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ALL texts adopted by EU parliament starting 2026
ALL texts adopted by EU parliament starting 2026
Austria Gets €1.8 Million to Help KTM Workers Find New Jobs
Published February 06, 2026
Goal: Help displaced workers
The European Commission will give Austria €1.8 million from the Globalisation Adjustment Fund to help 1,488 workers who lost jobs at KTM, covering training, job‑search help and support services for two years.
Summary
The European Commission proposes to give Austria a €1,806,624 contribution from the European Globalisation Adjustment Fund (EGF) to help workers who lost jobs at KTM, a motorcycle manufacturer in Upper Austria.
Background
- The EGF supports workers who are made redundant during major restructuring events.
- Austria applied on 15 September 2025 for a contribution for workers displaced at KTM (EGF/2025/005 AT/KTM).
- The Commission reviewed the application and found that all conditions for a contribution were met.
Key facts about the KTM case
| Item | Details |
|---|---|
| Company | KTM Gruppe (KTM AG, KTM Components, KTM R&D) |
| Location | Upper Austria (NUTS 2 AT31) |
| Reference period | 25 Feb 2025 – 25 Jun 2025 |
| Displacements during reference period | 233 workers |
| Displacements before/after reference period | 1,255 workers |
| Total displaced workers | 1,488 |
| Targeted beneficiaries (expected to take part in the programme) | 420 |
| Gender split | 279 men (66.4 %), 141 women (33.6 %) |
| Age groups | 67 <30 yrs (16 %), 311 30‑54 yrs (15 %), 42 >54 yrs (10 %) |
| Education levels | 8 low‑secondary (21.4 %), 173 upper‑secondary or post‑secondary (41.2 %), 157 tertiary (37.4 %) |
Why the workers were displaced
- KTM’s parent company, Pierer Mobility AG, moved production to China and India in 2023, cutting 300 jobs.
- Sales fell 29.4 % in 2024, inventory rose to 265,000 motorcycles, and the company lost €1.1 billion.
- KTM’s debt reached €1.642 billion.
- Insolvency proceedings began in November 2024; production stopped December 2024 – March 2025, and 750 more workers were laid off.
- An investor (Bajaj Auto) took over in May 2025, allowing production to resume in July 2025, but many workers still need help finding new jobs.
Impact on the region
- KTM employs over 4,000 people directly and supports many suppliers.
- Unemployment in the Braunau district rose to 39.8 % in Oct 2024 and 37.1 % in Nov 2024, and reached a record high in 2025.
Proposed support measures
| Measure | Targeted beneficiaries | Cost per person | Total cost |
|---|---|---|---|
| Case management | 420 | €920 | €386,400 |
| Career guidance | 420 | €1,000 | €420,000 |
| Training & retraining | 300 | €3,436 | €1,030,800 |
| Pro‑active job search | 120 | €500 | €60,000 |
| Training allowance | 420 | €2,376 | €997,920 |
| Subtotal for personalised services | €1,897,200 | ||
| Administrative activities (management, control, etc.) | €115,920 | ||
| Total cost | €3,011,040 |
- The EGF will cover 60 % of the total cost (€1,806,624).
- The remaining 40 % will be co‑financed by the Austrian government and the Public Employment Service.
- The programme will run from 1 March 2025 for 24 months after the decision is adopted.
Decision
The European Parliament and the Council will adopt a decision that mobilises the EGF for €1,806,624 for Austria’s KTM application. The decision will enter into force on the day it is published in the Official Journal and will apply from the date of adoption.
Licensing: The summaries on this page are available under Creative Commons Attribution 4.0 (CC BY 4.0).
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