Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring
Date: 2025-04-01
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: European Globalisation Adjustment Fund, digital transformation, dismissal, employment aid, energy transition, financial aid, globalisation, reintegration into working life, structural adjustment, structural unemployment

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   EUROPEAN COMMISSION  Brussels, 1.4.2025  COM(2025) 140 final 2025/0073 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring   
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  aim  of  this  proposal  is  to  enable  the  European  Globalisation  Adjustment  Fund  for 
Displaced  Workers  (‘the  EGF’)  to  not  only  support  displaced  workers,  but  also  workers 
affected by imminent job displacement. 

Employees of enterprises undergoing restructuring should be able to benefit from personalised 
packages of measures in case they are affected by imminent job displacement. To enable their 
employees to benefit from such support, enterprises undergoing restructuring may request the 
relevant Member State to submit an application for EGF assistance if the intervention criteria 
are met and if the enterprise wishes to offer EGF co-financed assistance. 

Restructuring events often occur in a series of waves of lay-offs. Under its current set-up, the 
EGF is  only  able to help  workers  that have  already  lost their jobs. However, if it is already 
known when a next batch of workers will lose their jobs, they should be helped in response to 
this imminent threat so as to mitigate its impact. 

Whereas  longer-term  anticipatory  assistance  falls  under  the  European  Social  Fund  Plus 
(ESF+), the EGF is an emergency instrument to respond to restructuring events. This proposal 
supports and strengthens the emergency character of the EGF. In the short term, it is often not 
possible to reprogramme ESF+ funding, and enterprises undergoing restructuring have limited 
means  to  support  the  workers  affected  by  redundancy.  The  EGF  could  fill  this  gap  by 
responding to restructuring events occurring over a mid-term timeframe. 

According to the Autumn 2024 Economic Forecast, growth in the EU is expected to pick up 
to 1.5% in 2025, as consumption shifts up a gear and investment is set to rebound from the 
contraction of 2024. However, elevated uncertainty and structural shifts are expected to weigh 
on segments of the economy, notably in manufacturing. Whereas the EU experienced a phase 
of  extraordinary  employment  growth  over  the  past  few  years,  data  from  Eurofound’s 
European Restructuring Monitor show that the tide has been turning since 2024. The number 
of jobs cuts  announced for the near future related to large-scale restructuring within the EU 
now far exceeds the number of job creations. 

According  to  the  data  collected  by  the  European  Restructuring  Monitor,  large-scale 
restructuring  across  all  countries  observed  and  all  sectors  lasted  for  more  than  a  year  (387 
days).  The  larger  the  restructuring  event,  the  longer  the  duration.  For  restructuring  events 
involving more than 3 000 workers, the average duration is almost 1 000 days. 

Economic  disruptions,  for  example  those  caused  by  the  twin  transition  or  by  globalisation, 
have  adverse  effects  on  workers  whose  skills  are  no  longer  needed.  However,  employment 
contraction  can  go  hand-in-hand  with  labour  and  skills  shortages.  Therefore,  the  workers 
concerned  must  be  supported  by  access  to  active  labour  market  policy  measures,  such  as 
education and retraining, to allow them to acquire the skills needed to move into new roles or 
jobs. 

In  light  of  the  twin  transition  and  new  geopolitical  challenges,  it  is  vital  to  enhance 
productivity  growth  while  ensuring  social  inclusion  and  preserving  equity,  to  ensure  that 
workers benefit from EU solidarity. 

This proposal is therefore needed to cushion the adverse effects economic disruptions have on 
the workforce, and to boost the EU’s economic competitiveness. It underlines the character of 

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the EGF as a reactive emergency response instrument to assist workers  who are  affected by 
imminent job displacement in enterprises undergoing restructuring. 

The support provided to those workers would consist of packages of personalised services to 
equip them with the skills needed to move into a different role, or to change jobs. Short-time 
work  schemes  are  not  eligible  given  they  are  funded  by  Member  States’  national  budgets. 
Extending  EU  solidarity  to  those  workers  through  such  support  would  take  into  account 
existing support that are available to them at national level. 

Workers  who  are  affected  by  imminent  job  displacement  or  anticipate  job  displacement  in 
enterprises  undergoing  restructuring  can  benefit  from  EGF  support  under  the  provisions 
setting the support available to displaced workers. 

In  the  current  context  of  economic  disruptions,  it  is  vital  to  support  both  workers  who  are 
made  redundant  and  workers  who  anticipate  imminent  job  displacement  by  accelerating  the 
procedure to mobilise EGF support. To achieve that, Regulation (EU) 2021/691 could set out 
a  procedure  whereby  the  Commission,  under  strict  conditions,  can  request  the  European 
Parliament  and  the  Council  to  mobilise  the  full  maximum  annual  amount  budget  at  the 
beginning  of  each  year.  If  that  mobilisation  is  approved,  the  Commission  would  adopt 
individual financing decisions in relation to the applications introduced by the  EU countries 
concerned.  The  Commission  will  immediately  inform  the  European  Parliament  and  the 
Council  of  its  adoption,  including  the  conditions  that  led  the  Commission  adopting  the 
financing decisions, as well as the corresponding amounts. 

If  the  full  maximum  annual  amount  is  not  used  by  the  Commission  in  a  given  year,  that 
amount will lapse at the end of the financial year. 

The  proposed  amendment  will  be  fully  accommodated  within  the  existing  provisions  of  the 
MFF Regulation (Article 8 of Council Regulation 2020/2093 of 17 December (as amended by 
Council Regulation 2024/765 of 29 February 2024), as well as with the existing provisions of 
the  Interinstitutional  Agreement  between  the  European  Parliament,  the  Council  of  the 
European  Union  and  the  European  Commission  on budgetary  discipline,  cooperation  in 
budgetary  matters,  sound  financial  management,  and  new  own  resources  of  16  December 
2020 (Point 9) (the IIA). 

This proposal also assists enterprises undergoing restructuring in actively managing economic 
transitions in a socially responsible manner. 

• 

Consistency  with  existing  policy provisions  in  the  policy  area  and  other  Union 
policies 

This proposal is one of the flagship actions under pillar 4 of the EU’s industrial action plan for 
the  European  automotive  sector  COM(2025)  95  final.  It  supports  the  aims  of  the  Union  of  
Skills and the European Competitiveness Compass. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  is  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  and  in 
particular the third paragraph of Article 175. 

If  specific  actions  are  needed  that  fall  outside  the  scope  of  the  EU  Structural  Funds, 
Article 175  third  paragraph  TFEU  allows  the  European  Parliament  and  the  Council  to  take 
action  in  line  with  the  ordinary  legislative  procedure  and  after  consulting  the  European 
Economic and Social Committee and the European Committee of the Regions. 

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• 

Subsidiarity (for non-exclusive competence) 

Funding  from  the  EU  budget  concentrates  on  activities  whose  objectives  cannot  be 
sufficiently  achieved  by  the  Member  States  alone,  and  where  EU  intervention  can  bring 
additional  value  compared  to  Member  States  acting  alone.  The  mobilisation  of  the  EGF  to 
fund  measures  aimed  at  assisting  displaced  workers  and  those  affected  by  imminent  job 
displacement  to  find  new  employment  respects  the  principle  of  subsidiarity  and  creates 
European added value. 

It is standard practice for national labour market programmes to assist displaced workers, and 
it  is  also  good  practice  for  companies  to  train  their  workforce.  The  EGF  does  not  aim  to 
replace such programmes. In case of restructuring events that have a significant impact on the 
labour market, the national labour market programmes are put at test. Companies undergoing 
restructuring  often  have  limited  budgets  to  help  their  surplus  employees  adjust.  Therefore, 
because of the scale and effects of large-scale restructuring and as the EGF is an expression of 
solidarity in Member States, assistance can be better delivered at EU level. EGF support will 
make  EU  solidarity  more  meaningful  for  workers  that  have  been  affected  by  restructuring 
events and for Europeans in general. 

