Parliament supports updating the European Globalisation Adjustment Fund to make it more accessible and better equipped to deal with digitalisation and environmental changes.
The European Globalisation Adjustment Fund is one of the ways the EU is helping to tackle unemployment. Globalisation can cause significant structural changes to world trade, which can lead to workers being laid off.
To support people losing their jobs due to globalisation or the financial and economic crisis, the EU created the European Globalisation Adjustment Fund in 2006. It is an emergency solidarity fund, which is used whenever there is a need for it. The fund co-finances projects to help workers find new jobs or set up their own business.
There are specific rules determining when and for how long a group of workers can benefit from the fund.
On 16 January 2019, MEPs voted in favour of plans to refumr the fund for the post-2020 period. The aim is to broaden the fund's scope to offer assistance in case of major restructuring events linked to digitalisation, automation and the transition to a low-carbon economy. MEPs are proposing to change the fund’s name to the European Fund for Transition.
Another proposal aims to make it easier for the fund to help workers who were employed by small and medium-sized enterprises by lowering the threshold for minimum job losses from 500 to 200. MEPs also want to speed up the application procedure.
Parliament, the Council and the European Commission need to negotiate on the final text of the legislation.