The European Parliment and Council have published a decision oon the mobilisation of the European Globalisation Adjustment Fund in accordance with point 28 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and
the Commission on budgetary discipline and sound financial management.

The European Globalisation Adjustment Fund was established to provide additional support to workers who suffer from the consequences of major structural changes in world trade patterns and to assist them with their reintegration into the labour market.

The Interinstitutional Agreement of 17 May 2006 allows the mobilisation of the Fund within the annual ceiling of 500 million euros. For the general budget of the European Union for the financial year 2008, the EGF shall be mobilised to provide the sum of 3,106,882 euros in commitment and payment appropriations.

How does EGF work?

Applications to the Fund must be submitted by Member States. Individuals or companies affected by redundancies and wishing to benefit from the Fund should contact their national authorities. There are four main stages to the process:

1. When a Member State is made aware of large-scale redundancies caused by the effects of globalisation, it immediately mobilises its employment services to design a plan to help the workers affected.
2. Once the plan is ready, it may submit an application to the European Union for part-funding through the EGF.
3. The European Commission will assess the plan and propose it to the EU's Budgetary Authority (the Council and the European Parliament) for its approval.
4. If the Council and Parliament approve the proposal, the Member State may receive up to 50% of the cost of its action plan.