How is the programme designed to deliver results?
Globalisation and technological change are likely to increase further the interconnectedness and interdependence of world economies. Labour reallocation is an integral and inevitable part of such economic change. These trends risk further tilting the already unequal distribution of the benefits from globalisation, causing a significant impact on the people and regions adversely affected.
Ensuring a fair distribution of the benefits of change calls for offering assistance to displaced workers. When the number of displaced workers is particularly large, providing assistance may go beyond the means of the individual Member State, requiring EU-level action. In particular, EU intervention through the EGF generates European added value by increasing the number, variety and intensity of services offered to even more dismissed workers and for a longer period of time than would be possible without EGF funding.
The EGF aims at supporting socioeconomic transformations that are the result of globalisation and of technological advance as well as of environmental changes by helping displaced workers and self-employed persons whose activity has ceased to adapt to structural change.
The EGF is an emergency fund that operates reactively to assist displaced workers affected by major restructuring events. It is guided by—and helps implement—the principles defined under the European Pillar of Social Rights (including equal opportunities and access to the labour market, fair working conditions, and social protection and inclusion) and enhances social and economic cohesion among regions and Member States. It adds to existing mainstream restructuring assistance programmes and services for labour market actors, without replacing existing resources.
The EGF’s objectives are to demonstrate solidarity and promote decent and sustainable employment by offering assistance in the case of major restructuring events.
- EUR 1 467.4 millionTotal financial programming 2021-2027
In EUR million.
The EGF co-finances coordinated packages of personalised services designed to facilitate the re‑integration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment. Its main focus is on active labour market measures (e.g. training and retraining, job‑search assistance, outplacement assistance, aid for self-employment or business start‑ups). Assistance is granted for a limited period.
EGF is implemented under shared management. DG EMPL is in the lead for the Commission.
Performance framework: more information
Where are we in the implementation?
You will find information on the programme implementation in this webpage.
It will be updated when the programme will have started on an annual basis alongside the publication of the draft budget and the discharge.
Next publication (estimation): June 2022.
Predecessor programmes 2014-2020
The EGF builds on its predecessor under the 2014‑2020 MFF. In particular, it remains outside the budgetary ceiling of the MFF given the non-programmable nature of its mandate. The maximum amount for the period 2021–2027 is set at almost EUR 1.467 billion in current prices.
For the 2021-2027 MFF, the EGF was redesigned to ensure greater inclusiveness and flexibility to better respond to current and future economic challenges, such as automation and digitalisation, the transition to low carbon economy, etc. Therefore, its scope is broadened to any type of significant restructuring event regardless of the cause, and the eligibility threshold has been lowered from 500 to 200 displaced workers.
2014-2020 European Globalisation Adjustment Fund
- EUR 1 142.2 millionCeiling for 2014-2020
Consumption from the ceilings (2014-2020)
||EUR 159.7 million
||EUR 159.1 million
This graph includes implementation based on voted budget and carried-over appropriations, as well as implementation based on recoveries and repaid advances.
More information on the overall execution
- In 2020, seven applications were submitted by six Member States. Four of them were submitted in relation to the repercussions of the global economic and financial crisis, and three under the trade-related globalisation criterion.
- The COVID-19 crisis has led to considerable job losses, which may affect persons who previously benefited from EGF support. The crisis may thus impact the long-term reintegration results of the EGF. This trend was also confirmed by the final reports received in 2020, which showed that on average only 45% of beneficiaries, compared to 65% in 2019, have found new employment following EGF implementation.
- Furthermore, the crisis has had a significant impact on the implementation of ongoing EGF funding actions. Notably, a number of measures that required personal contact and could not be pursued online, along with management and control activities, had to be suspended. The principle of force majeure has been applied in two cases, leading to the temporary suspension of the deadlines set out in the regulation.
- In order to foster the exchange of best practices and discuss issues of common interest, the Commission organises EGF contact persons’ meetings and invites Member State representatives who are responsible for managing EGF cases on the ground. In 2021 this meeting will have to be organised remotely in the first semester, and will focus mainly on the new EGF regulation.
Key monitoring indicators
|Redundant workers reintegrated into employment following EGF-supported measures (1)
||59% of redundant workers reintegrated compared to a target of 50%
(1) Cumulative results for 2014-2020.
% of target achieved by the end of 2020
More information on the performance of the programme
- Between 2014 and 2020, the EGF supported 55 168 targeted workers and 4 099 young people not in employment, education or training in 52 different economic sectors. According to the final reports concerning the 2014-2020 period, an average of 60% of workers who have been assisted have taken up new employment following an EGF intervention. However, the reintegration rate in individual cases varied from 28% to 92%, depending on the economic sector and the area concerned, as it is influenced by the absorption capacities of local and regional labour markets. Given that the beneficiaries supported by EGF co-funded measures are usually among those facing the greatest difficulties on the labour market, these results are encouraging. To improve the efficiency of the measures while assessing the applications for EGF funding, the Commission advises Member States to ensure that they reflect the needs of the local or regional labour market. Furthermore, from 2021 onwards, the quantitative information on the assistance provided will be complemented with qualitative information through beneficiary surveys.
- In 2020, in response to the COVID-19 crisis, the Commission proposed to allow the mobilisation of EGF support for workers permanently dismissed as a consequence of the ensuing economic crisis. As a result, at the end of 2020, four Member States submitted applications related to the COVID-19 crisis, and more are in preparation for submission in 2021. These applications relate to redundancies in three sectors particularly heavily hit by the COVID-19 crisis, i.e. air transportation and storage, water transportation, and leisure- and tourism-related activities. Due to the COVID-19 crisis, in 2020 the Member States also reported a relatively lower average reintegration rate (45%) than in the previous year (65%). The rate depends heavily on the number of cases, as one large EGF case with a low reintegration rate will skew the results.
- In 2020, a study supporting the EGF’s ex post evaluation for the 2014-2020 period found that the fund adds value over and above what could be achieved by Member States alone, for instance by increasing the number and variety of services offered. This is mainly due to the EGF’s targeted, tailored and individualised support for beneficiaries. The average reintegration rate of EGF beneficiaries, i.e. the main indicator of the fund’s effectiveness, is 60%. However, as the effectiveness is strongly influenced by external factors, it is recommended that the more long-lasting effects, such as new skills gained from participation in EGF measures, should also be taken into account. In addition, there is room to improve the visibility of the outcomes of EGF cases. Furthermore, a faster decision-making process at the EU level and a simplified application process could improve the fund’s efficiency and lift a barrier that prevents some Member States from applying for EGF support.
- These recommendations have been taken into account in the 2021-2027 EGF regulation. In particular, the scope was broadened and the administrative burden of demonstrating that job losses were caused by globalisation or a crisis was eliminated. This simplification is expected to speed up the mobilisation of EGF assistance and improve its efficiency. In 2021 and 2022, given the gravity of the socioeconomic consequences of the COVID-19 crisis, the EGF will provide continued support to workers who have lost their jobs as result of major restructuring events. It is expected that broadening the scope and lowering the threshold to enable an application for dismissed workers to 200 will make the fund more inclusive and more accessible, potentially triggering a higher number of applications from Member States.
Concrete examples of achievements
- 55applications were received (excluding those withdrawn or rejected) between 2014 and 2020.
- 55 168workers were targeted between 2014 and 2020.
- 4 099young people not in employment, education or training were targeted between 2014 and 2020.
- EUR 175 220 016in contributions from the EGF were requested by 12 Member States between 2014 and 2020.
- 60%of beneficiaries, on average, found employment following intervention by the EGF between 2014 and 2020.
Programme Performance Overview