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report parliamentary committee draft, 4 September 2026

On the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Finland – EGF/2026/003 FI/Valmet Automotive

Document BUDG-PR-792011 · (COM(2026)0400 – C100199/2026 – 2026/0220(BUD))

Committee on Budgets · Rapporteur: Nicolae Ștefănuță

On Parliament’s site PDF Word

AI:In short

This is a draft report by the Committee on Budgets on a Commission proposal to mobilise the European Globalisation Adjustment Fund for Displaced Workers for Finland, following an application linked to 260 displacements at Valmet Automotive and five suppliers. The rapporteur agrees that the conditions of the EGF Regulation are met and that Finland is entitled to EUR 410 310, which is 60% of a total cost of EUR 683 850. The report notes that 233 displaced workers in Länsi-Suomi will be targeted beneficiaries and lists the personalised services to be provided, including job-seeking training, coaching, vocational and language training, safety cards, start-up grants and incentives. It asks the Finnish authorities to ensure visibility of Union funding, calls for thorough final evaluations, and stresses that EGF assistance must not replace actions that are the responsibility of public authorities or companies. The rapporteur approves the decision annexed to the resolution.

Position. The rapporteur agrees with the Commission that the conditions of the EGF Regulation are met and that Finland is entitled to EUR 410 310, approves the decision annexed to the resolution, and calls for visibility of Union funding and thorough final evaluations.

Key points

  1. The report concerns the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Finland for 260 displacements at Valmet Automotive and five suppliers.
  2. It agrees with the Commission that the conditions of the EGF Regulation, in particular Article 4(2), point (a), are met and that Finland is entitled to EUR 410 310.
  3. The financial contribution represents 60% of the total cost of EUR 683 850, comprising EUR 663 850 for personalised services and EUR 20 000 for preparatory, management, information and publicity, control and reporting activities.
  4. The application was submitted on 5 May 2026; the Commission finalised its assessment on 24 July 2026 and notified Parliament on 24 August 2026.
  5. The application relates to 260 displaced workers, of whom 233 residing in Länsi-Suomi will be targeted beneficiaries.
  6. The report notes Valmet's staff reductions, the dismissal of 235 workers and temporary lay-off of 860 workers, and an unemployment rate in Länsi-Suomi of 12.3% in December 2025.
  7. It notes that 95% of displaced workers have post-secondary education or lower and 27.5% are aged over 54, and calls on the Finnish authorities to address social disparities leading to exclusion from the workforce.
  8. Personalised services to be provided consist of job-seeking training, job and career coaching, vocational training, occupational safety and competence cards, language training, start-up grants, and incentives and allowances.
  9. The Finnish authorities shall ensure the visibility of Union funding and provide effective and targeted information to beneficiaries, regional and local authorities, social partners, and the wider public.
  10. The report calls for thorough final evaluations of the measures, including information on the use of funds, the success of reintegration, and whether the measures achieved the objectives of the EGF.
  11. Finland started providing personalised services on 23 March 2026; the eligibility period runs until 24 months and until 31 months after the entry into force of the financing decision, respectively.
  12. The Finnish authorities assured that equality of treatment and non-discrimination will be respected and that double financing will be prevented; EGF assistance must not replace actions that are the responsibility of public authorities or companies.

Who is affected

  • Finland: receives a financial contribution of EUR 410 310 from the EGF for 233 targeted beneficiaries.
  • Displaced workers from Valmet Automotive and five suppliers: receive personalised services such as training, coaching and grants.
  • Finnish authorities: must ensure visibility of Union funding, prevent double financing, and provide final evaluations.

Figures and deadlines

  • EUR 410 310: financial contribution from the EGF, 60% of total cost.
  • EUR 683 850: total cost of the proposed actions.
  • EUR 663 850: expenditure for personalised services.
  • EUR 20 000: expenditure for preparatory, management, information and publicity, control and reporting activities.
  • 260: displaced workers covered by the application.
  • 233: targeted beneficiaries residing in Länsi-Suomi.
  • 12.3%: unemployment rate in Länsi-Suomi in December 2025.
  • 95%: displaced workers with post-secondary education or lower; 27.5% aged over 54.

