant volume of jobs in a single value chain—such as the automotive sector—has a disproportionate impact on employment structures and re-employment opportunities, as the regional labour market has a limited capacity to immediately absorb such specialised workers into equivalent roles.
17.In Galicia, the industrial sector accounts for 16,4% of total regional employment 8 —6,5 percentage points (pp) higher than the national average (9,9%) 9 . The regional unemployment rate (8,4%) 10 is 2,6 pp above the EU average (5,8%) 11 , though 1,5 pp below Spain’s national rate (9,9%) 12 . However, in the territory affected by redundancies, the Vigo area, unemployment stands at 11,2% 13 , nearly 3 pp above the regional average, and almost double the EU average.
18.The regional employment rate (49,6%) 14 is 21 pp below Spain’s national rate (71,4%) and 26 pp lower than the EU average (75,8%) 15 .
19.Given the challenges in the labour market affected by redundancies, workers will require tailored support to successfully transition to new employment.
Application of the EU Quality Framework for anticipation of change and restructuring (QFR)
20.Spain has described how the recommendations set out in the EU Quality Framework for anticipation of change and restructuring have been taken into account: Spain has reported that national labour law requires enterprises to provide displaced workers with training and redeployment services for at least six months—delivered through an authorised outplacement provider—if the collective redundancy affects more than 50 employees. This obligation applied to two of the 20 enterprises referred to in paragraph 5 16 .
21.Regarding the activities undertaken to assist the displaced workers, Spain has reported that Emprego Galicia, the regional public employment services, has provided the workers with access to its general services (job-search support, vocational counselling and training).
Complementarity with actions funded by national or Union funds
22.Spain has confirmed that the measures described below receiving a financial contribution from the EGF will not also receive financial contributions from other Union financial instruments.
23.The coordinated package of personalised services complements actions funded by other national or EU funds.
Procedures for consulting the targeted beneficiaries or their representatives or the social partners as well as local and regional authorities
24.Spain has indicated that the co-ordinated package of personalised services has been drawn up in consultation with the trade unions: CCOO 17 , Industry, Metal, Construction and Allied Workers’ Federation of UGT (UGT-FICA 18 ), and CIG 19 ; Galician Employers’ Confederation, CEG, and Galicia automotive cluster, CEAGA 20 , in compliance with Article 7(4) of Regulation (EU) 2021/691. The Regional Government maintained an ongoing, structured consultation process, which concluded with in-person meetings held on 13 and 15 January 2026 of all stakeholders 21 . CEAGA was instrumental in shaping the training scope and offer.
Targeted beneficiaries and proposed measures
Targeted beneficiaries
25.The estimated number of displaced workers expected to participate in the measures is 400. Pursuant to Article 8(7), point (f), of Regulation (EU) 2021/691, the provided breakdown of these workers by gender, age group and educational level is as follows:
|
Category |
Number of
|
||
|
Gender: |
Men: |
285 |
(71,3 %) |
|
Women: |
115 |
(28.7 %) |
|
|
Non-binary |
0 |
(0,0 %) |
|
|
Age group: |
Below 30 years: |
14 |
(3,5 %) |
|
30-54 years: |
286 |
(71,5 %) |
|
|
Over 54 years: |
100 |
(25,0 %) |
|
|
Educational level |
Lower secondary education or less 22 |
100 |
(25,0 %) |
|
220 |
(55,0 %) |
||
|
Tertiary education 25 |
80 |
(20 %) |
|
Proposed measures
26.Pursuant to Article 8(7), point (h) of Regulation (EU) 2021/691, the personalised coordinated package to be provided to displaced workers consists of the following measures:
–Information, intake phase and workers’ profiling: Information sessions outlining the objectives, content, and timelines of the support package. Participants will be informed about the resources and support available to help them in their reskilling and employability enhancement. Applications for participation will be collected during these sessions.
The intake phase will involve collaboration with Galicia’s leading social partners—including UGT-Galicia, CCOO-Galicia (trade unions), and the Galician Employers’ Confederation (CEG)—as well as the regional public employment services 26 . The engagement of these sectoral stakeholders will help workers to clarify their professional expectations to remain in the sector, redesign their career paths, or pursue professional reorientation.
A workers’ profiling phase will follow. Through individual interviews, each participant’s socio-professional situation, educational background, employment expectations, aptitudes, skills, experience, and interests will be assessed.
–Occupational guidance—focused on employment or self-employment—will be provided throughout the implementation period. The measure includes job-search assistance and soft-skills workshops.
