Brussels (Brussels Morning Newspaper) – EU Parliament approved aid worth €700,000 to help 632 dismissed workers in Belgium.
The European Parliament Committee on Budgets endorsed Belgium’s request for €704,135 in EU support through the European Globalisation Adjustment Fund for Displaced Workers (EGF). The aid will help 632 former workers from machinery and paper companies Purmo and Sappi in the Flemish region of Limburg.
As reported by EU Parliament Press, MEPs stated that the profiles of the displaced employees, one-third of which are aged 55 years or more and 30 % with low education, translate into extreme barriers in the labour market.
What caused the layoffs at the Sappi and Purmo plants?
Both Sappi Lanaken and Purmo Group had to expel employees due to dropping demand for their products and economic diffliculties. Sappi Lanaken shut its plant because digitalization decreased the need for woodfree coated paper and shifting production was too expensive, while Purmo Group’s Zonhoven plant stopped production due to a 60% reduction in panel radiator demand, higher operational expenses, and unfavourable market conditions affected by the war in Ukraine and EU ruling favouring alternative heating systems.
How will the €700,000 EU aid help displaced workers?
According to the EU Parliament, the EGF funding will assist pay for counselling and vocational orientation, job search allowance, as well as skills activity in vocational, digital and language skills. The total calculated cost of these actions is €1.2 million, with 60% (€700,000) spent by the EGF and the remaining 40% (€500,000) funded by the Flemish Employment and Vocational Training Service (VDAB).
What role does the European Globalisation Adjustment Fund play?
Moreover, under the EGF regulation 2021-2027, the Fund helps displaced employees and self-employed people who have failed their activity due to unexpected significant restructuring events. Since 2007, the EGF has assigned €696 million in 180 cases, providing support to more than 169,000 people in 20 Member States. EGF-supported efforts complement national active labour market measures.
