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 Belgium – EGF/2025/001 BE/BelGaN

PR_BUD_Funds

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

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 Belgium – EGF/2025/001 BE/BelGaN

(COM(2025)0157 – C100188/2025 – 2025/0198(BUD))

– having regard to the Commission proposal to the European Parliament and the Council (COM(2025)0157 – C100188/2025),

– having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 (“EGF Regulation”),

– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 as amended by Regulation (EU, Euratom) 2024/765, and in particular Article 8 thereof,

– having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 12 thereof,

– having regard to the opinion of the Committee on Employment and Social Affairs,

– having regard to the report of the Committee on Budgets (A100000/2025),

A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural changes in world trade patterns or of the global financial and economic crisis, and to assist their reintegration into the labour market; whereas this assistance is made through a financial support given to workers and the companies for which they worked;

B. whereas Belgium submitted application EGF/2025/001 BE/BelGaN for a financial contribution from the European Globalisation Adjustment Fund (EGF), following 417 displacements in the economic sector classified under the NACE Revision 2 division 26 (Manufacture of computer, electronic and optical products) in the region of Provincie Oost-Vlaanderen (BE23) within a reference period of four months for the application from 31 July 2024 to 30 November 2024;

C. whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months, in an enterprise in a Member State, including workers displaced in suppliers and downstream producers;

D. whereas the Russian war of aggression against Ukraine and rising inflation have had an impact on the cost of energy, materials and labour costs, increasing pressure on the enterprise’s margin;

E. whereas BelGaN was specialised in the manufacture of semiconductors for the automotive sector; whereas the European automotive and supplier industry is facing unprecedented pressure from both external and internal challenges, such as distortion of competition and high energy costs;

F. whereas the company experienced a significant decline in profitability due to cash flow constraints resulting from the transition from silicon-based chips to gallium nitride (GaN) technology, which was hindered by high productions costs and insufficient investments during the transition period;

G. whereas BelGaN filed for bankruptcy on 30 July 2024;

H. whereas the Flemish employment services (VDAB) are providing the national pre-financing and co-funding of the measures;

I. whereas the company, in compliance with Belgian law, followed the mandatory procedure for informing and consulting workers' representatives; whereas the requirement for setting up an employment unit, whose purpose is to provide workers laid off in the context of collective redundancies with outplacement services, does not apply in the event of bankruptcy and therefore outplacement services were provided by VDAB;

J. 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 within or outside their initial sector of activity, while preparing them for a greener and more digital European economy;

K. whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Regulation (EU, Euratom) 2020/2093 as amended by Regulation (EU, Euratom) 2024/765;

1. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Belgium is entitled to a financial contribution of EUR 931 690 under that Regulation, which represents 85 % of the total cost of EUR 1 096 107, comprising expenditure for personalised services of EUR 1 052 607 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 43 500;

2. Notes that the Belgian authorities submitted the application on 21 February 2025, and that, following the provision of additional information by Belgium, the Commission finalised its assessment on 7 July 2025 and notified it to Parliament on 26 August 2025;

3. Notes that the application relates to 417 targeted beneficiaries, made redundant in the company BelGaN;

4. Points out that the BelGaN redundancies pushed the annual unemployment rate to + 9 % in the Oudenaarde territory, particularly among the high- and medium-skilled unemployed workers; notes that, at the same time, job openings in the area fell by - 22 %, due to a considerable increase in the number of enterprises that filed for bankruptcy over the past three years;

5. Recalls that personalised services to be provided to the workers consist of the following actions: information sessions, outplacement, training and retraining, training at the workplace, job-fair, job-search assistance, job-scouting and job-matching;

6. Notes that Belgium started providing personalised services to the targeted beneficiaries on 8 August 2024 and that the period of eligibility for a financial contribution from the EGF will therefore be from that date until 24 months after the date of the entry into force of the Financing Decision;

7. Notes that Belgium started incurring administrative expenditure to implement the EGF on 31 July 2024 and that such expenditure shall therefore be eligible for a financial contribution from the EGF from that date until 31 months after the date of the entry into force of the Financing Decision;

8. Stresses that the Belgian authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, and that any double financing will be prevented;

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

10. Approves the decision annexed to this resolution;

11. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

12. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

ANNEX: 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 Belgium – EGF/2025/0001 BE/BelGaN

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013, and in particular Article 15(1), first subparagraph, thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 9 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

(2) The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 amended by Council Regulation (EU, Euratom) 2024/765, and Article 16 of Regulation (EU) 2021/691.

