The EU Council has approved a €1,806,624 transfer from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 420 workers laid off by KTM Gruppe in Austria. The decision, formalised on 25 February 2026, activates a support package covering retraining, job-search assistance, and entrepreneurship grants for the affected employees.
Budgetary procedure
The transfer moves funds from the EGF reserve to its operational budget line, as stipulated under the EGF Regulation and the 2020 Interinstitutional Agreement on budgetary discipline. The measure falls under EU employment and social cohesion policy, designed to cushion the impact of globalisation and major restructuring.
Impact on stakeholders
For the 420 displaced workers, the package provides direct financial and training support to facilitate re-entry into the labour market. Austrian authorities will administer the funds, reducing the burden on national unemployment schemes. EU taxpayers bear the cost via the EGF reserve, though the amount is modest relative to the overall EU budget. No prior coverage exists on this specific case, making this the first EGF mobilisation for KTM-related redundancies.
Next steps
The European Parliament must now give its consent to the transfer before the funds can be disbursed. The Commission will then adopt the implementing decision and transfer the money to Austria.