What changed

D. whereas the operational costs of the Finnish paper industry have been rising for the past years due to geopolitical and economic challenges in raw material supply, high energy and manufacturing costs compared with global competitors, growing trade tensions and increasing regulatory and administrative burdens and lower demand due to digitalisation; whereas, the closing of the border and sanctions against Russia due to its war of aggression against Ukraine resulted in the cessation of imports of Russian wood , which had a significant impact on the region of South Karelia, pushing sourcing of raw materials farther and at higher cost; whereas this led to significant waves of job displacements in the past two years; whereas these structural pressures call for a coordinated Union industrial policy response, including support for the diversification of raw material sourcing, rather than relying on the EGF as a stand-alone remedy;

G. 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 the labour marketmarket, through access to decent, secure and sustainable employment or support their career transitions while offering them skills training to facilitate their reintegration and develop and strengthen digital skills;

H. whereas the use of the EGF remains geographically unevenly distributed across the Union with several Member States having never submitted applications for the use of the EGF;

4. Draws attention to the strong manufacturing base of the South Karelia region and the significant focus on the forest industry and its spillover effects on supply and service chains; highlights that the job displacements related to the paper manufacturing sector risk worsening a situation of structural and prolonged unemployment, above all for workers with manufacturing background; stresses, in this context, the importance of maintaining a strong and competitive European manufacturing base that safeguards and creates quality, sustainable jobs, and creating the conditions for companies to adapt to structural change, invest and remain competitive; recognises the need for considerable reskilling and retraining, in region of South Karelia where the unemployment rate is already above national average; highlights that the Union’s dependency on imported fossil fuels and lack of energy sovereignty contributed to energy-price shocks, with high energy costs weighing on the Union competitiveness; calls, therefore, for deployment of cheaper Union energy sources;

5. Notes that short of 90 % of the displaced workers are men and half are aged over 54, hence facing greater barriers to re-entering the labour market; calls on the Finnish authorities to take measures to address social disparities and structural barriers leading to exclusion of work force and to provide support tailored to the specific needs and profiles of the workers concerned, such as age gender and educational background; calls for these measures to be tailored to the specific needs of older workers and workers with a manufacturing background, in order to support their rapid reintegration into decentdecent, secure and sustainable employment within or outside their initial sector of activity;

6. Recalls that, in agreementconsultation with experts, regional stakeholders and social partners, the co-ordinated package of personalised services to be provided to the displaced workers consist of the following measures:measures in order to prevent long-term unemployment including for older workers: job-search training and career coaching;coaching, vocational training;training, self-employment grants and allowances;allowances, AI-based pilot project on recruitment needs;needs, pay subsidies;subsidies, mobility allowance; stresses that social partners should be involved throughout the entire implementation of the EGF measures, including the monitoring phase, to ensure the quality and relevance of the support offered to beneficiaries;

7. Stresses that the Finnish and regional authorities shall ensure the visibility of the Union funding and highlight its added value by providing effectiveeffective, clear, timely and targeted information to beneficiaries, regional and local authorities, social partners, and the wider public;public to strengthen citizens’ confidence in the European project and in the Union’s capacity to protect workers during economic transitions;

8. Recalls that the EGF is an instrument of solidarity and just transition, and while it provides support following job losses, demonstrating that the Union stands with workers and communities affected by major economic and structural change, it cannot replace a proactive industrial policy; considers that the mobilisation of the EGF needs to be embedded in a larger policy response on all political levels to ensure that the workers affected find adequate opportunities in line with their qualifications and skills; underlines the need to provide specific support tailored to the needs and profiles of workers with lower levels of education, while taking measures to reduce bankruptcies and address social disparities leading to exclusion from the workforce;

10. Reiterates that assistance from the EGF must not replace actions that are the responsibility of public authorities or companies under national law or collective agreements; recalls that the EGF is a limited, targeted and complementary mechanism and cannot replace structural economic policies that sustain economic growth, promote a business-friendly environment, and protect Union enterprises, economic operators and their workers;

11. Notes that the Finnish authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the proposed actions and their implementation, and that any double financing will be prevented;

12. Reiterates that assistance from the EGF must not replace actions that are the responsibility of public authorities or companies under national law or collective agreements; recalls that the EGF is a limited, targeted and complementary mechanism and cannot replace structural economic and social policies that contribute to a sustainable economic growth, that promote a stable, predictable and innovation-friendly business environment, and protect Union enterprises, economic operators and their workers;

13. Underlines that traditional industrial sectors continue to play an important role in the Union’s industrial base and provide employment to a significant number of workers across Member States, despite increasing pressure from structural transformation, technological developments and global competition; stresses the importance of accompanying these changes with investment in workers’ skills; calls on the Commission to ensure that existing and future Union instruments, including the EGF, are used in a targeted and complementary manner to support workers affected by restructuring and transitions across industrial value chains;