C_202504419EN.000101.fmx.xml

Opinion of the European Committee of the Regions

Revision of the European Globalisation Adjustment Fund

(C/2025/4419)

Rapporteur	:	Christophe ROUILLON (FR/PES), Mayor of Coulaines, France
Reference document	:	COM(2025) 140 final

I. RECOMMENDATIONS FOR AMENDMENTS

Amendment 1

COM(2025) 140 final – Recital 4

Text proposed by the European Commission

CoR amendment

Regulation (EU) 2021/691 of the European Parliament and of the Council established the EGF for the period of the multiannual financial framework from 1 January 2021- 31 December 2027. In order to make the EGF more responsive to the rapidly changing economic challenges in a globalised economy, the scope of the EGF was broadened again to cover any type of large-scale restructuring event, no matter what the cause. A lower threshold better reflects the realities in lesser populated regions. In the light of the twin digital and green transitions, measures that prepare beneficiaries for the twin transition were considered mandatory elements of every coordinated package of personalised measures offered to beneficiaries. Further, the co-financing rates were aligned with the highest co-financing rate of the European Social Fund Plus (ESF+) established by Regulation (EU) 2021/1057 of the European Parliament and of the Council in the respective Member State. Additionally, a mandatory beneficiary survey was introduced.

Regulation (EU) 2021/691 of the European Parliament and of the Council established the EGF for the period of the multiannual financial framework from 1 January 2021- 31 December 2027. In order to make the EGF more responsive to the rapidly changing economic challenges in a globalised economy, the scope of the EGF was broadened again to cover any type of large-scale restructuring event, no matter what the cause. A lower threshold better reflects the realities in lesser populated regions. In the light of the twin digital and green transitions, measures that prepare beneficiaries for the twin transition were considered mandatory elements of every coordinated package of personalised measures offered to beneficiaries. Further, the co-financing rates were aligned with the highest co-financing rate of the European Social Fund Plus (ESF+) established by Regulation (EU) 2021/1057 of the European Parliament and of the Council in the respective Member State, and such alignment will need to be maintained, for the sake of consistency . Additionally, a mandatory beneficiary survey was introduced.

Reason

The proposal needs to take into account changes to the legislation governing the ESF+, including, if relevant, the outcome of the ongoing mid-term review of cohesion policy.

Amendment 2

COM(2025) 140 final – Recital 6

Text proposed by the European Commission

CoR amendment

The EGF’s role continues to be important as a flexible instrument to support workers who lose their jobs in large-scale restructuring events and to help them to find other jobs as quickly as possible. The Union should continue to provide specific, one-off support to facilitate the reintegration into decent and sustainable employment of displaced workers in areas, sectors, territories or labour markets suffering from a shock caused by serious economic disruption. The EU has to ensure its sustainable prosperity and competitiveness while preserving its unique social market economy, succeeding in the twin transition, and safeguarding its democracy, economic security and geopolitical standing. To safeguard the EU’s future as an economic powerhouse, and progress on its twin digital and green transition, it is vital to support workers affected by imminent job displacement in enterprises undergoing restructuring so that they can acquire the skills that would help them transfer into a different role, or to change job. In this context, it is important to highlight that the instrument should also reflect the identified needs of the local or regional labour market; thus, that the active involvement of local and/or regional authorities is essential. Subnational capacity should focus on local characteristics and be rooted in subnational entities’ strengths and local resources. Cluster policies, the dissemination of knowledge and innovation within local or regional ecosystems, and the creation of businesses that boost employment have the potential to create an environment that is conducive to growth based on equal opportunities for all, irrespective of their place of residence.

Reason

The proposal (as well as the regulation it amends) systematically overlooks the role played by regions when drawing up successful restructuring policies to foster an environment conducive to employment and growth. Even if the EGF doesn’t stipulate a clear legal role for regional authorities, it is important to highlight their crucial role when introducing measures to enable workers to return to working life, including exceptional time-limited assistance.

