REPORT on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers[...]

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on the proposal for a decision of the European Parliament and of the Council on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Austria - EGF/2025/005 AT/KTM

(COM(2026)0010 - C10-0026/2026 - 2026/0037(BUD))

The European Parliament,

- having regard to the Commission proposal to the European Parliament and the Council (COM(2026)0010 - C10-0026/2026),

- having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013[1]('EGF Regulation'),

- having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027[2]as amended by Regulation (EU, Euratom) 2024/765[3]('MFF Regulation'), and in particular Article 8 thereof,

- having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources[4], and in particular point 9 thereof,

- having regard to the European Pillar of Social Rights,

- having regard to the opinion of the Committee on Employment and Social Affairs,

- having regard to the report of the Committee on Budgets (A10-0060/2026),

A. whereas the Union has set up legislative and budgetary instruments to provide additional support to workers who are suffering from the consequences of major structural events and changes in world trade patterns, and to assist their reintegration into the labour market; whereas this assistance is made through a financial support given to workers;

B. whereas Austria submitted application EGF/2025/005 AT/KTM for a financial contribution from the EGF following 1 488 displacements[5]in KTM Gruppe (KTM), in the economic sector classified under the NACE Revision 2 division 30 (Manufacture of other transport equipment) in the region of Upper Austria (AT31), with 233 displacements within a reference period from 25 February 2025 to 25 June 2025, and 1 255 displacements before or after the reference period;

C. whereas the application is based on the intervention criteria of Article 4(2), point (a), of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months in an enterprise in a Member State; whereas for the 1 255 displacements whose activity ceased before or after the four-month reference period a clear causal link can be established with the event that triggered the cessation of activity for the displaced workers during the reference period as required by Article 6(2) of the EGF Regulation;

D. whereas KTM filed for insolvency on 29 November 2024 and a restructuring plan has been approved on 25 February 2025; whereas certain decisions by the company regarding the distribution of dividends in 2021 and 2024 while benefitting from public state aid during the Covid-19 pandemic raise concerns;

E. whereas Austria indicated that the Upper Austria Public Employment Service and the Province of Upper Austria are providing the national pre-financing and co-funding of the measures;

F. whereas the requirements laid down in Union and national legislation concerning collective redundancies have been met;

G. whereas financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into the labour market, while offering them skills training to facilitate their access to future labour market needs and preparing them for the green and digital transition;

H. whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices)[6];

I. whereas recent relocations of manufacturing activities outside the Union highlight the need to strengthen the competitiveness and resilience of European industry in the global market;

1. Agrees with the Commission that the conditions set out in the EGF Regulation and in particular in Article 4(2), point (a) thereof are met and that Austria is entitled to a financial contribution of EUR 1 806 624 under that Regulation, which represents 60 % of the total cost of EUR 3 011 040, comprising expenditure for personalised services of EUR 2 895 120 and expenditure for preparatory, management, information and publicity, control and reporting activities of EUR 115 920;

2. Notes that the Austrian authorities submitted the application on 15 September 2025, and that, following the receipt of additional information by Austria, the Commission finalised its assessment on 6 February 2026 and notified it to Parliament on 11 February 2026; stresses the importance of shortening the time between the submission of an application for EGF assistance and the financing decision, while fully safeguarding the rights of the European Parliament as one arm of the budgetary authority; stresses the importance of shortening the time between the submission of an application for EGF assistance and the financing decision, while fully safeguarding the rights of the European Parliament as one arm of the budgetary authority;

3. Notes that the application relates to 1 488 workers affected by the insolvency proceedings of KTM, which were the largest ever in Upper Austria; notes further that 420 displaced workers in total will be targeted beneficiaries and are expected to participate in the measures;

4. Notes that KTM was the largest motorcycle producer of the Union and the largest subsidiary of Pierer Mobility AG; regrets that the parent company decided to move production to China and India in December 2023 due to unfair competitive conditions; notes that this led to an initial dismissal of 300 jobs and that subsequent sales losses prompted KTM to implement cost reductions, including the layoffs of over 500 employees during 2024;

5. Notes that the parent company had to start a restructuring process and that, during KTM's first production shutdown in 2025, over 750 additional employees were made redundant; notes that the investor Bajaj Auto International Holdings B.V. provided the necessary resources to ensure the continuation of KTM on 22 May 2025, avoiding KTM's bankruptcy, and allowing production to resume in July 2025 while curbing spending;

6. Notes that KTM was once one of the most successful motorcycles brands in Europe, a significant employer and critical economic pillar of many suppliers in the district of Braunau in Upper Austria; notes that, consequently, unemployment in the district rose by 37,1 % in November 2024, compared to the same month of the previous year; notes that unemployment reached all-time high in the Braunau district in 2025;

