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11.11.2025

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

Mr Johan Van Overtveldt

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 Sweden – EGF/2025/003 SE/Northvolt

Chair

(COM(2025)0621 – C10 0270/2025 – 2025/0326(BUD))

Committee on Budgets

– having regard to the Commission proposal to the European Parliament and the Council (COM(2025)0621 – C100270/2025),

BRUSSELS

–Subject: havingOpinion regardon toProposal Regulationfor (EU)a 2021/691decision of the European Parliament and of the Council of 28on Aprilthe 2021mobilisation onof the European Globalisation Adjustment Fund for Displaced Workers (EGF)following andan repealingapplication Regulationfrom (EU)Sweden No– 1309/2013EGF/2025/003 ("EGFSE/Northvolt Regulation"),(2025/0326(BUD))

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

Dear Mr Chair,

– 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, and in particular point 9 thereof,

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 havingCommittee regardon Employment and Social Affairs considered the matter at its meeting of 11 November 2025. At that meeting, it decided to submit the opinion ofset out below to the Committee on EmploymentBudgets, andas Socialthe Affairs,committee responsible.

– having regard to the report of the Committee on Budgets (A100000/2025),

Yours sincerely,

A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis, and to assist their reintegration into the labour market; whereas this assistance is made through a financial support given to workers and the companies for which they worked;

Li Andersson

B. whereas Sweden submitted application EGF/2025/003 SE/Northvolt for a financial contribution from the European Globalisation Adjustment Fund (EGF), following 6 486 displacements in the economic sector classified under the NACE Revision 2 division 71 (Architectural and engineering activities; technical testing and analysis) in the regions of Övre Norrland (SE33), Stockholm (SE11) and Östra Mellansverige (SE12) with 5 829 displacements within a reference period for the application from 28 November 2024 to 28 March 2025, and 657 displacements before or after the reference period;

OPINION

C. whereas, during the reference period covered by the application, a total of 5 829 displacements were identified, comprising 5 561 displaced workers whose activity ceased in Northvolt AB (Northvolt) and its subsidiaries, and 268 displaced workers in 8 suppliers and downstream producers of Northvolt;

A. Whereas, on 16 June 2025, Sweden submitted an application to mobilise the European Globalisation Adjustment Fund for Displaced Workers (EGF) in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers’ displacements in Northvolt (Northvolt AB) and its subsidiaries as well as in 13 subcontractors, suppliers and downstream producers in Sweden; whereas it was supplemented by additional information provided in accordance with Article 8(5) of the EGF Regulation; whereas the primary enterprise operated in the economic sectors classified under the NACE Revision 2 divisions 71 (Architectural and engineering activities; technical testing and analysis); whereas the redundancies made by Northvolt are mainly located in the NUTS 2 regions of Övre Norrland (SE33), Stockholm (SE11), and Östra Mellansverige (SE12);

D.B. whereasWhereas theSweden applicationsubmitted isthe basedapplication onunder the intervention criteria of Article 4(2), point (a), of theRegulation EGF(EU) Regulation;whereas2021/691, forwhich requires the additionalcessation 657of displacementsactivity whoseof activityat ceasedleast before200 ordisplaced afterworkers theover four-montha reference period,period of four months in an enterprise in a clearMember causalState, linkincluding canworkers bedisplaced establishedin withsuppliers theand eventdownstream thatproducers triggeredand the/ cessationor ofself-employed persons whose activity forhas theceased; displacedwhereas, workersfollowing duringits assessment of this application, the referenceCommission periodhas asconcluded, requiredin byaccordance Articlewith 6(2)all applicable provisions of the EGF Regulation;Regulation, that the conditions for awarding a financial contribution from the EGF are met;

E. whereas Northvolt was specialised in architectural and engineering activities, technical testing and battery manufacturing; whereas the company filed for bankruptcy on 12 March 2025 due to production-related difficulties, in particular as a result of an oversupply caused by intense competition from imports originating mainly from China, which dominates the global market accounting for more than 80 % of global battery production;