–Training: The training offer will include: (1) Cross-cutting training covering training in both basic and advanced digital competencies 27 , industrial digitalisation, including fundamentals of Industry 4.0 and 5.0, industrial data literacy, MES 28 and SCADA 29 , process automation via RPA 30 , and industrial automation (e.g., PLCs) 31 , occupational risk prevention, training on sustainability applied to production processes, and foreign languages. (2) Up-skilling aligned with CEAGA’S Report on Training and Employment in Galicia’s Automotive Sector (November 2025) and the Galicia Automotive Master Plan 2025–2027 32 . (3) Reskilling aimed at providing a new professional qualification will focus on courses related to key sectors such as aeronautics 33 , renewable energy 34 , transport, and warehousing 35 , and infrastructure and industrial maintenance 36 , which demonstrates a strong capacity to absorb industrial profiles. (4) Training towards entrepreneurship will be provided for those aiming at self-employment.
–Intensive job-search assistance, including active search of the local and regional employment opportunities (also for self-employed persons) and job-matching.
–Tutoring after reintegration into work: The workers reintegrated into employment will be guided during the first months to prevent possible problems arising in their new jobs.
–Financial support and incentives: (1) Participation incentive. Workers who engage with the measures and follow their agreed reintegration pathway will receive up to EUR 400, paid either as a lump sum or in instalments. (2) Financial support for commuting expenses. Eligible expenses will include costs for public transport or private vehicle mileage (EUR 0.26/km), tolls, parking, meals, and accommodation, up to a maximum of EUR 340 per training course. (3) Financial support for carers of dependent persons. A daily allowance of up to EUR 20 will be provided to participants with caring responsibilities (e.g., for children, the elderly, or disabled dependents), to offset additional costs incurred when attending training. (4) Outplacement incentives. Those who return to employment—either as employees or as self-employed—will receive EUR 200 per month for a maximum of six months. This incentive aims to encourage workers, particularly older individuals, to remain in the labour market and secure rapid re-employment.
27.Cross-cutting training caters for the dissemination of the skills required in the digital industrial age and in a resource-efficient economy, as required by Article 7(2) of Regulation (EU) 2021/691.
28.The proposed actions, here described, constitute active labour market policy measures within the eligible actions set out in Article 7 of Regulation (EU) 2021/691. These actions do not substitute passive social protection measures.
29.Spain has provided the required information on measures that are mandatory for the enterprise concerned by virtue of national law or pursuant to collective agreements. In accordance with Article 9(1) of Regulation (EU) 2021/691, Spain has confirmed that a financial contribution from the EGF will not replace such measures.
Estimated budget
30.The estimated total costs are EUR 3 206 000, comprising expenditure for personalised services of EUR 3 046 000 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 160 000.
31.The total financial contribution requested from the EGF is EUR 2 725 100 (85 % of total costs).
32.Pursuant to Article 8(7), point (m), of Regulation (EU) 2021/691, Spain has specified that the national pre-financing and co-funding is provided by Xunta de Galicia 37 .
|
Measures |
Estimated number of participants |
Estimated cost per participant
|
Estimated total costs (EUR) 39 |
|
Personalised services (measures under Article 7(2), second subparagraph, point (a), of Regulation (EU) 2021/691) |
|||
|
Information, intake phase and workers’ profiling
|
400 |
100 |
40 000 |
|
Occupational guidance
|
300 |
500 |
150 000 |
|
Training
|
400 |
5 050 |
2 020 000 |
|
Intensive job-search assistance
|
250 |
1 300 |
325 000 |
|
Tutoring after reintegration into work
|
200 |
250 |
50 000 |
|
Sub-total (a): Percentage of the package of personalised services |
– |
2 585 000 |
|
|
(84,87 %) |
|||
|
Allowances and incentives (measures under Article 7(2), second subparagraph, point (b), of Regulation (EU) 2021/691) |
|||
|
Financial support and incentives
|
400 |
1 152 |
461 000 |
|
Sub-total (b): Percentage of the package of personalised services: |
– |
461 000 |
|
|
(15,13 %) |
|||
|
Activities under Article 7(5) of Regulation (EU) 2021/691 |
|||
|
1. Preparatory activities |
– |
0 40 |
|
|
2. Management |
– |
130 000 |
|
|
3. Information and publicity |
– |
30 000 |
|
|
4. Control and reporting |
– |
0 41 |
|
|
Sub-total (c): Percentage of the total costs : |
– |
160 000 |
|
|
(4,99 %) |
|||
|
Total costs (a + b + c): |
– |
3 206 000 |
|
|
EGF contribution (85 % of total costs) |
– |
2 725 100 |
|
33.The costs of the measures identified in the table above as measures under Article 7(2), second subparagraph, point (b), of Regulation (EU) 2021/691 do not exceed 35 % of the total costs for the coordinated package of personalised services. Spain confirmed that these measures are conditional on the active participation of the targeted beneficiaries in job-search or training activities.
