G. SGUEO, Briefing European Globalisation Adjustment Fund – European Parliamentary Research Service, PE 549.016
The EGF was introduced in 2007 as a flexible instrument in the EU budget to provide support, under specific conditions, to workers who have lost their jobs as a result of mass redundancies caused by major changes in global trade (e.g. delocalisation to third countries). Since 2007, the EGF has received 146 applications and has paid out €454.2 million (out of €545.3 million requested) in favour of 119 980 workers. Companies from the automotive, machinery and equipment, and textile industries have been among the most frequent applicants for EGF aid.
The EGF can be used only in case of a specific crisis, on a Member State’s request for financial support, and whenever the relevant conditions are met. Relevant conditions are: (1) a minimum of 500 redundancies over a period of four months in an enterprise in a Member State, or, alternatively, (2) a minimum of 500 redundancies in SMEs over a period of nine months. Applications for a contribution from the EGF falling outside the criteria, laid down in points (1) and (2), may be considered admissible in exceptional circumstances (e.g. small labour markets).
In line with the European Council conclusions of February 2013, the maximum amount available for EGF actions has been cut from €500 million to €150 million per year for the 2014-20 MMF, whereas EU contributions under the Fund have been increased to 60% of the total estimated cost of proposed measures.
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