Austria gets €1.8 million to help KTM workers find new jobs

European Parliament Decision on the European Globalisation Adjustment Fund (EGF)

• The EGF is a solidarity fund that gives money to workers who lose jobs because of big changes in global trade.
• Austria asked the fund for help after the motorcycle company KTM (KTM Gruppe) went into insolvency.
• KTM’s collapse caused 1,488 workers to lose their jobs in Upper Austria (AT31).

• 233 of those jobs were lost between 25 Feb 2025 and 25 Jun 2025.
• 1,255 jobs were lost before or after that four‑month period but are still linked to the same event.

• The European Parliament approved a payment of €1 806 624 to Austria.

• This covers 60 % of the total cost (€3 011 040).
• €2 895 120 will go to personalised services (case management, career guidance, training, job‑search help, training allowances).
• €115 920 will cover preparation, management, information, publicity, control and reporting.

• The fund can spend up to €30 million a year (in 2018 prices).
• The decision will be in force from the day it is published in the Official Journal of the EU.
• The money will be used from 1 Mar 2025 for 24–31 months after the decision is made.
• The plan aims to get the 420 workers who will benefit back into work quickly, with training that matches future green and digital jobs.
• The decision stresses that the fund is a safety net, not a replacement for proactive industrial policy, and that it must not duplicate national or collective‑agreement measures.
• Austria will show how the money is used and will keep the public informed.
• The European Parliament and the Council signed the decision and will publish it.

Broader Context

The European Globalisation Adjustment Fund (EGF) was created by the EU to help workers who lose their jobs because of major economic changes—like global competition, company closures, or shifts toward greener and more digital industries. It reflects the idea that while globalisation can bring growth, it can also harm certain regions or sectors, and those workers should be supported.

The fund is part of the EU’s broader effort to make economic transitions fair. It does not try to save companies or prevent layoffs. Instead, it focuses on helping people adapt after job losses. The EU only co-finances these measures (here 60%), meaning national governments still carry most of the responsibility.

Cases like the collapse of KTM AG show how even well-known companies can fail, and why a shared EU-level safety net exists for sudden, large-scale layoffs.

Impact on EU Citizens

For most people in the EU, this decision does not bring direct payments. Instead, it provides targeted help to specific workers who lost their jobs. In this case, affected workers in Austria can receive:

• Career advice and job-search support
• Training to learn new skills (especially for green and digital jobs)
• Financial support while they are retraining

More broadly, it means that if a large company closes in your region due to global economic changes, your country can apply for EU support like this. The goal is to help people return to work faster rather than remain unemployed.

Why It Matters

This decision shows how the EU shares the cost of economic shocks between countries. It also highlights a key principle: public money is used to support workers, not to bail out companies.