The Council is set to approve a €1.8 million contribution from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 420 workers made redundant by the insolvency of KTM motorcycle manufacturer in Upper Austria. The European Commission's proposal, published on 25 February 2026, initiates the legislative procedure requiring formal adoption by the Council and European Parliament.
The proposal confirms that Austria's application meets the EGF Regulation's intervention criteria, as KTM's insolvency led to the displacement of over 200 workers (233 in the reference period) in a single enterprise. The total eligible pool is 1,488 workers, with 420 targeted for support. The EGF will cover 60% of the total costs (€1,806,624), with the remainder funded by national sources.
The displacements are linked to KTM's insolvency, triggered by offshoring of production, a severe sales crisis, and excessive debt, causing significant economic disruption in Upper Austria and record unemployment levels. The proposal highlights that national authorities applied the EU's Quality Framework for restructuring voluntarily during insolvency proceedings.
The proposal now enters the EU's budgetary procedure, requiring adoption by the Council and European Parliament. Swift approval is expected as the Commission has already validated the application's compliance. The funding will provide concrete financial solidarity to Austria, demonstrating the EGF's role in mitigating social and economic impacts of industrial restructuring.