Written by AI from the full text · every figure comes from the text · ¶ opens the paragraph · 25 Sept 2026 · Report a problem

Full text

Motion for a european parliament resolution 31 paragraphs

(COM(2026)0400 – C100199/2026 – 2026/0220(BUD))

The European Parliament,

–having regard to the Commission proposal to the European Parliament and the Council (COM(2026)0400 – C100199/2026),

–having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013 ("EGF Regulation"), as amended by Regulation (EU) 2026/1139,

–having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027, as amended by Regulation (EU, Euratom) 2024/765, and in particular Article 8 thereof,

–having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 9 thereof,

–having regard to the European Pillar of Social Rights,

–having regard to the letter from the Committee on Employment and Social Affairs,

–having regard to the report of the Committee on Budgets (A10-0000/2026),

A.whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural events and changes in world trade patterns or who are affected by imminent job displacementin enterprises undergoing restructuring, and to assist their reintegration into the labour market or their career transitions; whereas this assistance is made through a financial support given to workers;

B.whereas Finland submitted application EGF/2026/003 FI/Valmet Automotive for a financial contribution from the EGF following 260 displacements in the economic sector classified under the NACE Revision 2 division 29 (Manufacture of motor vehicles, trailers and semi-trailers) in the Region of Länsi-Suomi (FI19), with 239 total displacements within a reference period from 2 December 2025 to 2 April 2026, consisting of 230 displaced workers from Valmet Automotive Oyj (Manufacture of motor vehicles) and 9 from Compass Group Finland Oy (Food and beverage service activities), and 21 displacements outside the reference period;

C.whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation; whereas for the 21 displacements whose activity ceased before or after the four-month reference period, a clear causal link can be established with the event that triggered the cessation of activity for the displaced workers during the reference period, in accordance with Article 6 of the EGF Regulation;

Read the rest (19 paragraphs)

D.whereas Valmet, a contract manufacturer of the automobile industry, has always been dependent on fixed-term contracts with large car manufacturers, and therefore subject to business fluctuations; whereas Valmet had to gradually reduce its personnel, from just under 3 200 in the early 2020’s to approximately 1 300 before the latest redundancies;

E.whereas the Turku Employment Region is providing the national pre-financing and co-funding of the measures;

F.whereas the requirements laid down in Union and national legislation concerning collective redundancies have been complied with;

G.whereas financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into the labour market or support their career transitions while offering them skills training to facilitate their reintegration and develop and strengthen digital skills;

H.whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices);

1.Agrees with the Commission that the conditions set out in the EGF Regulation and in particular in Article 4(2), point (a), thereof are met and that Finland is entitled to a financial contribution of EUR 410 310 under that Regulation, which represents 60 % of the total cost of EUR 683 850, comprising expenditure for personalised services of EUR 663 850 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 20 000;

2.Notes that the Finnish authorities submitted the application on 5 May 2026, and that, following the receipt of additional information from Finland, the Commission finalised its assessment on 24 July 2026 and notified it to Parliament on 24 August 2026;

3.Notes that the application relates to 260 displaced workers whose activity ceased in Valmet and five subcontractors and suppliers; notes further that 233 displaced workers, residing in Länsi-Suomi, will be targeted beneficiaries;

4.Takes note that Valmet, has struggled to adapt to market changes and has had to gradually reduce its personnel since the early 2020’s; takes note after the end of its last contract the factory no longer had any orders, forcing it to new staff reductions resulting in the dismissal of 235 workers and the temporary lay-off of 860 workers; regrets that the recent lay-offs and redundancies at Valmet led to an increase of the unemployment rate in Länsi-Suomi by nearly 15% from 2024 to 2025 reaching 12,3% in December 2025 with long-term unemployment reaching its highest level in history, up 39% from 2024;

5.Takes note that 95% of the displaced workers have an educational attainment of post-secondary level or lower, with 27,5% being aged over 54; emphasizes that unemployment risk strongly correlates with age and education level; calls on the Finnish authorities to take measures to address social disparities leading to exclusion of work force, such as low level of education and age; welcomes that Valmet has signed a multi-year agreement covering the manufacturing of armoured vehicles potentially allowing re-hiring of considerable portion of its displaced workers while hopefully others could also find employment in the maritime industry in the city of Turku in the future;

6.Recalls that, in agreement with targeted beneficiaries, their representatives and social partners, personalised services to be provided to the displaced workers consist of the following measures: job-seeking training; job and career coaching; vocational training; occupational safety and competence cards; language training; start-up grants; incentives and allowances;

