The European Parliament has approved a proposal to grant a payout worth EUR 1.6 million to Spanish shoemakers who have been made redundant, sources reported.

The money will come from the European Globalisation Adjustment Fund (EGF), with a further EUR expected to come from Spanish authorities.

Spain applied for EGF aid in 2010, after 876 former employees at 146 footwear manufacturing firms – the majority of which were in and around Valencia – were made redundant. It is believed around 16.6% of shoe manufacturers have closed operations.