7. Recalls that, in agreement with social partners, personalised services to be provided to the workers consist of the following measures: case management; career guidance and orientation; training and retraining; pro-active job-search; training allowances; emphasises the importance of fostering high-quality, future-oriented jobs to ensure long-term economic and social resilience; stresses the importance of close cooperation with regional businesses and employers to ensure that training and requalification programmes respond to concrete labour market needs and facilitate the rapid reintegration of displaced workers;

8. Recalls that the EGF is an instrument of solidarity and just transition and while it provides support following job losses, it cannot replace a proactive industrial policy; stresses that the Union's primary task must be to prevent such closures in the first place, by creating the conditions to keep industrial production competitive, while at the same time investing in skills for both highly qualified and industrial workers; underlines the need to provide specific support tailored to profiles of workers with low-levels of education, while taking measures to reduce bankruptcies and address social disparities leading to exclusion from the workforce;

9. Stresses that the Austrian authorities shall ensure the visibility of the Union funding and highlight its added value by providing effective and targeted information to beneficiaries, regional and local authorities, social partners, and the wider public;

10. Calls for thorough final evaluations of the measures implemented, including clear information on how the funds have been used and whether they were spent in line with the approved plans;

11. Notes that Austria started providing both personalised services to the targeted beneficiaries and incurring administrative expenditure to implement the EGF on 1 March 2025 and that the period of eligibility for a financial contribution from the EGF will therefore be from that date until 24 months and until 31 months after the date of the entry into force of the financing decision, respectively;

12. Notes that the Austrian authorities provided assurance that the principles of equality of treatment and non-discrimination will be respected in the access to the proposed actions and their implementation, and that any double financing will be prevented;

13. Reiterates that assistance from the EGF must not replace actions that are the responsibility of companies, by virtue of national law or collective agreements;

14. Approves the decision annexed to this resolution;

15. Instructs its President to sign the decision with the President of the Council and arrange for its publication in the Official Journal of the European Union;

16. Instructs its President to forward this resolution, including its annex, to the Council and the Commission.

ANNEX: DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Austria - EGF/2025/005 AT/KTM

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/691 of the European Parliament and of the Council of 28 April 2021 on the European Globalisation Adjustment Fund for Displaced Workers (EGF) and repealing Regulation (EU) No 1309/2013[7], and in particular Article 15(1), first subparagraph, thereof,

Having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources[8], and in particular point 9 thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The European Globalisation Adjustment Fund for Displaced Workers (EGF) aims to demonstrate solidarity and promote decent and sustainable employment in the Union by providing support for workers made redundant and self-employed persons whose activity has ceased in the case of major restructuring events and assisting them in returning to decent and sustainable employment as soon as possible.

(2) The EGF is not to exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) 2020/2093[9]amended by Council Regulation (EU, Euratom) 2024/765[10], and Article 16 of Regulation (EU) 2021/691.

(3) On 15 September 2025, Austria submitted an application to mobilise the EGF in accordance with Article 8(1) of Regulation (EU) 2021/691, in respect of workers' displacements in KTM (KTM Gruppe) in Austria. It was supplemented by additional information provided in accordance with Article 8(5) of Regulation (EU) 2021/691. That application is considered to comply with the conditions for providing a financial contribution from the EGF as laid down in Article 13 of Regulation (EU) 2021/691, on the basis of the assessment made by the Commission in the Proposal for a mobilisation decision of the European Parliament and of the Council[11].

(4) The EGF should, therefore, be mobilised in order to provide a financial contribution of EUR 1 806 624 in respect of the application submitted by Austria.

(5) In order to minimise the time taken to mobilise the EGF, this Decision should apply from the date of its adoption,

HAVE ADOPTED THIS DECISION:

Article 1

For the general budget of the Union for the financial year 2026, the European Globalisation Adjustment Fund for Displaced Workers shall be mobilised to provide the amount of EUR 1 806 624 in commitment and payment appropriations.

Article 2

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union. It shall apply from [the date of its adoption][*].

Done at Brussels,

For the European Parliament For the Council

The President The President

EXPLANATORY STATEMENT

I. Background

The European Globalisation Adjustment Fund (EGF) was created to provide additional assistance to workers suffering from the consequences of major structural changes in world trade patterns.

In accordance with point 9 of the Interinstitutional Agreement of 16 December 2020[12], the Commission is required, following the positive assessment of an application, to submit a proposal to mobilise the Fund to the budgetary authority and to complement it with a corresponding request for transfer to the relevant budget lines.

II. Austria's application and the Commission's proposal

On 15 September 2025 Austria submitted an application EGF/2025/005 AT/KTM for a financial contribution from the EGF, following 1 488 redundancies[13]at KTM. This is the fifth such application of 2025, and the third to be examined under the 2026 budget.

Following the assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met.

