Finland to apply for EU support for those made redundant in paper industry
Finland has decided to apply for support from the European Globalisation Adjustment Fund (EGF) to reduce the impact of terminations announced by the paper industry in October. Finland will submit an application to the European Commission in early 2026 after the number of people being made redundant is known. Funding will be used for services promoting re-employment. Of the total budget of an EGF project, 60 per cent comes from the EU and the remainder is funded nationally. The support period cannot exceed two years.
Finland will apply for support from the EGF to accelerate the re-employment of people terminated at the paper mills located in South Karelia.
“As the paper industry continues to conduct change negotiations in a number of locations in Finland, many employees and their families have had to receive unwelcome news of terminations this year. It is important to make the diverse skills of the people made redundant available to the Finnish labour market quickly. With the aid from the European Globalisation Adjustment Fund we want to ensure tailor-made services also for those who are unable to find new work immediately,” says Minister of Employment Matias Marttinen.
“The support from the European Globalisation Adjustment Fund will help us respond to the structural change in the paper industry and ensure that the skills and competences of the people can be directed to new growth sectors. This will contribute to Finland’s competitiveness and industrial renewal,” says Minister of Economic Affairs Sakari Puisto.
Planning of support measures is under way
An EU Member State can apply for EGF support for redundancies in a given sector in one or several areas, or for redundancies in one company or a number of SMEs if at least 200 people are about to lose their jobs due to structural change.
Even though the preparation and approval of the application may be slow, the support measures can begin immediately at the start of the redundancies. This will ensure that services will be available to the employees as soon as possible and that the measures promoting re-employment are launched without delay. The services in employment areas offered to employees terminated by the paper mills will begin at once at the start of the redundancies.
Of the total budget of an EGF project, 60 per cent comes from the EU and the remainder is funded nationally. The national funding is the own funding of municipalities used to purchase employment services.
EGF helps Finland support employment and regional vitality
Finland has a long experience with and very positive results of the European Globalisation Adjustment Fund. The fund has made it possible to provide broad support for active labour policy measures, such as education, coaching and promotion of mobility. Finland has previously utilised EGF support following the mass redundancies in the ICT sector, terminations at the STX shipyard and the bankruptcy of the retailer Anttila, for example. Through the EGF projects, most of the participants have found a new job or transferred to entirely new sectors, which has helped both the people involved and the areas to adapt to the changes.
Preparation of EGF application takes place in new operating environment
From the beginning of 2025, employment areas have been responsible for the implementation, monitoring and supervision of EGF projects. Meanwhile, ELY Centres (from 1 January 2026, Economic Development Centres) are in charge of producing local information and participating in the projects as partners. Negotiations between the different bodies have progressed well, and the EGF is considered an important addition in promoting the employment of redundant employees and developing municipal services.
Inquiries:
Teresa Salminen, Special Adviser to the Minister, tel. +358 295 047 318 (questions to the Minister of Employment)
Lotta Laitinen, Special Adviser to the Minister, tel. +358 295 049 058 (questions to the Minister of Economic Affairs)
Marko Laiho, Industrial Counsellor, Ministry of Economic Affairs and Employment, tel. +358 295 064 215
Johanna Slaney, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 017 (from 7 January 2026)
The Ministry’s email addresses are in the format [email protected]