Amendment 3

COM(2025) 140 final – Recital 7

Text proposed by the European Commission

CoR amendment

Therefore it is necessary to amend Regulation (EU) 2021/691 so that the EGF can also offer assistance to workers affected by imminent job displacement in enterprises undergoing restructuring. As these workers are still in active employment, their employer may request assistance through the relevant Member States’ authorities. As the EGF is under shared management, it is the Member States’ authorities that can request EGF co-funding upon receipt of a request by an enterprise, provided that the enterprise agrees to provide the national co-funding. Should the financial contribution from the EGF be granted, the Member State concerned should make the funds requested available to the enterprise within two weeks of their receipt. In particular, the enterprise should make available to the Member State all information needed to prepare the final report on the implementation of the relevant financial contribution, not later than six months after the end of the implementation of the assistance. The Commission will prepare a beneficiary survey and the enterprise should share the access to the survey to the workers who participated in the programme.

Therefore it is necessary to amend Regulation (EU) 2021/691 to ensure both that the EGF can offer assistance to workers affected by imminent job displacement in enterprises undergoing restructuring and that Member States actively involve local and regional authorities in all relevant efforts linked to the implementation of the EGF . As these workers are still in active employment, their employer may request assistance through the relevant Member States’ authorities. As the EGF is under shared management, it is the Member States’ authorities that can request EGF co-funding upon receipt of a request by an enterprise, provided that the enterprise agrees to provide the national co-funding. Should the financial contribution from the EGF be granted, the Member State concerned should make the funds requested available to the enterprise within two weeks of their receipt. In particular, the enterprise should make available to the Member State all information needed to prepare the final report on the implementation of the relevant financial contribution, not later than six months after the end of the implementation of the assistance. The Commission will prepare a beneficiary survey and the enterprise should share the access to the survey to the workers who participated in the programme.

Reason

Amendment 4

COM(2025) 140 final – Recital 9

Text proposed by the European Commission

CoR amendment

The support provided to workers affected by imminent job displacement in enterprises undergoing restructuring should take into account existing forms of support available under national measures. Short-time work schemes should not be eligible for EGF support as they do not relate to the displacement of jobs, but to their temporary suspension. If the national measures allow it, the requesting enterprise may subcontract the delivery of the coordinated package of personalised measures, or parts thereof.

The support provided to workers affected by imminent job displacement in enterprises undergoing restructuring must ensure practical and effective coordination of all existing forms of support available under national , regional or local measures. Short-time work schemes should not be eligible for EGF support as they do not relate to the displacement of jobs, but to their temporary suspension. If the national measures allow it, the requesting enterprise may subcontract the delivery of the coordinated package of personalised measures, or parts thereof.

Reason

The proposal (as well as the regulation it amends) systematically overlooks the role played by regions when drawing up successful restructuring policies to foster an environment conducive to employment and growth. Even if the EGF doesn’t stipulate a clear legal role for regional authorities, it is important to highlight their important role when introducing measures to enable workers to return to working life, including exceptional time-limited assistance. It is also vital to ensure overall coordination, complementarity and synergies between the various policies and funding sources.

Amendment 5

COM(2025) 140 final – Article 1 (point 2 on article 2)

Text proposed by the European Commission

CoR amendment

Article 2

Mission and objectives

‘1.

The EGF shall support socioeconomic transformations that are the result of globalisation and of technological and environmental changes by helping displaced workers and self-employed persons whose activity has ceased to adapt to structural change. The EGF shall constitute an emergency fund. As such, the EGF shall contribute to the implementation of the principles set out in the European Pillar of Social Rights and shall enhance social and economic cohesion among regions and Member States.

‘1.

The EGF shall , in close cooperation with local and regional actors, support socioeconomic transformations that are the result of globalisation and of technological and environmental changes by helping displaced workers and self-employed persons whose activity has ceased to adapt to structural change. The EGF shall constitute an emergency fund. As such, the EGF shall contribute to the implementation of the principles set out in the European Pillar of Social Rights and shall enhance social and economic cohesion among regions and Member States including to support just transition strategies leaving no one behind .

The objectives of the EGF are to demonstrate solidarity and promote decent and sustainable employment in the Union by offering assistance in the case of major restructuring events, in particular those caused by challenges related to globalisation, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low-carbon economy, or as a consequence of digitisation or automation. The EGF shall support beneficiaries in returning to decent and sustainable employment as soon as possible. Particular emphasis shall be placed on measures that help the most disadvantaged groups. The EGF shall also support workers affected by imminent job displacement in acquiring the skills needed to help them transfer into a different role, or to change jobs.

