421 employees of the retail chain Makro Cash & Carry who lost their jobs following the company’s bankruptcy should receive €2.8 million in EU aid.
On Tuesday, the Committee on Budgets approved Belgium’s request for support from the European Globalisation Adjustment Fund for Displaced Workers (EGF). MEPs acknowledged that “the COVID-19 pandemic and the Russian war of aggression against Ukraine have reduced economic competitiveness and have a negative impact on economic growth in Belgium”.
In recent years, Makro Cash & Carry Belgium NV faced financial losses and sales dropped further during the pandemic. The company was declared bankrupt in January 2023, resulting in 1,431 jobs lost in Belgium. 421 workers in Wallonia will benefit from the EGF aid, while the Flemish regional authorities do not think there is a need for an EGF top-up of the support available to former Makro workers in Flanders. Unemployment in Wallonia (8.8%) is higher than in Flanders (3.1%), according to Statbel.
The total estimated cost of these measures is €3.2 million, with 85% (€2.8 million) covered by the EGF and the remaining 15% (€499,000) financed by the Walloon region.
The EGF support package includes advisory services, job search assistance, and skills training in vocational, digital or language skills. In addition, the dismissed workers can receive guidance on starting their own business and benefit from start-up grants of up to €15,000. Additional allowances are available for dismissed workers participating in job-search, training and education activities, as well as support for self-employed people in the initial months of launching a business.
The draft report by rapporteur Petri Sarvamaa (EPP,FI) recommending that Parliament approve the aid was passed by 26 votes, none against and no abstentions. Approval by plenary is expected during the 20-23 November 2023 plenary session in Strasbourg.
