Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Austria - EGF/2025/005 AT/KTM

AM_Com_NonLegReport

Amendment 1

Matjaž Nemec

Motion for a resolution

Recital D

Motion for a resolution

Amendment

D. whereas KTM filed for insolvency on 29 November 2024 and a restructuring plan has been approved on 25 February 2025;

D. whereas KTM filed for insolvency on 29 November 2024 and a restructuring plan has been approved on 25 February 2025; whereas certain decisions by the company's management taken in the years prior the insolvency were neither financially sound nor in line with the principles of good corporate governance, particularly the distribution of dividends in 2021 and 2024 despite the company’s ongoing financial difficulties; whereas such actions are particularly reprehensible given that the company was a recipient of public state aid during the Covid-19 pandemic;

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Amendment 2

Angéline Furet

Motion for a resolution

Recital G

Motion for a resolution

Amendment

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 decent and sustainable employment, while preparing them for a greener and more digital European economy;

G. whereas the financial contributions from the EGF should be primarily directed towards active labour market measures and personalised services aimed at the rapid reintegration of beneficiaries into decent and sustainable employment, while preparing them for a more digital and competitive European economy that protects workers;

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Amendment 3

Isabel Benjumea Benjumea

Motion for a resolution

Recital G

Motion for a resolution

Amendment

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 decent and sustainable employment, while preparing them for a greener and more digital European economy;

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 market, while offering them skills training to facilitate their access to the labour market;

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Amendment 4

Isabel Benjumea Benjumea

Motion for a resolution

Recital H a (new)

Motion for a resolution

Amendment

H a. whereas recent relocations of manufacturing activities outside the Union highlight the need to strengthen the competitiveness and resilience of European industry in the global market;

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Amendment 5

Alexander Jungbluth

Motion for a resolution

Paragraph 1

Motion for a resolution

Amendment

1. Agrees with the Commission that the conditions set out in the EGF Regulation and in particular in Article 4(2), point (a) thereof are met and that Austria is entitled to a financial contribution of EUR 1 806 624 under that Regulation, which represents 60 % of the total cost of EUR 3 011 040, comprising expenditure for personalised services of EUR 2 895 120 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 115 920;

1. Considers that labour market and restructuring policies fall primarily within the competence of the Member States in accordance with the principle of subsidiarity as laid down in Article 5 TEU; considers therefore that the mobilisation of the European Globalisation Adjustment Fund (EGF) is not justified;

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Amendment 6

Matjaž Nemec

Motion for a resolution

Paragraph 2

Motion for a resolution

Amendment

2. Notes that the Austrian authorities submitted the application on 15 September 2025, and that, following the receipt of additional information by Austria, the Commission finalised its assessment on 6 February 2026 and notified it to Parliament on 11 February 2026; stresses the importance of shortening the time between the submission of an application for EGF assistance and the financing decision, while fully safeguarding the rights of the European Parliament as one arm of the budgetary authority;

2. Notes that the Austrian authorities submitted the application on 15 September 2025, and that, following the receipt of additional information by Austria, the Commission finalised its assessment on 6 February 2026 and notified it to Parliament on 11 February 2026; stresses the importance of shortening the time between the submission of an application for EGF assistance and the financing decision, while fully safeguarding the rights of the European Parliament as one arm of the budgetary authority; stresses the importance of shortening the time between the submission of an application for EGF assistance and the financing decision, while fully safeguarding the rights of the European Parliament as one arm of the budgetary authority;

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Amendment 7

Nicolae Ștefănuță

Motion for a resolution

Paragraph 4

Motion for a resolution

Amendment

4. Notes that KTM was the largest motorcycle producer of the Union and the largest subsidiary of Pierer Mobility AG; regrets that the parent company decided to move production to China and India in December 2023 due to unfair competitive conditions; notes that this led to an initial dismissal of 300 jobs and that subsequent sales losses prompted KTM to implement cost reductions, including the layoffs of over 500 employees during 2024;

