What changed between the draft committee report and the plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

8 unchanged paragraphs

on the Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring

(COM(2025)0140 – C100060/2025 – 2025/0073(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0140),

– having regard to Article 294(2) and Article 175 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10-0060/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment by the Committee on Budgets,

Added:– having regard to the reasoned opinion(s) submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Spanish Parliament and the Italian Chamber of Deputies, asserting that the draft legislative act does not comply with the principle of subsidiarity,

– having regard to Rules 60 and 58 of its Rules of Procedure,

Changed:– having regard to the opinion of the of the European Economic and Social Committee,Committee of 19 June 2025,

Changed:– having regard to the opinion of the Committee of the Regions,Regions of 3 July 2025,

Changed:– having regard to the report of the Committee on Employment and Social Affairs (A100000/2025),(A10-0251/2025),

1. Adopts its position at first reading hereinafter set out;

Added:2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

Removed:Recital 6: (6) The EGF’s role continues to be important as a flexible instrument to support workers who lose their jobs in large-scale restructuring events and to help them to find other jobs as quickly as possible. The Union should continue to provide specific, one-off support to facilitate the reintegration into decent and sustainable employment of displaced workers in areas, sectors, territories or labour markets suffering from a shock caused by serious economic disruption. The EU has to ensure its sustainable prosperity, strategic autonomy and competitiveness while preserving its unique social market economy, succeeding in the twin transition, and safeguarding its democracy, economic security and geopolitical standing. The change in production models related to the twin digital and green transitions will go hand in hand with restructuring processes, which can be essential to ensure a company’s economic sustainability and long-term employment stability, thus strengthening the Union’s competitiveness and saving jobs at the same time. To safeguard the EU’s future as an economic powerhouse, and progress on its twin digital and green transition, it is vital to support workers affected by imminent job displacement in enterprises undergoing restructuring so that they can acquire the skills that would help them transfer into a different role, or to change job. If this restructuring process affects activities in the enterprises’ direct suppliers or downstream users, workers employed by those…

Added:Recital 5 a (new): (5a) The Union faces increasingly unequal competition from third countries due to the fact that they do not comply with the same level of labour rights or safety and environmental regulations. Union enterprises must be supported in their fight against unfair competition and workers must be protected from its negative consequences.

Change 2

Changed:Recital 7:6: (7)(6) ThereforeThe itEGF’s isrole necessarycontinues to amend Regulation (EU) 2021/691be soimportant thatas thea EGFflexible caninstrument alsoto offersupport assistanceworkers towho workerslose affectedtheir byjobs imminentin joblarge-scale displacementrestructuring inevents enterprisesand undergoingto restructuring,help includingthem theirto suppliersfind orother downstreamsuitable users.jobs Toas ensurequickly efficientas EGFpossible. spending,The supportUnion should only gocontinue to companies undergoingprovide restructuringspecific, ifone-off thissupport processto supportsfacilitate the twinreintegration greeninto decent and digitalsustainable transitions.employment Asof thesedisplaced workers are still in activeareas, employment,sectors, theirterritories employeror maylabour requestmarkets assistancesuffering throughfrom thea relevantshock Membercaused States’by authorities.serious Whereeconomic multipledisruption. companiesThe areUnion affectedhas byto theensure restructuringits process,sustainable theprosperity, Memberstrategic Stateautonomy should,and oncompetitiveness anwhile exceptionalpreserving basis,its allowunique forsocial collectivemarket applicationseconomy, tosupporting beworkers submitted.and Asenterprises theto EGFensure isa underjust sharedtwin management,transition, itpreserving isjobs in the MemberUnion States’and authoritiessafeguarding thatits candemocracy, requesteconomic EGFsecurity co-fundingand upongeopolitical receiptstanding. ofTo asafeguard requestthe byUnions future as an enterprise,economic providedpowerhouse, thatand theprogress enterpriseon agreesits totwin providedigital theand nationalgreen co-funding.transition, Shouldit theis financialvital contributionto fromsupport theworkers EGFaffected beby granted,imminent thejob Memberdisplacement Statein concernedenterprises shouldundergoing makerestructuring theso fundsthat requestedthey availablecan toacquire the enterpriseskills asthat soonwould ashelp possiblethem andtransfer ininto anya eventdifferent withinrole twoin weeksthe ofsame theirenterprise, receipt.or Into particular,change thejob. enterpriseIf shoulda makerestructuring availableprocess toaffects the Memberdirect Statesuppliers alland informationdownstream neededproducers toof preparean theenterprise, finalworkers reportemployed onby thethem implementationshould ofalso thebe relevanteligible financialfor contribution,EGF notsupport, laterprovided thanthat sixtheir monthsemployer afteragrees to cover the endrelated ofcosts. theSuppliers implementationand ofdownstream theproducers assistance.should Thedemonstrate Commissionthat willthere prepareis a beneficiarycausal surveylink andbetween thesuch enterpriseeffects shouldand sharethe the…initial res…

Change 3

Removed:Recital 7 a (new): (7a) Since workers affected by imminent job displacement are still in active employment, workers need to be informed during the restructuring process. Therefore, companies need to comply with existing national law on social dialogue, collective bargaining and trade union involvement during the restructuring process in general and during the implementation of the targeted packages funded with EGF support.

