European Globalisation Adjustment Fund for Displaced Workers

The European Globalisation Adjustment Fund (EGF) was first set up in 2006. It aims to help workers and self-employed persons reintegrate into the job market after they have lost jobs as a result of a major restructuring event. Whereas, initially, the EGF specifically targeted workers who lost their jobs due to globalisation, its scope was later broadened to cover job displacements due to the global financial and economic crisis, or further global crises (such as the economic crisis following the COVID-19 pandemic). For the 2021-2027 multiannual financial framework, its scope was broadened to cover any possible cause of a restructuring event. In order to underline that it is helping displaced workers, and not the dismissing enterprises, the name was changed to include ‘for Displaced Workers’.

As a general rule, EGF support is triggered if more than 200 jobs are lost — salaried or self-employed — over a 4-month period (for dismissals in the same enterprise, or dismissals in the same region), or over a 6-month period in an enterprise or for a group of businesses (particularly small and medium-sized enterprises) in the same sector and geographical area. For dismissals in an enterprise, this threshold may include suppliers and downstream producers.

However, in small labour markets, applications that do not meet this threshold may be accepted if the redundancies have a serious impact on employment and the local, regional or national economy.

The EGF co-funds (with the EU Member State in question) projects that help workers look for new jobs, retrain themselves or set up new businesses. Projects may also involve careers advice and coaching.

The EGF does not co-fund social protection measures, like pensions or unemployment benefits, or help firms restructure.

The fund is implemented under shared management. EGF projects are thus managed by Member States’ national/regional authorities. They run for 2 years.