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EU globalisation adjustment fund should cushion Brexit consequences

Oct 28, 2019 | News

(28 October 2019) – The European Parliament has voted in favour of using funds from the Globalisation Adjustment Fund (EGF) in the event of a hard Brexit to help workers of the remaining EU-27 who will have lost their jobs as a result of the UK’s withdrawal.

© European Commission

The Commission’s proposal to use the Globalisation Adjustment Fund (EGF) in the event of a so-called ‘hard Brexit’ was approved by a vast majority of MEPs (516 in favour, 23 against). The Parliament’s legislative resolution is due to be presented to the Council’s configuration that deals with employment, social policy, health and consumer affairs (EPSCO) on Thursday. This means that the EGF will now become another tool in a series of EU measures to prepare the EU for a no-deal Brexit.

Some European regions will be strongly affected in case of a hard Brexit. Ireland, for instance, has already set aside €1.2 billion to shield itself from the consequences of such a scenario.

Since 2002, the EGF has allowed member states to request the Commission for help if more than 500 workers have been made redundant because of “changes in world trade patterns”, such as an economic crisis. (EurActiv)

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