Agreement on the European globalisation adjustment fund
The Permanent Representatives Committee (Coreper) has approved the Regulation on the new European Globalisation Adjustment Fund (EGF) so that the Fund can be operational from 1st January 2014.
The EGF is a flexible tool that aims to support workers who lose their jobs and self-employed people whose activity has ceased. It facilitates the re-integration into employment in areas, sectors, territories or labour markets suffering the shock of serious economic disruption.
The Fund will run for the next budget period (2014-2020) as a means for expressing solidarity in view of the ongoing crisis. It will continue to be financed outside the EU budget with a maximum annual amount of EUR 150 million (2011 prices) in order to provide support in situations of urgency and unexpected circumstances.
The new elements added to the Fund, that have been agreed with the Parliament and the Commission after four trilogues, are the following:
– the scope is extended to respond to the existing or to a new economic crisis. Self-employed persons whose activity has ceased as a result of major structural changes in world trade patterns due to globalisation are included;
– co-financing: the EU expresses its solidarity with workers made redundant and self-employed persons whose activity has ceased with a 60% contribution to the cost of the package and its implementation;
– eligible beneficiaries: particular attention is paid to disadvantaged beneficiaries, including young and older unemployed persons and those at risk of poverty, given that those groups experience particular problems in re-entering employment due to the crisis and globalisation.