Added:Recital 7: (7) The EGF should be extended to comprise a more preventive approach by financing up-front training and reskilling that enables cross-sectoral labour mobility. It should support workers by developing transferable skills to avoid redundancies and to allow a smooth transition into new employment, preferably in the same region, thereby reducing the social cost of restructuring. Therefore it is necessary to amend Regulation (EU) 2021/691 so that the EGF can also offer assistance to workers affected by imminent job displacement in enterprises undergoing restructuring, as well as their direct suppliers and downstream producers, with particular focus on workers employed by SMEs and disadvantaged groups of workers, such as older workers, persons with disabilities and low-skilled workers. To ensure efficient EGF spending, support should benefit enterprises undergoing restructuring processes that contribute to the twin green and digital transition. As these workers are still in active employment, their employer may request assistance through the relevant Member States’ authorities. Where several enterprises are affected by the same restructuring process, Member States should be able to provide the submission of collective applications. As the EGF is under shared management, it is the Member States’ authorities that can request EGF co-funding upon receipt of a request by one or more enterprises, provided that the enterprises agree to provide the national co-funding. Should the financia…

Removed:Recital 9: (9) The support provided to workers affected by imminent job displacement in enterprises undergoing restructuring should supplement existing forms of support available under national measures and support the twin digital and green transition by reskilling and upskilling workers and by doing so ensuring quality jobs creation and decent working conditions. Short-time work schemes should not be eligible for EGF support as they do not relate to the displacement of jobs, but to their temporary suspension. If the national measures allow it, the requesting enterprise may subcontract the delivery of the coordinated package of personalised measures, or parts thereof.

Added:Recital 8 a (new): (8a) Restructuring processes should support an enterprise’s economic sustainability and long-term employment stability, thus strengthening the Unions competitiveness. Therefore, restructuring plans should anticipate and manage change as early as possible to prevent insolvency and job losses, while involving workers’ representatives and trade unions at an early stage. Both the decision by the enterprise to submit an application for EGF support and the design of the coordinated package of personalised measures should be done in consultation with the targeted beneficiaries, their representatives and the social partners as applicable in order to ensure workers’ rights to information and consultation are respected in line with Union and national legislation and to ensure the quality and relevance of the measures.

Removed:Recital 10: (10) The co-financing rate for such measures targeted to workers affected by imminent job displacement in enterprises undergoing restructuring should be equal to the co-financing rate for EGF assistance to displaced workers. If applicable, suppliers or downstream users included in collective applications should provide the co-financing covering the support for their own workers. Enterprises that request EGF support should provide the national co-financing.

Added:Recital 8 b (new): (8b) Applications for financial support involving enterprises undergoing restructuring located in small labour markets, regions with high structural unemployment or involving only SMEs should be able to be considered to be admissible even if not all eligibility criteria are met. In such cases, the reasons for not meeting all criteria should be duly substantiated in the application. In the case of applications involving micro, small and medium-sized enterprises, limited administrative capacity should be taken into account.

Removed:Recital 14 a (new): (14a) The current EGF is used regularly in some Member States, while in other Member States uptake has previously been low. Therefore, information campaigns to raise awareness of EGF availability should be organised in those Member States. The Commission should assist Member States through technical guidance and by sharing best practices.

Added:Recital 9: (9) The support provided to workers affected by imminent job displacement in enterprises undergoing restructuring should supplement existing forms of support available under national measures or collective agreements and support the twin digital and green transition by reskilling and upskilling workers and by doing so ensuring quality jobs creation and decent working conditions. Short-time work schemes should not be eligible for EGF support as they do not relate to the displacement of jobs, but to their temporary suspension. If the national measures allow it, the requesting enterprise may subcontract the delivery of the coordinated package of personalised measures, or parts thereof.

