European reform of unemployment insurance for cross-border workers: the text adopted by the European Parliament

The European Parliament adopted the text reforming the rules governing unemployment benefits for cross-border workers on 7 July 2026. The text stipulates that benefits will now be paid by the country of last employment, rather than by the country of residence, as is currently the case.

This reform was driven in particular by France, where Unédic provides benefits to workers who have paid contributions in other countries, mainly Switzerland, Luxembourg or Germany. In 2024, benefit payments to the 43,400 cross-border claimants amounted to €1.1 billion. Although compensation mechanisms are in place between Member States, these are time-limited (three to five months) and do not cover all the costs incurred by Unédic. More info

The text was adopted by the European Parliament on 7 July 2026. It still needs to be formally adopted by the Council, and then published. After its publication, Member States will have two years to implement these new rules, with certain adjustments planned for Luxembourg. It also provides that cross-border jobseekers may choose to be supported either by the public employment service of the country where they were working, or, for a maximum period of six months, by that of their country of residence, such as France Travail in France. More info

The specific case of the French-Swiss border

As for Switzerland, the main destination country for French cross-border workers from outside the EU, the additional cost would amount to between 600 and 900 million francs per year, whereas it currently reimburses only part of the benefits paid by France. The situation is therefore unique: the country is not directly subject to the new European regulation, and further political negotiations are required to explore ways of aligning the systems. France also wishes to enter into discussions with Bern to make progress on this issue, given that more than 27,500 benefit recipients who have worked in Switzerland are affected.

Challenges for border regions

Beyond the financial implications, this reform highlights the economic interdependence between European border regions. The MOT points out that these worker flows are a driving force for the European economy, but that they require better-coordinated policies on co-development, mobility and employment.

Please find below our Manifesto for Balanced Economic Development as well as our map of worker flows at French borders.