On Monday, the Committee on Budgets approved Belgium’s request for €2.7 million in EU aid through the European Globalisation Adjustment Fund for Displaced Workers (EGF). The aid will support 365 former Match-Smatch employees, who lost their jobs following the company’s prolonged financial difficulties that lead to store closures and restructuring across Belgium, primarily in the Walloon region. MEPs noted that almost half of the Match-Smatch redundant workers (46 %) are aged fifty or older, an age group that faces more barriers to employment.
In 2022, Match-Smatch attempted to achieve financial stability by divesting two-thirds of its stores. However, unsold stores and the company’s head office were forced to lay off workers. Consequently, Belgium applied for EGF support on behalf of the affected Walloon workers. The funding will provide vocational, digital, and language skills training, as well as advisory services and job search assistance. Additionally, former Match-Smatch employees interested in starting their own businesses will receive start-up guidance and grants of up to €15,000.
The total estimated cost of these support measures is €3.1 million, with 85% (€2.7 million) funded by the EGF and the remaining 15% (€469,688) covered by the Walloon regional authorities.
Next steps
The draft report by rapporteur Michalis Hadjipantela (EPP, Cyprus) recommending that Parliament approve the aid was approved by 28 votes, 3 against and 1 abstention. Approval by plenary is expected during the upcoming 21-24 October plenary session in Strasbourg.
Background
Under the EGF regulation 2021-2027, the Fund supports displaced workers and self-employed people who have lost their activity due to unexpected major restructuring events. Since 2007, the EGF has allocated €696 million in 180 cases, providing help to more than 169,000 people in 20 Member States. EGF-supported measures complement national active labour market measures.