Romania has received in 2014 through the European Globalisation Adjustment Fund (EGF) a total of EUR 3.5 million to support workers made redundant as a result of the economic crisis and the effects of globalization, shows a report by the European Commission.
The funds were used to increase employability and identify new job opportunities for 1,000 former employees of steel company Mechel.
Between 2013 and 2014, the EGF has helped in total 27,610 redundant workers as a result of the economic crisis and the effects of globalization, to find new job opportunities. The report shows that the EGF has provided more than EUR 114.4 million to support workers in 13 member states (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Romania and Spain) in their transition to new employment opportunities. EGF funding was complemented by an amount of EUR 94.1 million from national resources.
“At a time when public resources are limited, the EGF has offered a welcome help to those who were left without work following layoffs due to globalization and crisis. By granting specific and personalized assistance, we supported the transition to new jobs for some of the most vulnerable workers, which led to an impressive re-employment rate: almost 50 percent,” Marianne Thyssen, EU Commissioner for Employment and Social Affairs said.
EGF gives member states the opportunity to act in the regions affected by redundancies, both in terms of the number of people assisted and the extent, duration and quality of support. EGF funding is for workers, not companies. It aims to complement the support provided by member states and the employers concerned to help redundant workers find new job opportunities.
Its scope was broadened so that it includes workers made redundant as a result of the economic crisis and workers with fixed-term contract and freelance workers. In addition, through an exemption applicable by the end of 2017, it includes young people who are not in employment, education or training (NEET), residing in regions eligible for financing under the Youth Employment Initiative (YEI), subject to a number equal to that of workers made redundant.
Since the beginning of the 2007, EU member states have made 136 funding requests. To date, EUR 550 million have been mobilized in support of about 130,000 workers.
The fund was maintained for 2014-2020 and the maximum annual financial ceiling was set at EUR 150 million. The maximum amount which could be used by the EGF for the 2014-2020 period is EUR 1.05 billion.