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REPORT (COM(2025)0140 – C100060/2025 – 2025/0073(COD))

On the Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring

A-10-2025-0251

Committee on Employment and Social Affairs · Rapporteur: Liesbet Sommen

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Parliament's amended version of the proposed regulation extends the European Globalisation Adjustment Fund (EGF) to support workers at risk of imminent job displacement in enterprises undergoing restructuring, including direct suppliers and downstream producers. It sets eligibility criteria, requires consultation with workers, caps support per application, reserves 40% of the annual budget for displaced workers, and adds reporting duties for enterprises.

Committee position. The Committee on Employment and Social Affairs proposes to amend the Commission proposal to extend EGF support to workers at risk of imminent displacement, with amendments on eligibility, consultation, and budget safeguards.

Key points

  1. The EGF shall support workers affected by imminent job displacement in enterprises undergoing restructuring, including direct suppliers and downstream producers, if the restructuring contributes to the twin digital and green transition and complies with Directive 98/59/EC.
  2. Applications must involve at least 200 affected workers, including those from direct suppliers or downstream producers; in small labour markets or for SMEs, criteria may be relaxed if duly substantiated.
  3. In exceptional circumstances, the relaxation for small labour markets may apply to other labour markets, but total contributions shall not exceed 15% of the annual EGF ceiling.
  4. Workers remain eligible for EGF support even if their employment ends, and can receive further support after termination.
  5. The coordinated package may include training, retraining, and other measures, but not short-time work schemes; it must supplement national measures or collective agreements.
  6. Enterprises must request EGF support within four weeks of notifying projected collective redundancies; Member States shall designate a Single Entry Point and provide guidance, especially for SMEs.
  7. The Commission shall assess applications within 30 working days, extendable by up to 20 working days with reasons; applications must use a standardised template and include consultation details.
  8. A minimum of 40% of the annual EGF amount is reserved for displaced workers; contributions for imminent displacement are capped at EUR 4 000 000 per application.
  9. The co-financing rate for measures for workers at risk of imminent displacement is 100%.
  10. Enterprises must report on beneficiaries' employment status and qualifications six months after implementation; beneficiary surveys must be distributed with reminders.

Who is affected

  • Workers in enterprises undergoing restructuring, including those in direct suppliers and downstream producers, gain access to EGF-funded training and support.
  • Enterprises undergoing restructuring must meet eligibility criteria, consult workers, and provide co-financing for their suppliers' workers.
  • Member States must designate Single Entry Points, provide guidance, and may submit collective applications for multiple enterprises.
  • Small and medium-sized enterprises receive enhanced technical support and relaxed eligibility criteria in small labour markets.

Figures and deadlines

  • At least 200 workers affected by imminent job displacement are required for an application.
  • Aggregated contributions in exceptional cases shall not exceed 15% of the annual EGF ceiling.
  • Enterprises must request support within four weeks of notifying redundancies.
  • The Commission has 30 working days to assess applications, extendable by up to 20 working days.
  • A minimum of 40% of the annual EGF amount is reserved for displaced workers.
  • Financial contributions for imminent displacement are capped at EUR 4 000 000 per application.
  • The co-financing rate for measures for workers at risk is 100%.

Legal basis: Article 294(2) and Article 175 of the Treaty on the Functioning of the European Union