What changed between the draft committee report and the plenary report

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020, the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Belgium’s application and the Commission's proposal

On 3 June 2024, Belgium submitted an application EGF/2024/001 BE/Match-Smatch for a financial contribution from the EGF, following 513 redundancies at the company Match-Smatch (Match SA. and Profi SA.). This is the first application of 2024, and the first to be examined under the 2024 budget.

Following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 16 September 2024, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Belgium for tailored measures to support the reintegration in the labour market of 365 targeted beneficiaries, i.e. Match-Smatch workers made redundant. In total, EUR 2 661 564 will be mobilised from the EGF for Belgium, representing 85 % of the total costs of the proposed actions.

The Commission deemed the Belgian application admissible under the intervention criteria of Article 4(2)(a) of the EGF Regulation, which requires at least 200 workers being made redundant over a reference period of four months in an enterprise in a Member State, including workers made redundant by suppliers and downstream producers and/or self-employed persons whose activity has ceased.

EGF co-funding has been requested for the following five types of actions, to be provided to redundant workers:

(a) Information services, occupational guidance and outplacement assistance: This set of services expands the standard activities in support of Match-Smatch former workers carried out by Le Forem's employment unit on behalf of the dismissing enterprise. The standard offer will be extended beyond the mandatory period and additional specific services such as individual coaching, active job-search and job-matching will be proposed.

(b) Training, retraining and vocational training: Workers will have access to the standard training offer of Le Forem and its partners. In addition, after the profiling and agreement of individual projects with the vocational counsellor, EGF co-financed specific training will be offered to cater for the identified needs of the workers.

(c) Support towards business creation: The measure aims at workers who wish to launch their own business. It will include a diagnosis and guidance phase, awareness-raising actions on entrepreneurship, information sessions on the potential for business creation through territorial economic diagnoses and networking with relevant entrepreneurs and with certified coaches in business creation.

(d) Contribution to business creation: The workers who start a business or an activity as self-employed persons will receive a contribution up to EUR 15 000. The contribution will be paid in two installments, on the basis of evidence of the start and development of the business activity (supporting documents).

(e) Incentives and allowances: (1) Job-search and training allowances. Workers will receive EUR 2 per hour of effective participation in training or job-search activities. (2) Bonus for improving IT skills. Workers who follow both the module for access to digital autonomy and its complementary module will receive a lump sum of EUR 700 conditional on their active participation and completion of the training. The bonus aims to reduce digital illiteracy by encouraging workers to improve their IT skills. (3) Bonus for improving language skills. Workers who follow language training to improve their Dutch, English or German language skills as part of a specific job search, allowing them to reach a higher level of the Common European Framework of Reference for Languages will receive a lump sum of EUR 700. The same applies for the workers whose native tongue is not French and who improve their French skills to a higher level. The objective of this bonus is to encourage the development of cross-disciplinary language skills to facilitate workers’ reintegration into the job market. (4) Return-to-school allowance. A monthly allowance of EUR 350 will be granted to workers who embark on full-time secondary and tertiary studies, or qualifying training, regardless of their age. (5) Allowance towards business creation. To support workers while setting up their business, a monthly allowance of EUR 350 for a maximum of 12 months will be granted. (6) Hiring incentives. Enterprises recruiting former Match-Smatch workers aged 50+ will receive EUR 10 000 for full-time permanent contracts or fixed-term contracts up to 6 months followed by permanent contracts.

According to the Commission, the described measures constitute active labour market measures within the eligible actions set out in Article 7 of the EGF Regulation and do not substitute passive social protection measures.

Belgium provided the required information on actions that are mandatory for the enterprises concerned by virtue of national law or pursuant to collective agreements. They confirmed that a financial contribution from the EGF will not replace such actions.

Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 2 661 564 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Policy should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.