European Global Adjustment Fund (EGF)

The European Global Adjustment Fund promotes skills training, advice and support for people who have become unemployed. It can step in when a large number of workers lose their jobs due to globalization or severe global economic crises.
With the amendment to the regulation in May 2026, it was the scope of the EGF was to include support for workers who are at immediate risk of unemployment.
The new rules will apply until the current EGF program expires at the end of 2027.

Under which conditions can an application be made?

The European Globalisation Adjustment Fund can become active when a large number of employees are made redundant due to the globalisation of the world economy or severe global financial and economic crises. The conditions are firstly that a minimum number of persons are affected, and secondly that the application is based on reasoned content:

At least 200 people must be affected by or at risk of layoffs (exceptions are possible for so-called small labor markets). The layoffs must occur within a single company (including suppliers and customer firms) or among small and medium-sized enterprises (SMEs) in various sectors within the same region, or among SMEs in the same sector across one or more neighboring regions. Eligible for support are individuals who, lose their jobs or are threatened with job loss immediately due to challenges related to globalization, digitalization or automation, the transition to a low-carbon economy, or other restructuring measures.

Applications for support from the fund are submitted by the Member States to the European Commission. In the case of individuals who have already been laid off, the Member State decides on the application. For individuals at risk of redundancy, the company initiates the application. To do so, the company requests the Member State to submit the application. For the application, the company submits the required information to the Member State (see the application initiation form at the bottom of the page). Interested companies are requested to contact the competent administrative authority.

In Austria, the managing authority responsible for submitting applications and overseeing implementation is Department IX/C/3 at the Federal Ministry of Labor, Social Affairs, Health, Care, and Consumer Protection.

What does the EGF subsidise?

The EGF funds active labor market measures that support affected individuals. Specifically, these include job search assistance, career counseling, training and continuing education programs, skills certification, outplacement support, and entrepreneurship promotion. Short-time work schemes, as well as grants or subsidies for business start-ups, are not funded by the EGF. In Austria, EGF measures for laid-off workers are implemented through employment foundations or foundation-like projects. For workers at risk of layoff, the affected company is responsible for implementing the measures.

What is the EGF’s budget, and who covers the costs of an EGF project? How long can the support last?

The EGF has an EU-wide budget of approximately 210 million euros for the 2021–2027 period. However, individual member states have no entitlement to these funds. The EGF covers a maximum of 85% of the costs incurred for an EGF project. The remaining minimum of 15% is financed nationally. In Austria, a maximum of 60% can be funded by the EGF. 40% must be financed nationally. For EGF projects targeting workers at risk of redundancy, the company must finance this 40%. The maximum duration of EGF funding is 24 months.

Current EGF Project in Austria

In the fall of 2025, Austria submitted an application for a financial contribution from the European Globalization Adjustment Fund following layoffs at KTM (KTM Group) in Austria. This is intended to support 420 employees of the motorcycle manufacturer KTM in Upper Austria who lost their jobs due to the filing for insolvency and a subsequent temporary halt in production. The EGF supports measures under an insolvency foundation established by the State of Upper Austria and the AMS Upper Austria. The measures primarily include career counseling, career guidance, training and further education, and support for active job search. The estimated total cost amounts to approximately 3 million euros, with 1.8 million euros (60%) provided by the EGF.

Which EGF projects have there been in Austria until now?

There have been six EGF projects in Austria until now, which were realised as labour foundations or similar measures.

• Styrian Automotive Foundation: Due to the financial and economic crisis (2008), there was a drastic downturn in the export of vehicles. This particularly affected the Austrian automobile industry. Workers from a total of nine companies in the fields of car manufacturing or the production of parts were impacted. From around 330 persons supported under the EGF, 44 percent succeeded in completing technical college or a university degree, eleven percent trained to become a foreman or forewoman, and 24 percent obtained a different advanced technical qualification. Eleven percent obtained qualifications in the field of care, while ten percent completed commercial or other training. The foundation was financed as follows: two thirds (€5.6m) from EGF funding, just under a third from the affected companies, and to a lesser degree from national public funding.
• The AT&S Leoben Hinterberg/Styria Foundation: The EGF support package for former AT&S workers benefited around 30 of the most disadvantaged persons and included measures such as support in looking for work as well as obtaining additional skills, and also covered the necessary subsidies. The total cost of the package was just under €700,000, of which the European Union contributed approx. €450,000 from the EGF. The project lasted until March 2012.
• The Lower Austrian/Styrian Steel Foundation:  Due to the economic and financial crisis, exports in the metalworking industry collapsed at the end of 2008. This led to 1,180 redundancies in 54 companies. Via the Steel Foundation, the EGF supported around 300 workers who had been made redundant by providing careers orientation advice, support for those actively looking for a job, and initial and further training courses. The financing was provided as follows: two thirds (€5m) from EGF funding, just under a third from the affected companies, and to a minor degree from national public funding. The project ended in March 2012.
• Transport workers in Lower and Upper Austria: Due to the economic and financial crisis, a large number of persons were made redundant in the transport sector in 2010. The haulage business had seen a severe downturn in 2009, and this trend continued in 2010. Many of these people were able to find a job again quickly, and around 140 persons were ultimately supported by the EGF. They received careers orientation advice, were able to undergo further training or learn a new trade, or were supported in their search for work. To this end, the EGF made around €600,000 available, while €300,000 came from national funding. The project lasted until the end of 2012.
• The Styrian Social Services Foundation: In 2011, a large number of people in the social services sector in Styria became redundant. An EGF project was thus initiated to offer them support in occupational re-orientation, skills training, and in the search for jobs. To support these efforts, there were offers of work assistance, careers orientation advice, individual coaching sessions, and initial and further training courses. 225 persons participated in the labour foundation’s activities. Around €3m was provided by the EGF and €1.6m came from national funding. The project continued until 21 December 2013.
• Austria Tabak: 320 employees of the Austria Tabak tobacco products company in the Lower Austrian town of Hainburg lost their jobs due to the closure of the factory. In December 2011 an application was therefore made to the European Commission for joint financing of the labour foundation for those who had been made redundant. The EGF support package for Austria Tabak workers in Lower Austria covered measures such as re-orientation, skills training and support in the search for jobs. Overall, measures costing €2.1m were financed by the EGF, while an additional €1.1m came from national funding. 193 persons took part in the project, which continued until 2013.

Contact

Department IX/C/3 – International Labor Market Policy and Research
ixa3@sozialministerium.gv.at