4. Notes that KTM was the largest motorcycle producer of the Union and the largest subsidiary of Pierer Mobility AG; regrets that the parent company decided to move production to China and India in December 2023 due to unfair competitive conditions; regrets that while one of the main reasons for moving to China and India was lower labour costs in these countries, the parent company did not excercise available options with lower labour costs within the Union, which would make possible the relocation of some workers made redundant benefitting from the freedom of movement for workers; notes that this led to an initial dismissal of 300 jobs and that subsequent sales losses prompted KTM to implement cost reductions, including the layoffs of over 500 employees during 2024;

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Amendment 8

Alexander Jungbluth

Motion for a resolution

Paragraph 4

Motion for a resolution

Amendment

4. Notes that KTM was the largest motorcycle producer of the Union and the largest subsidiary of Pierer Mobility AG; regrets that the parent company decided to move production to China and India in December 2023 due to unfair competitive conditions; notes that this led to an initial dismissal of 300 jobs and that subsequent sales losses prompted KTM to implement cost reductions, including the layoffs of over 500 employees during 2024;

4. Notes that KTM was the largest motorcycle producer of the Union and the largest subsidiary of Pierer Mobility AG; regrets that the parent company decided to move production to China and India in December 2023 citing strategic corporate restructuring decisions; notes that this led to an initial dismissal of 300 jobs and that subsequent sales losses prompted KTM to implement cost reductions, including the layoffs of over 500 employees during 2024;

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Amendment 9

Angéline Furet

Motion for a resolution

Paragraph 5

Motion for a resolution

Amendment

5. Notes that the parent company had to start a restructuring process and that, during KTM’s first production shutdown in 2025, over 750 additional employees were made redundant; notes that the investor Bajaj Auto International Holdings B.V. provided the necessary resources to ensure the continuation of KTM on 22 May 2025, avoiding KTM’s bankruptcy, and allowing production to resume in July 2025 while curbing spending;

5. Notes that the parent company had to start a restructuring process and that, during KTM’s first production shutdown in 2025, over 750 additional employees were made redundant; notes that the investor Bajaj Auto International Holdings B.V. provided the necessary resources to ensure the continuation of KTM on 22 May 2025, avoiding KTM’s bankruptcy, and allowing production to resume in July 2025 while curbing spending; stresses that, while the European Globalisation Adjustment Fund provides essential support to workers affected by restructuring, the repeated mobilisation of EU funds following strategic decisions taken by parent companies based outside the EU raises serious concerns about industrial sovereignty and corporate responsibility; calls on the Commission to assess ways of preventing decisions taken outside the European Union from leading to the systematic socialisation of social and economic costs borne by European taxpayers; recalls that access to the single market should be accompanied by stricter requirements in terms of social and territorial responsibility on the part of the groups concerned;

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Amendment 10

Alexander Jungbluth

Motion for a resolution

Paragraph 6

Motion for a resolution

Amendment

6. Notes that KTM was once one of the most successful motorcycles brands in Europe, a significant employer and critical economic pillar of many suppliers in the district of Braunau in Upper Austria; notes that, consequently, unemployment in the district rose by 37.1 % in November 2024, compared to the same month of the previous year; notes that unemployment reached all-time high in the Braunau district in 2025;

6. Notes that KTM was once one of the most successful motorcycles brands in Europe, a significant employer and critical economic pillar of many suppliers in the district of Braunau in Upper Austria; notes that, consequently, unemployment in the district rose by 37.1 % in November 2024, compared to the same month of the previous year; notes that unemployment reached all-time high in the Braunau district in 2025; stresses that long-term regional employment stability depends primarily on competitive national economic policies, innovation and investment conditions rather than on temporary Union financial support;

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Amendment 11

Isabel Benjumea Benjumea

Motion for a resolution

Paragraph 7

Motion for a resolution

Amendment

7. Recalls that, in agreement with social partners, personalised services to be provided to the workers consist of the following measures: case management; career guidance and orientation; training and retraining; pro-active job-search; training allowances; emphasises the importance of fostering high-quality, future-oriented jobs to ensure long-term economic and social resilience;

