EU mobilises €1.8 million fund for 1,488 displaced KTM workers

The European Parliament has approved the mobilisation of the European Globalisation Adjustment Fund for Displaced Workers (EGF) to support 1,488 workers displaced by the insolvency of motorcycle manufacturer KTM in Upper Austria. The decision, adopted by resolution on 26 March 2026, grants Austria a financial contribution of €1,806,624, published in the Official Journal of the European Union (C series, C/2026/4050) of 2 September 2026.

The resolution endorses the Commission proposal (COM(2026)0010 – C10-0026/2026 – 2026/0037(BUD)) and approves the annexed decision, which corresponds to the final act Decision (EU) 2026/850. The funding is channelled through the EGF Regulation (EU) 2021/691 and the multiannual financial framework for 2021-2027.

The application and the figures

Austria submitted application EGF/2025/005 AT/KTM on 15 September 2025, covering 1,488 displacements in KTM Gruppe in the sector classified under NACE Revision 2 division 30 (manufacture of other transport equipment) in the region of Upper Austria (AT31). Of these, 233 displacements occurred within the reference period from 25 February to 25 June 2025, with 1,255 before or after that window.

• Financial contribution: €1,806,624, representing 60% of the total cost of €3,011,040.
• Personalised services: €2,895,120.
• Preparatory, management, information and publicity, control and reporting: €115,920.
• Targeted beneficiaries expected to participate in the measures: 420 displaced workers.

Background of the crisis

KTM, the largest motorcycle producer in the Union and the largest subsidiary of Pierer Mobility AG, filed for insolvency on 29 November 2024, the largest insolvency proceedings ever recorded in Upper Austria. A restructuring plan was approved on 25 February 2025. The Parliament notes that the parent company moved production to China and India in December 2023, leading to an initial dismissal of 300 jobs and further layoffs of over 500 employees during 2024.

During KTM’s first production shutdown in 2025, more than 750 additional employees were made redundant. The investor Bajaj Auto International Holdings B.V. provided the resources to ensure KTM’s continuation on 22 May 2025, avoiding bankruptcy and allowing production to resume in July 2025. The company was a critical economic pillar for suppliers in the district of Braunau, where unemployment rose by 37.1% in November 2024 compared with the same month the previous year.

Measures for displaced workers

In agreement with social partners, the personalised services to be provided to the workers include case management, career guidance and orientation, training and retraining, pro-active job search and training allowances. The Parliament stresses the importance of close cooperation with regional businesses and employers so that requalification programmes respond to concrete labour market needs and prepare workers for the green and digital transition.

Austria began providing personalised services and incurring administrative expenditure on 1 March 2025, with the eligibility period running for 24 months (and 31 months for administrative expenditure) after the entry into force of the financing decision. The Austrian authorities have assured that the principles of equality of treatment and non-discrimination will be respected and that double financing will be prevented.

Why it matters

The EGF is an instrument of solidarity and just transition that supports workers after job losses, but the Parliament stresses it cannot replace a proactive industrial policy. The Union’s primary task must be to prevent such closures in the first place by keeping industrial production competitive, while investing in skills for both highly qualified and industrial workers and reducing bankruptcies and social disparities.

Source: Official Journal of the European Union, C series, C/2026/4050, 2 September 2026 (official reference: C/2026/4050; Decision (EU) 2026/850).