Added:Recital 10: (10) The co-financing rate for such measures targeted to workers affected by imminent job displacement in enterprises undergoing restructuring should be equal to the co-financing rate for EGF assistance to displaced workers. Enterprises that request EGF support should provide the national co-financing. Suppliers and downstream producers involved in an EGF application should provide the co-financing for their own workers.

Added:Recital 13: (13) Workers affected by imminent job displacement receiving EGF assistance should remain eligible for continued EGF support even if their work relationship ends. They should also remain eligible for possible follow-up applications by the respective Member States in support of displaced workers from the same enterprise.

Added:Recital 14 a (new): (14a) Given the uneven uptake of EGF support by Member States, the Commission should raise awareness of the funding opportunities available and promote its usage. Moreover, the Commission should assist Member States through technical guidance and dissemination of good practices.

Added:Recital 15: deleted

Added:Recital 16: deleted

Added:Recital 16 a (new): (16a) Given the scale and frequency of restructuring in recent years, there are concerns that the existing EGF budget will be insufficient to meet increasing needs. Therefore, a minimum of 40% of the annual maximum amount of the EGF should be reserved for applications concerning the cessation of activity of displaced workers or self-employed persons. In addition, any financial contribution to workers affected by imminent job displacement should be capped per application. The discontinuation of the EGF budget under the proposed next multiannual financial framework is regrettable and there is a need to ensure continued support for displaced workers in the next MFF.

Added:Recital 17 a (new): (17a) This Regulation has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations.

Regulation (EU) 2021/691

Change 4

Changed:Article 1 – paragraph 1 – point 1, Article 1 – paragraph 2: 2. In accordance with Article 4, the EGF shall offer support to displaced workers and self-employed persons whose activity has ceased in the course of major restructuring events and to workers affected by imminent job displacement in enterprises undergoing restructuring, including their direct suppliers orand downstream users,producers, provided that theall national obligations under Directive 98/59/EC98/59/EC, including for information, consultation and standstill, have been fulfilled prior to the submission of the EGF application and the restructuring process addscontributes to the twin digital and green transitions;transition.

Regulation (EU) 2021/691

Change 5

Changed:Article 1 – paragraph 1 – point 2, Article 2 – paragraph 1: 1. The EGF shall support socioeconomic transformations that are the result of globalisation and of technological and environmental changes by helping displaced workers and self-employed persons whose activity has ceased to adapt to structural change. The EGF shall also support workers orand self-employed persons at risk of imminent job displacement. The EGF shall constitute an emergency fund. As such, the EGF shall contribute to the implementation of the principles set out in the European Pillar of Social Rights, promote sustainable employment and enhance social and economic cohesion among regions and Member States.

Regulation (EU) 2021/691

Change 6

Removed:Article 1 – paragraph 1 – point 4 – point b, Article 4 – paragraph 2 – point d: (d) at least 200 workers affected by imminent job displacement resulting from an enterprise undergoing restructuring in a Member State, including workers affected in the enterprises suppliers or downstream users;

Added:Article 1 – paragraph 1 – point 2, Article 2 – paragraph 2: 2. The objectives of the EGF are to demonstrate solidarity and promote decent and sustainable employment in the Union by offering assistance in the case of major restructuring events, in particular those caused by challenges related to globalisation, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low-carbon economy as part of the green and just transition, or as a consequence of digitisation or automation. The EGF shall support beneficiaries in returning to decent and sustainable employment as soon as possible. Particular emphasis shall be placed on measures that help the most disadvantaged groups. The EGF shall also support workers affected by imminent job displacement in acquiring the skills needed to help them transfer into a different role,

Regulation (EU) 2021/691

Change 7

Removed:Article 1 – paragraph 1 – point 6, Article 6 – paragraph 1 – point c: (c) workers affected by imminent job displacement in an enterprise undergoing restructuring, including their direct suppliers or downstream users. The workers shall remain eligible even in case of an actual termination of the work relationship. Workers who have received EGF support during employment shall not be excluded from receiving further support after the termination of the work relationship. Only those restructuring events shall be eligible that qualify as collective redundancies under Directive 98/59/EC;

Added:Article 1 – paragraph 1 – point 3 – point b, Article 3 – paragraph 1 – point 6: (6) ‘enterprise undergoing restructuring’ means an enterprise undergoing a process that involves projected collective redundancies and which has notified the competent public authority in writing as referred to in Directive 98/59/EC;

Regulation (EU) 2021/691

Change 8

Removed:Article 1 – paragraph 1 – point 7 – point a, Article 7 – paragraph 1: 1. A financial contribution from the EGF may be made for active labour market policy measures that form part of a coordinated package, designed to facilitate the reintegration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment, or to help workers referred to in Article 6, first paragraph, point(c) acquire the skills they need to transfer either into a different role with their current employer or to a different employer, preferably within their home region;