C. Whereas the application relates to 5 829 displaced workers whose activity has ceased in Northvolt (Northvolt AB) and its subsidiaries, as well as in 8 subcontractors, suppliers, and dowstream producers, within the reference period of four months that runs from 28 November 2024 to 28 March 2025; whereas, in addition to these workers, the eligible beneficiaries also include 657 displaced workers whose activity ceased before or after the reference period; whereas the total number of eligible beneficiaries is 6 486;

F. whereas Europe needs a strong and competitive battery industry to reduce harmful strategic dependencies and strengthen its industrial autonomy, as well as to achieve its climate and energy transition targets; whereas the batteries and supplier industry is facing high energy and capital costs, production delays, global market distortions, as well as increasing competitive pressure from third-country producers, particularly China;

D. Whereas on 28 October 2025, the Commission submitted a proposal for a decision on the mobilisation of the EGF in favour of Sweden to support the reintegration in the labour market of 5 800 targeted beneficiaries to the Parliament and the Council;

G. whereas the Arbetsförmedlingen (Swedish Public Employment Service) is providing the national pre-financing and co-funding of the measures;

E. Whereas the event giving rise to these displacements is a major restructuring event concerning Northvolt AB, followed by the bankruptcy of the enterprise on 12 March 2025; whereas in an attempt to establish a European battery industry to reduce dependence on Chinese manufacturers, Northvolt AB was founded by private investors in 2016; whereas a battery factory, called Northvolt Ett, was opend in the municipality of Skellefteå in June 2022, and Northvolt Labs was established as a research campus in the municipality of Västerås; whereas Northvolt Ett had been set-up with the aim to manufacture lithium-ion batteries for electric cars and for storing energy;

H. whereas the requirements laid down in Union and national legislation concerning collective redundancies have been complied with;

F. whereas, however, severe problems in the production process quickly became apparent and during 2023, production in Northvolt Ett was only reaching 0,5 % of its initially planned capacity; whereas due to these delays, major clients of Northvolt saw themselves forced to cancel their orders; whereas, at the same time, Chinese battery producers sold batteries at half price compared to Northvolt, due to state subsidies; whereas as a consequence of the Chinese dominance, and in an effort to be independent from Chinese producers, many world economies also heavily subsidised their own battery production leading to a tremendous oversupply of batteries, with Chinese producers alone capable to meet global demand;

I. whereas 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, while preparing them for a greener and more digital European economy;

G. Whereas, on 7 August 2025, Lyten, an American start-up company, announced the intention to take over Northvolt's battery production; whereas this transaction is currently under approval by the Swedish authorities; whereas it is currently unclear when production could start again and how many workers could be rehired;

J. whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Regulation (EU, Euratom) 2020/2093 as amended by Council Regulation (EU, Euratom) 2024/765;

H. Whereas Northvolt’s bankruptcy is the largest bankruptcy in Sweden in modern times; whereas, however, the Swedish authorities expect no major impact in the cities of Västerås and Stockholm, while, with more than 5 000 job displacements, the impact on the city of Skellefteå (population of 36 000 in the city and 77 000 in the municipality) is severe as evidenced by the sharp rise in the unemployment rate from 2.9 % to 8.2 % following Northvolt’s bankruptcy; whereas, therefore, the Swedish authorities decided to focus the EGF assistance on Skellefteå, while the workforce in Västerås and Stockholm will be informed about the possibility of EGF measures, and assistance will be granted upon request;

1. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Sweden is entitled to a financial contribution of EUR 8 526 322 under that Regulation, which represents 60 % of the total cost of EUR 14 210 537, comprising expenditure for personalised services of EUR 13 663 977 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 546 560;

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) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 amended by Council Regulation (EU, Euratom) 2024/765 of 29 February 2024.

