Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Austria – EGF/2025/005 AT/KTM
Date: 2026-02-06
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: Austria, European Globalisation Adjustment Fund, Upper Austria, commitment of expenditure, cycle and motorcycle industry, dismissal, employment aid, general budget (EU), globalisation, reintegration into working life

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   EUROPEAN COMMISSION  Brussels, 6.2.2026  COM(2026) 10 final 2026/0037 (BUD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Austria – EGF/2025/005 AT/KTM  
 
EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

1. 

2. 

3. 

The  rules  applicable  to  financial  contributions  from  the  European  Globalisation 
Adjustment  Fund  for  Displaced  Workers  (EGF)  are  laid  down  in  Regulation  (EU) 
2021/691  of  the  European  Parliament  and  of  the  Council  of  28  April  2021  on  the 
European  Globalisation  Adjustment  Fund  for  Displaced  Workers  (EGF)  and 
repealing Regulation (EU) No 1309/20131. 

On  15  September  2025,  Austria  submitted  an  application  EGF/2025/005 AT/KTM 
for  a  financial  contribution  from  the  EGF,  following  displacements  in  KTM  in 
Austria. 

Following  its  assessment  of  this  application,  the  Commission  has  concluded,  in 
accordance  with  all  applicable  provisions  of  Regulation  (EU)  2021/691,  that  the 
conditions for awarding a financial contribution from the EGF are met.  

SUMMARY OF THE APPLICATION 

EGF application 

Member State 

Region(s) concerned (NUTS2 level 2) 

EGF/2025/005 AT/KTM 

Austria 
Upper Austria (AT31) 

Date of submission of the application 

15 September 2025 

Date of acknowledgement of receipt of the 
application 

15 September 2025 

Date of request for additional information 

28 October 2025 

Deadline for provision of the additional 
information 

18 November 2025 

Deadline for the completion of the assessment 

6 February 2026 

Intervention criterion 

Primary enterprise 

Sector(s) of economic activity 
(NACE Revision 2 division)4 

Article 4(2), point (a), of Regulation 
(EU) 2021/691 

KTM (KTM Gruppe3) 

Division 30 (Manufacture of other 
transport equipment) 

Reference period (four months): 

25 February 2025 – 25 June 2025 

Number of displacements during the reference 
period (a) 

233 

Number of displacements before or after the 

1 255 

1 
2 

3 

4 

OJ L 153, 3.5.2021, p. 48. 
Commission Delegated Regulation 2019/1755 of 8 August 2019 amending the Annexes to Regulation 
(EC) No 1059/2003 of the European Parliament and of the Council on the establishment of a common 
classification of territorial units for statistics (NUTS). OJ L 270, 24.10.2019, p. 1–56. 
KTM  Gruppe  consists  of  KTM  AG,  KTM  Components  GmbH  (including  Vöcklabrucker 
Metallgießerei GmbH) and KTM R&D GmbH. 
OJ L 393, 30.12.2006, p. 1. 

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reference period (b) 

Total number of displacements (a + b) 

Total number of eligible beneficiaries 

Total number of targeted beneficiaries 

Budget for personalised services (EUR) 
Budget for implementing EGF5 (EUR) 
Total budget (EUR) 
EGF contribution (60 %) (EUR) 

ASSESSMENT OF THE APPLICATION 

Procedure 

1 488 

1 488 

420 

2 895 120 
115 920 
3 011 040 
1 806 624 

4. 

Austria submitted application EGF/2025/005 AT/KTM  within 12 weeks  of the date 
on  which  the  intervention  criteria  set  out  in  Article 4  (2),  point  (a),  of  Regulation 
(EU)  2021/691  were  met,  on  15  September  2025.  The  Commission  acknowledged 
receipt of the  application the same  date. The Commission  was in  possession  of the 
translation  of  the  application  on  14  October  20255  and  requested  additional 
information  from  Austria  by  28  October  2025.  Such  additional  information  was 
provided within 15 working days of the request. The deadline of 50 working days of 
the receipt of the complete application within which the Commission should finalise 
its  assessment  of  the  application's  compliance  with  the  conditions  for  providing  a 
financial contribution expires on 6 February 2026. 

