The EU Council has approved the mobilisation of €2.03 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 507 workers laid off by the steel manufacturer Liberty Galaţi Belgian Branch. The decision, taken by the Council's Budget Committee on 11 March 2026, aims to facilitate the reintegration of the displaced workers into the labour market through tailored measures such as job-search assistance, training, and entrepreneurship support.
Document Details and Legal Basis The approval is formalised in an I/A item note, indicating that the item is ready for adoption without further discussion. The legal basis is Regulation (EU) 2021/691, which governs the EGF's operations. The fund is designed to provide one-off, time-limited support to workers who lose their jobs due to major structural changes in world trade patterns or the global financial and economic crisis.
Policy Orientation and Trade-offs The mobilisation reflects the EU's commitment to social cohesion and mitigating the social consequences of economic restructuring. By providing financial support for active labour market measures, the EU aims to balance economic efficiency with social protection. However, the use of EGF funds involves trade-offs: while it offers immediate relief to affected workers, it also represents a transfer from EU taxpayers to a specific sector, potentially raising questions about long-term competitiveness and the need for structural reforms in the steel industry.
Impact on Stakeholders The primary beneficiaries are the 507 displaced workers, who will receive personalised support to find new jobs or start businesses. The Belgian authorities will implement the measures, coordinating with local employment services. The steel industry, particularly Liberty Galaţi, may face reduced pressure to retain workers, potentially affecting its restructuring plans. EU taxpayers bear the cost, though the amount is modest relative to the overall EU budget.
Institutional Follow-up The Council's approval is the final step in the EU decision-making process for this EGF mobilisation. The European Commission will now disburse the funds to Belgium, which must submit a final report on the use of the money within 18 months. No further institutional reactions are expected.
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