Brussels: The European Commission has announced a proposal to mobilize £1.1 million from the European Globalisation Adjustment Fund for Displaced Workers (EGF) to aid 351 workers dismissed by four paper manufacturers in Finland. This initiative aims to support those affected by the industry's challenges, including digitalization and geopolitical tensions impacting raw material supplies.
According to Cyprus News Agency, the funding is intended to assist workers from Mets¤ Group, Stora Enso, UPM Communication Papers, and SAPPI. The EGF has historically been a resource to bolster the skills and employability of displaced workers, having been activated 192 times since 2007 to aid over 185,000 individuals across 20 EU Member States with a total of £737 million.
The Finnish paper sector has been particularly strained by the decline in demand and the disruption caused by the closure of the Russian border, which halted wood imports after Russia's actions in Ukraine. The proposed support will encompass a range of measures for the dismissed workers, including job-search assistance, career counseling, an AI-based pilot for matching skills with job needs, training in new skills, and financial support for start-ups.
The overall cost of the support package is estimated at £1.8 million, with the European Commission covering 60% (£1.1 million) and the remaining 40% (£735,000) funded by local employment regions in Finland. The support initiatives began in January 2026, with the EGF potentially reimbursing these expenses retrospectively.
More information on this proposal can be found in the press release provided by the European Commission.
