[updated on 9/09/2013]
Created in 2007, the European Globalisation Adjustment Fund (EGF) is the flexibility instrument in the EU budget for interventions in case of mass redundancies caused by major changes in global trade. It aims to help dismissed workers find new jobs through a package of tailor-made services. From May 2009 to December 2011, the EGF was also able to support workers who had lost their jobs as a result of the financial and economic crisis.
Since 2007, 20 Member States have submitted 110 requests for EGF funding to the European Commission. These concerned services for 100 000 workers. The total contributions paid by the EGF have so far amounted to €416 million.
In 2011, an evaluation of the EGF based on 15 cases highlighted both positive results and shortcomings in the Fund’s functioning. On average, 41.8% of the workers had new jobs immediately after the end of the EGF funding. But this figure differed significantly from one case to another. A recurrent criticism, including in a special report by the European Court of Auditors, concerns the length of time taken for the procedures.
Parliament and Council are discussing the proposed rules governing the EGF beyond 2013. In its February 2013 conclusions on the 2014-20 Multiannual Financial Framework, the European Council cut the proposed maximum annual budget to €150 million.