The European Commission has proposed to mobilise €410,310 from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 235 workers dismissed by Valmet Automotive in Finland.
Valmet Automotive is a contract manufacturer for the car industry, dependent on fixed-term contracts with major car makers. Its factory was left without new orders after a major contract ended in 2025, amid a broader downturn in the global automotive sector. In November 2025, the company announced the dismissal of 235 workers and the temporary lay-off of an additional 860 employees.
Since 2007, the EGF has intervened in 192 cases, allocating €737 million to offer support to more than 185,000 people in 20 Member States. This funding complements national active labour market measures.
Today's proposal will support the dismissed workers through measures such as career counselling and guidance, job search assistance, training in new professional and transferable skills, recruitment incentives and financial support for business start-ups. These measures will help the dismissed workers acquire new skills and rejoin the labour market.
The total estimated cost of the package is €683,850, of which 60% (€410,310) will be covered by the Commission and 40% (€273,540) by Turku Employment Region, the local public employment service.
Finland began supporting the workers in March 2026 and the EGF can retroactively cover these costs.
Next steps
The EGF proposal to support these 235 workers in Finland 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
The EGF helps build a more dynamic and competitive European economy by improving the skills and employability of dismissed workers. It also supports broader upskilling across European companies, contributing to better quality jobs.
Helping European workers learn and improve their skills in response to a rapidly evolving labour market is a priority for the Commission.
Regarding the determination of the financial contribution, the Commission evaluates and determines the amount that may be made available from the EGF taking into account the number of targeted beneficiaries, proposed measures and estimated costs. Measures could include career counselling and guidance, job search assistance, training in new professional and transferable skills, recruitment incentives and financial support for business start-ups. These measures will help the dismissed workers acquire new skills and rejoin the labour market. In May 2026 the scope of the EGF was broadened to enable workers at-risk of imminent displacement to receive training — improving their chances of either staying employed in new business lines of the same companies, of finding a job elsewhere. Companies undergoing restructuring can now request EGF support for employees at risk of redundancy.
In November 2025, the Commission launched a Skills Guarantee pilo t to support workers in transition by helping them acquire new skills. The flagship initiative under the Union of Skills will reinforce strategic and growing sectors, in line with the future European Competitiveness Fund.