2. Notes that the Swedish authorities submitted the application on 16 June 2025, and that, following the provision of additional information by Sweden, the Commission finalised its assessment on 28 October 2025, more than four months later, and notified it to Parliament on the same day; stresses the importance of significantly shortening the time of consideration between the submission of an application for EGF assistance and the financing decision, in order to ensure that the financial support can be mobilised without delay; underlines the need to simplify and accelerate internal procedures, while fully safeguarding the institutional balance, in particular the rights of the European Parliament as budgetary authority;

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:

3. Notes that the application relates to 6 486 displaced workers affected by a major restructuring event concerning Northvolt, which led to the largest bankruptcy in Sweden in modern times; notes further that 5 800 displaced workers in total will be targeted beneficiaries and are expected to participate in the measures;

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;

4. Takes note that, the significance of job displacements in the city of Skellefteå is severe, with unemployment rate reaching 8,2% over the previous year; takes note that most of the displaced workers have high levels of education and are less than 54 years old; with specialised skills in the field of battery production and engineering stresses that swift action is needed to prevent structural regional decline and emphasises the importance of fostering high-quality, future-oriented jobs to ensure long-term economic and social resilience;

2. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Sweden is entitled to a financial contribution of EUR 8 526 322 under the EGF Regulation, which represents 60 % of the total cost of EUR 14 210 537, comprising expenditure for personalised services of EUR 13 663 977 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 546 560;

5. Notes that as of August 2025 the American start-up Lyten, global leader in lithium-sulfur batteries, has entered into a binding agreement to acquire Northvolt’s remaining assets in Sweden, Germany and Poland by the end of 2025, and is planning to rehire the laid-off workforce taking into account the ability to offer them equivalent positions in the region;

3. Is concerned that any delay with regard to supporting workers to find new employment could result in a brain-drain with severe effects on the region, as many workers had moved to Skellefteå in the north of Sweden only for the job at Northvolt; recalls that 29% of the targeted beneficiaries are below 30 years and 68% are between 30 and 54 years old while 64% of them have a tertiary education; highlights, moreover, that 40% of the Northvolt’s workforce were third-country nationals, whose work and residence permits are dependent on their employment;

6. Recalls that, in agreement with trade unions and social partners, personalised services to be provided to all workers consist of the following actions: in-depth assessment and individual planning, job-search activities and coaching, support for starting own business and investment support, labour market training, training courses, special support to enter labour market or pursue education, allowances and digital skills trainings;

4. Welcomes the fact that Sweden has indicated that the coordinated package of personalised services has been drawn up in consultation with worker’s representatives and the social partners, in compliance with Article 7(4) of the EGF Regulation;

7. Calls for thorough final evaluations of the measures implemented, including clear information on how the funds have been used and whether they were spent in line with the approved plans, in particular in cases of direct financial support such as start-up and investment support; further requests data on the number of workers successfully reintegrated into employment and those who have completed training and upskilling measures;

5. Notes that personalised services to be provided to the workers consist of the following measures: (a) in-depth assessment and individual planning, (b) job-search activities and coaching, (c) support for starting own business, (d) start-up investment support (jobseekers who start their own company will have the opportunity to apply for specific investment support of up to EUR 22 000), (e) labour market training, (f) training courses within the regular education system, (g) Steps to Work (a measure geared at particularly vulnerable beneficiaries that might need special support to access the labour market or pursue education), and (h) allowances (allowance for internships, allowances for those preparing to launch one’s own business, an activity allowance for those actively participating in the training measures offered, a mobility allowance paid to cover travel and removal expenses if new employment is found in another region, travel expenses for the participation in out-of-town job interviews);

8. Notes that Sweden started providing both personalised services to the targeted beneficiaries and incurring administrative expenditure to implement the EGF on 25 October 2024 and that the period of eligibility for a financial contribution from the EGF will therefore be from that date until 24 months and until 31 months after the date of the entry into force of the financing decision, respectively;

6. 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; course content includes areas such as programmable logic controller (PLC), industrial automation, digital production management, energy-efficient technology and basic programming;

9. Stresses that the Swedish authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, and that any double financing will be prevented;

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

10. Reiterates that assistance from the EGF must not replace actions that are the responsibility of companies, by virtue of national law or collective agreements;

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.

