Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Germany – EGF/2023/003 DE/Vallourec - Germany
This decision mobilises the European Globalisation Adjustment Fund (EGF) to provide financial support to workers in Germany who lost their jobs due to the closure of Vallourec Deutschland GmbH's steel tube production sites. The aid is for 1,518 workers made redundant in Düsseldorf and Mülheim an der Ruhr, primarily in the manufacture of basic metals sector. Many of these workers are older, have worked for the company for a long time, and may face challenges finding new employment due to skills mismatches. The EGF will provide approximately €3 million to fund personalised services such as upskilling, vocational guidance, job search assistance, and support for starting new businesses. These measures aim to help the displaced workers reintegrate into the labour market, considering the need for a climate-neutral and digital economy. Germany began providing these services in December 2023, and the funding is eligible from January 2023 for preparatory and administrative costs. The total cost of the support package is nearly €5 million, with the EGF covering 60%.
Analysis
The European Globalisation Adjustment Fund (EGF) is to be mobilised to provide EUR 2,984,627 for Germany to support displaced workers from Vallourec Deutschland GmbH (VAD).
What changes
- Mobilisation of the European Globalisation Adjustment Fund (EGF) for a financial contribution to Germany.
- The decision enters into force on the day of its publication in the Official Journal of the European Union and applies from the date of adoption.
Expected impact
- The redundancies are expected to significantly affect the local economy and increase unemployment rates in Mülheim and Düsseldorf.
- The displaced workers' profiles may not match current job market skills, posing a challenge for upskilling and re-skilling efforts.
- Personalised services, including upskilling and digital skills training, aim to reintegrate beneficiaries into decent and sustainable employment.
Limitations
- The document does not contain information on the specific outcomes of the upskilling and re-skilling measures.
- The document does not detail the exact timeline for the reintegration of all 835 targeted beneficiaries.
- The document does not provide a comparative analysis of the local job markets in Düsseldorf and Mülheim beyond unemployment rates.
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