The mobilisation of the EGF creates added value by increasing the overall number of services 
offered to workers affected by restructuring events, as well as the variety of services offered 
and their level of intensity. The EGF can also test innovative ideas, identify best practices and 
incorporate  them  into  the  national  support  packages.  EGF  co-financed  measures  also 
contribute in general to improving the support available to workers facing job displacement. 

• 

Proportionality 

In  line  with  the  principle  of  proportionality,  this  proposal  does  not  go  beyond  what  is 
necessary  to  achieve  its  goals.  The  administrative  burden  on  the  EU  and  on  the  national 
authorities  applying  for  EGF  support  has  been  limited  to  what  is  necessary  for  the 
Commission  to  exercise  its  responsibility  in  implementing  the  EU’s  budget.  Since  the 
financial contribution is made to the EU country under the principle of shared management, 
that country will be required to report on how the funding was used. 

• 

Choice of the instrument 

Since this proposal amends Regulation (EU) 2021/691, the instrument has to be a Regulation. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

This proposal is adopted in response to the heightened economic uncertainty and risks as well 
as the fact that the EGF does not respond appropriately to restructuring events that occur over 
longer  timeframes.  The  Commission  has  analysed  the  challenges  and  concluded  that  this 
proposal  is  needed  to  ensure  that  the  EGF  can  respond  effectively  to  show  solidarity  with 
workers, regions, and enterprises that have been affected. 

4. 

BUDGETARY IMPLICATIONS 

The  EGF  is  a  special  instrument  not  included  in  the  budgetary  ceilings  of  the  multiannual 
financial  framework.  Article  8(1)  of  Regulation  (EU,  Euratom)  2020/2093  laying  down  the 
multiannual  financial  framework  for  the  years  2021  to  2027,  as  amended  byArticle 1(4)  of 

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Council Regulation (EU, Euratom) 2024/765 of 29 February 2024, provides that the EGF may 
not exceed a maximum annual amount of EUR 30 million (in 2018 prices), based on Article 
312 TFEU. This proposal, based on Article 175 TFEU, cannot  amend the maximum  annual 
amount.  

The functioning of the EGF is governed by point 9 of the draft Interinstitutional Agreement 
between  the  European  Parliament,  the  Council  and  the  Commission  on  cooperation  in 
budgetary  matters  and  on  sound  financial  management.  The  present  proposal  is  compatible 
with these provisions.  

5. 

• 

OTHER ELEMENTS 

Detailed explanation of the specific provisions of the proposal 

The  proposed  amendments  specify  that  announced  job  displacements  that  will  occur  over  a 
certain  timeframe  in  the  near  future  fall  within  the  EGF’s  scope.  The  aim  is  to  allow  for  a 
more  common  approach  to  job  displacements  triggered  by  large-scale  restructuring  events. 
Enterprises undergoing restructuring must be able to request EGF assistance through national 
authorities. The funding must be used to offer personalised packages of active labour market 
policy measures to workers that are affected by imminent job displacements in the near future. 

Since the EGF is implemented under shared management, each  EU country sets-up a single 
entry  point  to  handle  requests  by  enterprises.  The  EU  country  concerned  then  submits  an 
application  for  EGF  assistance.  Expenses  incurred  by  the  applicant  EU  country  for 
preparatory,  management,  information  and  publicity,  and  control  and  reporting  activities 
relating to such applications must be co-financed at 100% across the EU. 

In  order  to  facilitate  future  evaluations,  a  beneficiary  survey  should  be  conducted  after  the 
implementation  of  each  financial  contribution  from  the  EGF.  The  beneficiary  survey  is 
prepared by the Commission. As the enterprises are the only ones having access to the contact 
details  of  the  beneficiaries,  they  should  assist  the  Commission  by  sending  out  to  the 
beneficiaries  the  invitation  to  take  part  in  the  survey.  The  Commission  should  use  the 
collected data for evaluation purposes. 

In order to implement this Regulation, in particular the guidance, information, evaluation and 
information  measures,  the  Commission  deems  it  necessary  to  raise  the  ceiling  for  the 
technical assistance to 1.5% of the EGF’s maximum annual amount. 

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2025/0073 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) 2021/691 as regards support to workers affected by 
imminent job displacement in enterprises undergoing restructuring 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
third paragraph of Article 175 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee1, 
Having regard to the opinion of the Committee of the Regions2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

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Regulation (EC) No 1927/2006  of  the  European  Parliament  and  of  the  Council3 
established  the  European  Globalisation  Adjustment  Fund  (EGF)  for  the  multiannual 
financial  framework  from  1 January 2007  to  31 December 2013.  The  EGF  was 
established to enable the Union to show solidarity towards workers who lost their jobs 
as a result of major structural changes in world trade patterns due to globalisation. 

The  scope  of  the  EGF  was  broadened  in  2009  as  part  of  the  European  Economic 
Recovery Plan to include support to workers made redundant as a direct consequence 
of the global financial and economic crisis. 
Regulation (EU) No 1309/2013  of  the  European  Parliament  and  of  the  Council4 
established  the  EGF  for  the  period  of  the  multiannual  financial  framework  from 
1 January 2014 to 31 December 2020. It also extended the scope of the EGF to cover 
redundances  resulting  from  any  new  global  financial  and  economic  crisis. 
Furthermore, Regulation (EU) No 1309/2013 was amended to introduce rules allowing 
the  EGF  to  exceptionally  cover  collective  applications  involving  small  and  medium-
sized  enterprises  located  in  one  region  and  operating  in  different  economic  sectors 
defined  at  NACE  Revision  2  division5  level,  where  the  applicant  Member  State 

OJ C , , p. . 
OJ C , , p. . 
Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on 
establishing the European Globalisation Adjustment Fund (OJ L 406, 30.12.2006, p. 1). 
Regulation (EU) No 1309/2013 of the European Parliament and of the Council of 17 December 2013 on 
the 
repealing 
Fund 
Regulation (EC) No 1927/2006 (OJ L 347, 20.12.2013, p. 855). 
Regulation (EC) No 1893/2006  of  the  European  Parliament  and  of  the  Council  of  20 December  2006 
establishing the statistical classification of economic activities NACE Revision 2 and amending Council 

Globalisation 

(2014-2020) 

Adjustment 

European 

and 

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(4) 

(5) 

(6) 

(7) 

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demonstrates that small and medium-sized enterprises are the main or the only type of 
business in that region. 

Regulation (EU) 2021/691 of the European Parliament and of the Council established 
the EGF for the period of the multiannual financial framework from 1 January 2021-
31 December 2027. In order to make the EGF more responsive to the rapidly changing 
economic  challenges  in  a  globalised  economy,  the  scope  of  the  EGF  was  broadened 
again to cover any type of large-scale restructuring event, no matter what the cause. A 
lower threshold better reflects the realities in lesser populated regions. In  the light of 
the twin digital and green transitions, measures that prepare beneficiaries for the twin 
transition  were  considered  mandatory  elements  of  every  coordinated  package  of 
personalised  measures  offered  to  beneficiaries.  Further,  the  co-financing  rates  were 
aligned  with  the  highest  co-financing  rate  of  the  European  Social  Fund  Plus  (ESF+) 
established  by  Regulation  (EU)  2021/1057  of  the  European  Parliament  and  of  the 
Council6  in  the  respective  Member  State.  Additionally,  a  mandatory  beneficiary 
survey was introduced. 

The  main  Union  instrument  to  assist  those  workers  that  have  been  affected  is  the 
ESF+, which is designed to offer assistance in an anticipatory way. The EGF is also 
designed  to  offer  assistance  in  response  to  major  restructuring  events.  However,  this 
set-up does not properly reflect the fact that large-scale restructuring events generally 
take  place  over  a  long  time  period.  Member  States  can  use  the  ESF+  to  upskill  and 
reskill workers, but the ESF+ does not provide support for the upskilling and reskilling 
of  workers  in  emergency  situations  such  as  those  in  which  workers  affected  by 
imminent  job  displacement  are.  The  enterprises  where  the  workers  concerned  are 
employed  are  often  in  economic  difficulty  and  therefore  unable  to  offer  such 
assistance on their own. 

