The European Globalisation Adjustment Fund provides support to people losing their jobs as a result of major structural changes in world trade patterns due to globalisation, e.g. when a large company shuts down or production is moved outside the EU, or as a result of the global economic and financial crisis.
The EGF has a maximum annual budget of EUR 150 million for the period 2014-2020. It can fund up to 60% of the cost of projects designed to help workers made redundant find another job or set up their own business.
As a general rule, the EGF can be used only where over 500 workers are made redundant by a single company (including its suppliers and downstream producers), or if a large number of workers are laid off in a particular sector in one or more neighbouring regions.
EGF cases are managed and implemented by national or regional authorities. Each project runs for 2 years.
The EGF can co-finance projects including measures such as:
It can also provide training allowances, mobility/relocation allowances, subsistence allowances or similar support.
The EGF does not co-finance social protection measures such as pensions or unemployment benefit.
Individual workers made redundant can benefit from EGF projects. Over the period 2014-2020 this can include the self-employed, temporary workers and fixed-term workers.
Until the end of 2017, young people not in employment, education or training (NEETs) in regions with high youth unemployment can benefit from EGF support in equal numbers to workers receiving support in those regions.
The EGF cannot be used to keep companies in business or to help them modernise or restructure.
The rules on intervention criteria, eligible beneficiaries, eligible applications, measures and so on are set out in the EGF Regulation.
The EU Structural and Investment Funds, particularly the European Social Fund, take a strategic, long-term perspective in anticipating and managing the social impact of industrial change through activities such as life-long learning.
The EGF provides workers with one-off individual support that is limited in time.