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) is part of the EU’s response to globalization and rapid economic changes. When big companies close or move production outside the EU, thousands of workers can suddenly lose their jobs. The EGF is designed to help these workers get back on their feet by funding retraining, job search support, and other services. It’s not just about money—it’s about helping people adapt to new industries, especially those that are growing, like green energy and digital technology.

This fund is a sign of EU solidarity: when one country faces a major economic shock, the whole EU helps out. The EGF doesn’t replace national unemployment benefits or other social protections, but it adds extra support for workers in regions hit hard by global trade shifts.

Impact on EU Citizens

For a person living in the EU, the EGF means that if a large company in their region shuts down or lays off many workers, the EU can step in to help. In this case, workers from KTM in Austria will get access to career advice, training, and financial support to find new jobs—especially in areas like green and digital jobs, which are expected to grow in the future.

The fund doesn’t help everyone directly, but it’s there as a safety net for communities facing sudden job losses. It also shows how the EU works together to protect workers and help them transition to new opportunities, rather than leaving them without support during tough times.

How the Money is Used

The money from the EGF is strictly controlled. It can’t be used for just anything—it must go to specific services like training, job search help, and allowances for workers. The EU and the country receiving the money (in this case, Austria) must report how the funds are spent and make sure the public knows what’s happening. This keeps the process transparent and ensures the money is used effectively.