7.Stresses that the Finnish authorities shall ensure the visibility of the Union funding and highlight its added value by providing effective and targeted information to beneficiaries, regional and local authorities, social partners, and the wider public;

8.Calls for thorough final evaluations of the measures implemented, including clear information on how the funds have been used, on the success of the reintegrating of workers into the labour market, and whether the measures have achieved the objectives for which the EGF was created;

9.Notes that Finland started providing personalised services to the targeted beneficiaries and incurring administrative expenditure to implement the EGF on 23 March 2026, and that the period of eligibility for a financial contribution from the EGF will therefore be from that date until 24 months and until 31 months after the date of the entry into force of the financing decision, respectively;

10.Notes that the Finnish authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, and that any double financing will be prevented;

11.Reiterates that assistance from the EGF must not replace actions that are the responsibility of public authorities or companies under national law or collective agreements; recalls that the EGF is a limited, targeted and complementary mechanism;

12.Approves the decision annexed to this resolution;

13.Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

14.Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

Annex: decision of the european parliament and of the council 20 paragraphs

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Finland – EGF/2026/003 FI/Valmet Automotive

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013, and in particular Article 15(1), first subparagraph, thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, and in particular point 9 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

(2)The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093 amended by Council Regulation (EU, Euratom) 2024/765, and Article 16 of Regulation (EU) 2021/691.

(3)On 5 May 2026, Finland submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers’ displacements in Valmet Automotive and 5 sub-contractors and suppliers in Finland. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council.

(4)The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 410 310 in respect of the application submitted by Finland.

(5)In order to minimise the time taken to mobilise the EGF, this Decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2026, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 410 310 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption]* .

Done at Brussels,

For the European Parliament For the Council

The President The President

Explanatory statement 19 paragraphs

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. Finland’s application and the Commission's proposal

On 5 May 2026 Finland submitted an application EGF/2026/003 FI/Valmet Automotive for a financial contribution from the EGF, following 260 redundancies at Valmet Automotive Oyj and five of its suppliers. This is the third such application of 2026, and the ninth to be examined under the 2026 budget.

Following the 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 24 July 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Finland for tailored measures to support the reintegration in the labour market of 233 targeted beneficiaries, i.e. workers from Valmet and five of its sub-contractors and suppliers made redundant. In total, EUR 410 310 will be mobilised from the EGF, representing 60% of the total costs of the proposed actions.

The Commission deemed the Finnish application admissible under the intervention criteria of Article 4(2) (a) of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months, in an enterprise in a Member State, including workers displaced in suppliers and downstream.

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

a) Job-seeking training: The participants receive information about the support services available for jobseekers, and training to chart their reintegration into labour market. They will practice applying for jobs by drawing up or updating their CVs and writing actual job applications. Personal interviews with situational assessment will be conducted by experts dedicated to the project. Special attention will be given to those participants who need to improve their digital skills to improve their job-seeking skills and/or labour market position.

b) Job and career coaching: Job coaching offers general guidance for searching employment but can include also a personal coach providing personalised assistance. In career coaching, personalised support is provided to the participants to help them plan their working career, including possible career or sector changes, with the required competence/skills mapping. If necessary, longer-term support programmes, with group-based exercises, can be provided. These may also include introductory periods in one or several workplaces.

c) Vocational training: The goal of the vocational training is the acquisition of skills that support transition to a new sector with high employment rate.

d) Occupational safety and competence cards: Occupational safety and competence cards are nationally recognised certificates of proficiency in various safety-related skills. These cards can be obtained by completing a learning course and a standardised test.

e) Language training: Labour-market oriented Finnish language training will be provided to those beneficiaries whose proficiency in Finnish is insufficient for rapid re-employment.

f) Start-up grant: A start-up grant ensures an income for an aspiring entrepreneur during the estimated time required to launch and establish a full-time business, up to a maximum of 12 months.

g) Incentives and allowances: Pay subsidies lower the recruitment threshold by reducing the new employer’s payroll costs. The aim is to help the jobseekers improve their professional competence in the open labour market. The amount of pay subsidy is generally 50% of the payroll costs; the length of the subsidised period depends on the duration of the preceding unemployment period.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 410 310 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 Development should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund