• The European Fund for Transition (EFT) to be more accessible
  • Lower dismissal thresholds with longer time reference periods
  • More future-oriented approach, reacting to challenges of: digitalisation, automatisation and resource-friendly economy

Employment MEPs adopted revision to European Globalisation Adjustment Fund, including broader range of reasons for dismissal reasons, lower eligibility threshold and a name change.

The European Fund for Transition (EFT) should help with the transition of workers dismissed because of globalisation, technological or environmental changes promoting alternative, quality employment. Employment Committee MEPs gave their overall support to the Commission proposal, but amended the text to make the EFT more accessible and future-oriented.

Revised provisions for the EFT, adopted by the Employment Committee on Tuesday, included:

  • A broader range of adverse effects of globalisation and technological transitions to be addressed by the EFT, including better employment opportunities and addressing the shortage of skills linked to digitisation, automatisation and a transition towards a resource-efficient economy.

  • MEPs lowered further the dismissal threshold above which the EFT application could be submitted, setting it at 200 jobs (250 proposed by the European Commission) lost within a longer periods of 6 to 9 months (instead of 4 and 6 months proposed by the EC).

  • Financial contributions from the EFT, complementing measures taken by the member states, should be primarily directed at active labour market measures and personalised services, aimed to support reintegration into quality employment in future-oriented sectors, promoting self-employment and the creation of new companies. Additionally MEPs proposed special time-limited measures, such as childcare allowance or recruitment incentives, including flexible working arrangements.

  • Swift assessment of the member states’ applications by the European Commission: the Commission should acknowledge receipt of an application and inform the member state of any additional information required within 10 working days. The assessment of the application should be completed within 40 days of the receipt of the complete application.

Next Steps

The report was adopted with 42 votes to one against. The negotiating mandate will be put to a plenary vote in January.