MEPs set to vote on help for German & Lithuanian workers

Over €7.6 million in financial aid for training and self-employment could be available to former workers in German and Lithuanian if MEPs back the measures Tuesday. Workers at the Karmann car company and construction workers in Lithuanian have lost their jobs, due in part to the economic crisis. They may benefit from the European Globalisation Adjustment Fund (EGF) under which MEPs approved aid worth euro 52.3 million to help 15,000 people who lost their jobs in eight States in 2009.

With the rapid decline in worldwide demand for cars, those working in the car industry have been seriously affected by the economic crisis. Among last year's beneficiaries were Swedish Volvo Cars workers, as well as Austrian and Spanish automotive enterprises.

The construction industry has also been hard hit, with falling demand for houses and increasing raw material prices. Among the beneficiaries of the EGF were Dutch construction workers.

In 2009, further aid went to workers in traditional industries like textiles in Belgium, Portugal and Spain, and more modern ones such as telecommunications with Nokia shifting its German production to Asia and Latin America.

Similarly, when Dell decided to close its computer factory in Ireland and move to China, Dell employees benefited from EGF support.

European Ministers meeting are expected to vote on latest package on Monday 8 March. If MEPs back it on 9 March, the European Commission will transfer the funding to EU States within 15 days. Governments will then have 12 months to use the money.

Each government has the right to apply for the European Globalisation Adjustment Fund if a company has had at least 500 redundancies over a 4-9 month period. The money is mainly used for job searches, trainings and to help people start their own business. The Fund can pay up to 65% of the total cost with the rest paid by the State, the region or the local authority.