The objectives of the EGF are to demonstrate solidarity and promote decent and sustainable employment in the Union by offering assistance in the case of major restructuring events, in particular those caused by challenges related to globalisation, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low-carbon economy, particularly considering regions with predominantly energy-intensive and foreign trade-dependent industries, or as a consequence of digitisation or automation. The EGF shall support beneficiaries in returning to decent and sustainable employment as soon as possible. Particular emphasis shall be placed on measures that help the most disadvantaged groups. The EGF shall also support workers affected by imminent job displacement in acquiring the skills needed to help them transfer into a different role, or to change jobs.

Reason

Amendment 6

COM(2025) 140 final – Article 1 (point 4 on article 4)

Text proposed by the European Commission

CoR amendment

Article 4(1) is amended as follows:

(a)	paragraph 1 is replaced by the following:

(a)	paragraph 1 is replaced by the following:

‘1.	Member States may apply for financial contributions from the EGF for measures targeting displaced workers, workers affected by imminent job displacement, and self-employed persons in accordance with the provisions laid down in this Article.’;

‘1.	Member States may , in close cooperation with local and regional actors, apply for financial contributions from the EGF for measures targeting displaced workers, workers affected by imminent job displacement, and self-employed persons in accordance with the provisions laid down in this Article.’;

(b)	in paragraph 2, the following point is added:

(b)	in paragraph 2, the following point is added:

‘(d)	at least 200 workers affected by imminent job displacement in an enterprise undergoing restructuring in a Member State.’;

‘(d)	at least 150 workers affected by imminent job displacement in an enterprise undergoing restructuring in a Member State.’;

Reason

Access to assistance is increased for a smaller group of displaced workers (lowering the threshold from 200 to 150), reflecting the small size of businesses in some regions of the EU. To align the current EGF regulation with this amendment, Article 4(2)(a), (b) and (c) would also need to be adjusted by lowering the reference number of displaced workers from 200 to 150.

Amendment 7

COM(2025) 140 final – Article 1(point 7 on article 7)

Text proposed by the European Commission

CoR amendment

Article 7 is amended as follows:

(a)	paragraph 1 is replaced by the following:

(a)	paragraph 1 is replaced by the following:

‘1.

A financial contribution from the EGF may be made for active labour market policy measures that form part of a coordinated package, designed to facilitate the reintegration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment, or to help workers referred to in Article 6, first paragraph, point(c) acquire the skills they need to transfer either into a different role with their current employer or to a different employer.’;

‘1.

A financial contribution from the EGF may be made for active labour market policy measures that form part of a coordinated package, drawn up where relevant in close cooperation with local and regional actors, designed to facilitate the reintegration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment, or to help workers referred to in Article 6, first paragraph, point(c) acquire the skills they need to transfer either into a different role with their current employer or to a different employer.’;

(b)	in paragraph 2, second subparagraph, the following point is added:

(b)	in paragraph 2, second subparagraph, the following point is added:

‘(c)

‘For the beneficiaries referred to in Article 6, first paragraph, point (c), the coordinated package may include training and retraining, tailored to the individual worker’s needs, including on information and communication technology and other skills required in the digital age, certification of acquired knowledge and skills, individual job-search assistance services and targeted group activities, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion and cooperation activities. It may not include short-time work schemes.’

‘(c)

“For the beneficiaries referred to in Article 6, first paragraph, point (c), the coordinated package may include training and retraining, drawn up where relevant in close cooperation with local and regional actors, tailored to the individual worker’s needs, including on information and communication technology and other skills required in the digital age, certification of acquired knowledge and skills, individual job-search assistance services and targeted group activities, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion and cooperation activities. It may not include short-time work schemes.”

Reason

Amendment 8

COM(2025) 140 final – Article 1 (point 9 on article 8)

Text proposed by the European Commission

CoR amendment

The following Article 8a is inserted:

“Article 8 a

‘Article 8 a

Applications for EGF assistance to workers affected by imminent job displacement

Enterprises undergoing restructuring may request the Member State concerned to submit an application for a financial contribution from the EGF, if the intervention criteria set out in Article 4(2), point (d) are met, and if the enterprise wishes to offer EGF-co-financed assistance to those parts of its workforce affected by imminent job displacement, in line with Article 6, first paragraph, point (c). Such a request shall be submitted by the enterprise within two weeks of the date on which it had notified the public authorities in writing of the projected collective redundancies in accordance with Article 3(1) of Directive 98/59/EC.

