Over 5,000 tourism workers and self-employed in Estonia who lost their jobs as a consequence of the COVID-19 pandemic should receive €4.5 million in EU aid.
Members of the Committee on Budgets on Monday approved Estonia’s request for support from the European Globalisation Adjustment Fund (EGF), acknowledging that “the COVID-19 pandemic and the following global economic crisis caused an immense shock to the Estonian economy, especially the tourism industry, where before crisis 90% of the tourism expenditure in Estonia was generated by international tourism while the average for OECD countries was around 25%”. MEPs note that the application relates in total to 10,080 workers (1,715 self-employed persons whose activity has ceased and 8,365 workers made redundant in the Estonian tourism sector) and regret that Estonia expects that only 5,060 out of the total eligible beneficiaries will participate in the measures. The total estimated cost of the support measures is €7.5 million, of which the EGF will provide €4.5 million. The remaining amount will be financed by the Estonian authorities. The draft report by rapporteur José Manuel Fernandes (EPP, PT) recommending that Parliament approve the aid was passed by 38 votes to 1, with no abstentions.
The aid still needs to be approved by plenary during the 17-20 May session. Council has approved it on 30 April.
The measures co-financed by the EGF range from job-searching advice to apprenticeships, educational opportunities and support to start a business. Participants are expected to receive additional incentives, such as training, transport or accommodation allowances, to help them make use of these opportunities. The local employment services in Estonia will contact the affected workers to identify their needs and arrange tailor-made training, mentoring and job-matching assistance. The European Globalisation Adjustment Fund was set up to help workers made redundant due to major changes in world trade patterns or as a result of unexpected financial and economic crises. Since its conception in 2007, the Fund has received 187 applications (as of 9 April 2021). The Commission declared that the COVID-19 health crisis resulted in an economic crisis, set out a recovery plan for the economy, and underlined the role of the EGF to be used as an emergency tool in this context.
