The EU Council has proposed mobilising the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 3,414 workers made redundant following the closure of the Audi plant in Brussels and its suppliers in Belgium. The proposal, published on 1 September 2026, outlines a coordinated package of personalised services—including job-search assistance, training, and entrepreneurship support—with a total budget of €8.86 million, of which the EGF would contribute 85% (€7.53 million). The initiative aims to mitigate the negative employment impacts of major structural changes in global trade, directly affecting displaced workers and their families.
Document Details and Legal Basis
The proposal was discussed during the Council meeting on 26 January 2026 and falls under the EU policy area of employment and social cohesion. It is based on Regulation (EU) 2021/691 on the EGF, which provides financial support for workers made redundant due to globalisation-related structural shifts. The document is a legislative proposal that requires approval by the European Parliament and the Council before funds can be disbursed.
Policy Orientations and Trade-offs
The proposal reflects a trade-off between providing immediate social support for displaced workers and ensuring fiscal responsibility. The EGF co-financing rate of 85% reduces the burden on Belgian national budgets, but the total allocation of €8.86 million may be seen as insufficient by some stakeholders given the scale of redundancies. The package focuses on re-skilling and job placement rather than income replacement, prioritising long-term employability over short-term compensation.
Impact on Stakeholders
- Displaced workers: Benefit from personalised support services, including training and job-search assistance, which can improve re-employment prospects. However, the aid is temporary and may not fully compensate for income loss during transition.
- Belgian national authorities: Receive significant EU co-financing, reducing the financial strain on national social security systems. They must coordinate the implementation of services, which may require administrative capacity.
- EU taxpayers: Finance the EGF through the EU budget, with the expectation that such interventions reduce long-term unemployment costs and social instability.
- Automotive industry suppliers: Indirectly affected as the closure disrupts the supply chain; the EGF support may help former employees transition to other sectors, but does not address structural challenges in the automotive industry.
Expected Institutional Follow-up
The European Parliament and the Council must formally approve the proposal before the funds can be released. The European Commission will oversee the implementation and ensure compliance with EGF regulations. The decision is expected within the coming months, with disbursement likely in 2027.