The European Commission has proposed to help 1,138 redundant construction workers back into employment in Spain, with €1.6m from the European Globalisation adjustment Fund (EGF). The proposal now goes to the European Parliament and the EU's Council of Ministers for their approval.

1,138 redundant construction workers in Spain could get a support of €1.6m from the European Globalisation adjustment Fund (EGF), aimed at helping them to be back into employment. The money, requested by the Spanish authorities, will help the ex-workers from 513 mostly small enterprises from the region of Comunidad Valenciana.

According to the Commission, available data confirms the significant downturn in the construction sector, which fell for seven consecutive quarters in the EU (first quarter of 2009 to the third quarter of 2010). This was mainly due to the drop in private investment in the residential sector. In 2010, workers laid off in the construction sector accounted for 28.18% of total layoffs in the region of Comunidad Valenciana, while in 2007 they had only accounted for 6.3%.

The EGF is an initiative to provide help for people who lose their jobs due to the impact of globalisation. In June 2009, the EGF rules were revised to strengthen the role of the EGF as an early intervention instrument forming part of Europe's response to the financial and economic crisis. Spain's application falls under the EGF crisis derogation, which no longer applies since 1 January 2012. MEPs proposed in October 2011 to extend it to the end of 2013. On the other hand, the Commission has proposed to maintain the fund also for the next multiannual financial framework, while further improving its functioning.