EU Grants €2 M to Help Liège Steel Workers Find New Jobs

What is the EGF?

• The European Globalisation Adjustment Fund is an EU safety net that pays for training, job‑search help and other support for workers who lose jobs because of big changes in global trade or industry.
• It can spend up to €30 million a year (in 2018 prices).

Belgium’s request

• Applicant: Belgium
• Company: Liberty Galaţi Belgian Branch, a steel‑making plant in Liège, Wallonia
• Sector: Manufacture of basic metals (NACE 24)
• Workers affected: 507
• Lay‑off period: 24 April 2025 – 24 August 2025
• Reason: Plant declared bankruptcy on 22 April 2025 after long‑term financial trouble.
• Requested amount: €2 033 869 (≈ 85 % of the total cost of €2 392 788)
• Use of funds:
• €2 358 922 for personalised services (outplacement, training, business‑creation support, etc.)
• €33 866 for preparatory, management, information, publicity, control and reporting activities.

How the decision works

1. The European Parliament and the Council have agreed to mobilise the fund for Belgium.
2. The fund will commit €2 033 869 for the 2026 budget year.
3. The decision becomes effective when published in the Official Journal of the EU.
4. Eligibility period

• Workers can receive help from 1 June 2025 until 24 months after the decision takes effect.
• Administrative costs can be funded from 22 April 2025 until 31 months after the decision takes effect.

What the money will be used for

• Personalised services – outplacement, vocational guidance, training (including IT skills), support for starting a business, incentives and other allowances.
• Preparation & management – planning, information, publicity, control and reporting of the programme.

Why this matters for Belgium and the region

• Wallonia is already moving away from heavy industry; the loss of 507 steel jobs is a “social shock” that could worsen unemployment and social exclusion.
• Many affected workers are older (52 % are 55 or more) and have low formal education (69 % have a low education level).
• The EU aims to help these workers find new, decent jobs that match their skills and market needs.

Conditions and safeguards

• Eligibility – The application meets EU rules (at least 200 workers laid off in a four‑month period).
• Co‑financing – Wallonia and the national employment agency (Le Forem) will provide pre‑financing and co‑fund the measures.
• Non‑discrimination – All beneficiaries are treated equally; double‑financing is avoided.
• Monitoring & evaluation – Belgian authorities must report regularly on spending, re‑employment outcomes and whether EGF objectives are met; a final evaluation will involve social partners.
• Complementary role – The EGF supplements, not replaces, national or company responsibilities for supporting workers.

Key take‑aways

• The EU will give Belgium €2 033 869 to help 507 workers from a bankrupt steel plant in Liège find new jobs.
• Funds cover personalised job‑search support, training, business support and the administrative work needed to run the programme.
• The decision is part of a broader effort to protect workers, strengthen the European steel sector and promote a fair transition to a more sustainable economy.
• Belgium must use the funds responsibly, report on progress and ensure the support is fair and effective.

Broader context

The European Globalisation Adjustment Fund (EGF) was created in 2006 to help workers and self-employed people who lose their jobs due to major structural changes in world trade patterns, such as globalisation, economic crises, or the transition to a low-carbon economy. The fund is part of the EU’s broader social agenda, which aims to protect workers, reduce unemployment, and support fair transitions in industries facing decline or transformation.

The steel sector in Europe has been under significant pressure for years due to overcapacity, competition from non-EU countries, high energy costs, and the shift toward green technologies. The EU has been working to modernise the sector, reduce its carbon footprint, and ensure that workers are not left behind during this transition. The EGF is one of the tools used to mitigate the social impact of these changes, especially in regions heavily dependent on traditional industries like steelmaking.

The Liberty Galați Belgian Branch bankruptcy is part of a wider trend affecting the European steel industry. The GFG Alliance, which attempted to take over the plant, has faced financial difficulties, leading to job losses across multiple EU countries. This case highlights the vulnerability of industrial regions in the EU to global economic shifts and the importance of EU-level support mechanisms.

Impact on people living in the EU

For people living in the EU, the EGF provides a safety net that can make a significant difference during economic disruptions. Here’s how it directly affects them:

• Job security: Workers in industries at risk of globalisation or economic shifts (e.g., steel, automotive, or textile sectors) can access funded training and job-search support if their company closes or downsizes. This helps them transition to new jobs more quickly and reduces the risk of long-term unemployment.

• Regional stability: The EGF helps prevent social and economic decline in regions heavily dependent on a single industry. For example, in Wallonia, where the steel plant closed, the fund supports efforts to diversify the local economy and retrain workers for emerging sectors, such as green technologies or digital services.

• Fair transition: The fund ensures that older workers and those with lower education levels, who may struggle to find new jobs, receive targeted support. This includes vocational training, career guidance, and incentives for entrepreneurship, helping them adapt to changing labour market demands.

• EU solidarity: The EGF is a concrete example of EU solidarity, where member states pool resources to support workers and regions in need. It reinforces the idea that the EU stands by its citizens during times of economic hardship, regardless of which country they live in.

• Complementary support: While the EGF does not replace national social security systems, it adds an extra layer of protection for workers affected by large-scale layoffs, ensuring they receive personalised and immediate assistance.