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REPORT (COM(2026)0010 – C100026/2026 – 2026/0037(BUD))

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 Austria – EGF/2025/005 AT/KTM

A-10-2026-0060

Committee on Budgets · Rapporteur: Janusz Lewandowski

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Parliament approves the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers with EUR 1 806 624 for Austria following 1 488 displacements at KTM, supporting 420 targeted beneficiaries with personalised services. The resolution notes the insolvency of KTM, the largest in Upper Austria, and the offshoring of production to China and India, which led to job losses and a rise in regional unemployment. It stresses that EGF support must not replace company responsibilities and calls for visibility of Union funding, thorough evaluations, and a proactive industrial policy to prevent closures.

Committee position. The Committee on Budgets approves the Commission proposal to mobilise the EGF for Austria, as annexed to the resolution.

Key points

  1. Agrees that Austria meets the EGF intervention criteria and is entitled to EUR 1 806 624, 60% of total costs of EUR 3 011 040.
  2. Notes the application timeline: submitted 15 September 2025, Commission finalised assessment on 6 February 2026, notified to Parliament on 11 February 2026.
  3. Notes 1 488 workers affected by KTM insolvency, with 420 targeted beneficiaries expected to participate in measures.
  4. Regrets that KTM's parent company moved production to China and India in December 2023, leading to initial dismissals and subsequent layoffs.
  5. Notes that over 750 additional employees were made redundant during KTM's first production shutdown in 2025, and that investor Bajaj Auto ensured continuation on 22 May 2025.
  6. Notes that unemployment in the Braunau district rose by 37.1% in November 2024 and reached an all-time high in 2025.
  7. Recalls that personalised services include case management, career guidance, training, job-search, and training allowances, stressing cooperation with regional businesses.
  8. Stresses that EGF cannot replace proactive industrial policy and calls for support tailored to low-educated workers and measures to reduce bankruptcies.
  9. Calls for visibility of Union funding and thorough final evaluations of measures.
  10. Notes that Austria started providing services on 1 March 2025, with eligibility period from that date until 24 and 31 months after the financing decision's entry into force.
  11. Notes assurances of equality, non-discrimination, and prevention of double financing.
  12. Reiterates that EGF assistance must not replace company responsibilities under national law or collective agreements.

Who is affected

  • Displaced workers from KTM in Upper Austria, with 420 targeted beneficiaries receiving personalised services.
  • KTM and its parent company Pierer Mobility AG, which faced insolvency and offshoring decisions.
  • The Braunau district in Upper Austria, affected by high unemployment.

Figures and deadlines

  • EUR 1 806 624 financial contribution, 60% of total cost of EUR 3 011 040.
  • 1 488 displacements, with 233 in reference period and 1 255 before or after.
  • 420 targeted beneficiaries expected to participate.
  • 37.1% rise in unemployment in Braunau district in November 2024.
  • 1 March 2025 start date for services; eligibility period 24 and 31 months after financing decision.

Legal basis: Article 8 of Council Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for 2021-2027.