Added:Article 1 – paragraph 1 – point 4 – point b, Article 4 – paragraph 2 – point d: (d) at least 200 workers affected by imminent job displacement in an enterprise undergoing restructuring in a Member State, including affected workers employed by direct suppliers or by downstream producers;

Regulation (EU) 2021/691

Change 9

Removed:Article 1 – paragraph 1 – point 7 – point b, Article 7 – paragraph 2 – subparagraph 2 – point c: (c) ‘For the beneficiaries referred to in Article 6, first paragraph, point (c), the coordinated package may include training and retraining supplementing existing forms of support available under national measures, tailored to the individual worker’s needs, including on information and communication technology and other skills required in the digital age, certification of acquired knowledge and skills, individual job-search assistance services and targeted group activities, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion and cooperation activities. It may not include short-time work schemes;

Added:Article 1 – paragraph 1 – point 4 – point b a (new), Article 4 – paragraph 3: (ba) paragraph 3 is replaced by the following: / ‘3. In small labour markets, in particular with regard to applications involving SMEs, where duly substantiated by the applicant Member State, an application for a financial contribution under this Article shall be considered to be admissible even if the criteria laid down in paragraph 2 are not entirely met, provided that the redundancies or projected collective redundancies have a serious impact on employment and the local, regional or national economy. In such cases, the applicant Member State shall specify which of the intervention criteria set out in paragraph 2 are not entirely met.’

Regulation (EU) 2021/691

Change 10

Removed:Article 1 – paragraph 1 – point 7 – point b a (new), Article 7 – paragraph 2 – subparagraph 5 a (new): (ba) In paragraph 2, the following subparagraph is added: / ‘When setting up coordinated packages pursuant to this paragraph, employers shall ensure that the social partners participate in the process, in accordance with the applicable national law, especially by defining skills needs, co-designing training curricula, validating quality, and by monitoring implementation.

Added:Article 1 – paragraph 1 – point 4 – point b b (new), Article 4 – paragraph 4: (bb) paragraph 4 is replaced by the following: / ‘4. In exceptional circumstances, in particular with regard to applications involving SMEs, paragraph 3 shall also apply to labour markets other than small labour markets. The aggregated amount of financial contributions in such cases shall not exceed 15 % of the annual ceiling of the EGF.’

Regulation (EU) 2021/691

Change 11

Changed:Article 1 – paragraph 1 – point 9,6, Article 8a6 – paragraph 1: 1.1 Enterprises– undergoingpoint restructuringc: may(c) requestworkers theaffected Memberby Stateimminent concernedjob todisplacement submitin an application for a financial contribution from theenterprise EGF,undergoing ifrestructuring, theincluding interventiontheir criteriadirect setsuppliers outand indownstream Articleproducers. 4(2),The pointworkers (d)shall areremain met,eligible ifeven thein enterprisecase wishesof toan offeractual EGF-co-financedtermination assistanceof tothe thosework partsrelationship. ofWorkers itswho workforcehave affectedreceived byEGF imminentsupport jobwhile displacement,still in lineemployment withshall Articlenot 6,be firstexcluded paragraph,from pointreceiving (c)further andsupport after consulting workers' representatives. Such a request shall be submitted by the enterprise within two weekstermination of the datework onrelationship. whichOnly itthose hadrestructuring notifiedevents theshall publicbe authoritieseligible inthat writingqualify ofand theare projectednotified as collective redundancies in accordance with Article 3(1) ofunder Directive 98/59/EC.98/59/EC;

Regulation (EU) 2021/691

Change 12

Removed:Article 1 – paragraph 1 – point 9, Article 8a – paragraph 2: 2. All Member States shall designate a Single Entry Point to which enterprises can direct requests referred to in paragraph 1. If applicable, this Single Entry Point may be established in such a way as to take into account the national division of competence. The Commission shall publish relevant guidelines and common templates in coordination with the Member States. To ensure financial support reaches the workers concerned, those guidelines shall, inter alia, contain guidance regarding the applicable State aid rules. The information collected from these templates shall cover all the information necessary for a financial contribution application from the EGF as set out in paragraph 10.

Added:Article 1 – paragraph 1 – point 7 – point a, Article 7 – paragraph 1: 1. A financial contribution from the EGF may be made for active labour market policy measures that form part of a coordinated package, designed to facilitate the reintegration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment, or to help workers referred to in Article 6, first paragraph, point(c) update or acquire the skills they need to transfer either into a different role with their current employer or to a different employer;

Regulation (EU) 2021/691