What changed

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

P10_TA(2026)0355

on the proposal for a decision of the European Parliament and of the Council on the mobilisationMobilisation of the European Globalisation Adjustment Fund for Displace Workers followingDisplaced anWorkers: application from Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper - Finland

(COM(2026)0555 – C100209/2026 – 2026/0254(BUD))

Committee on Budgets

PE796.159

European Parliament resolution of 21 October 2026 on the 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 Finland – EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper (COM(2026)0555 – C10-0209/2026 – 2026/0254(BUD))

The European Parliament,

– having regard to the Commission proposal to the European Parliament and the Council (COM(2026)0555 – C100209/2026),

– 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 ("EGF(‘EGF Regulation"),Regulation’), as amended by Regulation (EU) 2026/1139,

– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027, as amended by Regulation (EU, Euratom) 2024/765, and in particular Article 8 thereof,

16. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020, the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Finland’s application and the Commission's proposal

On 19 May 2026 Finland submitted an application EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper for a financial contribution from the EGF, following 351 redundancies in the paper manufacturing sector in the regions of Etelä-Suomi and Helsinki-Uusimaa. This is the fourth such application of 2026, and the tenth to be examined under the 2026 budget.

Following the assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 8 September 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland for tailored measures to support the reintegration in the labour market of 351 targeted beneficiaries, i.e. workers in the paper manufacturing sector in the regions of Etelä-Suomi and Helsinki-Uusimaa made redundant. In total, EUR 1 102 560 will be mobilised from the EGF, representing 60 % of the total costs of the proposed actions.

The Commission deemed the Finnish application admissible under the intervention criteria of Article 4(2) (b) of the EGF Regulation, which requires the cessation of activity of at least 200 workers to be displaced over a reference period of six months in enterprises operating in the same economic sector defined at NACE Revision 2 division level and located in one region or two contiguous regions defined at NUTS 2 level in a Member State.

EGF co-funding has been requested for the following seven types of actions, to be provided to redundant workers:

a. Job search training and career coaching: The participants receive information about the support services available for jobseekers, and training to strengthen their pathway into the labour market. Their skills will be assessed by experts, with particular focus on digital skills. Job search activities and job coaching measures will be provided to identify new employment opportunities. The service is provided by both PES and external experts, and includes individual and group-based activities.

b. Vocational training: The training is either group-based or individual, based on the needs of the participant and the regional labour market. Each participant is provided with a personal competence development plan, so that the training can be tailored according to existing skills-sets and individual goals. It is also possible to obtain various certificates and licenses, such as the occupational safety card, hot work card, etc.

c. Start-up grant: The grant is intended for start-up and early-stage development costs to support workers who start a business or a self-employed activity. It is paid based on the actual costs incurred and cannot be allocated to salary expenses or personal livelihood of the individual. This measure is applied only in South Karelia.

d. Survey and AI solution for recruitment and skills needs: The South Karelia Employment Area will carry out an AI-based pilot to identify recruitment needs and skills demands in the regional labour market, enabling the matching of the target group with these needs, and finding skills gaps that can be addressed through training.

e. Pay subsidy: Pay subsidies lower the recruitment threshold by reducing the new employer’s payroll costs. The aim is to help the jobseekers find employment in the open labour market and to improve their professional skills. The amount of pay subsidy is generally 50 % of the payroll costs; the length of the subsidised period depends on the employment contract and the duration of the preceding unemployment period.

f. Mobility allowance: The allowance is intended to encourage taking-up work further away from home, by compensating for commuting and moving expenses.

g. Allowance towards business creation: To secure the livelihood of the workers during setting up business, a daily allowance of EUR 37,21, paid five days a week, will be granted for a maximum of 12 months. This measure is applied only in Lohja.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 1 102 560 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Development should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.

LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Finland — EGF/2026/004 FI/Etelä-Suomi and Helsinki-Uusimaa paper (2026/0254(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Employment and Social Affairs has been asked to submit an opinion to your committee and decided to send the opinion in the form of a letter.

The Committee on Employment and Social Affairs considered the matter, and, at its meeting of 1 October 2026, it decided to submit the opinion set out below to the Committee on Budgets, as the committee responsible.