The EGF’s role continues to be important as a flexible instrument to support workers 
who lose their jobs  in large-scale restructuring events  and to  help  them to find other 
jobs  as  quickly  as  possible.  The  Union  should  continue  to  provide  specific,  one-off 
support  to  facilitate  the  reintegration  into  decent  and  sustainable  employment  of 
displaced  workers  in  areas,  sectors,  territories  or  labour  markets  suffering  from  a 
shock  caused  by  serious  economic  disruption.  The  EU  has  to  ensure  its  sustainable 
prosperity  and  competitiveness  while  preserving  its  unique  social  market  economy, 
succeeding in the twin transition, and safeguarding its  democracy, economic security 
and geopolitical standing. To safeguard the EU’s future as an economic powerhouse, 
and  progress  on  its  twin  digital  and  green  transition,  it  is  vital  to  support  workers 
affected by imminent job displacement in enterprises undergoing restructuring so that 
they  can  acquire  the  skills  that  would  help  them  transfer  into  a  different  role,  or  to 
change job. 

Therefore it is necessary to amend Regulation (EU) 2021/691 so that the EGF can also 
offer  assistance  to  workers  affected  by  imminent  job  displacement  in  enterprises 
undergoing  restructuring.  As  these  workers  are  still  in  active  employment,  their 
employer may request assistance through the relevant Member States’ authorities. As 
the  EGF  is  under  shared  management,  it  is  the  Member  States’  authorities  that  can 

Regulation (EEC) No 3037/90  as  well  as  certain  EC  Regulations  on  specific  statistical  domains  (Text 
with EEA relevance) (OJ L 393, 30.12.2006, p. 1). 
Regulation (EU) 2021/1057 of the European Parliament and of the Council of 24 June 2021 establishing 
the  European  Social  Fund  Plus  (ESF+)  and  repealing  Regulation  (EU)  No 1296/2013  (OJ  L  231, 
30.6.2021, p. 21, ELI: http://data.europa.eu/eli/reg/2021/1057/oj). 

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request EGF co-funding upon receipt of a request by an enterprise, provided that the 
enterprise agrees to provide the national co-funding. Should the financial contribution 
from  the  EGF  be  granted,  the  Member  State  concerned  should  make  the  funds 
requested  available  to  the  enterprise  within  two  weeks  of  their  receipt.  In  particular, 
the  enterprise  should  make  available  to  the  Member  State  all  information  needed  to 
prepare  the  final  report  on  the  implementation  of  the  relevant  financial  contribution, 
not  later  than  six  months  after  the  end  of  the  implementation  of  the  assistance.  The 
Commission  will  prepare  a  beneficiary  survey  and  the  enterprise  should  share  the 
access to the survey to the workers who participated in the programme. 

Given  the  objective  to  support  workers,  the  targeted  packages  supporting  workers 
affected by imminent job displacement have to be designed in a way that excludes any 
Member State discretion on the eligibility criteria or the selection of beneficiaries.  If 
Member  States  had  discretion  as  to  the  use  of  the  EGF  resources,  in  particular  as 
regards  the  selection  of  enterprises  whose  workers  would  benefit  from  targeted 
programmes,  EGF  resources  would  be  considered  as  State  resources,  and  therefore 
should be subject to EU State aid rules. 

The support provided to workers affected by imminent job displacement in enterprises 
undergoing restructuring should take into account existing forms of support available 
under  national  measures.  Short-time  work  schemes  should  not  be  eligible  for  EGF 
support  as  they  do  not  relate  to  the  displacement  of  jobs,  but  to  their  temporary 
suspension.  If  the  national  measures  allow  it,  the  requesting  enterprise  may 
subcontract the delivery of the coordinated package of personalised measures, or parts 
thereof. 

(8) 

(9) 

(10)  The co-financing rate for such measures targeted to workers affected by imminent job 
displacement  in  enterprises  undergoing  restructuring  should  be  equal  to  the  co-
financing rate for EGF assistance to displaced workers.  Enterprises that request EGF 
support should provide the national co-financing. 

(11)  The  co-financing  rate  for  expenditure  incurred  by  the  Member  State  in  relation  to 
applications for EGF support, including the preparation of applications as well as the 
monitoring  and  control  of  the  assistance  granted,  and  in  relation  to  information  and 
publicity measures, should be 100%. 

(12)  As the workers affected by imminent job displacement are still in active employment, 
only those active labour market policy measures that help them re- or upskill, that give 
guidance  or  mentoring,  including  measures  aimed  at  workers  that  could  envisage 
starting their own business one day, should be eligible. Therefore, neither allowances, 
nor start-up grants should be eligible. 

(13)  Workers  affected  by  imminent  job  displacement  receiving  EGF  assistance  should 
remain eligible even if their work relationship ends. They should also remain eligible 
for  possible  follow-up  applications  by  the  respective  Member  States  in  support  of 
displaced workers from the same enterprise. 

(14)  Given the Commission’s increasing tasks in implementing Regulation (EU) 2021/691, 
the  Commission  should  be  able  to  request  technical  assistance  of  up  to  1.5%  of  the 
total annual maximum amount of the EGF. The higher rate is also  justified since the 
EGF’s  annual  maximum  amount  was  lowered  in  the  context  of  the  multiannual 
financial framework mid-term revision. 

(15)  To  provide  swifter  support  to  workers  affected  by  imminent  job  displacement  in 
enterprises  undergoing  restructuring  or  workers  made  redundant  and  allow  them  to 

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benefit from Union solidarity in the current context of economic disruptions and rapid 
changes,  there  is  a  need  to  accelerate  the  support  given  to  the  workers.  One  way  of 
doing this is by requiring the Commission to request to the European Parliament and 
the  Council  to  mobilise  the  full  maximum  annual  amount  at  the  beginning  of  each 
year,  if  specific  conditions  are  met.  The  Commission  proposal  should  therefore 
indicate the circumstances that led the Commission to conclude that the conditions to 
request  full  mobilisation of  the  maximum  annual  amount,  have  been  met.  The 
Commission proposal should be based on information provided by the Member States 
at  the  end  of  each  year.  The  proposal  should  include  the  number  of  potential 
applications  from  each  Member  State  concerned,  the  sectors  of  activities  concerned, 
the estimated number of enterprises which could request Member States to apply for 
EGF  support,  and  the  estimated  number  of  workers  at  risk  of  imminent  job 
displacement  or  that  have  been  displaced.  The  identity  of  the  enterprises  concerned 
should not be revealed if the information is not yet publicly known. 

(16)  Once  the  full  mobilisation  of  the  maximum  annual  amount  is  approved  by  the 
European  Parliament  and  the  Council,  the  Commission  should  adopt  financing 
decisions on individual applications and should be required to immediately inform the 
European  Parliament  and  the  Council  of  the  adoption  of  those  decisions.  If  the  full 
mobilised  maximum  annual  amount  is  not  used  by  the  Commission  in  a  given  year, 
that amount would lapse at the end of the financial year. 

(17)  The  proposed  amendments  will  be  fully  accommodated  with  Article  8  of  Council 
Regulation 2020/20937, as well as with point 9 of the Interinstitutional Agreement of 
16 December 20208. 