Eligibility of the application 

Enterprises and beneficiaries concerned 

5. 

The application relates to 233 displaced workers whose activity has ceased in KTM 
(KTM  Gruppe)  in  the  economic  sector  classified  under  the  NACE  Revision  2 
division 30 (Manufacture of other transport equipment). The redundancies made by 
the enterprise are located in the NUTS 2 region of Upper Austria (AT31). 

Intervention criteria 

6. 

7. 

8. 

Austria submitted the application under the intervention criteria of Article 4(2), point 
(a), of Regulation (EU) 2021/691, which requires the cessation of activity of at least 
200 displaced  workers over a reference period of  four months in  an enterprise in  a 
Member State, including  workers displaced in  suppliers and downstream  producers 
and / or self-employed persons whose activity has ceased. 

The reference period of four months for the application runs from 25 February 2025 
to 25 June 2025. 

There were 233 displaced workers in KTM during the reference period.  

Calculation of displacements and of cessation of activity 

9. 

Pursuant  to  Article 6,  first  paragraph,  point (a),  in  conjunction  with  Article 5,  first 
paragraph  of  Regulation  (EU)  2021/691,  the  cessation  of  activities  of  the  233 
displaced workers during the reference period has been calculated as from the date of 
the de facto termination of the contract of employment or its expiry. 

5 

In accordance with Article 7(5) of Regulation (EU) 2021/691. 

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Eligible beneficiaries 

10. 

In addition to the workers already referred to, the eligible beneficiaries include 1 255 
displaced workers whose activity ceased before or after the reference period of four 
months. All these workers ceased their activity within the six months before the start 
of the reference period on 25 February 2025 and/or between the end of the reference 
period  and  the  day  before  the  adoption  of  this  proposal,  pursuant  to  Article  6,  first 
paragraph, point (b), of Regulation (EU) 2021/691, as required by Article 6, second 
paragraph, of Regulation (EU) 2021/691. A clear causal link can be established with 
the event that triggered the cessations of activity of the displaced workers during the 
reference  period  as  required  by  Article  6,  second  paragraph,  of  Regulation  (EU) 
2021/691. 

11. 

The total number of eligible beneficiaries is 1 488. 

Description of the events that led to the displacements and cessation of activity 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

The  events  giving  rise  to  these  displacements  are  the  insolvency  proceedings  of 
KTM Gruppe. 

KTM was the largest subsidiary of Pierer Mobility AG (90 % of Pierer’s turnover). 
As  a  motorcycle  producer,  KTM  developed  into  being  the  largest  motorcycle 
producer in the European Union (since 2012). KTM is headquartered in Mattighofen 
in the district of Braunau in Upper Austria. 

In  December  2023,  Pierer  announced  the  offshoring  of  production  to  China  and 
India, leading to a first wave of dismissals cutting 300 jobs at the Mattighofen plant. 
This was primarily due to the far lower labour costs in these countries. Other factors 
included  the  proximity  to  growth  markets,  as  demand  in  Europe  was  dwindling,  as 
well as less stringent labour restrictions, allowing to more flexibly adjust production 
levels to market developments. 

During 2024, the company slid into a major crisis: sales dropped by 29,4 %, resulting 
in excessive inventory (265 000 motorcycles in stock) and a loss of EUR 1,1 billion. 
KTM’s  debt  reached  EUR  1,642  billion.  KTM  began  massive  cost  reductions, 
including laying off over 500 employees. 

Despite  efforts  to  relocate  production  to  India,  insolvency  proceedings  were 
inevitable.  Restructuring  proceedings  began  for  Pierer,  with  a  restructuring  plan 
drafted for KTM and its affiliates. On 29 November 2024, KTM filed for insolvency. 
KTM had its first production shutdown from December 2024 to March 2025. Over 
750  additional  employees  were  made  redundant.  On  25  February  2025,  creditors 
approved a restructuring plan that offered them a quota of 30% of what  was owed. 
However, an investor was needed to take over KTM and to pay the quota.  

