€8 million in EU aid for 2,400 dismissed workers in Belgium

Employees impacted by the bankruptcy of Belgian automotive company Van Hool are set to benefit from an €8 million EU aid package.

On Wednesday, MEPs from the Committee on Budgets approved Belgium’s request for support from the European Globalisation Adjustment Fund for Displaced Workers (EGF).They acknowledged that “the European automotive and supplier industry is facing unprecedented pressure from both external and internal challenges.”

Van Hool produced coaches, buses, trolleybuses, and trailers. It was declared bankrupt in April 2024 following a sharp decline in sales prompted by the COVID-19 pandemic; and exacerbated by Russia’s war of aggression against Ukraine, rising inflation, and disruptions to supply chains. As a result, 2,400 workers were dismissed, one third of them aged 50 or over, and 80% of whom had outdated skillsets.

MEPs welcome the proposed provision of personalised services for these workers, including counselling, vocational orientation, job-search assistance, and new professional and digital skills training. The support package is worth €9.4 million - with the EGF providing €8 million of the total and Belgium’s Flemish Employment and Vocational Training Service (VDAB) funding the remaining 15% (€1.4 million). Support measures have been available since the layoffs.

The draft report by Janusz Lewandowski (EPP, PL) was adopted by 31 votes to two, with one abstention. Plenary is set to vote on this during its May session in Strasbourg.

Background

Under the EGF Regulation 2021–2027, the fund supports displaced workers and self-employed individuals who have lost their jobs. EGF support is available for those affected by all types of unexpected major restructuring events, including the economic effects of the COVID-19 pandemic and Russia's unjustified invasion of Ukraine as well as broader trends, such as decarbonisation and automation. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.

Once a member state submits an application detailing the redundancies and planned support measures, the Commission evaluates it. If the application meets the EGF criteria, then the Commission proposes mobilising funds, which must be approved by the European Parliament and the Council.