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

Employees affected by the bankruptcy of Belgian automotive company Van Hool will benefit from an EU aid package worth €8 million.

On Tuesday, Parliament approved Belgium’s request for support from the European Globalisation Adjustment Fund for Displaced Workers (EGF) by 598 votes in favour, 48 against and with 5 abstentions.

MEPs acknowledged that “the European automotive and supplier industry is facing unprecedented pressure from both external and internal challenges, such as distortion of competition and high-energy costs.”

Van Hool produced coaches, buses, trolleybuses, and trailers. The company 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 supply chain disruptions. As a result, 2,400 workers were dismissed, one third of them aged 50 or over, and 80 % with outdated skillsets.

The support package finances counselling, vocational orientation, job-search assistance, and new professional and digital skills training. It is worth €9.4 million in total – with the EGF providing €8 million and Belgium’s Flemish Employment and Vocational Training Service (VDAB) funding €1.4 million. Support measures have been available since the layoffs.

Background

Under the EGF Regulation for the 2021-2027 period, 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 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, the Commission makes a proposal to mobilise funds that must be approved by Parliament and Council. Since 2007, the EGF has intervened in 182 cases, allocating €700 million to help more than 170,000 people in 20 Member States.