Commission proposes €1.1 million from the European Globalization Adjustment Fund to support dismissed paper industry workers in Finland
The European Commission has proposed mobilizing €1.1 million from the European Globalization Adjustment Fund for Displaced Workers (EGF) to support 351 workers in Finland dismissed by four paper manufacturers.
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 mobilized 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. It concerns four paper manufacturers: Metsä Group, Stora Enso, UPM Communication Papers, and SAPPI.
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.
What is the EGF?
Since 2007, the European Globalization Adjustment Fund for Displaced Workers has supported more than 185 000 people in 20 EU countries, with €737 million in funding. It works alongside national employment services to improve skills and employability and to build a more dynamic European economy.
The EGF was originally designed to support people who had already lost their jobs. It now also helps workers at risk of unemployment. Since May 2026, the EGF can fund training for workers who are likely to be dismissed, so they can move into new roles in the same company or find jobs elsewhere. EU countries can apply for EGF support while companies are still restructuring, so help can start before dismissals happen.
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 Skillls will strengthen strategic and growing sectors, in line with the future European Competitiveness Fund.
How does it work?
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.