EU parliament approves €900,000 support package for former BelGaN workers

The European Parliament has approved more than 900,000 euros in EU aid to help former employees of chipmaker BelGaN in Oudenaarde find new jobs, following the company’s closure last year.

In total, 417 workers lost their jobs when BelGaN, Belgium’s last industrial chip manufacturer, shut down in the summer of 2024. At Belgium’s request, the European Commission proposed releasing 931,690 euros from the European Globalisation Fund to support retraining and job placement efforts. 

On Wednesday, MEPs backed the proposal with 578 votes in favour, 47 against and 16 abstentions.

The fund covers 85 per cent of the total cost of the programme, which is already under way. The remaining 15 per cent will be financed by the Flemish employment service VDAB.

MEPs Liesbet Sommen (CD&V) and Kathleen Van Brempt (Vooruit) welcomed the decision, stressing the heavy impact of the plant’s closure. Local unemployment in the Oudenaarde region has risen by 9 per cent, while job vacancies have dropped by 22 per cent over the past three years amid difficult economic conditions.

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“It’s never easy to lose your job, so we must do everything possible to make the path back to work as smooth as possible”, said Sommen, who also urged the EU to simplify its support procedures.

Van Brempt added that Europe must do more to help companies remain competitive: “Many firms are under immense pressure. Workers fear for their jobs as investments are postponed and global competition from China and the US intensifies.”

BelGaN, formerly known as Mietec, specialised in gallium nitride-based semiconductors. Its liquidation earlier this year marked the end of Belgium’s industrial chip production, with assets now being sold off to pay employee severance and creditors.

 

#FlandersNewsService | BelGan site in Oudenaarde © BELGA PHOTO JONAS DHOLLANDER

 

 

 

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