11. Stresses the urgent need for coherent and coordinated Union’s competitiveness efforts, developed in close partnership with the Member States, in order to safeguard Europe’s future-proof industrial employment base that responds to the requirements of European industrial autonomy and strengthens the Union’s position in strategic sectors, such as the batteries and supplier industry, while advancing the Union’s green and digital objectives; underlines that only a robust and resilient European economy can effectively prevent large-scale redundancies, thereby reducing the need for EGF intervention in the first place; emphasises the need to ensure clear recognition and visibility of Union funding to highlight its added value; calls for consistent and well-targeted communication to beneficiaries, regional and local authorities, social partners, the media, and the wider public;

12. Approves the decision annexed to this resolution;

13. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

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

ANNEX: 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 Sweden – EGF/2025/003 SE/Northvolt

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, 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, 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 amended by Council Regulation (EU, Euratom) 2024/765, and Article 16 of Regulation (EU) 2021/691.

(3) On 16 June 2025, Sweden submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers’ displacements in Northvolt (Northvolt AB) and its subsidiaries as well as in 13 subcontractors, suppliers and dowstream producers in Sweden. 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.

(4) The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 8 526 322 in respect of the application submitted by Sweden.

(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 2025, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 8 526 322 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]*.

Done at Brussels,

For the European Parliament For the Council

The President The President

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. Sweden’s application and the Commission's proposal

On 16 June 2025, Sweden submitted an application EGF/2025/003 SE/Northvolt for a financial contribution from the EGF, following 6 486 redundancies at the company Northvolt AB. This is the third such application of 2025, and the fourth to be examined under the 2025 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 28 October 2025, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Sweden for tailored measures to support the reintegration in the labour market of 5 800 targeted beneficiaries, i.e. workers from Northvolt and subcontractors, suppliers and downstream producers made redundant. In total, EUR 8 526 322 will be mobilised from the EGF for Northvolt, representing 60 % of the total costs of the proposed actions.

The Commission deemed the Swedish application admissible under the intervention criteria of Article 4(2) (a) of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months, in an enterprise in a Member State, including workers displaced in suppliers and downstream.

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

(a) In-depth assessment and individual planning: This measure is the core of the individual job search assistance. It covers in-depth sessions with an individual coach.

(b) Job-search activities and coaching: Both individual and group measures are offered, and cover coaching for individual contact sessions with potential employers, workshops, or motivational talks. Private service providers procured by the Public Employment Service offer individualised, comprehensive support in assessing a person’s skills, and in finding employment.

(c) Support for starting own business: Trainings offered by an external consultant to those interested in starting their own business.

(d) Start-up investment support: Jobseekers who start their own company will have the opportunity to apply for specific investment support of up to EUR 22 000. This may be used towards initial investments and equipment, business development costs, digital solutions and marketing.

(e) Labour market training: Short, practical vocational training sessions offered by the Public Employment Service which are targeted at jobseekers and aim to match skills in shortage occupations and meet current employment needs in the labour market. This may include the use of micro-credentials for the recognition of the learning acquired.

(f) Training courses within the regular education system: These courses are courses of at least two years, offered by training institutes or the higher education system. These courses would normally not be accessible to jobseekers. Courses can be adapted to individual needs, in particular to those without knowledge of the Swedish language.

(g) Steps to Work: This measure is geared at particularly vulnerable beneficiaries that might need special support to access the labour market or pursue education.

(h) Allowances: An allowance is paid to those doing an internship or preparing to launch their own business. An activity allowance is paid to those actively participating in the training measures offered. A mobility allowance is paid to cover travel and removal expenses if new employment is found in another region. Travel expenses for the participation in out-of-town job interviews can be reimbursed.

(i) Digital and green skills: These measures cater 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. The coordinated measures were designed in line with the skills needs resulting from the digital industrial age and the transition to a more resource-efficient economy. The measures also include the validation of previous experience.

Sweden has provided the required information on actions that are mandatory for the enterprise concerned by virtue of national law or pursuant to collective agreements. They confirmed that a financial contribution from the EGF would not replace such actions.

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 8 526 322 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.