At the time of the creditors’ meeting, the KTM Group insolvency proceedings were 
the largest ever in Upper Austria. 

On  17  March  2025,  production  resumed  with  a  one-shift  rhythm  (instead  of  full 
production  capacity).  Remaining  staff  worked  reduced  hours  with  pay  cuts  to  help 
manage  costs.  Further  redundancies  were  inevitable.  On  28  April  2025,  production 
had to be stopped again due to continuing supply shortages of parts and components. 

An investor was finally found. Bajaj Auto International Holdings B.V. provided the 
necessary  resources  to  ensure  the  continuation  of  KTM  on  22  May  2025.  The 
payment  of  the  agreed  quota  to  the  creditors  warded  off  the  threat  of  KTM’s 
bankruptcy  and  the  risk  of  the  company  being  closed  for  good.  Production  could 

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resume on 28 July 2025, while continuing austerity measures and focusing on cost-
efficiency. 

Expected impact of the displacements as regards the local, regional or national economy and 
employment 

20. 

21. 

22. 

The  insolvency  of  KTM  hit  the  region  around  the  Mattighofen  headquarters  hard. 
Employing  over  4 000  staff  directly  in  Upper  Austria,  the  company  is  not  only  a 
significant employer, but also the economic backbone of many suppliers and service 
providers.  The  insolvency  hit  the  regional  economy  hard  and  caused  serious 
disruption. 

Consequently, unemployment in the Braunau district rose by 39.8% in October 2024 
and by 37.1% in November 2024, compared to the same months of the previous year. 

In  March  2025,  this  led  to  an  all-time  high  unemployment  in  the  Braunau  district 
which  represented  the  highest  unemployment  level  of  all  labour  market  districts  in 
Austria. Unemployment remained consistently high across 2025. 

Application of the EU Quality Framework for anticipation of change and restructuring 
(QFR) 

23. 

24. 

25. 

Austria  has  described  how  the  recommendations  set  out  in  the  EU  Quality 
Framework  for  anticipation  of  change  and  restructuring  have  been  taken  into 
account. In Austria, companies making redundancies are not required, either by law 
or by collective agreement, to set up or participate in an employment programme or 
other measures to support the impacted workers. However, the enterprise concerned 
may  voluntarily  co-finance  a  labour  foundation  responsible  for  the  measures  in  an 
employment programme6. 

KTM  AG  was  in  insolvency  proceedings  during  the  period  in  question  and  was 
therefore unable to contribute to a labour foundation. 

Regarding  the  activities  undertaken  to  assist  the  displaced  workers,  Austria  has 
reported that immediately after the notification of KTM’s insolvency application, the 
Upper  Austria  Public  Employment  Service  started  providing  advice  to  the  affected 
workers, and, together with the Province of Upper Austria, decided to voluntarily set-
up and pre-finance an insolvency foundation and apply for EGF assistance. 

Complementarity with actions funded by national or Union funds 

26. 

27. 

Austria  has  confirmed  that  the  measures  described  below  receiving  a  financial 
contribution  from  the  EGF  will  not  also  receive  financial  contributions  from  other 
Union financial instruments. 

The  coordinated  package  of  personalised  services  complements  actions  funded  by 
other national funds. 

Procedures  for  consulting  the  targeted  beneficiaries  or  their  representatives  or  the  social 
partners as well as local and regional authorities 

28. 

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Austria has indicated that the co-ordinated package of personalised services has been 
drawn up in consultation with the social partners, in compliance with Article 7(4) of 

An employment programme is a personalised package  of measures for workers made redundant.  It is 
commonly initiated by the enterprise that makes the staff redundant and takes the legal form of a labour 
foundation  (Arbeitsstiftung)  in  accordance  with  Section  18  of  the  Austrian  Unemployment  Insurance 
Act. In case of insolvency, public authorities can set up such a foundation in the form of an insolvency 
foundation (Insolvenzstiftung). 

