Econostrum | Economic News in the Mediterranean



European Commission releases €1.4m for former Aragonese car workers

Ex-employees of the car industry in Spain are struggling to find a job (photo: JC Aceros)
Ex-employees of the car industry in Spain are struggling to find a job (photo: JC Aceros)
SPAIN. As part of the European Globalisation Adjustment Fund (EGF), the European Commission proposed, on Monday 8 November 2021, an envelope of €1.4 million to help employees made redundant in the automotive sector in the Aragon region of Spain.

This sum will enable them to find a new job, to follow an education or further training. Investing in people means investing in skills and opportunities to succeed in the labour market. Today, the EU is showing its solidarity with 320 workers in the automotive sector in Spain by helping them to get back on the job market with new or additional skills, targeted job search support and advice on setting up a business," said Nicolas Schmit, European Commissioner for Employment and Social Rights.

Thanks to the EGF, 320 workers made redundant by fifty Aragonese companies in the automotive sector could therefore benefit from targeted active assistance to help them find a job. The European Parliament and the Council have yet to approve the European Commission's proposal.

320 former employees concerned

The total cost of these measures is estimated at €1.7 million, with the remainder of the funding (€300,000) to be provided by the region of Aragon. Its public employment service (INAEM) will contact the future beneficiaries and manage the measures.

The Covid-19 pandemic and the shortage of semi-conductors have seriously slowed down the activity of the car manufacturing industry, with an 18.9% drop in production in 2020 compared to 2019. According to the European Commission, despite the large-scale use of short-time working schemes, which has been successful, some manufacturers have had to halt production, resulting in job losses. In Aragon, where the automotive sector accounts for 2.4% of net employment, the overall unemployment rate reached 10.7%, 3.6 percentage points above the EU average (7.1%).

In Spain, the European Globalisation Adjustment Fund has recently been proposed also to help former shipbuilding workers in Galicia (€2m) and metal workers in the Basque Country (€1.2m).

Since 2007, the EGF has been mobilised in 166 cases for a total amount of €652 million. This has enabled nearly 160,000 employees and more than 4,000 young people who are not working, studying or training to be supported.

Eric Apim

Wednesday, November 10th 2021

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