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

PA_LegEvaluation

BUDGETARY ASSESSMENT

for the Committee on Employment and Social Affairs 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

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

The Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

A. whereas the proposal aims to broaden the scope of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to also allow for support to workers affected by imminent job displacement;

B. whereas the proposal does not modify existing budgetary commitments and remains within the limits of the overall allocations for the period 2021-2027 and is therefore budget-neutral; whereas the Commission has not proposed a dedicated successor fund for the period 2028-2034;

C. whereas the proposal includes changes to the EGF mobilisation procedure that put an end to the regular involvement of the budgetary authority and therefore severely undermine its oversight role;

Conclusions of the budgetary assessment

1. Determines that the proposal is compatible with the MFF Regulation; notes that the proposed enlargement of the scope of support will be covered within the maximum amount set for this special instrument;

2. Recalls, however, that in the recent mid-term review of the MFF, the maximum amount available annually for the EGF had been substantially reduced from EUR 186 million to EUR 30 million; considers that the proposed broadening of the intervention criteria now carries a significant risk of exhausting this amount in a given year, potentially leading to a backlog of financing decisions; notes that the average take-up rate was only 63 % between 2021 and 2024; recalls that the total annual amount had not been used so far and therefore it was substantially reduced in the recent mid-term review of the MFF;

3. Notes that the proposed tripling of the maximum amount for technical assistance at the initiative of the Commission implies a further limitation of funds available for active labour market measures, while acknowledging that the amounts available for technical assistance were drastically reduced as a result of the reduction of the overall envelope in the mid-term review of the MFF; stresses that, rather than expanding administrative resources, focus should be put on simplifying and shortening the internal processes so as to reduce the burden on final beneficiaries and accelerate the delivery of support;

4. Notes that the proposal requires additional human resources of EUR 1 431 000 per year in 2025, 2026 and 2027, for six establishment plan posts and three external staff; notes that the additional needs will be covered by redeployment within the DG or other Commission services;

5. Notes additionally that, while the change to the mobilisation procedure could reduce the time between the application for assistance from the EGF and the financing decision by the Commission, the eligibility period for co-financed measures would at the same time become shorter in absolute terms; considers that the current six-week deadline for a decision by the budgetary authority is not detrimental to the swift provision of support; notes that, under Article 8(6) of Regulation (EU) 2021/691, the Commission has 50 working days from receipt of the complete application from the Member State to complete its analysis; highlights the fact that, in practice, the Commission frequently requires more than the 50 working days and that it should give priority to simplifying and shortening its internal processes when assessing and deciding on applications under this regulation; opposes any simplification that comes at the expense of institutional balance, in particular of the rights of Parliament as budgetary authority;

6. Determines that the proposal is compatible with the letter of the IIA; notes, however, that the aims of the IIA include the improvement of interinstitutional cooperation on budgetary matters; considers that the proposed drastic simplification of the mobilisation procedure runs counter to that goal and would change the nature of the EGF as a stand-alone thematic special instrument that is implemented with the close involvement of the budgetary authority;

7. Considers that the proposal is compatible with the budgetary principles laid down in the Financial Regulation; notes, nevertheless, a degree of contradiction, in terms of sound financial management, between the recent decrease of the maximum annual amount available for the EGF and the proposed broadening of the EGF’s scope;

Recommendations

8. Rejects the proposed change to the mobilisation procedure, and in particular the introduction of a single request for mobilisation of the maximum annual amount based on estimates by Member States for the support needed until the end of the year; proposes maintaining the practice of case-by-case mobilisation of the EGF on the basis of an assessment of the material conditions for support; stresses that Parliament’s role as budgetary authority must be fully preserved; stresses, furthermore, that any changes to the mobilisation procedure must ensure that Parliament retains its oversight and decision-making powers;

9. Considers that the additional reporting requirements related to the estimate of assistance needed in the following year constitute an unnecessary additional administrative burden for the Member States, with limited usefulness in terms of reliable evidence-based decision-making;

10. Requests that the Commission take the appropriate coordination measures to ensure that assistance to workers threatened by restructuring events is provided from the most appropriate support instrument, depending on the specific circumstances and the national or regional programme architecture, and to avoid any risk of duplication and overlap, in particular between the EGF and the European Social Fund Plus, and to ensure that the additional nature of the support from the EGF is not undermined in these cases either; regrets that the EGF remains administratively burdensome, which has discouraged some Member States from using it altogether; underlines, in this regard, the Commission’s own mid-term evaluation, which found that 16 Member States consider the EU-level procedure lengthy and complex, and stresses the importance of addressing this, given that in some cases this constitutes the only barrier to applying for EGF support.

AMENDMENTS

As part of its budgetary assessment, the Committee on Budgets also submits the following amendments to the proposal:

Amendment 1

Proposal for a regulation

Recital 17 a (new)

Text proposed by the Commission

Amendment

17a. This Regulation has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations.

Amendment 2

Proposal for a regulation

Article 1 – paragraph 1 – point 11 – point c

Regulation (EU) 2021/691

Article 13 – paragraph 3

Text proposed by the Commission

Amendment

3. Where, on the basis of the assessment carried out in accordance with Article 8 or Article 8a, the Commission concludes that the conditions for a financial contribution under this Regulation are met, it shall immediately adopt a decision on a financial contribution as set out in Article 15 (6).

