For the 2021-27 programming period, the European Globalisation Adjustment Fund for Displaced Workers (EGF) will continue to provide support for workers made redundant and self-employed persons whose activity has ceased. The minimum required number of redundancies for an EGF application is reduced from the previous threshold of 500 to 200 redundancies.
The 200 redundancies can occur over a four month period in a single company (including suppliers /downstream producers) or in a number of companies, particularly SMEs operating in the same or different economic sectors in a particular NUTS 2 region; or over a six-month period in a number of companies, particularly SMEs operating in a particular economic sector in one or two adjoining NUTS 2 regions.
All reasons for restructuring are now eligible for support. This includes the economic effects of the coronavirus crisis and larger economic trends such as decarbonisation and automation. Job losses arising from changing trade patterns or as a consequence of the financial and economic crisis for which workers could previously receive support, also continue to be eligible.
In exceptional circumstances applications can be considered where the number of redundancies is not entirely met, when the redundancies will have a serious impact on employment and the local, regional or national economy. Cases approved on exceptional circumstances grounds cannot exceed 15% of the maximum annual EGF budget.
Member States must make an EGF application within 12 weeks of the reference period in which the job losses occur. The EGF has a maximum annual budget of €210m for 2021-27 with an EU co-financing rate of 60%, or the ESF+ cofinancing rate applicable to the Member State, if higher. Approved EGF programmes are of 24 months duration.
The package of measures that can be co-financed by the EGF include personalised active labour market measures targeted at the redundant workers. Measures can include occupational guidance and career planning support; education and training programmes (particularly addressing digital skills) and enterprise and self-employment supports. The costs of allowances paid to participants and employers’ recruitment incentives cannot exceed 35% of the overall package and cannot replace passive social protection measures.
More details on the EGF for the period 2021-2017 are contained in this Factsheet
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