The EU Council has approved a budgetary transfer of €7,527,625 from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support workers laid off in Belgium's automotive sector. The decision, adopted on 26 January 2026, follows a formal request from Belgium to co-finance active labour market measures for former employees of automotive suppliers affected by global trade shifts.
The cover note, issued by the Council's General Secretariat, confirms that the transfer is based on the EGF Regulation (EU) No 1309/2013 and complies with the 2020 Interinstitutional Agreement on budgetary discipline. The funds will be allocated to the EGF budget line (04 01 01) to finance retraining, job-search assistance, and entrepreneurship support for displaced workers.
Policy orientation and trade-offs The mobilisation reflects the EU's commitment to cushioning the social impact of globalisation, particularly in sectors exposed to international competition. However, the EGF's limited budget (maximum €186 million per year) means that each allocation reduces capacity for future crises. The decision also underscores a tension between supporting industrial restructuring and encouraging structural reforms: while the EGF provides short-term relief, critics argue it may delay necessary adjustments in affected regions.
Impact on stakeholders - Displaced workers in Belgium's automotive sector: Direct beneficiaries, receiving tailored support for re-employment or self-employment. - Belgian authorities: Co-financing responsibility (up to 60% of total costs) and administrative burden to implement measures. - EU taxpayers: Funded through the EU budget, with opportunity costs for other priorities. - Automotive industry: Indirect benefit from a smoother labour transition, but no direct support for companies.
Institutional follow-up The European Parliament and the Council must now formally adopt the amending budget. The Commission will then disburse the funds to Belgium, which must report on outcomes within 12 months.
← Atlas › News › Employment & Social policy