On 6 February 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Austria for tailored measures to support the reintegration in the labour market of 420 targeted beneficiaries, i.e. workers from KTM made redundant. In total, EUR 1 806 624 will be mobilised from the EGF for KTM, representing 60% of the total costs of the proposed actions.

The Commission deemed the Austrian application admissible under the intervention criteria of Article 4(2) (a) of the EGF Regulation, which requires the cessation of activity of at least 200 displaced workers or self-employed persons over a reference period of four months, in an enterprise in a Member State, including workers displaced in suppliers and downstream.

EGF co-funding has been requested for the following five types of actions, to be provided to redundant workers:

(a) Case management: This measure aims at offering highly individualised support by accompanying participants in the implementation of their individual action plan and documenting and assessing their individual training pathways.

(b) Career guidance - career orientation: This measure precedes the individual action plan and serves primarily to clarify career prospects based on participants' interests, strengths and weaknesses. To set up an action plan, individual training objectives are identified, and training possibilities discussed. This is based on a thorough research of labour market trends and prospective job opportunities.

(c) Training and retraining: In drawing up the action plan, particular attention will be paid to improving vocational skills. Therefore, participants can follow training and retraining courses in line with labour market needs, enabling participants to find a new and sustainable job as quickly as possible.

(d) Pro-active job-search: This measure includes assistance with preparing convincing applications, developing search strategies and individual and job-related application strategies, promoting initiative and motivation, dealing with rejection, strengthening resilience, etc.

(e) Training allowance - training-related subsidy: A training allowance will be granted to each participant in the programme to cover the additional training-related expenses related to participation in the training measures.

III. Procedure

In order to mobilise the Fund, the Commission has submitted to the Budgetary Authority a request to transfer a global amount of EUR 1 806 624 from the EGF reserve (budget line 30 04 02; commitment appropriations) to the EGF (budget line 16 02 02; commitment appropriations).

According to an internal agreement within the Parliament, the Employment and Social Affairs Committee and the Committee on Regional Development should be associated to the process, in order to provide constructive support and contribute to the assessment of the applications from the Fund.

ANNEX: DECLARATION OF INPUT

The rapporteur declares under his exclusive responsibility that he did not include in his report input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register[14], or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

LETTER OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS (25.2.2026)

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Mobilisation of the European Globalisation Adjustment Fund for Displaced Workers following an application from Austria - EGF/2025/005 AT/KTM (2026/0037(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Employment and Social Affairs has been asked to submit an opinion to your committee and decided to send the opinion in the form of a letter.

The Committee on Employment and Social Affairs considered the matter at its meeting of 25 February 2026. At that meeting, it decided to submit the opinion set out below to the Committee on Budgets, as the committee responsible.

Yours sincerely,

Li Andersson

OPINION

A. Whereas, on 15 September 2025, Austria submitted an application EGF/2025/005 AT/KTM for a financial contribution from the European Globalisation Adjustment Fund for Displaced Workers (EGF), following displacements in KTM Gruppe (KTM) in Austria, operating in the economic sector classified under the NACE Revision 2 division 30 (Manufacture of other transport equipment), where the redundancies made by the enterprise are located in the NUTS 2 region of Upper Austria (AT31);

B. Whereas Austria submitted the application under the intervention criteria of Article 4(2), point (a) of Regulation (EU) 2021/691, which requires the cessation of activity of at least 200 displaced workers over a reference period of four months (in this case from 25 February 2025 to 25 June 2025) in an enterprise in a Member State, including workers displaced in suppliers and downstream producers and / or self-employed persons whose activity has ceased; whereas, following its assessment of this application, the Commission has concluded, in accordance with all applicable provisions of the EGF Regulation, that the conditions for awarding a financial contribution from the EGF are met;

C. Whereas there were 233 displaced workers in KTM during the reference period; whereas in addition to the workers already referred to, the eligible beneficiaries include 1 255 displaced workers whose activity ceased before or after the reference period of four months; whereas all these workers ceased their activity within the six months before the start of the reference period on 25 February 2025 and/or between the end of the reference period and the day before the adoption of this proposal, as required by the EGF Regulation; whereas the total number of eligible beneficiaries is 1 488;

D. Whereas on 6 February 2026, the Commission adopted a proposal for a decision on the mobilisation of the EGF in favour of Austria to support the reintegration in the labour market of the displaced workers;