All Member States shall designate a Single Entry Point to which enterprises can direct requests referred to in paragraph 1,and publish relevant guidelines and templates. The information collected from these templates shall cover all the information necessary for a financial contribution application from the EGF as set out in paragraph below.

All Member States shall designate a Single Entry Point to which enterprises and local and regional authorities, where relevant, can direct requests referred to in paragraph 1, and publish relevant guidelines and templates. The information collected from these templates shall cover all the information necessary for a financial contribution application from the EGF as set out in paragraph below.

Reason

Amendment 9

COM(2025) 140 final – Article 1 (point 9 on article 8)

Text proposed by the European Commission

CoR amendment

The following Article 8a is inserted:

‘Article 8 a

[...]

10.	An application shall contain the following information:

10.	An application shall contain the following information:

(a)	the identification of the enterprise concerned;

(a)	the identification of the enterprise concerned;

(b)	an assessment of the number of jobs affected by displacement in accordance with Article 6, first paragraph, point (c);

(b)	an assessment of the number of jobs affected by displacement in accordance with Article 6, first paragraph, point (c);

(c)	a brief description of the events that led to the restructuring;

(c)	a brief description of the events that led to the restructuring;

(d)

a confirmation that the enterprise has complied and continues to comply with its legal obligations or collective agreements governing those projected redundancies and is providing for its workers accordingly, and a description of the procedures followed by the enterprise for consulting the targeted beneficiaries or their representatives;

(d)

(e)	an estimated breakdown of the composition of the targeted beneficiaries by gender, age group and educational level, used in the design of the coordinated package;

(e)	an estimated breakdown of the composition of the targeted beneficiaries by gender, age group and educational level, used in the design of the coordinated package;

(f)	a detailed description of the coordinated package and related expenditure, including any measures in support of employment initiatives for disadvantaged, young and older beneficiaries;

(f)	a detailed description of the coordinated package and related expenditure, including any measures in support of employment initiatives for disadvantaged, young and older beneficiaries;

(g)	the estimated budget for each of the components of the coordinated package in support of the targeted beneficiaries that will be offered by the enterprise;

(g)	the estimated budget for each of the components of the coordinated package in support of the targeted beneficiaries that will be offered by the enterprise;

(h)	the dates on which the provision of the coordinated package to the targeted beneficiaries and the activities to implement the EGF, as set out in Article 7, were started or are due to be started;

(h)	the dates on which the provision of the coordinated package to the targeted beneficiaries and the activities to implement the EGF, as set out in Article 7, were started or are due to be started;

(i)	the estimated budget for any preparatory, management, information and publicity, control and reporting activities by the applicant Member State in relation to such an application;

(i)	the estimated budget for any preparatory, management, information and publicity, control and reporting activities by the applicant Member State in relation to such an application;

(j)

a reasoned statement that the requested EGF support complies with the procedural and material Union rules on State aid as well as a reasoned statement outlining why the coordinated package does not replace measures that are the responsibility of employers by virtue of national law or collective agreements;

(j)

(k)	the confirmation that the enterprise concerned will co-finance the measures and that it is the only source for the national co-funding.”;

(k)	the confirmation that the enterprise concerned will co-finance the measures and that it is the only source for the national co-funding.’;

(l)	a description of how the Member State as well as the enterprise concerned intend to involve local and regional actors as regards the design of the package and related expenditure;

Reason

II. POLICY RECOMMENDATIONS

THE EUROPEAN COMMITTEE OF THE REGIONS (CoR)

Expresses renewed support for the European Globalisation Adjustment Fund (EGF) as a key instrument allowing the EU to offer much needed support to those workers most affected by the negative impacts of the globalisation of our economies and associated transformations; believes this support to be all the more essential in the current period of high socio-economic uncertainty at global level;

Welcomes the European Commission’s proposal amending the EGF as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring; highlights the need to strengthen the emergency character of the EGF as the number of job cuts announced for the near future related to large-scale restructuring within the EU far exceeds the number of job creations, particularly in energy-intensive industries such as the automotive sector;

Welcomes, in particular, the fact that the proposals aims to widen the scope of the EGF to also cover workers affected by imminent job displacement; underlines that this was proposed by the CoR in its 2018 opinion on the EGF Regulation (1); to avoid the misuse of funds, calls for enhanced scrutiny to ensure that the proposal enables EGF support to be effectively directed towards workers facing imminent job loss, rather than the workforce as a whole. Highlights that preserving employment and promoting access to quality jobs are essential to ensuring social equity and long-term economic resilience in the global transition to a climate-neutral economy;