(18)  This  Regulation  should  enter  into  force  as  a  matter  of  urgency  to  swiftly  provide 
support  to  the  workers  affected  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union, 

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) 2021/691 is amended as follows: 

(1) 

In Article 1, paragraph 2 is replaced by the following: 

Article 1 

‘2. 
In accordance with Article 4, the EGF shall offer support to displaced workers 
and  self-employed  persons  whose  activity  has  ceased  in  the  course  of  major 
restructuring  events  and  to  workers  affected  by  imminent  job  displacement  in 
enterprises undergoing restructuring.’; 

(2) 

Article 2 is replaced by the following: 

‘Article 2 

Mission and objectives 

‘1.  The  EGF  shall  support  socioeconomic  transformations  that  are  the  result  of 
globalisation  and  of  technological  and  environmental  changes  by  helping  displaced 
workers and self-employed persons whose activity has ceased to adapt to structural 
change.  The  EGF  shall  constitute  an  emergency  fund.  As  such,  the  EGF  shall 

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8 

OJ L 433 I, 22.12.2020, p. 11. 
OJ L 433 I, 22.12.2020, p. 28. 

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contribute  to  the  implementation  of  the  principles  set  out  in  the  European  Pillar  of 
Social  Rights  and  shall  enhance  social  and  economic  cohesion  among  regions  and 
Member States. 

2. The objectives of the EGF are to demonstrate solidarity and promote decent  and 
sustainable  employment  in  the  Union  by  offering  assistance  in  the  case  of  major 
restructuring events, in particular those caused by challenges related to globalisation, 
such  as  changes  in  world  trade  patterns,  trade  disputes,  significant  changes  in  the 
trade relations of the Union or the composition of the internal market and financial or 
economic  crises,  as  well  as  the  transition  to  a  low-carbon  economy,  or  as  a 
consequence  of  digitisation  or  automation.  The  EGF  shall  support  beneficiaries  in 
returning  to  decent  and  sustainable  employment  as  soon  as  possible.  Particular 
emphasis shall be placed on measures that help the most disadvantaged groups. The 
EGF shall also support workers affected by imminent job displacement in acquiring 
the skills needed to help them transfer into a different role, or to change jobs.’; 

(3) 

(a) 

Article 3 is amended as follows: 

the following point is inserted 

‘(1a)  ‘worker affected by imminent job displacement’ means a worker, regardless of 
the type or duration of their employment relationship, whose employment contract or 
relationship  is  expected  to  be  ended  by  redundancy  as  of  the  date  on  which  the 
employer  notifies  the  competent  public  authority  in  writing  of  the  projected 
collective redundancies in accordance with Article 3(1) of Directive 98/59/EC;’; 

(b) 

the following point is added: 

‘(6) ‘enterprise undergoing restructuring’ means an enterprise undergoing a process 
that involves collective redundancies as referred to in Directive 98/59/EC.’; 

(4) 

(a) 

Article 4(1) is amended as follows: 

paragraph 1 is replaced by the following: 

‘1. Member States may apply for financial contributions from the EGF for measures 
targeting  displaced  workers,  workers  affected  by  imminent  job  displacement,  and 
self-employed persons in accordance with the provisions laid down in this Article.’; 

(b) 

in paragraph 2, the following point is added: 

(5) 

(a) 

‘(d)   at  least  200  workers  affected  by  imminent  job  displacement  in  an  enterprise 
undergoing restructuring in a Member State.’; 

Article 5 is amended as follows: 

in the first paragraph, the first sentence is replaced by the following: 

‘The  applicant  Member  State  shall  specify  the  method  used  for  calculating  the 
number  of  displaced  workers,  workers  affected  by  imminent  job  displacement,  and 
self-employed persons for the purpose of Article 4 as at one or more of the following 
dates:’; 

(b) 

the second paragraph is replaced by the following: 

‘In the cases referred to in the first paragraph, point (a), the applicant Member State 
shall provide the Commission with additional information about the actual number of 
redundancies  effected  in  accordance  with  Article 4,  before  the  completion  of  the 
Commission’s assessment, for all applications concerning beneficiaries referred to in 
Article 6, first paragraph, points (a) and (b).’; 

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(6) 

in Article 6, first paragraph, the following point is added: 

‘(c)  workers  affected  by  imminent  job  displacement  in  an  enterprise  undergoing 
restructuring. The workers shall remain eligible even in case of an actual termination 
of the work relationship. Only those restructuring events shall be eligible that qualify 
as collective redundancies under Directive 98/59/EC.’; 

(7) 

(a) 

Article 7 is amended as follows: 

paragraph 1 is replaced by the following: 

‘1.  A financial contribution from the EGF may be made for active labour market 
policy  measures  that  form  part  of  a  coordinated  package,  designed  to  facilitate  the 
reintegration  of  the  targeted  beneficiaries,  in  particular  the  most  disadvantaged 
among them, into employment or self-employment, or to help workers referred to in 
Article 6, first paragraph, point(c) acquire the skills they need to transfer either into a 
different role with their current employer or to a different employer.’; 

(b) 

in paragraph 2, second subparagraph, the following point is added: 

‘(c)  ‘For  the  beneficiaries  referred  to  in  Article 6,  first  paragraph,  point  (c),  the 
coordinated  package  may  include  training  and  retraining,  tailored  to  the  individual 
worker’s needs, including on information and communication technology and other 
skills  required  in  the  digital  age,  certification  of  acquired  knowledge  and  skills, 
individual  job-search  assistance  services  and  targeted  group  activities,  occupational 
guidance,  advisory  services,  mentoring,  outplacement  assistance,  entrepreneurship 
promotion and cooperation activities. It may not include short-time work schemes.’; 

(8) 

(a) 

Article 8 is amended as follows: 

the title is replaced by the following: 

‘Article 8 

Applications for EGF assistance to displaced workers and self-employed persons 
whose activity has ceased’; 

(b) 

paragraph 6 is replaced by the following: 

‘6.  Based  on  the  information  provided  by  the  applicant  Member  State,  the 
Commission shall complete its assessment of the application’s compliance with the 
conditions  for  providing  a  financial  contribution  within  30  working  days  of  the 
receipt  of  the  complete  application  or,  where  applicable,  of  the  translation  of  the 
application. 

Where the Commission is unable to meet that deadline, it shall inform the Member 
State before that deadline and set  a new date  to  complete  its  assessment. That  new 
date  shall  be  no  later  than  20  working  days  after  the  deadline  under  the  first 
subparagraph.’; 

(c) 

in paragraph 7 point l) is replaced by the following: 

‘l) a reasoned statement that the requested EGF support complies with the procedural 
and  material  Union  rules  on  State  aid  as  well  as  a  statement  outlining  why  the 
coordinated  package  does  not  replace  measures  that  are  the  responsibility  of 
employers by virtue of national law or collective agreements.’; 

(9) 

The following Article 8a is inserted: 

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‘Article 8 a 

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Applications for EGF assistance to workers affected by imminent job displacement 

Enterprises undergoing restructuring may request the Member State concerned 
1. 
to submit an application for a financial contribution from the EGF, if the intervention 
criteria set out in Article 4(2), point (d) are met, and if the enterprise wishes to offer 
EGF-co-financed assistance to those parts of its workforce affected by imminent job 
displacement, in line with Article 6, first paragraph, point (c). Such a request shall be 
submitted by the enterprise within two weeks of the date on which it had notified the 
public  authorities  in  writing  of  the  projected  collective  redundancies  in  accordance 
with Article 3(1) of Directive 98/59/EC. 

2. 
All  Member  States  shall  designate  a  Single  Entry  Point  to  which  enterprises 
can  direct  requests  referred  to  in  paragraph  1,  and  publish  relevant  guidelines  and 
templates.  The  information  collected  from  these  templates  shall  cover  all  the 
information  necessary  for  a  financial  contribution  application  from  the  EGF  as  set 
out in paragraph below. 

3.  Member  States  shall  treat  all  requests  equally  in  the  order  of  receipt  without 
exerting  any  discretion  regarding  the  admissibility  and  eligibility  of  these  requests, 
and shall submit applications for assistance received from enterprises. Member States 
shall  not  introduce  any  additional  requirements  or  alter  the  requirements  set  out  in 
this Regulation. 