E. Whereas the events giving rise to these displacements are the insolvency proceedings of KTM Gruppe; whereas KTM was the largest subsidiary of Pierer Mobility AG (90 % of Pierer's turnover); whereas as a motorcycle producer, KTM developed into being the largest motorcycle producer in the European Union (since 2012); whereas KTM is headquartered in Mattighofen in the district of Braunau in Upper Austria; whereas in December 2023, Pierer announced the offshoring of production to China and India, leading to a first wave of dismissals cutting 300 jobs at the Mattighofen plant; whereas this was primarily due to the far lower labour costs in these countries, with other factors being the proximity to growth markets, as demand in Europe was dwindling, as well as less stringent labour restrictions; whereas during 2024, the company slid into a major crisis, where sales dropped by 29,4 %, resulting in excessive inventory (265 000 motorcycles in stock) and a loss of EUR 1,1 billion and KTM's debt reaching EUR 1,642 billion; whereas KTM began massive cost reductions, including laying off over 500 employees; whereas despite efforts to relocate production to India, insolvency proceedings were inevitable; whereas restructuring proceedings began for Pierer, with a restructuring plan drafted for KTM and its affiliates; whereas on 29 November 2024, KTM filed for insolvency; whereas KTM had its first production shutdown from December 2024 to March 2025; whereas over 750 additional employees were made redundant; whereas on 25 February 2025, creditors approved a restructuring plan that offered them a quota of 30% of what was owed; whereas however, an investor was needed to take over KTM and to pay the quota; whereas at the time of the creditors' meeting, the KTM Group insolvency proceedings were the largest ever in Upper Austria; whereas a new investor, Bajaj Auto International Holdings B.V., provided the necessary resources to ensure the continuation of KTM on 22 May 2025; whereas the payment of the agreed quota to the creditors warded off the threat of KTM's bankruptcy and the risk of the company being closed for good; whereas production could resume on 28 July 2025, while continuing austerity measures and focusing on cost-efficiency;

F. Whereas, the insolvency of KTM hit the region around the Mattighofen headquarters hard; whereas employing over 4 000 staff directly in Upper Austria, KTM Gruppe is not only a significant employer, but also the economic backbone of many suppliers and service providers; whereas the insolvency hit the regional economy hard and caused serious disruption; whereas, consequently, unemployment in the Braunau district rose by 39.8% in October 2024 and by 37.1% in November 2024, compared to the same months of the previous year; whereas in March 2025, this led to an all-time high unemployment in the Braunau district which represented the highest unemployment level of all labour market districts in Austria;

G. Whereas the estimated number of displaced workers expected to participate in the measures is 420;

H. Whereas Austria has indicated that the co-ordinated package of personalised services has been drawn up in consultation with the social partners, in compliance with Article 7(4) of the EGF Regulation;

I. Whereas the EGF shall not exceed a maximum annual amount of EUR 30 million (in 2018 prices), as laid down in Article 8 of Council Regulation (EU, Euratom) No 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027;

Therefore, the Committee on Employment and Social Affairs calls on the Committee on Budgets, as the committee responsible, to integrate the following suggestions in its motion for a resolution:

1. Recalls that the objective of the EGF is to demonstrate solidarity with, and provide support to beneficiaries; considers that financial contributions from the EGF should be primarily directed at active labour market policy measures and personalised services that aim to reintegrate beneficiaries rapidly into decent and sustainable employment within or outside their initial sector of activity; stresses the importance of preparing and supporting workers for the urgently needed green and digital transitions of the European economy and society; reiterates in this context the important role the Union plays, including through the EGF, in contributing to the financing of necessary qualifications for the just transition in line with the European Green Deal;

2. Agrees with the Commission that the conditions set out in Article 4(2), point (a), of the EGF Regulation are met and that Austria is entitled to a financial contribution of EUR 1 806 624 under that Regulation, which represents 60 % of the total cost of EUR 3 011 040;

3. Notes the fact that Austria has provided all necessary assurances that the requirements laid down in national and EU legislation concerning collective redundancies have been complied with and that the principles of equality of treatment and non-discrimination will be respected in access to the proposed measures and their implementation;

4. Stresses that Austria has confirmed that the measures supported by the EGF will not receive any financial contributions from other Union financial instruments;

5. Notes the personalised coordinated package to be provided to displaced workers consists of the following measures: (a) case management, (b) career guidance - career orientation, (c) training and retraining, (d) pro-active job-search, and (e) training allowance - training-related subsidy; welcomes in the context of career guidance, the attention drawn to the career prospects in green jobs, and emphasis put in digital skills in the individual action plans;

6. Stresses in particular the importance of Article 7.2 of the EGF Regulation, which requires the coordinated package to anticipate future labour market perspectives and required skills, which are compatible with the shift towards a resource-efficient and sustainable economy and with a particular focus on the dissemination of skills required in the digital industrial age;

7. Recalls the possibility for special time-limited measures within the coordinated package including, inter alia, to pay childcare allowances, as provided in Article 7.2 b of the EGF regulation to facilitate job seekers' participation in the activities proposed.

INFORMATION ON ADOPTION BY THE COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

Key to symbols:

+ : in favour

- : against

0 : abstention