European Globalisation Adjustment Fund (EGF)
The European Globalisation Adjustment Fund, which was established in 2007, assists those who have become unemployed due to either changes in world trade or as a result of the the worldwide finance and economic crisis. The EGF helps beneficiaries to find employment and obtain new skills. Support is available for example when a large company has ceased its operations or a plant is transferred outside the EU. The globalisation adjustment fund can allocate 500 million euros of support per annum.
How does the globalisation adjustment fund help?
Activities that the globalisation adjustment fund finances include
- job-search guidance
- vocational orientation services
- tailored training and retraining
- promotion of entrepreneurship
- Start-up grants
- pay subsidy
The globalisation adjustment fund also provides one-time individual assistance with limited duration, for example
- job-search assistance
- travel and other mobility allowances
The fund's support cannot be used for social welfare such as pensions or unemployment benefits.
How to get support from the globalisation adjustment fund?
Retrenched employees can get support from the globalisation adjustment fund only through assistance programmes established by the government of their own country. Funding from the globalisation adjustment fund cannot be used for maintaining companies' operations, their modernisation or structural reforms.
Administration of the European Globalisation Adjustment Fund in Finland
In Finland, the Ministry of Employment and the Economy administers the operations of the European Globalisation Adjustment Fund. The executive authority is the Centre for Economic Development, Transport and the Environment together with the Employment and Economic Development Office.