The European Commission is planning to extend its Globalisation Fund to be able to help workers made redundant because of the ongoing global economic crisis.

The new rules, which still have to be approved by member states, include lowering the threshold for applications under the fund from the present 1,000 workers to 500, extending the aid period from 12 to 24 months and increasing EU financial assistance from 50 to 75 per cent of the cost of schemes devised by member states to help redundant workers reintegrate in the job market.

Brussels is also suggesting to broaden temporarily the scope of assistance to cover workers affected by the economic crisis and not only those who lose their jobs as a result of globalisation, which is traditionally associated with layoffs resulting from factories that relocate.

Malta has already benefited from this fund since it was set up two years ago. Following massive redundancies by Bortex and VF, Malta was granted €700,000 to help the 683 affected workers to reintegrate into the job market.

EU Employment Commissioner Vladimir Spidla said the Globalisaton Fund has already helped over 15,000 redundant workers in the two years since its launch. "Our objective now is to strengthen its role as an early intervention instrument as part of Europe's response to the financial and economic crisis."

The European Globalisation Fund provides up to €500 million each year to support the reintegration into the labour market of workers who lose their jobs due to the consequences of globalisation. Member states have to apply to tap the funds, which provide one-off, time-limited individual support, geared directly to the redundant workers.