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
BUDG-PA-774408
Committee on Budgets · Rapporteur: Johan Van Overtveldt
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This draft opinion assesses the budgetary impact of a proposal to broaden the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support workers facing imminent job displacement.¶¶ It finds the proposal budget-neutral but warns that reduced annual funds and broader criteria risk exhausting resources, and rejects changes to the mobilisation procedure that bypass the budgetary authority.¶¶¶
Committee position. The Committee on Budgets rejects the proposed change to the mobilisation procedure and proposes maintaining case-by-case mobilisation, while requesting coordination to avoid overlap with other funds.¶¶
Key points
- The proposal is compatible with the MFF Regulation and the enlarged scope will be covered within the maximum amount set for the EGF.¶
- The maximum annual EGF amount was reduced from EUR 186 million to EUR 30 million; broadening criteria risks exhausting this amount and causing a backlog.¶
- Tripling the maximum amount for technical assistance further limits funds for active labour market measures.¶
- Additional human resources of EUR 1 431 000 per year in 2025, 2026 and 2027 are needed, covered by redeployment.¶
- The change to the mobilisation procedure could reduce time to financing decisions but shortens the eligibility period; the current six-week deadline is not detrimental.¶
- The proposal is compatible with the IIA but the drastic simplification runs counter to interinstitutional cooperation and changes the EGF's nature.¶
- There is a contradiction between the decreased maximum annual amount and the broader scope, regarding sound financial management.¶
- Rejects the proposed change to the mobilisation procedure, especially a single mobilisation based on estimates; proposes maintaining case-by-case mobilisation.¶
- Additional reporting requirements on estimates of assistance needed are an unnecessary administrative burden for Member States.¶
- Requests the Commission to coordinate measures to ensure assistance comes from the most appropriate instrument and avoid overlap, particularly with the European Social Fund Plus.¶
Who is affected
- Workers affected by imminent job displacement in enterprises undergoing restructuring, who would become eligible for EGF support.¶
- Member States, which face additional reporting requirements and would see changes in the mobilisation procedure.¶¶
- The budgetary authority, whose oversight role is undermined by the proposed mobilisation procedure changes.¶¶