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Regulation  (EU)  2021/691.  KTM’s  insolvency  petition  was  filed  on  29  November 
2024.  On  5  December  2024,  the  first  coordination  meeting  with  representatives  of 
the Province of Upper Austria and the social partners regarding the establishment of 
an insolvency foundation took place. 

29. 

As part of the recognition procedure of the insolvency foundation carried out by the 
Upper Austria Public Employment Service, the social partners, as representatives of 
the local economy and the workers concerned, were consulted7. All actors approved 
the  establishment  of 
insolvency  foundation.  The  social  partners  were 
subsequently  informed  of  the  application  to  the  EGF  by  the  Upper  Austria  Labour 
Market Service. 

the 

30. 

Participation  in  the  insolvency  foundation  is  on  a  voluntary  basis  for  the  workers 
affected. Measures are geared at those that need comprehensive, in-depth assistance. 

Targeted beneficiaries and proposed measures 

Targeted beneficiaries 

31. 

The estimated number of displaced workers expected to participate in the measures is 
420. Pursuant  to  Article  8(7), point (f), of Regulation (EU) 2021/691,  the provided 
breakdown  of  these  workers  by  gender,  age  group  and  educational  level  is  as 
follows: 

Category 

Gender: 

Men: 

Women: 

Non-binary 

Age group: 

Below 30 years: 

Educational 
level 

30-54 years: 

Over 54 years: 

Lower  secondary 
education or less8  
Upper  secondary9 
or  post-secondary 
education10 

Tertiary 
education11 

Number of  
expected 
beneficiaries 

279 

141 

0 

67 

(66,4 %) 

(33,6 %) 

(0 %) 

(16 %) 

311 

(15 %) 

42 

90 

(10 %) 

(21,4 %) 

173 

(41,2 %) 

157 

(37,4 %) 

7 

8 
9 
10 
11 

The  Upper  Austria  Chamber  of  Commerce  on  6  February  2025,  and  the  Private  Employees  Trade 
Union (GPA) and the Production Workers Trade Union (PROGE) on 7 February 2025. 
ISCED 0-2 
ISCED 3 
ISCED 4 
ISCED 5-8 

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Proposed measures 

32. 

Pursuant  to  Article  8(7),  point  (h)  of  Regulation  (EU)  2021/691,  the  personalised 
coordinated  package  to  be  provided  to  displaced  workers  consists  of  the  following 
measures:  

– 

– 

– 

– 

– 

Case management: This measure aims at offering highly individualised support 
by accompanying participants in the implementation of their individual action 
plan and documenting and assessing their individual training pathways. 

Career  guidance  –  career  orientation:  This  measure  precedes  the  individual 
action  plan  and  serves  primarily  to  clarify  career  prospects  based  on 
participants’  interests,  strengths  and  weaknesses.  To  set  up  an  action  plan, 
individual 
training  possibilities 
discussed.  This  is  based  on  a  thorough  research  of  labour  market  trends  and 
prospective job opportunities. 

training  objectives  are 

identified,  and 

Training and retraining: In drawing up the action plan, particular attention will 
be  paid  to  improving  vocational  skills.  Therefore,  participants  can  follow 
training  and  retraining  courses  in  line  with  labour  market  needs,  enabling 
participants to find a new and sustainable job as quickly as possible.  

Pro-active  job-search:  This  measure  includes  assistance  with  preparing 
convincing  applications,  developing  search  strategies  and  individual  and  job-
related application strategies, promoting initiative and motivation, dealing with 
rejection, strengthening resilience, etc. 

Training  allowance  –  training-related  subsidy:  A  training  allowance  will  be 
granted to each participant  in the programme to  cover the additional training-
related expenses related to participation in the training measures. 

33. 

34. 

35. 

Career  guidance  as  well  as  training  and  retraining  measures  cater  for  the 
dissemination  of  the  skills  required  in  the  digital  industrial  age  and  in  a  resource-
efficient  economy,  as required by Article 7(2) of Regulation (EU) 2021/691.  In the 
context of career guidance, particular attention is drawn to the importance of  career 
prospects  in  green  jobs  (employment  in  sectors  such  as  renewable  energy, 
sustainable  construction  and  renovation,  water  and  wastewater  management).  In 
training and retraining measures, when designing individual action plans, emphasis is 
put  on  digital  skills,  in  particular  for  those  participants  without  or  with  only  very 
basic previous knowledge. 