Supports the efforts to improve and simplify the EGF process and welcomes the proposed procedure whereby the Commission, under strict conditions, could request that the European Parliament and the Council mobilise the annual budget at the beginning of each year. Calls for the reduction of the administrative burden on the requesting enterprise and on Member States in the context of the EGF’s renewal in the future Multiannual Financial Framework (MFF);

Reiterates its demand for a lower threshold for redundancies, whether within the same enterprise or in particular sectors, as this better reflects the actual situation on the ground, specifically in regions that are less populated and where SMEs are the main type of business, and hopes this decrease will lead to greater use and mobilisation of the EGF; in view of this, proposes that the threshold be set at 150 instead of 200 jobs; calls also for targeted support measures for employees of SMEs and subcontractors;

Reiterates the need to further define ‘disadvantaged beneficiaries’ and include the term ‘vulnerable worker’ for the purpose of EGF aid; calls for the inclusion of mental health services for these beneficiaries as part of the transition support;

Suggests that the intervention criteria include provisions for transparency regarding the financial situation of the enterprise and the non-eligibility of their application in case of reasonable doubt regarding the financial predicament of the enterprise within the same reference period;

Underlines that the EGF must be fully aligned with the outcome of the mid-term review of cohesion policy;

Emphasises the significance of the industrial transition pathways in achieving the objective of a green, digital, and resilient economy. Regrets, therefore, that the EGF proposal does not explore potential synergies with actions planned under the pathways and that the EGF is largely absent in the pathways. For example, the recently presented Transition Pathway for the European Metals Sector acknowledges that, due to the industry’s territorial concentration, structural change may expose certain European regions to unprecedented social and economic challenges, but does not mention the funding opportunities provided by the EGF;

10.

Underlines the importance of maximising synergies with multi-annual, structural instruments such as the European Social Fund Plus and the Just Transition Fund to ensure efficient and complementary support for workers affected by systemic changes across the economy;

Involvement of regional authorities

11.

Notes that the EGF provides support in addition to measures foreseen at national level, constituting European added value, and thus complies with the principle of subsidiarity;

12.

Regrets, however, the low visibility and lack of recognition of the potential of regional authorities in relation to EGF participation and action; calls for greater emphasis on the involvement of regional and local authorities (LRAs) in the management of the Fund; highlights also the role of LRAs in identifying skill needs on the ground, e.g. in the context of smart specialisation strategies, and the potential of finding synergies with training measures funded by the EGF;

13.

Urges the Commission and the Member States to enhance cooperation with regional and local authorities, as well as with other stakeholders, particularly the social partners, to ensure the availability of the legal, financial, and organisational resources necessary for their full participation and collaboration in the development of these areas;

Efficiency and effectiveness

14.

Advocates the adoption of mechanisms to improve the institutional capacity of Member States, not only to react promptly and initiate the application procedure without delay but also to ensure the efficient and effective implementation of the measures;

15.

Suggests that Member States provide data on the rejected requests from enterprises that do not fulfil the eligibility criteria to adequately assess the needs for funding and technical support;

16.

Calls for a public awareness-raising campaign in close collaboration with LRAs and the social partners to inform workers and employers about the EGF and to encourage more applications;

17.

Suggests that Just Transition plans, anticipating the employment impact of the twin transition through skilling initiatives, should be mandatory for all enterprises receiving financial support under the EGF to ensure the long-term impact of the allocated resources;

The EGF after 2027

18.

suggests that the EGF be included in the legislation for the next MFF; notes that low public awareness, a high administrative burden, lengthy procedures and competing European and national funding opportunities play a role in the low number of EGF requests and regrets that the EGF budget has been decreased as a result instead of these issues being addressed;

19.

Emphasises that, due to the cyclical nature of the structural changes that the EGF aims to address, the need for the EGF support will vary significantly depending on the economic circumstances; advocates for the EGF budget to be sufficient and more stable to address these structural changes during economic downturns, rather than being based on estimates derived from periods of economic stability.

Brussels, 3 July 2025.

The President

of the European Committee of the Regions

Kata TÜTTŐ

(1) Opinion of the European Committee of the Regions on the ‘European Globalisation Adjustment Fund’ ( OJ C 86, 7.3.2019, p. 239).