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Commission proposes €6 million from Globalisation Fund following bakery closure in Greece

25/06/2014
Commission proposes €6 million from Globalisation Fund following bakery closure in Greece © Goodluz / Shutterstock

The European Commission has proposed to provide Greece with €6 million from the European Globalisation Adjustment Fund (EGF) to help 508 former workers of the bakery manufacturer Nutriart and its providers and downstream producers to find new jobs, as well as 505 young people not in employment, education or training (NEETs).

This is the first application for EGF assistance presented under the new EGF Regulation, which offers the possibility of providing NEETs with EGF support up to a number equal to the number of redundant workers supported. The proposal now goes to the European Parliament and the EU's Council of Ministers for approval.

Greece applied for support from the EGF following the redundancies of 484 workers in Nutriart S.A. and AR. ZIGAS & SIA, and the cessation of activity of 24 self-employed persons whose activity was directly linked to Nutriart. These job losses were the result of the continuation of the global financial and economic crisis which has deeply affected the Greek economy.

The measures co-financed by the EGF would help the workers and the NEETs find new jobs by providing them with occupational guidance, vocational training, specific counselling services towards entrepreneurship, contributions to business start-up and a variety of allowances.

The total estimated cost of the package is €10 million, of which the EGF would provide €6 million.

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