The European Commission has welcomed a new political agreement with the European Parliament and EU Member States that significantly
strengthens the European Globalisation Adjustment Fund for Displaced Workers (EGF).
The EGF is one of the European Union’s key solidarity tools, designed to support workers who lose their jobs as a result of major economic restructuring, such as factory closures, mass layoffs or company bankruptcies. The revised framework aims to make that support faster, broader and more effective.
Helping workers adapt to economic change
At its core, the fund helps people get back into work by investing in skills. It finances tailored support packages that include training, upskilling, career guidance and job-search assistance. The objective is not just re-employment, but better integration into a rapidly changing labour market shaped by global competition, digitalisation and the green transition.
Since its creation in 2007, the EGF has been activated in 186 cases across 20 EU countries. Around €727 million has been mobilised to support more than 181,000 displaced workers. According to Commission figures for 2023–2024, 81% of beneficiaries found a new job within 18 months of receiving support.
Earlier intervention and wider coverage
The political agreement introduces several key improvements.
Most notably, it allows for anticipatory support. Companies undergoing restructuring will be able to request EGF assistance for workers who are at risk of losing their jobs, rather than waiting until dismissals have already taken place. The scope also extends to workers in supplier companies or downstream producers affected by the same restructuring.
This earlier mobilisation is expected to make interventions more effective and to widen access to the fund, helping more people transition smoothly into new employment.
The revised rules also place a stronger emphasis on upskilling within companies facing restructuring. By supporting education, training and career transitions, the EGF aims to promote higher-quality jobs and improve long-term employability across European industries.
What happens next
The agreement now needs formal approval by the Council of the European Union and the European Parliament. Once adopted, Member States will be able to apply for EGF support under the new rules, which will remain in force until the end of 2027, when the current fund expires.
Looking ahead, the Commission has already proposed further expanding the EGF’s scope. In April 2025, it put forward plans to position the fund as a flagship instrument under the EU’s Action Plans for the automotive sector and for the steel and metals industries. The changes are also designed to align with broader EU initiatives such as the Union of Skills and the European Competitiveness Compass.
Together, these reforms aim to ensure that Europe’s workforce is better protected—and better prepared—in the face of economic transformation.