Belgium Secures €8 Million in EU Aid for Displaced Workers Amid Economic Challenges
Approval for support from the European Globalisation Adjustment Fund follows the bankruptcy of Van Hool and layoffs of 2,400 employees.
On Tuesday, the European Parliament approved Belgium's request for financial support from the European Globalisation Adjustment Fund for Displaced Workers (EGF) with a significant majority of 598 votes in favor, 48 against, and 5 abstentions.
This funding aims to assist 2,400 workers who were dismissed following the bankruptcy of the Flemish transport company Van Hool.
MEPs recognized the ongoing difficulties faced by the European automotive and supplier industry due to various pressures, including competition distortions and high energy costs.
The economic landscape has been particularly strained following the effects of the COVID-19 pandemic and the ongoing conflict resulting from Russia’s war against Ukraine, which has led to inflation and disruptions in supply chains, contributing to the downfall of Van Hool.
The company, known for manufacturing coaches, buses, trolleybuses, and trailers, was declared bankrupt in April 2024.
Of the 2,400 workers affected by the layoffs, over a third are aged 50 or older, and approximately 80% possess outdated skill sets.
In response to these layoffs, the EGF support package has been designed to finance essential services including counseling, vocational orientation, job search assistance, and training to acquire new professional and digital skills.
The total financial support package amounts to €9.4 million, with the EGF covering €8 million and Belgium's Flemish Employment and Vocational Training Service (VDAB) contributing €1.4 million.
Support measures have been available since the onset of the layoffs.
The EGF was established under the Regulation for the 2021-2027 period, providing assistance for displaced workers and self-employed individuals who have lost their livelihoods due to major restructuring events.
This funding is applicable for various circumstances that include those resulting from the economic challenges spurred by the pandemic, the war in Ukraine, and broader issues such as automation and decarbonisation.
Member States eligible for this funding must report cases where at least 200 jobs are lost within a defined timeframe.
Following the submission of an application detailing job losses and support measures, the European Commission assesses the request.
If the criteria are met, a proposal to mobilize the funds is made, requiring further approval from both the European Parliament and the Council.
Since its inception in 2007, the EGF has undertaken intervention in 182 cases, allocating approximately €700 million to aid over 170,000 individuals across 20 Member States.
This funding aims to assist 2,400 workers who were dismissed following the bankruptcy of the Flemish transport company Van Hool.
MEPs recognized the ongoing difficulties faced by the European automotive and supplier industry due to various pressures, including competition distortions and high energy costs.
The economic landscape has been particularly strained following the effects of the COVID-19 pandemic and the ongoing conflict resulting from Russia’s war against Ukraine, which has led to inflation and disruptions in supply chains, contributing to the downfall of Van Hool.
The company, known for manufacturing coaches, buses, trolleybuses, and trailers, was declared bankrupt in April 2024.
Of the 2,400 workers affected by the layoffs, over a third are aged 50 or older, and approximately 80% possess outdated skill sets.
In response to these layoffs, the EGF support package has been designed to finance essential services including counseling, vocational orientation, job search assistance, and training to acquire new professional and digital skills.
The total financial support package amounts to €9.4 million, with the EGF covering €8 million and Belgium's Flemish Employment and Vocational Training Service (VDAB) contributing €1.4 million.
Support measures have been available since the onset of the layoffs.
The EGF was established under the Regulation for the 2021-2027 period, providing assistance for displaced workers and self-employed individuals who have lost their livelihoods due to major restructuring events.
This funding is applicable for various circumstances that include those resulting from the economic challenges spurred by the pandemic, the war in Ukraine, and broader issues such as automation and decarbonisation.
Member States eligible for this funding must report cases where at least 200 jobs are lost within a defined timeframe.
Following the submission of an application detailing job losses and support measures, the European Commission assesses the request.
If the criteria are met, a proposal to mobilize the funds is made, requiring further approval from both the European Parliament and the Council.
Since its inception in 2007, the EGF has undertaken intervention in 182 cases, allocating approximately €700 million to aid over 170,000 individuals across 20 Member States.
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