On Wednesday, the European Parliament approved EU aid for workers affected by the closure of Belgian chip manufacturer BelGaN. With 578 votes in favor, 47 against, and 16 abstentions, Parliament endorsed Belgium’s request for €931,690 from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 417 employees who lost their jobs following the company’s shutdown in July 2024.
BelGaN faced mounting pressure from rising energy, material, and labour costs, ultimately resulting in the company’s closure and the loss of hundreds of jobs. The EU funding will provide the displaced workers with counselling, vocational guidance, skills training, and assistance in finding new employment. The EGF covers 85% of the estimated cost of these measures retroactively, as Belgian authorities had already begun supporting the workers shortly after the layoffs.
The European Globalisation Adjustment Fund, under the 2021-2027 regulation, is designed to support workers and self-employed individuals affected by major, unexpected restructuring events. EU member states can apply for funding when at least 200 workers lose their jobs within a given reference period. Once the application meets EGF criteria, the Commission proposes fund mobilization, which requires approval by both the European Parliament and the Council. The EGF does not co-finance social protection measures like pensions or unemployment benefits. Since 2007, the EGF has been activated in 183 cases, distributing €709 million to assist over 172,000 individuals across 20 EU countries.