Period of eligibility of expenditure
34.Spain will start providing the personalised services to the targeted beneficiaries on 1 September 2026. The expenditure on the measures will therefore be eligible for a financial contribution from the EGF from 1 September 2026 until 24 months after the date of the entry into force of the Financing Decision.
35.Spain started incurring the administrative expenditure to implement the EGF on 1 July 2026. The expenditure for preparatory, management, information and publicity, control and reporting activities shall therefore be eligible for a financial contribution from the EGF from 1 July 2026 until 31 months after the date of the entry into force of the Financing Decision.
Management and control systems
36.The application contains a description of the management and control system required under Article 23 of Regulation (EU) 2021/691, which specifies the responsibilities of the bodies involved. Spain has notified the Commission that the financial contribution will be managed and controlled by the same bodies that manage and control the ESF+. The Xunta de Galicia 42 will be the intermediate body for the managing authority.
Commitments provided by the Member State concerned
37.Spain has provided all necessary assurances regarding the following:
–the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation,
–the requirements laid down in national and EU legislation concerning collective redundancies have been complied with,
–the dismissing enterprises, which have continued their activities after the lay-offs, have complied with their legal obligations and provided for their workers accordingly,
–any double financing will be prevented,
–the financial contribution from the EGF will comply with the procedural and material Union rules on State aid.
BUDGETARY IMPLICATION
Budgetary proposal
38.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) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 43
39.Having examined the application in respect of the conditions set out in Article 13(1) and (2) of Regulation (EU) 2021/691, and having taken into account the number of targeted beneficiaries, the proposed measures and the estimated costs, the Commission proposes to mobilise the EGF for the amount of EUR 2 725 100, representing 85 % of the total costs of the proposed measures, in order to provide a financial contribution for the application.
40.The proposed decision to mobilise the EGF will be taken jointly by the European Parliament and the Council pursuant to Article 15(1), first subparagraph, second sentence, of Regulation (EU) 2021/691 and, as laid down in point 9 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources 44 .
Related acts
41.At the same time as it presents this proposal for a decision to mobilise the EGF, the Commission will present to the European Parliament and to the Council a proposal to transfer to the relevant budgetary line the amount of EUR 2 725 100.
42.At the same time as it adopted this proposal for a decision to mobilise the EGF, the Commission adopted a decision on a financial contribution that constitutes a financing decision within the meaning of Article 110 of Regulation (EU, Euratom) 2024/2509 45 . That financing decision will enter into force on the date on which the Commission is notified of the approval of the budgetary transfer by the European Parliament and the Council pursuant to Article 15(2), first subparagraph, of Regulation (EU) 2021/691.
2026/0195 (BUD)
Proposal for a
DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Spain – EGF/2026/002 ES/Galicia automotive ancillary
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 46 , and in particular Article 15(1), first subparagraph, thereof,
Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources 47 , and in particular point 9 thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1)The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.
(2)The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 48 , and Article 16 of Regulation (EU) 2021/691.
(3)On 7 April 2026, Spain submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers’ displacements in the economic sectors classified under the Statistical classification of economic activities in the European Community ('NACE') 49 Revision 2 division Division 25 (Manufacture of fabricated metal products, except machinery and equipment), Division 27 (Manufacture of electrical equipment), Division 28 (Manufacture of machinery and equipment), Division 29 (Manufacture of motor vehicles, trailers and semi-trailers), and Division 74 (Other professional, scientific and technical activities) in the Nomenclature of Territorial Units for Statistics ('NUTS') 50 level 2 region of Galicia (ES11) in Spain. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council 51 .
(4)The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 2 725 100 in respect of the application submitted by Spain.
(5)In order to minimise the time taken to mobilise the EGF, this Decision should apply from the date of its adoption,
HAVE ADOPTED THIS DECISION:
Article 1
For the general budget of the Union for the financial year 2026, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 2 725 100 in commitment and payment appropriations.
Article 2
This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption] 52* .
Done at Brussels,
For the European Parliament For the Council
The President
The President