When the BelGaN semiconductor factory in East Flanders closed in summer 2024, it meant job loss for over 400 people and a major shock to the local economy. But the European Union was quick to act, activating a special fund designed to support workers affected by mass layoffs — and possibly signaling a new way to think about protecting jobs in the post-globalisation era.
How does the EU support workers after a company shuts down?
When tech jobs disappear, the EU steps in
In the small municipality of Oudenaarde in East Flanders, Belgium, the closure of the BelGaN factory left 417 people without work. This wasn’t just another round of corporate downsizing — it was a structural shock caused by global competition and shifting tech trends. The impact hit hard: unemployment in the area rose by 9%, threatening the financial security of hundreds of families.
In response, Belgium requested assistance from the European Globalisation Adjustment Fund for Displaced Workers (EGF) — a dedicated EU tool that supports people who suddenly lose their jobs because of big economic disruptions. The request was made in February 2025, just months after the plant’s shutdown.
What Is the EGF and Who Can Use It?
The European Globalisation Adjustment Fund (EGF) is not your average safety net. It’s designed specifically for workers who lose their jobs due to major restructuring events, like sudden plant closures or big layoffs caused by global trends or technological change.
This isn’t about temporary job loss or regular turnover — it’s about reacting quickly when entire communities are thrown into crisis.
Since its creation in 2007, the EGF has supported over 172,000 people across 20 EU countries, spending more than €700 million on helping people get back on their feet.
In the case of Belgium and BelGaN, the EU is proposing nearly €930,000 in support through the EGF, covering the majority of a €1.1 million recovery package. The rest will come from the Flemish Employment and Vocational Training Service (VDAB). What’s interesting is that this help can even be applied retroactively — the Belgian government already started supporting workers in August 2024, and the EGF can reimburse those costs.
It’s Not Just About Money — It’s About a New Start
So, what does this support actually look like? The EGF isn’t about handing out passive financial aid. Its main goal is to get people back into work — and fast.
Former BelGaN employees will be offered:
- Career and psychological counselling
- Skills training and upskilling courses
- Job search support
- One-on-one career coaching
This hands-on approach is part of the EU’s broader strategy known as “flexicurity” — combining job market flexibility with social protections. EGF initiatives are meant to complement national employment policies, not replace them.
From Reaction to Prevention? A New Direction for the EGF
The BelGaN case shows how effective the EU can be in responding to sudden shocks — but now the European Commission wants to go further.
In April 2025, it proposed reforming the EGF to allow support before jobs are lost. The idea is to turn the fund into a proactive tool that can prevent layoffs, not just respond to them.
This shift would mean earlier interventions during the restructuring process — helping workers prepare for change before it hits them. According to EU research agency Eurofound, many corporate restructurings take more than a year, and some stretch out over three years. Faster action means fewer social costs and better outcomes.
What Happens Next?
The Belgian request for EGF funding still needs to be approved by the European Parliament and the Council of the EU. These approvals are usually straightforward but are still a formal requirement before the money can be released.
The story of BelGaN is a reminder that even advanced industries are vulnerable in a rapidly changing global economy. But it’s also a clear example of how EU solidarity can make a difference, turning crisis into opportunity.
With reforms on the horizon, the EGF has the potential to become not just a crisis tool — but a forward-looking engine for resilience and renewal across Europe’s job markets.
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