The European Commission has offered to support 835 laid-off workers in the German steel industry with 3 million euros ($3.3 million) from the European Globalization Fund for displaced workers (EGF).
In November 2023 Germany has applied for EGF funding to help workers laid off by steel pipe manufacturer Vallourec after the company decided to close its German pipe factories and move production to Brazil.
Support includes advice such as advice and vocational guidance, job search assistance, such as job searching or participation in job fairs, as well as training offers.
Former employees can also receive funding of up to €22,000 to start their own business. They can receive benefits when they participate in support measures, such as training courses, and bonuses or salary increases when they start a new job.
The total estimated cost of the measures is around 5 million euros, of which of which EGF will cover 60%, or 3 million euros. The remaining 40%, or €2 million, will be financed by the German federal budget and the German Public Employment Service.
EGF support is available to people affected by all types of unexpected major restructuring events, including the economic consequences of geopolitical instability. Also included are larger economic trends such as decarbonization and automation. EU member states can apply for EU funding if at least 200 workers lose their jobs during a certain reporting period.
