The European Commission has approved the release of €3.7 million to support 836 workers who lost their jobs in Austria and Belgium, following major
layoffs at home decoration retailer Casa and motorcycle manufacturer KTM.
The funding comes from the European Globalisation Adjustment Fund for Displaced Workers (EGF), an EU instrument designed to help workers re-enter the labour market after large-scale redundancies linked to economic disruption, globalisation or industrial change.
Strong track record for helping workers back into jobs
Since its creation in 2007, the EGF has been activated in 186 cases, distributing €727 million to support more than 181,000 dismissed workers across 20 EU Member States.
According to the European Commission’s latest EGF activity report, the fund has proven highly effective: 81% of beneficiaries found new employment within 18 months of receiving support. By financing reskilling, career guidance and job-search assistance, the EGF also contributes to a more competitive European economy and higher-quality jobs.
€1.9 million to support dismissed workers in Belgium
In Belgium, 416 workers lost their jobs after home decoration retailer Casa was declared bankrupt in March 2025, following years of financial difficulties.
To help these workers transition back into employment, the EGF will finance a package of measures including career counselling, job-search events, professional guidance and skills training.
The total cost of the support programme is estimated at €2.3 million. Of this amount, 85% (€1.9 million) is funded by the European Commission, while the remaining 15% (€338,247) is covered by the Flemish Public Employment Services. Support measures began shortly after the bankruptcy, in March 2025, and can be retroactively reimbursed by the EGF.
€1.8 million to assist laid-off KTM workers in Austria
In Austria, the EGF will support 420 former employees of motorcycle manufacturer KTM, which suffered heavy losses and falling sales throughout 2024. Ongoing shortages of supplies and components forced the company to suspend production in April 2025, leading to widespread dismissals.
The Austrian support package includes career guidance, job-search assistance, reskilling programmes and training allowances, aimed at helping workers quickly adapt to new labour market opportunities.
The total estimated cost of the measures is €3 million, with 60% (€1.8 million) financed by the European Commission and 40% (€1.2 million) by the Austrian Public Employment Service. Assistance to workers began in March 2025 and is also eligible for retroactive EGF funding.
Approval still required from EU lawmakers
Before the funds can be fully mobilised, the EGF proposal must receive formal approval from both the European Parliament and the Council of the EU. The decision requires a simple majority vote in Parliament and a qualified majority in the Council.
Skills and reskilling at the heart of EU policy
Supporting workers affected by economic change is a central priority for the European Commission. In April 2025, the Commission proposed expanding the scope of the EGF to also help workers at risk of imminent job losses, allowing them to train early and improve their chances of staying employed or finding new work faster.
Later, in November 2025, the Commission launched a Skills Guarantee pilot to further support workers in transition. This initiative forms part of the broader Union of Skills strategy, aimed at strengthening Europe’s strategic and fast-growing sectors and reinforcing competitiveness under the future European Competitiveness Fund.