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 because global trade doesn't benefit everyone equally. When companies lose ground to foreign competition or relocate production abroad, entire communities can be left without work overnight. The EU set up this fund as a shared safety net — meaning all member states chip in, and any country can apply when a major job loss hits.

KTM is one of Europe's most recognisable motorcycle brands. Its insolvency in early 2025 was a significant industrial shock for Upper Austria, a region where manufacturing plays a central role in the local economy.

The fund has existed since 2007 and has helped workers across many EU countries, from textile workers in Romania to automotive workers in Germany. The €30 million annual cap reflects its role as an emergency tool rather than a permanent support system.

Impact on EU Citizens

For most EU citizens, this decision has no direct effect. However, it signals something important: if you lose your job due to a large-scale economic event — a factory closure, a company collapse tied to global trade shifts — the EU has a mechanism to step in and fund your retraining and job search, on top of whatever your national government provides.

The 420 workers directly benefiting will receive personalised support: one-on-one career guidance, training tailored to growing sectors like green energy and digital technology, and financial allowances while they retrain. This is not unemployment benefit — it is active help to find a new career path.

For taxpayers, the EU covers 60% of the cost, with Austria covering the rest. The fund is designed so that it never replaces existing national support, only adds to it.