The  proposed  actions,  here  described,  constitute  active  labour  market  policy 
measures  within  the  eligible  actions  set  out  in  Article  7  of  Regulation  (EU) 
2021/691. These actions do not substitute passive social protection measures.  

Austria has provided the required information on measures that are mandatory for the 
enterprise concerned by virtue of national law or pursuant to collective agreements. 
In accordance with Article 9(1) of Regulation (EU) 2021/691, Austria has confirmed 
that a financial contribution from the EGF will not replace such measures. 

Estimated budget 

36. 

The  estimated 
personalised  services  of  EUR 2 895 120  and  expenditure 
management, 
EUR 115 920. 

total  costs  are  EUR 3 011 040,  comprising  expenditure  for 
for  preparatory, 
information  and  publicity,  control  and  reporting  activities  of 

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37. 

38. 

The total financial contribution requested from the EGF is EUR 1 806 624 (60 % of 
total costs). 

Pursuant  to  Article  8(7),  point  (m),  of  Regulation  (EU)  2021/691,  Austria  has 
specified  that  the  national  pre-financing  is  shared  equally  by  the  government  of 
Upper  Austria  and  the  Austrian  Public  Employment  Service  (Arbeitsmarktservice). 
The  co-funding 
the  Austrian  Public  Employment  Service 
(Arbeitsmarktservice). 

is  provided  by 

Measures 

Estimated 
number of 
participants 

Estimated cost 
per participant 
(EUR)12 

Estimated total 
costs 
(EUR)13  

Personalised services (measures under Article 7(2), second subparagraph, point (a), of Regulation 
(EU) 2021/691) 

Case Management 

Career guidance – career orientation 
(Berufsberatung – Berufsorientierung) 

Training and retraining (Aus- und 
Weiterbildung) 

420 

420 

300 

920 

386 400 

1 000 

420 000 

3 436 

1 030 800 

Pro-active job-search (Aktive Arbeitssuche) 

120 

500 

60 000 

Sub-total (a): 
Percentage of the package of personalised 
services  

– 

1 897 200 

(65,53 %) 

Allowances and incentives (measures under Article 7(2), second subparagraph, point (b), of 
Regulation (EU) 2021/691) 

Training allowance – training-related subsidy 
(Ausbildungsbeihilfe – Ausbildungsbedingter 
Zuschuss) 

Sub-total (b): 
Percentage of the package of personalised 
services: 

Activities under Article 7(5) of Regulation (EU) 2021/691 

1. Preparatory activities 

2. Management 

3. Information and publicity 

4. Control and reporting 

Sub-total (c): 

420 

2 376 

997 920 

– 

– 

– 

– 

– 

– 

997 920 

(34,47 %) 

0 

115 920 

0 

0 

115 920 

12 

13 

To avoid decimals, the estimated costs per worker have been rounded. However, the rounding has no 
impact on the total cost of each measure, which remains as in the application submitted by Austria. 
Totals do not tally due to rounding. 

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Percentage of the total costs : 

Total costs (a + b + c): 

EGF contribution (60 % of total costs) 

– 

– 

(3,85 %) 

3 011 040 

1 806 624 

39. 

The  costs  of  the  measures  identified  in  the  table  above  as  measures  under 
Article 7(2),  second  subparagraph,  point  (b),  of  Regulation  (EU)  2021/691  do  not 
exceed 35 % of the total costs for the coordinated package of personalised services. 
Austria confirmed that these measures are conditional on the active participation of 
the targeted beneficiaries in job-search or training activities. 

Period of eligibility of expenditure 

40. 

41. 

Austria started providing the personalised services to the targeted beneficiaries on 1 
March  2025.  The  expenditure  on  the  measures  will  therefore  be  eligible  for  a 
financial  contribution  from  the  EGF  from  1  March  2025  until  24  months  after  the 
date of the entry into force of the Financing Decision. 