(3) On 21 February 2025, Belgium submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of worker’s displacements in BelGaN BV in Belgium. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council.

(4) The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 931 690 in respect of the application submitted by Belgium.

(5) In order to minimise the time taken to mobilise the EGF, this decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2025, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 931 690 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption]*.

Done at Brussels,

For the European Parliament For the Council

The President The President

EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020,the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Belgium’s application and the Commission's proposal

On 21 February 2025, Belgium submitted an application EGF/2025/001 BE/BelGaN for a financial contribution from the EGF, following 417 redundancies at the company BelGaN. This is the first such application of 2025, and the second to be examined under the 2025 budget.

Following the assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 7 July 2025, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Belgium for tailored measures to support the reintegration in the labour market of 417 targeted beneficiaries, i.e. BelGaN workers made redundant. In total, EUR 931 690 will be mobilised from the EGF for Belgium, representing 85 % of the total costs of the proposed actions.

The Commission deemed the Belgian application admissible under the intervention criteria of Article 4(2)(a) of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months, in an enterprise in a Member State, including workers displaced in suppliers and downstream.

EGF co-funding has been requested for the following six types of actions, to be provided to redundant workers:

(a) Information Sessions: it is the first service offered to all laid-off workers. During the sessions, social intervention advisors inform workers about the support available to facilitate their transition to employment.

(b) Outplacement: In Belgium, the personalised packages of measures co-financed by the EGF complement the legal obligation for employers. However, since the redundancies occurred as a result of the enterprise’s bankruptcy, former BelGaN workers received outplacement services directly from VDAB own resources. Assessment sessions are offered to determine whether the jobseeker meets the labour market demands, or the job search is realistic. Support also focuses on preparing the workers for future job applications, helping them write compelling CVs or cover letters, and practising how to master job interviews.

Digital illiterates will receive basic ICT training and additional support through digibanks, where workers can borrow a laptop, receive training on how to use it, and get answers to their digital questions. Webinars and other online tools, such as 123digit.be, will help those who already have some digital skills to improve them.

(c) Training and retraining: Workers are coached in specific learning paths designed to improve their technical and digital skills, and to develop skills related to areas experiencing labour shortages or to the green transition. Upon agreement of individual projects with the vocational counsellor, workers will be offered targeted training to cater for the identified needs. They will also have access to a wide range of training, including those provided by VDAB or by training providers.

(d) Training at the workplace: Workers receive on-the-job training at the enterprise that will employ them after training. Depending on the needs of the worker, the training can last between 4 and 26 weeks. Training is followed by an employment contract, either permanent or fixed term of at least the same duration as the training.

(e) Job fair: This recruitment event helps put together jobseekers and employers that seek to fill their vacancies. Before attending the event, counselling sessions help to prepare the meeting with potential employers. A job fair was held on 17 October 2024.

(f) Job-search assistance: This comprises individual and collective coaching sessions with a vocational mediator, supporting to apply and prepare job interviews, peer-to-peer coaching, and visits to enterprises with recruiting needs.

(g) Job-scouting and job-matching: A dedicated team will scout out for job vacancies before they are posted and help the best candidates among former BelGaN workers apply for these positions. Recruitment events will also be organised quarterly.

Belgium has provided the required information on actions that are mandatory for the enterprises concerned by virtue of national law or pursuant to collective agreements. They confirmed that a financial contribution from the EGF would not replace such actions.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 931 690 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Development should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.

ANNEX: DECLARATION OF INPUT

The rapporteur declares under his exclusive responsibility that he did not include in his report 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.