Yours sincerely,

Li Andersson

OPINION

A. Whereas, on 19 May 2026, Finland submitted an application EGF/2026/004 FI/ Etelä-Suomi and Helsinki-Uusimaa paper for a financial contribution from the European Globalisation Adjustment Fund for Displaced Workers (EGF), following displacements in the paper industry in the NUTS 2 regions of Etelä-Suomi (FI1C) and Helsinki-Uusimaa (FI1B) in Finland; whereas the affected enterprises operate in the economic sector classified under the NACE Revision 2 Division 17 (Manufacture of paper and paper products),where the redundancies are located in the NUTS 2 regions of Etelä-Suomi (FI1C) and Helsinki-Uusimaa (FI1B);

B. Whereas Finland submitted the application under the intervention criteria of Article 4(2)(b) of Regulation (EU) 2021/691, which requires at least 200 workers to be displaced over a reference period of six months (in this case, from 1 October 2025 to 1 April 2026) in enterprises operating in the same economic sector defined at NACE Revision 2 division level and located in one region or two contiguous regions defined at NUTS 2 level in a Member State; whereas, following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met;

C. Whereas the total number of eligible beneficiaries is 351, whose activity has ceased in the economic sectors indicated above in the enterprises Metsä Group Oyj, Stora Enso Oyj, UPM Communication Papers Oy and SAPPI Finland Operations Oy;

D. Whereas on 8 September 2026 the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland to support the reintegration in the labour market of 351 targeted beneficiaries;

E. Whereas the forest industry in South Karelia, a sub-region of Etelä-Suomi located next to the Russian border, has experienced significant geopolitical and economic challenges leading to broad structural changes and substantial staff reductions; whereas, as the forest industry is vertically linked to the paper industry, by being its primary supplier of raw material, the same challenges spill-over to the intertwined paper industry; whereas, the paper industry itself has been experiencing severe challenges over the past years, mainly due to lower demand as digitalisation is replacing demand for print products; whereas, as the industry is energy-intensive, rising energy costs also pose a significant challenge; whereas on top of the general structural challenges the paper industry is facing, the closure of the border with Russia in 2023 had a major impact on the cost structure of paper factories operating in South Karelia; whereas the region had been particularly dependent on cross-border procurement chains, especially on wood imported from Russia; whereas, because of the geopolitical situation following Russia’s war of aggression against Ukraine, wood imports from Russia were sanctioned and imports thus ceased; whereas, as wood now had to be sourced from farther away and at a higher price, production costs in the pulp and paper industry rose sharply;

F. Whereas the paper companies responded to the situation by initiating so-called change negotiations, which are a statutory obligation in Finland for enterprises planning lay-offs or restructuring; whereas this led to temporary layoffs of up to 90 days in all major paper mills; whereas in autumn 2024, the first major wave of job displacements occurred when 100 jobs were cut at Stora Enso paper mill, in the city of Imatra;

G. Whereas the situation escalated in 2025, when import tariffs imposed by the United States not only resulted in a decline in competitiveness but also reshaped global value chains; whereas, in 2025, change negotiations in the paper producing companies continued, leading not only to temporary layoffs, but also to major staff reductions;

H. Whereas Finland has indicated that the co-ordinated package of personalised services has been drawn up in consultation with experts and social partners, in compliance with Article 7(4) of the EGF Regulation;

I. Whereas 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) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027;

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution:

1. Recalls that the objective of the EGF is to demonstrate solidarity with, and provide support to beneficiaries; considers that financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity; stresses the importance of preparing and supporting workers for the urgently needed green and digital transitions of the European economy and society; reiterates in this context the important role the Union plays, including through the EGF, in contributing to the financing of necessary qualifications for the just transition in line with the European Green Deal;

2. Agrees with the Commission that the conditions set out in the EGF Regulation are met and that Finland is entitled to a financial contribution of EUR 1 102 560 under that Regulation, which represents 60 % of the total cost of EUR 1 837 600, comprising budget for personalised services of EUR 1 769 600 and budget for implementing the EGF of EUR 68 000;

3. Notes the fact that Finland has provided all necessary assurances that the requirements laid down in national and EU legislation concerning collective redundancies have been complied with and that the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation;

4. Stresses that Finland has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

5. Recalls the profile of the redundant workers, where almost half of the dismissed workers are over 54 years old, and considers that, along with the pressures of the labour market, the workers will need additional tailored support, particularly targeted assistance focusing on upskilling and retraining, to help them succeed the transition to employment;

6. Notes that personalised services to be provided to the workers consist of the following measures: (a) job search training and career coaching, (b) vocational training, (c) start-up grant, (d) survey and AI solution for recruitment and skills needs, (e) pay subsidy, (f) mobility allowance, and (i) allowance towards business creation;

7. Stresses in particular the importance of Article 7(2) of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age; welcomes the fact the ICT training and additional support are foreseen within vocational guidance services and some of the trainings on offer and related allowances cater for the dissemination of the skills required in the digital industrial age and in a resource-efficient economy;

8. Recalls the possibility for special time-limited measures within the coordinated package including, inter alia, to pay childcare allowances, as provided in Article 7(2)(b) of the EGF regulation to facilitate job seekers’ participation in the activities proposed.