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Training and support
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The EGF supports
education and training
In 2006 the EGF (European Globalisation Adjustment Fund) was established by the European Union to enable EU Member States to provide programmes of assistance to workers who were made redundant as a result of major structural changes in world trade patterns due to globalisation. In 2009 also applications due to the effects of global economic crisis were made possible.
The EGF supports labour market policy measures as e.g. orientation, training and formation. EGF funds can be requested, if a higher number of workers has become unemployed due to globalisation or global economic crisis. Precondition is that more than 500 people are made redundant within one enterprise or within one branch and region within a certain period of time.
The EGF-regulation was adopted in 2013:
Questions and Answers
Which are the requirements to apply for EGF support?
A minimum number of people has to be affected and the application has to be justified by globalisation or crisis effects: The number of redundancies has to amount to at least 500 persons. The redundancies have to occur within one company (including up- and downstream supply chain) or within one branch in one region. They have to be caused either by globalisation (e.g. outsourcing of production to other countries) or by the effects of a global economic crisis.
Which measures are supported by the EGF?
The EGF co-finances active labour market policy measures, which support people that were made redundant. Offers comprise amongst others active job search, vocational orientation, training, qualification as well as subsidies for start-ups. In Austria, EGF-measures are usually carried out as so-called labour foundations (Arbeitsstiftungen)
What are the requirements in detail?
Several scenarios are possible. For each scenario a verified reasoning that mass redundancies are due to globalisation causes or impacts of a global financial and economic crisis has to be delivered.
- Scenario 1: More than 500 redundancies within one single company including its up- and downstream supply chain within four months.
- Scenario 2: More than 500 redundancies within nine months in one branch in one or two neighbouring provinces in particular in small- and medium-sized enterprises within a period of nine months.
- Scenario 3: in the case of small labour markets or in exceptional circumstances an application can be filed even if requirements of Scenarios 1 and 2 are not fully met, when the redundancies have a serious impact on employment and the local, regional or national economy.
What is the EGF’s budget? What is the maximum duration of an EGF project?
The EGF’s budget is € 150m per year across the EU, while there is no individual entitlement for the member states. The EGF bears 60% of the costs of an EGF project. The remaining 40% are borne by the member states. An EGF-project can be supported up to 24 months.
When was the EGF established?
The EGF was established in 2006. In the course of the financial and economic crisis in 2009, also global financial and economic crises were introduced as possible reasoning to support an EGF application. In the years 2007 to 2014 there were more than134 applications for EGF funding in 20 Member States and more than 100,000 people supported.
Which are the EGF-projects that have been implemented in Austria so far?
So far there have been six EGF-projects in Austria. Details are made available under EGF in Austria.
Who may apply for EGF co-funding?
Applications for support from the Fund are filed in by the Member States and submitted to the European Commission (EC). Individual persons and companies cannot file an application directly.
In Austria, the Managing Authority, which is responsible for applications and the implementation, is the Division III / A / 3 in the Ministry of Labour, Family and Youth. It monitors the economic situation and decides on pursuing an application to the EC. The EC assesses the EGF applications and clarifies open questions with the member states. If the application is assessed positively, it will be forwarded to the European Parliament and the European Council to obtain their consent.