7. Recalls that, in agreement with social partners, personalised services to be provided to the workers consist of the following measures: case management; career guidance and orientation; training and retraining; pro-active job-search; training allowances; emphasises the importance of fostering high-quality, future-oriented jobs to ensure long-term economic and social resilience; stresses the importance of close cooperation with regional businesses and employers to ensure that training and requalification programmes respond to concrete labour market needs and facilitate the rapid reintegration of displaced workers;

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Amendment 12

Alexander Jungbluth

Motion for a resolution

Paragraph 7

Motion for a resolution

Amendment

7. Recalls that, in agreement with social partners, personalised services to be provided to the workers consist of the following measures: case management; career guidance and orientation; training and retraining; pro-active job-search; training allowances; emphasises the importance of fostering high-quality, future-oriented jobs to ensure long-term economic and social resilience;

7. Recalls that, in agreement with social partners, personalised services to be provided to the workers consist of the following measures: case management; career guidance and orientation; training and retraining; pro-active job-search; training allowances; emphasises the importance of fostering high-quality, future-oriented jobs to ensure long-term economic and social resilience; recalls that similar measures may be financed through national instruments or the European Social Fund Plus (ESF+), and stresses the need to avoid duplication and ensure efficient use of Union funds;

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Amendment 13

Matjaž Nemec

Motion for a resolution

Paragraph 7 a (new)

Motion for a resolution

Amendment

7 a. Recalls that the EGF is an instrument of solidarity and just transition and while it provides support following job losses, it cannot replace a proactive industrial policy; stresses that the Union’s primary task must be to prevent such closures in the first place, by creating the conditions to keep industrial production competitive, while at the same time investing in skills for both highly qualified and industrial workers; underlines the need to provide specific support tailored to profiles of workers with low-levels of education, while taking measures to reduce bankruptcies and address social disparities leading to exclusion from the workforce;

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Amendment 14

Isabel Benjumea Benjumea

Motion for a resolution

Paragraph 7 a (new)

Motion for a resolution

Amendment

7 a. Highlights the importance of an impact evaluation of this fund and the measures associated with it, in order to assess whether they have actually achieved the objectives for which it was created, including an assessment of the affected workers and the jobs they have accessed, as well as the timelines involved;

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Amendment 15

Alexander Jungbluth

Motion for a resolution

Paragraph 8

Motion for a resolution

Amendment

8. Stresses that the Austrian authorities shall ensure the visibility of the Union funding and highlight its added value by providing effective and targeted information to beneficiaries, regional and local authorities, social partners, and the wider public;

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Amendment 16

Alexander Jungbluth

Motion for a resolution

Paragraph 9

Motion for a resolution

Amendment

9. 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;

9. Calls for a comprehensive and independent cost-effectiveness assessment of the EGF, including an evaluation of reintegration rates, administrative expenditure and long-term employment outcomes before any further mobilisation of the Fund;

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Amendment 17

Angéline Furet

Motion for a resolution

Paragraph 12

Motion for a resolution

Amendment

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

12. Reiterates that assistance from the EGF must not replace actions that are the responsibility of companies, by virtue of national law or collective agreements; considers that, in the context of discussions on the next multiannual financial framework for 2028-2034, the Commission should examine the establishment of mechanisms to ensure that, in the event of restructuring decided by a parent company established outside the Union, a fair share of the financial burden does not fall exclusively on the Union's solidarity instruments but also involves the responsibility of the group of companies concerned;

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Amendment 18

Alexander Jungbluth

Motion for a resolution

Paragraph 12 a (new)

Motion for a resolution

Amendment

12 a. Recalls that the EGF was conceived as an exceptional and temporary instrument and expresses concern about its increasingly routine use in cases of corporate restructuring within Member States;

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Amendment 19

Alexander Jungbluth

Motion for a resolution

Paragraph 13

Motion for a resolution

Amendment

13. Approves the decision annexed to this resolution;

13. Takes note of the decision annexed to this resolution and reiterates its fundamental concerns regarding the continued expansion of the EGF;

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