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Improved Globalisation Fund will help more European workers

16/12/2008 Improved Globalisation Fund will help more European workers

On 16 December 2008, the European Commission moved to help people made redundant as a result of the economic crisis by improving the European Globalisation adjustment Fund (EGF).

The proposal to revise the EGF aims to bring its operations closer into line with its objective of solidarity towards workers who have lost their jobs – in particular in these times of economic crisis. The new proposals will make the EGF a more effective crisis response instrument, helping more people to find their way back into the labour market.

In its European Economic Recovery Plan of 26 November 2008, the Commission announced its intention to revise the EGF to extend its scope as part of the Europe's crisis response package and to make it a more effective intervention instrument, in line with the fundamental principles of solidarity and social justice.

To achieve the objective of showing solidarity towards workers who lose their jobs, the proposal makes changes to the existing EGF regulation (1927/2006) which should allow it to help a larger number of redundant workers back into the labour market.

The changes should enhance the performance of the Fund by: 

  • lowering the eligibility threshold for EGF applications from 1000 to 500 redundant workers;
  • extending to 24 months the duration of EGF support (currently 12 months) so as to allow sufficient time for the measures to be effective in re-integrating particularly the most vulnerable workers into new jobs.
  • increasing the EU financial contribution from 50% to 75% to better reflect the emergency nature of the contribution (the other portion being paid by Member States);
  • temporarily broadening the scope of eligibility for assistance under the EGF to encompass workers adversely affected by the economic and financial crisis, and not only those (as is the case at present) who lose their jobs as a result of changes in world trade patterns

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