While more open trade leads to more overall benefit for growth and jobs, the EU recognises that, although European labour markets are usually capable of coping with globalisation, the consequences can also be negative e.g. job loss. In exceptional circumstances, specific support may be needed to deal with the situation.
The EGF is a new tool to help do this and is an expression of European solidarity with the people affected. What's been described as an economic shock absorber, the EGF will provide up to 500 million euros a year for those directly affected by job loss. The most common case where national authorities can apply for assistance is when a large enterprise and its suppliers suffer joblosses. Another possible scenario allows for national authorities to apply for funding when a sector in a region loses more than 1000 jobs.
The VNR focuses on two companies - one based in North Karelia in eastern Finland, the other in the French Ardennes - which are among the first to benefit from the EGF. In North Karelia, more than two thousand jobs were lost when a company manufacturing mobile phone components transferred all its production to Asia. The EGF is playing a key role in helping redundant workers to find replacement employment. The French Ardennes region has also seen the closure of factories supplying parts to the car industry. The French Government is running a special jobs programme there which will be co-funded by the EGF.
The video report includes the following interviews and images:
Mika Juvonen: former Perlos employee, FinlandPentti Hyttinen: Executive Director, North Karelia Regional Council, FinlandVladimír Špidla: Commissioner for Employment, Social Affairs and Equal OpportunitiesTarja Cronberg: Minister of Labour, FinlandPastor Paulina Kainulainen: Pielisensuu Church, Jiensuu, FinlandJosef Niemiec: Confederal Secretary, European Trade Union Confederation, BelgiumPaolo Abisv: former employee, Thomé Génot, FranceDelphine Satabin: former employee, Thomé Génot, FranceOlivier Cendras: Project leader, Contract of Professional Transition
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