EU Approves €2.7 Million Aid Package to Support 365 Displaced Retail Workers in Belgium

EU allocates €2.7 million to assist 365 former retail employees in Belgium

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The European Union has approved €2.7 million in financial aid to help 365 workers who were laid off from the Match-Smatch retail chain after a series of store shutdowns and dismissals.

The Committee on Budgets gave the green light on Monday for Belgium to receive €2.7 million in assistance from the European Globalisation Adjustment Fund for Displaced Workers (EGF). This financial support is intended to aid 365 ex-employees of Match-Smatch, who were laid off due to the company’s extended financial struggles, resulting in store closures and reorganization throughout Belgium, especially in the Walloon area. Members of the European Parliament highlighted that nearly 46% of the affected Match-Smatch workers are aged fifty or above, a demographic that often encounters greater challenges in finding new employment.

In 2022, Match-Smatch made efforts to stabilize its finances by selling off two-thirds of its store locations. Despite this move, the company had to reduce its workforce at the remaining stores and its headquarters. As a result, Belgium sought assistance from the European Globalisation Adjustment Fund (EGF) to support the affected workers in the Walloon region. The aid package includes training in vocational, digital, and language skills, along with advisory services and help in finding new employment. Moreover, former employees of Match-Smatch who wish to launch their own ventures will be provided with start-up advice and financial grants reaching up to €15,000.

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

Future actions

A preliminary report put together by Michalis Hadjipantela, a member of the European People's Party from Cyprus, has suggested that Parliament should endorse the financial assistance. This proposal received 28 votes in favor, with 3 opposing and 1 member choosing not to vote. It is anticipated that the full Parliament will give its approval during the plenary session scheduled for October 21-24 in Strasbourg.

Context

According to the EGF regulation for the years 2021-2027, the Fund assists workers and self-employed individuals who have been displaced from their jobs due to unforeseen significant restructuring events. From its inception in 2007, the EGF has distributed €696 million over 180 instances, aiding over 169,000 individuals across 20 Member States. The measures backed by the EGF are designed to enhance national efforts in active labor market policies.

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Armin WISDORFF

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