4. 
The  applicant  Member  State  shall  submit  to  the  Commission  a  financial 
contribution  application  from  the  EGF  within  one  week  of  the  date  on  which  it 
received an enterprise’s request. 

If  requested  by  the  enterprise,  the  Member  State  concerned  shall  provide 

5. 
guidance to the enterprise throughout the application procedure. 

If  requested  by  the  applicant  Member  State,  the  Commission  shall  provide 

6. 
guidance to the Member State throughout the application procedure. 

7.  Within 10 working days of the date of submission of the application, or, where 
applicable,  within  10  working  days  of  the  date  on  which  the  Commission  is  in 
possession of a translation of the application, whichever is the later, the Commission 
shall acknowledge receipt of the application and request from the applicant Member 
State any additional information that it requires in order to assess the application. 

8.  Where  the  Commission  requests  additional  information,  the  Member  State 
shall reply within 15 working days of the date of the request. The Commission shall 
extend  that  deadline  by  10  working  days  at  the  request  of  the  applicant  Member 
State. Any such requests for extension shall be duly reasoned. 

9. 
Based  on  the  information  provided  by  the  applicant  Member  State,  the 
Commission shall complete its assessment of the  application’s  compliance with the 
conditions  for  providing  a  financial  contribution  within  30  working  days  of  the 
receipt  of  the  complete  application  or,  where  applicable,  of  the  translation  of  the 
application. 

Where the Commission is unable to meet that deadline, it shall inform the applicant 
Member  State  before  that  deadline,  setting  a  new  date  for  the  completion  of  its 
assessment. That new date shall be no later than 20 working days after the deadline 
under the first subparagraph. 

10.  An application shall contain the following information:  

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(a) 

the identification of the enterprise concerned; 

an  assessment  of  the  number  of  jobs  affected  by  displacement  in  accordance 

(b) 
with Article 6, first paragraph, point (c); 

(c) 

a brief description of the events that led to the restructuring; 

(d) 
 a confirmation that the enterprise has complied and continues to comply with 
its legal obligations or collective agreements governing those projected redundancies 
and  is  providing  for  its  workers  accordingly,  and  a  description  of  the  procedures 
followed  by  the  enterprise  for  consulting  the  targeted  beneficiaries  or  their 
representatives; 

(e) 
an  estimated  breakdown  of  the  composition  of  the  targeted  beneficiaries  by 
gender,  age  group  and  educational  level,  used  in  the  design  of  the  coordinated 
package; 

(f) 
a  detailed  description  of  the  coordinated  package  and  related  expenditure, 
including  any  measures  in  support  of  employment  initiatives  for  disadvantaged, 
young and older beneficiaries; 

the estimated budget for each of the components of the coordinated package in 

(g) 
support of the targeted beneficiaries that will be offered by the enterprise; 

(h) 
the  dates  on  which  the  provision  of  the  coordinated  package  to  the  targeted 
beneficiaries  and  the  activities  to  implement  the  EGF,  as  set  out  in  Article 7,  were 
started or are due to be started; 

(i) 
the  estimated  budget  for  any  preparatory,  management,  information  and 
publicity, control and reporting activities by the applicant Member State in relation to 
such an application; 

a  reasoned  statement  that  the  requested  EGF  support  complies  with  the 
(j) 
procedural  and  material  Union  rules  on  State  aid  as  well  as  a  reasoned  statement 
outlining  why  the  coordinated  package  does  not  replace  measures  that  are  the 
responsibility of employers by virtue of national law or collective agreements;  

the  confirmation  that  the  enterprise  concerned  will  co-finance  the  measures 

(k) 
and that it is the only source for the national co-funding.’; 

(10) 

In Article 11, paragraph 1 is replaced by the following: 

‘1. At the initiative of the Commission, a maximum of 1.5% of the maximum annual 
amount of the EGF may be used for technical and administrative expenditure for its 
implementation,  such  as  preparatory,  monitoring,  control,  audit  and  evaluation 
activities,  as  well  as  data  gathering,  including  in  relation  to  corporate  information 
technology  systems,  communication  activities  and  those  enhancing  the  EGF’s 
visibility as a fund or  for specific projects  and other technical  assistance  measures. 
Such measures may cover future and previous programming periods.’; 

(11) 

Article 13 is amended as follows: 

(a) 

paragraph 1 is replaced by the following: 

‘1. On the basis of the assessment carried out in accordance with Article 8 or Article 
8a, in particular taking into account the number of targeted beneficiaries, the proposed 
measures  and  the  estimated  costs,  the  Commission  shall  evaluate  and  determine  the 
amount of a financial contribution from the EGF, if any, that may be made within the 
limits of the resources available.’; 

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(b) 

the following paragraph is inserted: 

‘2a.  The  co-financing  rate  for  expenditure  incurred  by  the  Member  State  for 
beneficiaries  referred  to  in  Article 6,  first  paragraph,  point  (c)  and  relating  to 
measures set out in Article 7(6), shall be 100%.’; 

(c) 

paragraph 3 is replaced by the following: 

‘3. Where, on the basis of the assessment carried out in accordance with Article 8 or 
Article 8a, the Commission concludes that the conditions for a financial contribution 
under  this  Regulation  are  met,  it  shall  immediately  adopt  a  decision  on  a  financial 
contribution as set out in Article 15 (6).’; 

(12) 

In Article 14, paragraphs (1) and (2) are replaced by the following: 

‘1.  Expenditure  shall  be  eligible  for  a  financial  contribution  from  the  EGF  from 
the  dates  set  out  in  the  application  in  accordance  with  Article 8(7),  point  (j),  or 
Article 8a(10),  point  (h),  on  which  the  Member  State  or  the  enterprise  concerned 
starts,  or  is  due  to  start,  providing  the  coordinated  package  to  the  targeted 
beneficiaries  or  on  which  the  Member  State  incurs  administrative  expenditure  to 
implement the EGF in accordance with Article 7(1) and (5). 

2. 
The  Member  State  or  the  enterprise  shall  start  implementing  the  eligible 
measures set out in Article 7 without undue delay and shall carry out those measures 
as soon  as possible, and in  any event  within 24 months  from the date of entry into 
force of the financial contribution decision.’; 

(13) 

Article 15 is replaced by the following: 

‘Article 15 

Budgetary procedure and implementation  

‘1.  To  ensure  that  the  assistance  is  provided  as  soon  as  possible  to  the  eligible 
beneficiaries,  the  Commission  shall  submit  a  proposal  to  mobilise  the  EGF  to  the 
European Parliament and to the Council in accordance with paragraphs 2 or 3. 

2. The Commission  shall submit its proposal  for  a decision to  mobilise the EGF to 
the  European  Parliament  and  the  Council  where  it  has  received  one  application  for 
EGF support and at least one of the following conditions is met: 

a) 
The Commission assesses, following application or information received from 
the Member States, that one of the conditions set out in Article 4 paragraph 2, 3 or 4, 
is met; 

The Commission is informed of the cessation of activities leading to job losses 

b) 
of more than 1 000 workers; 

The Commission is informed of large-scale restructuring events with imminent 

c) 
displacement affecting more than 1 000 workers. 

3.  The  Commission  may  request  the  full  mobilisation  of  the  maximum  annual 
amount  for  the  EGF  by  the  end  of  February  every  year.  The  Commission  proposal 
shall include the following elements, based on information provided by the Member 
States: 

(i) the number of potential applications from each Member State concerned; 

(ii) the sectors of activities concerned; 

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(iii) the estimated number of enterprises which could request Member States to 
apply for EGF assistance; 

(iv)  the  estimated  number  of  workers  displaced  or  at  risk  of  imminent  job 
displacement. 

At the same time as it submits  its proposal  for a decision to  mobilise the EGF, the 
Commission shall submit to the European Parliament and to the Council a proposal 
for a transfer of the maximum annual amount to the relevant budgetary lines. 

