European Globalisation Adjustment Fund

The European Globalisation Adjustment Fund (EGF) was set up by the European Union in late 2006 to support to workers (not companies or institutions) who have been made redundant as a result of trade liberalisation, so that they can either remain in employment or find a new job quickly. It provides counselling; job search and mobility allowances; new ICT skills and other forms of training; entrepreneurial support, including micro-credits.

Since 2007 EGF has received more than 100 applications from 20 EU member states for programs that would support more than 100,000 workers who either lost their jobs due to globalization (56%) or as a result of the global economic and financial crisis (44%). The hardest-hit industries were in automobile manufacturing (22.5%), machinery and equipment (13.5%), textile and apparel (12%), computers, mobile phones and ICT (11.6%) and construction (9.6%).

The Fund is activated upon request of a member state when a company (whether national, multinational or SMEs) lays off more than 1,000 people either in an enterprise, or in a sector within a region, due to structural changes in world trade. The Fund seeks to intervene when redundancies have a significant impact on a region or a sector and therefore there is an EU dimension in terms of scale and impact.

The EGF is open to all persons who work legally in the EU. It operates under the principle of subsidiarity, and in a system of shared management between the European Commission and the member state. Responsibility for implementing the EGF lies with the authorities of the member states. The maximum amount available through the EGF is €500 million per year for the period of 2007 to 2013.

Since 1 January 2007, the EGF has been funding active labour market policies helping workers made redundant as a result of globalisation, for example through:

It complements support provided by the employers and national authorities concerned in terms of active labour market policy measures; it does not fund passive social protection measures such as retirement pensions or unemployment benefits. Member states can also use EGF money to publicize activities highlighting the EGF's role in their support for workers.

...
Wikipedia