EU Allocates €2.7 Million Aid Package for 365 Displaced Match-Smatch Workers in Belgium

EU Allocates €2.7 Million to Aid 365 Laid-Off Retail Employees in Belgium

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A total of 365 workers from the retail company Match-Smatch, who were recently let go due to the shuttering of stores and subsequent job cuts, are set to benefit from €2.7 million in financial assistance from the European Union.

On Monday, the Budgets Committee gave the green light to Belgium's application for €2.7 million in European Union assistance via the European Globalisation Adjustment Fund for Displaced Workers (EGF). This funding is intended to aid 365 ex-employees of Match-Smatch, who were laid off due to the company's extended financial struggles, which resulted in store shutdowns and reorganization efforts throughout Belgium, especially affecting the Walloon area. Members of the European Parliament highlighted that nearly half (46%) of the workers laid off from Match-Smatch are aged fifty or older, a demographic that often encounters more obstacles when seeking new employment.

In an effort to stabilize its finances in 2022, Match-Smatch decided to sell off about two-thirds of its stores. Despite these efforts, some stores remained unsold, and the company's headquarters had to reduce its workforce. As a result, Belgium sought aid from the European Globalisation Adjustment Fund (EGF) to support the displaced workers in the Walloon region. The assistance will cover training in vocational, digital, and language skills, as well as provide advisory services and help with job searches. Moreover, former employees of Match-Smatch who wish to embark on entrepreneurial ventures will be offered start-up guidance and grants that could reach up to €15,000.

The overall projected expense for these assistance initiatives amounts to €3.1 million. Of this sum, 85%, which is €2.7 million, will be financed by the EGF, while the Walloon regional authorities will provide the remaining 15%, equating to €469,688.

Future actions

A preliminary document prepared by Michalis Hadjipantela of the European People's Party from Cyprus, which suggests that Parliament should endorse the financial assistance, was passed with 28 votes in favor, 3 opposing, and 1 abstention. The full Parliament is anticipated to give their final approval during the plenary meeting scheduled for October 21-24 in Strasbourg.

Context

According to the EGF regulation for the period from 2021 to 2027, the Fund assists workers who have been laid off and self-employed individuals whose businesses have ceased operations as a result of unforeseen significant restructuring events. Since its inception in 2007, the EGF has distributed €696 million across 180 instances, aiding over 169,000 individuals in 20 EU Member States. The initiatives backed by the EGF work alongside national strategies aimed at promoting active participation in the labor market.

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Armin WISDORFF

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