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 Germany – EGF/2025/002 DE/Goodyear 2

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 Germany – EGF/2025/002 DE/Goodyear 2

(COM(2025)0302 – C100182/2025 – 2025/0245(BUD))

– having regard to the Commission proposal to the European Parliament and the Council (COM(2025)0302 – C10-0182/2025),

– 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 2021-2027 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 9 thereof,

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

– having regard to the report of the Committee on Budgets (A10-0000/2025),

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 Germany submitted application EGF/2025/002 DE/Goodyear 2 for a financial contribution from the European Globalisation Adjustment Fund (EGF), following 1 171 displacements in the economic sector classified under the NACE Revision 2 division 22 (Manufacture of rubber and plastic products) in the regions of Kassel (DE73) and Darmstadt (DE71) with 747 displacements within a reference period for the application from 1 September 2024 to 1 January 2025, and 424 displacements before or after the reference period;

C. whereas for the 424 displacements whose activity ceased before or after the four-month reference period, a clear causal link can be established with the event that triggered the cessation of activity for the displaced workers during the reference period as required by Article 6(2) of the EGF Regulation;

D. 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;

E. 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 margins;

F. whereas Goodyear Germany GmbH is specialised in the manufacture of rubber and plastic products, particularly tyres; whereas the company has been significantly affected by intensified competition from low-cost imports originating from Asia;

G. whereas the rapid decline in demand, combined with increasing production costs, compelled the company to undertake a restructuring process, which involved the closure of one of its production sites and the partial closure of another in Germany in 2024;

H. whereas the German Federal budget as well as by Bundesagentur für Arbeit are providing the national pre-financing and co-funding of the measures;

I. whereas the requirements laid down in Union and national legislation concerning collective redundancies have been complied with;

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 Council 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 Germany is entitled to a financial contribution of EUR 3 085 166 under that Regulation, which represents 60 % of the total cost of EUR 5 141 944, comprising expenditure for personalised services of EUR 4 936 274 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 205 670;

2. Notes that the German authorities submitted the application on 10 March 2025, and that, following the provision of additional information by Germany, the Commission finalised its assessment on 29 July 2025 and notified it to Parliament on 26 August 2025;

3. Notes that the application relates to 1 171 displaced workers affected by the closure of the production site in Fulda and a partial shut-down of production facilities in Hanau; notes further that 915 displaced workers in total will be targeted beneficiaries and are expected to participate in the measures;

4. Takes note that most of the displaced workers have a low level of education (56 % with lower secondary education or less) and are aged 54 year or over (42 %);

5. Points out that the Goodyear redundancies increased the annual unemployment rate in the Fulda region to over 10%, disproportionately impacting male workers and individuals over the age of 50, many of whom possess outdated qualifications and skill sets that are misaligned with current labour market demands;

6. Recalls that personalised services to be provided to the workers consist of the following actions: substantial upskilling or re-skilling measures, guidance and counselling and vocational orientation and activation measures, business start-up advisory services and grants, job search assistance, upskilling and top-ups incentives, training allowances, digital skills trainings;

7. Notes that Germany started providing personalised services to the targeted beneficiaries on 1 November 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;

8. Notes that Germany started incurring administrative expenditure to implement the EGF on 1 November 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;

9. Stresses that the German 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;

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

11. Approves the decision annexed to this resolution;

12. 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;

13. 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 Germany – EGF/2025/002 DE/Goodyear 2

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 10 March 2025, Germany 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 Goodyear (Goodyear Germany GmbH) in the economic sector classified under the Statistical classification of economic activities in the European Community ('NACE') Revision 2 division 22 (Manufacture of rubber and plastic products) in the Nomenclature of Territorial Units for Statistics ('NUTS') level 2 regions of Kassel (DE73) and Darmstadt (DE71) in Germany. 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 3 085 166 in respect of the application submitted by Germany.

(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 3 085 166 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. Germany’s application and the Commission's proposal

On 10 March 2025, Germany submitted an application EGF/2025/002 DE/Goodyear 2 for a financial contribution from the EGF, following 1 171 redundancies at the company Goodyear Germany GmbH. This is the second such application of 2025, and the third to be examined under the 2025 budget. The application is the second one for Goodyear Tire & Rubber Company; Goodyear Dunlop Tires Germany GmbH received an EGF contribution of EUR 2 165 231 in 2018.

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 29 July 2025, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Germany for tailored measures to support the reintegration in the labour market of 915 targeted beneficiaries, i.e. Goodyear workers made redundant. In total, EUR 3 085 166 will be mobilised from the EGF for Germany, representing 60 % of the total costs of the proposed actions.

The Commission deemed the German 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) Upskilling measures: Qualification measures are offered on the basis of profiling and career guidance interviews. Courses can be provided individually or in groups. Measures will be developed in close coordination with the Public Employment Service to ensure alignment with labour market requirements.

(b) Guidance counseling and vocational orientation / activation measures: Based on the initial profiling interviews, guidance counsellors will inform about developments on the job market and possible career paths, and provide applicants with motivational and inspirational help and support. A dedicated adviser at the Public Employment Service will ensure smooth coordination between the EGF supported measures, the regular measures by the transfer company, and measures offered by the Public Employment Service. There will also be group fora in the form of peer groups and workshops, assisted by a facilitator, helping participants to exchange ideas and reflect on their experiences.

(c) Business start-up advisory services: This will comprise a package of advisory services for those interested in starting their own businesses. These services will include individualised tailor-made coaching measures, as well as group coaching sessions.

(d) Business start-up grants: These grants will be offered to those that decide to start their own business. The grants can be used for investments in equipment, but also for the rent of business premises or further coaching or trainings during the start-up phase.

(e) Job search assistance: Professional job scouts will help to locate potential job vacancies that are not yet published. Furthermore, a variety of job search events, like job fairs and company visits (“employer days”) will be organised. This will enable participants to interact with local and regional employers, explore job openings, and understand entry pathways.

(f) Upskilling incentives: These financial incentives are intended to reduce barriers to re-skilling and improve long-term employability. They can be paid upon successful participation in certain measures. Whether incentives will be used, and what amounts would be paid, will depend on the type, the level and the duration of a measure.

(g) Further incentives: These incentives will primarily focus on the integration of participants in the job market, and can be paid as a bonus for taking up employment during the duration of the transfer company or be paid in the form of salary top-ups. Such top-ups aim at offering an incentive to accept new employment, even if the salary of the new employment is lower than in the previous job. They can also incentivise mobility if the new employment entails geographical relocation or longer commuting distances.

(h) Training allowance: The payment starts from the date when the worker enters the transfer company and ends as soon as the person leaves the transfer company. Participation in active labour market measures is a prerequisite for receiving an allowance.

(i) Digital basic skills trainings (Digitale Grundqualifizierung): these trainings will be offered based on individual prior knowledge. Participants can access the training module best suited to their level. Participants will be provided with laptops so that they can follow the course and practise at home. Special attention will be paid to applied skills that help participants use internet tools for job search. Courses on advanced IT literacy or the use of artificial intelligence are also offered.

Germany has provided the required information on actions that are mandatory for the enterprise 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 3 085 166 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.