The European Commission has proposed mobilising €1.1 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 351 workers in Finland dismissed by four paper manufacturers: Metsä Group, Stora Enso, UPM Communication Papers, and SAPPI.
The EGF helps build a more dynamic and competitive European economy by improving the skills and employability of dismissed workers. Since 2007, the EGF has been mobilised in 192 cases, allocating €737 million to offer support to more than 185,000 people across 20 Member States. This funding complements national active labour market measures.
The paper industry has faced significant challenges in recent years, as demand has fallen due to digitalisation. In Finland the sector has also been hit by the closure of the border with Russia and the halt in wood imports following Russia's war of aggression against Ukraine.
Today's proposal will support the dismissed workers through measures such as job-search assistance and career counselling, including an AI-based pilot project to identify recruitment needs and skills demands in the affected labour market and improve job matching. It will also fund training in new professional and transferable skills, recruitment incentives, mobility allowances, financial support for business start-ups, and allowances during the set-up phase.
The total estimated cost of the package is €1.8 million, of which 60% (€1.1 million) will be covered by the Commission and 40% (€735,000) by the South Karelia and Lohja-Karkkila Employment Regions, the local public employment services.
Finland began supporting the workers concerned in January 2026 and the EGF may reimburse these costs retroactively.
Next steps
The EGF proposal now requires approval by the European Parliament and the Council. It needs a simple majority in the European Parliament and a qualified majority in the Council.
Background
Supporting European workers to adapt to a rapidly changing labour market remains a priority for the Commission.
Following an application from a Member State for EGF support, the Commission assesses the request on the basis of the number of displaced workers and targeted beneficiaries, the measures proposed to help workers return to employment, and the estimated costs. Support may include career counselling, job search assistance, upskilling and reskilling, recruitment incentives, allowances, and financial support for business start-ups.
In May 2026, the EGF was updated to broaden its scope. Now, it also includes workers at-risk of imminent displacement, allowing them to receive training either to remain employed in the same company or to find work elsewhere. Companies undergoing restructuring can now request EGF support for workers at risk of redundancy.
In November 2025, the Commission launched a Skills Guarantee pilot to support workers in transition by helping them acquire new skills. This flagship initiative under the Union of Skill s will strengthen strategic and growing sectors, in line with the future European Competitiveness Fund.
