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. 

Commission proposal

Press release

The 20th edition of the Mediterranean games began in Taranto (Italy) in the presence of the Executive Vice-President for Cohesion and Reforms, Raffaele Fitto. From 21 August until 3 September, delegations involving thousands of athletes, technicians, volunteers, official delegations and institutional stakeholders from over 26 countries in the Euro-Mediterranean region will meet in 20 competition venues. Athletes will compete in more than 33 disciplines, while at least 7 of these sports’ activities will have a specific focus on inclusive volunteering. 

In a context marked by tensions and conflicts, the Mediterranean Games promote the spirit of peace, friendship, excellence, open mindedness and unity among the countries of the Mediterranean basin and embody the values and the spirit of Olympism which originates from this region. Collaborating with the Mediterranean Games is an important initiative of the first pillar of the Pact for the Mediterranean, which further advertises the benefits of sport and its positive impact in strengthening cohesion, overcoming social divides and promoting inclusion. In this context, the MED-Volunteers 2026 project supported by the EU through the Erasmus+ Sport programme, will act as a tool for active civic participation, youth empowerment and social inclusion in the Mediterranean Games. These principles will guide the actions of athletes and delegations and contribute to making the Games a memorable event for all participants.

At this occasion, Commissioner for the Mediterranean, Dubravka Šuica, said : ”From Egypt in 1951 to Italy in 2026, the EU is proud to support the Mediterranean Games now in its 75th year.  These Games reflect the importance of our Pact for the Mediterranean which puts young people at its heart, including through the power of sport. Inspired by the Olympic spirit, the Games not only promote peace, friendship and solidarity, they also provide a common language in sharing people’s love of sport. By joining forces, we want to give this unique event even greater visibility, especially among young people, and bring people and communities together across the Mediterranean, values which underpin the Pact for the Mediterranean”.

Background

Recognized by the International Olympic Committee in 1952, the Mediterranean Games are a multidisciplinary sporting event reserved for the nations of the Mediterranean basin. The competition is inspired by the Olympic Games and aims to promote sport and cooperation between the peoples of the Mediterranean. The first Mediterranean Games were held in Alexandria in 1951. The Games boast 75 years of history and are in their twentieth edition. Celebrated every four years, they constitute for the countries of the Mediterranean Basin the most important multi-sport event after the Olympic Games.

The Pact for the Mediterranean was developed by the European Commission and the European External Action Service, and adopted by the College in October 2025, ahead of its official launch by EU and southern Mediterranean partners on 28 November 2025, on the occasion of the 30th anniversary of the Barcelona Declaration. Rooted in the principles of co-creation, co-ownership and shared responsibility, the Pact is the result of an unprecedented, inclusive consultation process, ensuring alignment with the real needs and aspirations of the citizens on both shores of the Mediterranean. It is a joint effort between the EU, its Member States and the southern Mediterranean partners, to work together on shared priorities for a connected, integrated, prosperous, resilient and secure Common Mediterranean Space.