When  the  maximum  annual  amount  has  not  been  mobilised  under  the  first 
subparagraph of this paragraph, the Commission shall request the mobilisation of the 
EGF per application received. The Commission proposal  for a decision to  mobilise 
the EGF per application shall include the assessment carried out in accordance with 
Article 8(6) or Article 8(a) (9), together with a summary of the information on which 
that  assessment  is  based  and  the  reasons  justifying  the  amounts  proposed.  At  the 
same  time  as  it  submits  its  proposal  for  a  decision  to  mobilise  the  EGF,  the 
Commission shall submit to the European Parliament and to the Council a proposal 
for a transfer to the relevant budgetary lines. 

4. Member States shall provide the Commission with the information referred to in 
paragraph 2 by the end of December each year. 

5.  The  decision  to  mobilise  the  EGF  shall  be  taken  jointly  by  the  European 
Parliament  and  the  Council.  The  budgetary  transfer  in  relation  to  the  EGF  shall  be 
made in accordance with Article 31 of the Financial Regulation. 

6. Where the Commission has concluded that the conditions for providing a financial 
contribution  from  the  EGF  under  Article 4  are  met,  it  shall  adopt  a  decision  on  a 
financial contribution. That decision shall constitute a financing decision within the 
meaning of Article 110 of the Financial Regulation. 

7.  When  the  maximum  annual  amount  has  been  mobilised  pursuant  to  the  first 
subparagraph of paragraph 3, the Commission shall inform the European Parliament 
and  the  Council  immediately  upon  the  adoption  of  each  financial  contribution 
decision.’ 

(14) 

Article 16 is replaced by the following:  

‘Article 16 

Insufficient funds 

If the remaining commitment appropriations available in the EGF are not sufficient 
to  cover  the  amount  of  assistance  that  is  necessary  for  a  financial  contribution,  the 
Commission  may  postpone  the  adoption  of  a  financial  contribution  decision  until 
commitment appropriations are available in the following year. The annual budgetary 
ceiling of the EGF shall be respected in all circumstances.’ 

(1) 

In Article 17, the following paragraph is added: 

‘6.  Within  one  week  of  receipt  of  the  Commission’s  pre-financing  payment,  the 
Member State concerned shall make available to the enterprise concerned that part of 
the  pre-financing  payment  that  relates  to  the  coordinated  package  of  measures 
implemented  by  the  enterprise.  The  Member  State  shall  retain  the  part  of  the  pre-
financing that relates to measures referred to in Article 7(5).’; 

(2) 

In Article 20, the following paragraph is added: 

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‘3.  In  cases  where  an  enterprise  is  implementing  a  financial  contribution  from  the 
EGF for workers affected by imminent job displacement, the enterprise shall by the 
end  of  the  sixth  month  after  the  expiry  of  the  implementation  period  provide  the 
Member State concerned with all relevant information specified in paragraph 1.’; 

(3) 

In Article 22, paragraph 4 is replaced by the following: 

‘4.  A  beneficiary  survey  shall  be  launched  during  the  sixth  month  after  the  end  of 
each implementation period. The beneficiary survey shall be open to participation for 
at  least  four  weeks.  Member  States  shall  distribute  the  beneficiary  survey  to  the 
beneficiaries,  send  out  at  least  one  reminder  and  inform  the  Commission  of  the 
distribution  and  reminder  sent.  In  cases  involving  assistance  implemented  by  an 
enterprise to beneficiaries under Article 6, first paragraph, point (c), that enterprise is 
responsible  for  distributing  the  survey  prepared  by  the  Commission  among  the 
workers  that  have  participated  in  the  measures.  The  responses  to  the  beneficiary 
surveys  shall  be  collated  and  analysed  by  the  Commission  for  the  use  in  future 
evaluations.’ 

(4) 

The following new Article is inserted: 

‘Article 28a 

Transitional measures 

By derogation from Article 15(1), the Commission may submit a proposal to mobilise 
the remainder of the maximum annual amount for 2025 for the EGF to the European 
Parliament and to the Council, subject to the conditions set in Article 15, as of….[ the 
date of  the entry into force of this Regulation].’ 

Article 2 

Entry into force 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area concerned .................................................................................................. 3 

Objectives  .................................................................................................................... 3 

1.3.1.  General objectives ........................................................................................................ 3 

1.3.2.  Specific objectives ....................................................................................................... 3 

1.3.3.  Expected result and impact .......................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to .................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirements to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 5 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES .................................................................................. 7 

Monitoring and reporting rules .................................................................................... 7 

Management and control system(s) ............................................................................. 7 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 7 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 7 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 8 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE .............. 9 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ......................................................................................................................... 9 

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3.2. 

Estimated financial impact of the proposal on appropriations ................................... 10 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 10 

3.2.1.1.  Appropriations from voted budget ............................................................................. 11 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 12 

3.2.2.  Estimated output funded from operational appropriations......................................... 13 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 13 

3.2.3.1. Appropriations from voted budget .............................................................................. 13 

3.2.4.  Estimated requirements of human resources.............................................................. 13 

3.2.4.1.  Financed from voted budget....................................................................................... 14 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 14 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 15 

3.2.7.  Third-party contributions ........................................................................................... 15 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 15 

DIGITAL DIMENSIONS .......................................................................................... 16 

Requirements of digital relevance .............................................................................. 16 

Data ............................................................................................................................ 16 

Digital solutions ......................................................................................................... 16 

Interoperability assessment ........................................................................................ 16 

Measures to support digital implementation .............................................................. 16

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Regulation  of  the  European  Parliament  and  of  the  Council  amending  Regulation 
(EU)  2021/691  on  the  European  Globalisation  Adjustment  Fund  for  Displaced 
Workers and repealing Regulation (EU) No 1309/2013 

1.2. 

Policy area concerned 

Employment (Competitiveness and Social Fairness) 

1.3. 

Objectives 

1.3.1.  General objectives 

The EGF is a flexible instrument that allows the EU respond to unexpected events. 
Since its establishment in 2007, the EGF helps workers that have lost their jobs as a 
result of economic disruptions. 

Under  the  EGF,  the  EU  provides  specific,  one-off  support  in  the  form  of  active 
labour  market  policy  measures  to  facilitate  the  reintegration  into  decent  and 
sustainable employment. This support complements the more anticipatory assistance 
offered by ESF+. 

This  proposal  aims  to  extend  this  assistance  to  workers  affected  by  imminent  job 
displacement as the consequence of a collective redundancy procedure. 

It also aims to streamline and speed-up the mobilisation procedure. 

1.3.2. 

Specific objectives 

Specific objective No 

(1)  The EGF’s objective is to support workers who have been made redundant in 
major restructuring events that, by their scale and effects, cause a significant impact 
and to facilitate workers’ reintegration into decent and sustainable employment. This 
proposal will add the objective to also provide assistance to workers who are affected 
by  redundancy  in  an  enterprise  undergoing  restructuring,  to  be  better  prepared  to 
complete a job transition in a shorter time, and to facilitate their transfer into a new 
role or career. 

(2)  The EGF’s assistance must be made available more swiftly. 

1.3.3.  Expected result and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

Allow a fast and sustainable transition into decent new jobs. 

1.3.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

Indicator 1: Total EGF beneficiaries in a given case 

Indicator 2: Beneficiaries by gender (female/male/non-binary) 

Indicator 3: Beneficiaries by age group (below 30 years/above 54 years) 

Indicator  4:  Beneficiaries  by  education  level  (with  lower  secondary  education  or 
less/with upper secondary or post-secondary education/ with tertiary education) 

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Indicator 5: Percentage of EGF beneficiaries in education or training 

Indicator  6:  Beneficiaries  by  employment  status  (unemployed/inactive/employed 
(dependent)/self-employed). 