Austria started incurring the administrative expenditure to implement the EGF on 1 
March  2025.  The  expenditure  for  preparatory,  management,  information  and 
publicity,  control  and  reporting  activities  shall  therefore  be  eligible  for  a  financial 
contribution from the EGF from 1 March 2025 until 31 months after the date of the 
entry into force of the Financing Decision. 

Management and control systems 

42. 

The  application  contains  a  description  of  the  management  and  control  system 
required  under  Article  23  of  Regulation  (EU)  2021/691,  which  specifies  the 
responsibilities of the bodies involved. Austria has notified the Commission that by 
administrative  agreement  between  the  Austrian  Federal  Ministry  of  Labour,  Social 
Affairs,  Health,  Care  and  Consumer  Protection  (unit  IX/A/3)  as  the  Austrian  EGF 
managing  authority,  and  Upper  Austria,  the  financial  contribution  will  be  managed 
by the Upper Austria Department for Economy and Research. The first level control 
function  has  been  contracted  out  to  Public  Management  &  Consulting  GmbH, 
Vienna.  The  function  of  the  audit  authority  is  performed  by  the  same  department 
within  the  Upper  Austria  Directorate  for  Regional  Planning,  Economic  and  Rural 
Development  that  also  acts  as  the  Upper  Austria  audit  authority  for  the  European 
Fund  for  Regional  Development  as  well  as  the  Just  Transition  Fund.  The  audit 
authority  thus  operates  separately  and  independently  from  the  Department  for 
Economy and Research to ensure adequate separation of duties. 

Commitments provided by the Member State concerned 

43. 

Austria has provided all necessary assurances regarding the following:  

– 

– 

– 

– 

the principles of equality of treatment and non-discrimination will be respected 
in access to the proposed measures and their implementation, 

the  requirements  laid  down  in  national  and  EU  legislation  concerning 
collective redundancies have been complied with, 

any double financing will be prevented, 

the  financial  contribution  from  the  EGF  will  comply  with  the  procedural  and 
material Union rules on State aid. 

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BUDGETARY IMPLICATION 

Budgetary proposal 

44. 

45. 

46. 

The  EGF  shall  not  exceed  a  maximum  annual  amount  of  EUR 30  million  (in  2018 
prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 of 
17  December  2020  laying  down  the  multiannual  financial  framework  for  the  years 
2021  to  202714  amended  by  Council  Regulation  (EU,  Euratom)  2024/765  of  29 
February 202415. 

Having examined the application in respect of the conditions set out in Article 13(1) 
and (2) of Regulation (EU) 2021/691, and having taken into account the number of 
targeted  beneficiaries,  the  proposed  measures  and  the  estimated  costs,  the 
Commission  proposes  to  mobilise  the  EGF  for  the  amount  of  EUR 1 806 624, 
representing 60 % of the total costs of the proposed measures, in order to provide a 
financial contribution for the application. 

The  proposed  decision  to  mobilise  the  EGF  will  be  taken  jointly  by  the  European 
Parliament  and  the  Council  pursuant  to  Article  15(1),  first  subparagraph,  second 
sentence,  of  Regulation  (EU)  2021/691  and,  as  laid  down  in  point  9  of  the 
Interinstitutional  Agreement  of  16  December  2020  between 
the  European 
Parliament,  the  Council  of  the  European  Union  and  the  European  Commission  on 
budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 
management,  as  well  as  on  new  own  resources,  including  a  roadmap  towards  the 
introduction of new own resources16. 

Related acts 

47. 

48. 

At the same time as it presents this proposal for a decision to mobilise the EGF, the 
Commission will present to the European Parliament and to the Council a proposal to 
transfer to the relevant budgetary line the amount of EUR 1 806 624. 

