€1.8 million of EU funds to help workers laid off in Austria

The Budgets Committee backed the disbursement of EU support for 420 workers made redundant after motorcycle manufacturer KTM halted production in April 2025.

On Tuesday, MEPs backed the Commission’s proposal to mobilise €1.8 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 420 workers laid off after Austrian motorcycle manufacturer KTM Gruppe halted production. The draft report was adopted with 29 votes in favour, two against and one abstention. Plenary is expected to vote on the mobilisation of funds on 26 March.

To support affected workers, a package of targeted measures will assist 420 employees in returning to the labour market. The measures include career counselling and guidance, job-search assistance, skills training, and training allowances. The total estimated cost of the support measures amounts to €3 million. Of this, 60% (€1.8 million) will be provided by the EU, while the remaining 40% (€1.2 million) will be financed by the Austrian Public Employment Service. Austrian authorities began delivering EGF-supported assistance to affected workers in March 2025, with the fund able to retroactively cover these costs.

KTM, once one of the most successful motorcycles brands in Europe, suffered significant financial losses and experienced a sharp decline in sales in 2024. Continued supply shortages for parts and components led KTM to file for insolvency proceedings, and production stopped in April 2025. KTM subsequently secured resources from Bajaj Auto International Holdings B.V., preventing its bankruptcy and enabling production to continue under ongoing cost-saving measures.

Background

Under the EGF Regulation 2021-2027, the fund supports displaced workers and self-employed people who have lost their jobs due to unexpected major restructuring events. Member states can apply for EU funding when at least 200 workers are made redundant within a defined reference period. If the application meets the EGF criteria, the Commission proposes mobilising funds, which must be approved by the European Parliament and the Council. According to the Commission, the EGF has helped more than 181,000 people in 20 member states, supporting 186 cases with €727 million disbursed.