To this day, the fund is hardly used. With the 2006 regulation, a Member State can request European co-funding via the EGF for the reconversion and training of employees subject to restructuring due to globalization. Reconversion had to affect at least 1,000 employees and European co-financing amounted to 50%. Hardly used, this fund was deprecated as being an additional political gimmick for social Europe. Yet, the economic crisis reminded that there is a pressing need for a larger and more flexible tool than the European Social Fund to help laid off employees. This is why, in December 2008, following the European economic recovery program, the European executive proposed to lower the threshold and intervention criteria of this fund (see our dispatch No. 081022).
g the next Council meeting.
To this day, the fund is hardly used. With the 2006 regulation, a Member State can request European co-funding via the EGF for the reconversion and training of employees subject to restructuring due to globalization.
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