At the same time as it adopted this proposal for a decision to mobilise the EGF, the 
Commission  adopted  a  decision  on  a  financial  contribution  that  constitutes  a 
financing  decision  within  the  meaning  of  Article  110  of  Regulation  (EU,  Euratom) 
2024/250917. That financing decision will enter into force on the date on which the 
Commission  is  notified  of  the  approval  of  the  budgetary  transfer  by  the  European 
Parliament  and  the  Council  pursuant  to  Article  15(2),  first  subparagraph,  of 
Regulation (EU) 2021/691. 

14 
15 
16 
17 

OJ L 433 I, 22.12.2020, p. 11. 
OJ L, 2024/765, 29.2.2024, ELI: http://data.europa.eu/eli/reg/2024/765/oj.  
OJ L 433 I, 22.12.2020, p. 28. 
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 
2024  on  the  financial  rules  applicable  to  the  general  budget  of  the  Union  (recast),  OJ  L,  2024/2509, 
26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj. 

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2026/0037 (BUD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the mobilisation of the European Globalisation Adjustment Fund for Displaced 
Workers following an application from Austria – EGF/2025/005 AT/KTM 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 
28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) 
and  repealing  Regulation  (EU)  No 1309/201318,  and  in  particular  Article 15(1),  first 
subparagraph, thereof, 

Having  regard  to  the  Interinstitutional  Agreement  of  16  December  2020  between  the 
European Parliament, the Council of the European Union and the European Commission on 
budgetary  discipline,  on  cooperation  in  budgetary  matters  and  on  sound  financial 
management, as well as on new own resources, including a roadmap towards the introduction 
of new own resources19, and in particular point 9 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

The European Globalisation Adjustment Fund for Displaced  Workers (EGF)  aims to 
demonstrate solidarity and promote decent and sustainable employment in the Union 
by  providing  support  for  workers  made  redundant  and  self-employed  persons  whose 
activity  has  ceased  in  the  case  of  major  restructuring  events  and  assisting  them  in 
returning to decent and sustainable employment as soon as possible.  

The  EGF  is  not  to  exceed  a  maximum  annual  amount  of  EUR 30  million  (in  2018 
prices),  as laid down in  Article 8 of  Council Regulation  (EU, Euratom)  2020/209320 
amended  by  Council  Regulation  (EU,  Euratom)  2024/76521,  and  Article  16  of 
Regulation (EU) 2021/691. 

On  15  September  2025,  Austria  submitted  an  application  to  mobilise  the  EGF  in 
accordance  with  Article  8(1)  of  Regulation  (EU)  2021/691,  in  respect  of  workers’ 
displacements in KTM (KTM Gruppe) in Austria. It was supplemented by additional 
information  provided  in  accordance  with  Article 8(5)  of  Regulation  (EU)  2021/691. 
That application is considered to comply with the conditions for providing a financial 
contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on 
the basis of the assessment made by the Commission in the Proposal for a mobilisation 
decision of the European Parliament and of the Council22.  

18 
19 
20 

21 
22 

OJ L 153, 3.5.2021, p. 48. 
OJ L 433 I, 22.12.2020, p. 28 
Council  Regulation  (EU,  Euratom)  2020/2093  of  17  December  2020  laying  down  the  multiannual 
financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11). 
OJ L, 2024/765, 29.2.2024, ELI: http://data.europa.eu/eli/reg/2024/765/oj. 
COM(2026) 10 

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(4) 

(5) 

The EGF should, therefore, be mobilised in order to provide a financial contribution of 
EUR 1 806 624 in respect of the application submitted by Austria. 

In order to minimise the time taken to mobilise the EGF, this  Decision should apply 
from the date of its adoption, 

HAVE ADOPTED THIS DECISION:  

For the general budget of the Union for the financial year 2026, the European Globalisation 
Adjustment  Fund  for  Displaced  Workers  shall  be  mobilised  to  provide  the  amount  of 
EUR 1 806 624 in commitment and payment appropriations. 

Article 1 

Article 2 

This Decision shall enter into force on the day of its publication in the Official Journal of the 
European Union. It shall apply from [the date of its adoption]*

 . 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

* 

Date to be inserted by the Parliament before the publication in OJ. 

EN 

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