The  indicators  do  not  set  a  baseline,  targets  or  milestones.  The  number  of  targeted 
beneficiaries  as  specified  by  the  Member  State  concerned  is  not  considered  a 
baseline.  The  reason  for  this  is  that  some  Member  States  target  only  workers  who 
have  been  made  redundant  and  have  little  chance  of  successfully  moving  jobs 
without  tailored  support,  while  other  Member  States  target  all  workers  who  have 
been made redundant. 

1.4. 

The proposal/initiative relates to: 

 a new action 
 a new action following a pilot project / preparatory action9 

 the extension of an existing action 

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

This proposal will enable the EGF to respond to large-scale restructuring events by 
helping workers who immediately lose their jobs. It will also offer anticipatory help 
to those who are affected by imminent redundancy. 

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of  this section  ’added value of  EU  involvement’ is  the value resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

Reasons for action at EU level  

EU  involvement  through  the  EGF  makes  it  possible  to  complement  national  (both 
public and private) measures to reintegrate workers who have been made redundant 
or will be made redundant due to major restructuring events. Experience so far shows 
that  EU  involvement  makes  it  possible  to  provide  more  tailor-made  support  for  a 
longer period of time, often involving measures that would not have been provided 
without EU involvement. 

Expected generated EU added value (ex post)  

Attaining  a  higher  reintegration  rate  of  displaced  workers  than  the  rate  achieved 
through national support generates volume effects. This means that funding has not 
only  increased  the  number  and  variety  of  services  offered,  but  also  the  level  of 
intensity of those services. 

Improving the public’s perception of the EU. 

9 

Article 58(2), point (a) or (b) of the Financial Regulation. 

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1.5.3.  Lessons learned from similar experiences in the past 

See  the  experience  gained  under  Regulation  (EU)  2021/691  as  set  out  in  the 
Explanatory Memorandum of the Proposal for a Regulation. 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

EGF support complements the more anticipatory assistance offered by ESF+. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

The impact assessment’s key finding (SWD/2018/289 final) is that as an emergency 
relief fund, the EGF should remain outside the budgetary ceilings of the EU budget. 

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1.6. 

Duration of the proposal/initiative and of its financial impact 

 limited duration 

–  In effect until the expiry of Regulation (EU)2021/691 

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned10 

 Direct management by the Commission 

–   by its departments, including by its staff in the EU delegations; 

–    by the executive agencies 

 Shared management with the Member States 

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies established in a Member State, governed by the private law of a Member 
State  or  EU  law  and  eligible  to  be  entrusted,  in  accordance  with  sector-specific 
rules, with the implementation of EU funds or budgetary guarantees, to the extent 
that  such  bodies  are  controlled  by  public  law  bodies  or  by  bodies  governed  by 
private  law  with  a  public  service  mission,  and  are  provided  with  adequate 
financial  guarantees  in  the  form  of  joint  and  several  liability  by  the  controlling 
bodies  or  equivalent  financial  guarantees  and  which  may  be,  for  each  action, 
limited to the maximum amount of the EU support. 

10 

Details of budget implementation methods and references to the Financial Regulation may be found on 
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx. 

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2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Article 21  of  Regulation  (EU)  2021/691  requires  the  Commission  to  present,  every 
two years, to the European Parliament and the Council a quantitative and qualitative 
report on the activities carried out under this Regulation. The report focuses on the 
results  achieved  by  the  EGF  and  in  particular  contains  information  on  the 
applications  submitted,  processing  time,  decisions  adopted,  measures  funded, 
including  statistics  on  the  indicators  set  out  in  Annex  II  to  Regulation  (EU) 
2021/691, and the complementarity of such measures with measures funded by other 
Union  funds,  in  particular  ESF+,  and  information  relating  to  the  winding-up  of 
financial contributions made. 

In  line  with  Article 22  of  Regulation  (EU)  2021/691,  the  Commission,  in  close 
cooperation with the Member States, will carry out a mid-term evaluation by 30 June 
2025  and  an  evaluation  by  31 December  2029.  The  evaluation  will  set  out 
recommendations that must be taken into account when designing new programmes 
in employment and social affairs or the further development of existing programmes. 

2.2.  Management and control system(s) 

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

The  requirements  that  apply  to  management  and  financial  control  are  laid  down  in 
Article 23 of Regulation (EU) 2021/691. 

EGF is under shared management. Experience has shown that a tailor-made package 
of  personalised  services  needs  to  be  designed  by  the  authority  closest  to  the 
individual concerned. Depending on the Member State and the type of restructuring 
event,  this  would  usually  be  a  local,  regional  or  national  authority.  The 
implementation  tasks  are  therefore  delegated  to  the  Member  State  authorities.  The 
assistance to workers affected by redundancy will further require the involvement of 
the enterprise undergoing restructuring. EU intervention is needed due to the scale of 
the impact of the redundancies, but in line with the subsidiarity principle it is limited 
to what is necessary to meet the objectives of showing EU solidarity with displaced 
workers. 

Given its purpose, which is  to provide support in situations of urgency either in  an 
anticipatory  or  reactive  manner,  the  EGF  remains  a  flexible  instrument  falling 
outside the budgetary ceilings of the EU budget. 

The  mobilisation  mechanism  is  laid  down  in  Article 15  of  Regulation  (EU) 
2021/691. The Commission must pay the financial contribution to the Member State 
concerned in a single 100% pre-financing payment. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The  risks  are  those  related  to  shared  management  of  Community  Funds.  The 
requirements  applicable  to  management  and  financial  control  are  laid  down  in 
Article 23 of Regulation (EU) 2021/691. 

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2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) 

In  terms  of  expected  error  rate(s),  the  aim  is  to  maintain  an  error  rate  below  the 
threshold of 2%. 

2.3.  Measures to prevent fraud and irregularities 

Member  States  should  prevent,  detect  and  deal  effectively  with  any  irregularities, 
including fraud, committed by beneficiaries. Moreover, in line with Regulation (EU, 
Euratom) No 883/2013 of the European Parliament and of the Council and Council 
Regulations  (EC,  Euratom)  No 2988/95  and  (Euratom,  EC)  No 2185/96,  the 
European  Anti-Fraud  Office  (OLAF)  has  the  power  to  carry  out  administrative 
investigations,  including  on-the-spot  checks  and  inspections,  in  order  to  establish 
whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity  affecting  the 
EU’s financial interests.  

The European Public Prosecutor’s Office (EPPO) is empowered, in line with Council 
Regulation (EU) 2017/1939, to investigate and prosecute criminal offences affecting 
the  EU’s  financial  interests  as  provided  for  in  Directive  (EU)  2017/1371  of  the 
European  Parliament  and  of  the  Council  Member  States  should  take  the  necessary 
measures to ensure that any person or entity receiving EU funds fully cooperates to 
protect  the  EU’s  financial  interests,  grants  the  necessary  rights  and  access  to  the 
Commission,  OLAF,  the  Court  of  Auditors  and,  in  respect  of  Member  States 
participating in enhanced cooperation under Regulation (EU) 2017/1939, the EPPO, 
and ensures that any third parties involved in the implementation of EU funds grant 
equivalent  rights.  Member  States  must  report  to  the  Commission  any  irregularities 
detected,  including  fraud,  and  any  follow-up  action  they  have  taken  in  connection 
with such irregularities and any OLAF investigations. Member States must cooperate 
with the Commission, OLAF, the Court of Auditors and the EPPO, in line with point 
(d) of Article 63(2) of the Financial Regulation on all matters related to suspected or 
established fraud. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected 

•  Existing budget lines 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff11. 

from 
EFTA 
countries12 

from 
candidate 
countries 
and 
potential 
candidates
13 

From 
other third 
countries 

other 
assigned 
revenue 

S-
Solidarity 
mechanis
ms within 
and 
outside the 
Union 
(Special 
instrument
s) 

S-
Solidarity 
mechanis
ms within 
and 
outside the 
Union 
(Special 
instrument
s) 

30.0402 

the 

Diff. 