3. Where, on the basis of the assessment carried out in accordance with Article 8 or Article 8a, the Commission concludes that the conditions for a financial contribution under this Regulation are met, it shall immediately initiate the procedure as set out in Article 15.

Amendment 3

Proposal for a regulation

Article 1 – paragraph 1 – point 13

Regulation (EU) 2021/691

Article 15 – paragraph 3

Text proposed by the Commission

Amendment

(13) Article 15 is replaced by the following:

(13) Article 15(3) is replaced by the following:

‘Article 15

3. The Commission proposal for a decision to mobilise the EGF shall include the assessment carried out in accordance with Article 8(6) or Article 8(a) (9), together with a summary of the information on which that assessment is based and the reasons justifying the amounts proposed in accordance with Article 13(1).

Budgetary procedure and implementation

‘1. To ensure that the assistance is provided as soon as possible to the eligible beneficiaries, the Commission shall submit a proposal to mobilise the EGF to the European Parliament and to the Council in accordance with paragraphs 2 or 3.

2. The Commission shall submit its proposal for a decision to mobilise the EGF to the European Parliament and the Council where it has received one application for EGF support and at least one of the following conditions is met:

a) The Commission assesses, following application or information received from the Member States, that one of the conditions set out in Article 4 paragraph 2, 3 or 4, is met;

b) The Commission is informed of the cessation of activities leading to job losses of more than 1 000 workers;

c) The Commission is informed of large-scale restructuring events with imminent displacement affecting more than 1 000 workers.

3. The Commission may request the full mobilisation of the maximum annual amount for the EGF by the end of February every year. The Commission proposal shall include the following elements, based on information provided by the Member States:

(i) the number of potential applications from each Member State concerned;

(ii) the sectors of activities concerned;

(iii) the estimated number of enterprises which could request Member States to apply for EGF assistance;

(iv) the estimated number of workers displaced or at risk of imminent job displacement.

At the same time as it submits its proposal for a decision to mobilise the EGF, the Commission shall submit to the European Parliament and to the Council a proposal for a transfer of the maximum annual amount to the relevant budgetary lines.

When the maximum annual amount has not been mobilised under the first subparagraph of this paragraph, the Commission shall request the mobilisation of the EGF per application received. The Commission proposal for a decision to mobilise the EGF per application shall include the assessment carried out in accordance with Article 8(6) or Article 8(a) (9), together with a summary of the information on which that assessment is based and the reasons justifying the amounts proposed. At the same time as it submits its proposal for a decision to mobilise the EGF, the Commission shall submit to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary lines.

4. Member States shall provide the Commission with the information referred to in paragraph 2 by the end of December each year.

5. The decision to mobilise the EGF shall be taken jointly by the European Parliament and the Council. The budgetary transfer in relation to the EGF shall be made in accordance with Article 31 of the Financial Regulation.

6. Where the Commission has concluded that the conditions for providing a financial contribution from the EGF under Article 4 are met, it shall adopt a decision on a financial contribution. That decision shall constitute a financing decision within the meaning of Article 110 of the Financial Regulation.

7. When the maximum annual amount has been mobilised pursuant to the first subparagraph of paragraph 3, the Commission shall inform the European Parliament and the Council immediately upon the adoption of each financial contribution decision.’

Amendment 4

Proposal for a regulation

Article 1 – paragraph 1 – point 14

Regulation (EU) 2021/691

Article 16

Text proposed by the Commission

Amendment

(14) Article 16 is replaced by the following:

deleted

‘Article 16

Insufficient funds

If the remaining commitment appropriations available in the EGF are not sufficient to cover the amount of assistance that is necessary for a financial contribution, the Commission may postpone the adoption of a financial contribution decision until commitment appropriations are available in the following year. The annual budgetary ceiling of the EGF shall be respected in all circumstances.’

ANNEX: DECLARATION OF INPUT

The Chair in his capacity as rapporteur for budgetary assessment declares under his exclusive responsibility that he did not include in his budgetary assessment input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR BUDGETARY ASSESSMENT

Title

Amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring

References

COM(2025)0140 – C10-0060/2025 – 2025/0073(COD)

Committee(s) responsible

Date announced in plenary

EMPL

5.5.2025

Budgetary assessment by

Date announced in plenary

BUDG

5.5.2025

Rapporteur for budgetary assessment

Date appointed

Johan Van Overtveldt

17.6.2025

Discussed in committee

24.6.2025

4.9.2025

Date adopted

23.9.2025

Result of final vote

+:

–:

0:

29

3

0

Members present for the final vote

Georgios Aftias, Rasmus Andresen, Isabel Benjumea Benjumea, Tomasz Buczek, Olivier Chastel, Angéline Furet, Jens Geier, Thomas Geisel, Jean-Marc Germain, Sandra Gómez López, Andrzej Halicki, Alexander Jungbluth, Fabienne Keller, Janusz Lewandowski, Giuseppe Lupo, Siegfried Mureşan, Jana Nagyová, Fernando Navarrete Rojas, Victor Negrescu, Matjaž Nemec, Danuše Nerudová, Karlo Ressler, Bogdan Rzońca, Julien Sanchez, Hélder Sousa Silva, Joachim Streit, Carla Tavares, Nils Ušakovs, Lucia Yar, Auke Zijlstra

Substitutes present for the final vote

Jüri Ratas, Annamária Vicsek

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR BUDGETARY ASSESSMENT

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