NO 

NO 

NO 

NO 

for 

Reserve 
European 
Globalisation 
Adjustment 
for 
Workers (EGF) 

Fund 
Displaced 

16.0202 

European 
Globalisation 
Adjustment 
for 
Workers (EGF) 

Fund 
Displaced 

Diff. 

NO 

NO 

NO 

NO 

11 
12 
13 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association. 
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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3.2. 

Estimated financial impact of the proposal on appropriations 

3.2.1. 

Summary of estimated impact on operational appropriations 

–    The proposal/initiative does not require the use of operational appropriations 

–   The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

EUR million (to three decimal places) 

Heading of multiannual financial  
framework  

<…> 

Special instrument outside the MFF ceilings a 

The total commitment and payment appropriations for the EGF cannot exceed a maximum annual amount of EUR 30 million (in 2018 prices). 
The  present  proposal  does  not  modify  this  maximum  annual  amount  of  the  EGF.  The  estimates  of  payment  appropriations  below  relate 
specifically to the estimated levels of payments for specific actions under this proposal, within the limits of the maximum annual amount of the 
EGF. 

The proposed amendment will be fully accommodated within the existing provisions of the MFF Regulation (Article 8 of Council  Regulation 
2020/2093 of 17 December (as amended by Council Regulation 2024/765 of 29 February 2024), as well as with the existing provisions of the 
Interinstitutional Agreement of 16 December 2020 (Point 9). 

16.02.02  Operational  line  for  the  European 
Globalisation Adjustment Fund 

30.04.02 Reserve for the European 
Globalisation Adjustment Fund14 

Commitments 

Payments 

Commitments 

Payments 

Appropriations of an administrative nature 

Commitments = 

(1) 

(2) 

(1) 

(2) 

(3) 

2025 

2026 

2027 

TOTAL 

p.m. 

p.m. 

p.m. 

p.m. 

7 460 

30 775 

38 235 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

n.a.  

14 

The figures indicated above present only the expected impact of the proposal for the European Globalisation Adjustment Fund for Displaced Workers. 

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financed from the envelope of the programme15   Payments 

TOTAL appropriations  

Commitments 

=1+3 

Payments 

=2+3 

7 460 

30 775 

38 235 

Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

EUR million (to three decimal places) 

Human resources  
Other administrative expenditure  
TOTAL appropriations under HEADING 
7 of the multiannual financial framework 

1 431 
n.a.  

1 431 
n.a.  

1 431 
n.a.  

(Total  commitments  = 
Total payments) 

1 431 

1 431 

1 431 

4 293 

n.a.  

4 293 

2025 

2026 

2027 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
across HEADINGS  
of the multiannual financial framework for 
payments and outside the multiannual 
financial framework for commitments 

Commitments 

Payments 

2025 

2026 

2027 

TOTAL 

  7 460 

30 775 

38 235 

For other administrative expenditure, the whole global envelope is shown under the ESF+ legislative financial statement. 

15 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

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3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

TOTAL 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs 

 

Type16 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 117… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 … 

- Output 

Subtotal for specific objective No 2 

TOTALS 

16 
17 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’. 

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3.2.3. 

Summary of estimated impact on administrative appropriations 

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature 

–   The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021-2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

1 431 

0 000 

1 431 

0 000 

0 000 

0 000 

1 431 

0 000 

1 431 

0 000 

0 000 

0 000 

1 431 

0 000 

1 431 

0 000 

0 000 

0 000 

4 293 

0 000 

4 293 

0 000 

0 000 

0 000 

TOTAL 

n/a 

1 431 

1 431 

1 431 

4 293 

=================================================================== 

The appropriations required for human resources and other administrative expenditure will be 
met  by  appropriations  from  the  Commission’s  Directorate-General  (DG)  that  is  already 
assigned to management of the action and/or has been redeployed within the DG, together, if 
necessary, with any additional allocation which may be granted to the managing DG under the 
annual allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials  and  temporary 
staff 

External staff 

Analyse  and  discuss  EGF  applications  submitted  by  the  Member 
States.  Prepare  the  documentation  for  EGF  applications  being 
presented  to  the  Commission  and  the  Budgetary  Authority. 
Consult and discuss with the relevant Commission DG throughout 
the  workflow.  Monitor  the  implementation  of  the  financial 
contributions. Prepare and/or discuss relevant modifications to the 
applications presented.  

Analyse  and  discuss  EGF  applications  submitted  by  the  Member 
States.  Prepare  the  documentation  for  EGF  applications  being 
presented  to  the  Commission  and  the  Budgetary  Authority. 
Consult and discuss with the relevant Commission DG throughout 
their  workflow.  Monitor  the  implementation  of  the  financial 
contributions. Prepare and/or discuss relevant modifications to the 
applications presented.  

3.2.4.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources 

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–   The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs)18 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (inFTEs) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

6 

0 

0 

0 

0 

3 

0 

0 

0 

0 

0 

0 

0 

9 

6 

0 

0 

0 

0 

3 

0 

0 

0 

0 

0 

0 

0 

9 

6 

0 

0 

0 

0 

3 

0 

0 

0 

0 

0 

0 

0 

9 

Considering the overall strained situation in Heading 7, in terms of both staffing and the level of 
appropriations, the human resources required will be met by staff from  the DG who are already 
assigned  to  the  management  of  the  action  and/or  have  been  redeployed  within  the  DG  or  other 
Commission DG. 

3.2.5.  Overview of estimated impact on digital technology-related investments 

To be covered by 
current staff 
available in the 
Commission DG  

Exceptional additional staff* 

To be financed 
under Heading 7 
or Research 

To be financed 
from BA line 

To be financed 
from fees 

Establishment 
plan posts 

6 

N/A 

18 

Please specify below the table how many FTEs within the number indicated are already assigned to the 
management of the action and/or can be redeployed within your DG and what are your net needs. 

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External 
staff 
(CA, SNEs, INT) 

3 

3.2.6.  Compatibility with the current multiannual financial framework 

The proposal/initiative: 

–   can be fully financed through redeployment within the relevant heading of the 
multiannual financial framework (MFF) for the payments and for the staff costs 

–   requires use of the special instruments as defined in the MFF Regulation 

–    requires a revision of the MFF 

3.2.7.  Third-party contributions 

The proposal/initiative: 

–   does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

Total 

Specify the co-financing body  

TOTAL appropriations co-
financed  

3.3. 

Estimated impact on revenue 

–   The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

Budget revenue line: 

Article ………… 

 

 

on own resources 

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

Appropriations 
available for the 
current financial 
year 

EUR million (to three decimal places) 

Impact of the proposal/initiative19 

Year 2024 

Year 2025  Year 2026 

Year 2027 

For assigned revenue, specify the budget expenditure line(s) affected. 

[…] 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or 
any other information). 

19 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20% for collection costs. 

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[…] 

4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

The proposed amendment does not bring about new digital requirements. 

4.2. 

Data 

The proposed amendment does not bring about new data assets to handle. 

4.3. 

Digital solutions 

The proposed amendment does not bring about new digital solutions; the EGF makes use of 
the digital solutions set in Regulation (EU) 2021/1060. 

4.4. 

Interoperability assessment 

The  proposed  amendment  does  not  change  the  current  way  of  exchanging  data  between 
Member  States  and  Commission,  which  is  based  on  the  measures  defined  in  Regulation 
(EU) 2021/1060. 

4.5.  Measures to support digital implementation 

The  proposed  amendment  has  no  digital  impact  on  the  established  digital  landscape  and 
therefore does not bring measures to support digital implementation. 

NB:  In  case  the  Commission  proposal  evolves  considerably  during  the  legislative 
negotiations,  the  information  laid  down  in  the  Legislative  Financial  and  Digital  Statement 
LFDS for any financial and/or digital aspects may need to be updated in order to support the 
negotiation process and create clarity for all parties concerned. 

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