il COMMISSION OF THE EUROPEAN COMMUNITIES 
M: 
C0M(91) 397 final 
Brussels, 12 December 1991 
COMMISSION MEMORANDUM ON 
VOCATIONAL TRAINING IN 
THE EUROPEAN COMMUNITY 
IN THE 1990s 
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Summary 
INTRODUCTION 
I. COMMUNITY OBJECTIVES 
1. The accelerating pace of change 
2. The new role of "Intangible Capital" 
3. Qualifications and work organisation 
4. Human resources: more important and yet more scarce 
5. Training and qualification of women 
6. Ski I Is shortages 
7. SMEs and the single market 
8. Towards a European market for qualifications and training 
9. Continued training founded on initial vocational training 
10. Social partnership 
II. ACHIEVEMENTS OF COMMUNITY POLICY 
1. A progressive build-up 
2. The foundations of action by the Community 
3. Areas of activity 
4. CounciI decisions 
5. Transnational measures 
6. Transparency of the labour market 
7. Structural action 
8. Key advantages of Community policy 
9. The achievements of the social dialogue 
III. GUIDELINES FOR THE 1990s 
A. Questions facing all Member States 
B. Community Action 
1. Underpinning Community action 
2. Respecting subsidiarity 
3. New objectives for Community policy 
4. Coherent and visible Community action 
COMMISSION MEMORANDUM ON 
VOCATIONAL TRAINING 1*1 
THE EUROPEAN COMMUNITY 
IN THE 1990S 
INTRODUCTION 
1. The marked changes characteristic of the 1980's with «conomic 
restructuring extending into different sectors of activity, skills 
changing and evolving, a very different situation as regards 
labour supply, mobility and migratory flows will, in many ways, be 
accentuated in the socio-economic outlook for the 1990's . Against 
this background the Commission has decided to promote widescale 
discussions on the development of training policies post-
compulosry schooling. It is convinced that at both Community level 
and in the Member States, improved training is an essential 
prerequisite for dealing with these trends. This memorandum is the 
result of in-depth and broadranging discussions with the 
tripartite Advisory Committee on Vocational Training at both 
Community and national level. It includes elements of the written 
contributions prepared on a tripartite basis in each of the Member 
States. 
2. This memorandum aims to explore the way ahead for policy in this 
area in the Community in the 1990s. It describes the new 
objectives that will become prominent in the coming years, as a 
result of which vocational training policy will assume increasing 
importance. It examines achievements so far in constructing a 
common policy on the basis of the 1963 principles, with particular 
reference to the various "action- programmes set up since 1985 
with regard to vocational training. Finally it suggests guide Iines 
for future Community policy in this area. 
3. The memorandum should be seen in the context of the work programme 
arising out of the Social Charter-, this proposed, amongst other 
things, that in 1991 the Commission should bring forward proposals 
for updating the general principles of Community policy on 
vocationaJ training, as established by the Council Decision of 2 
April 1963. Further discussions have led to the conclusion that 
these principles remain valid in their present formulation. 
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4. Given the current situation the Commission has decided to open up 
the debate on these various issues. Member States and indeed the 
Community itself are confronted by decisions which will be 
significant in endeavours to ensure that human resources play 
their full role in constructing the Community, ensuring continued 
economic growth in Europe and creating a society open to other 
parts of the world. 
5. At the same time work to examine the future of higher education 
has been in progress. The Commission has Just brought out a 
"Memorandum" suggesting guidelines in this area, including the 
reinforcement of the aims of research and application of its 
results. The Green Paper also examines how to reinforce the links 
between industry and higher education - particularly universities 
- by the year 2000. 
6. The aim of this memorandum on vocational training in the European 
Community is therefore to provide a basis for a debate on these 
questions. With this end in view it points to key issues which the 
Commission sees as vital. These include: 
- major socio-economic changes in the 1990s, in particular the 
consequences of the accelerating globalisation of economic 
activities and technologies, as the background for the future 
development of the European Economy; 
- the shape and increasing pace of technological change in coming 
years and the need to develop new forms of work organisation with 
new requirements for qualifications and human resource 
development ; 
- the balance to be achieved between investment in research and 
development to accelerate innovation, and investment in training 
to create a skilled workforce able to use and diffuse innovations, 
particularly for SMEs; 
- regional problems arising from skill shortages in various parts 
of the Community: skill potentials poorly adapted to needs for 
growth and innovation, time-lags between declining and new sectors 
of activity, inadequate basic qualifications, etc.; 
- the positive effects of setting up a European "space" for 
training and education, helping firms to develop new policies for 
using qualifications, allowing individuals to have access to new 
opportunities for training and mobility, and in which training 
agencies will operate in European rather than national markets. 
The widening of the European Economic Space to include the EFTA 
countries will strengthen these positive effects, given their 
particular experience and innovation capacities in this field; 
- the mutual knowledge of training systems between the various 
Member States and the setting up of transeuropean networks for 
information and exchanges involving providers and decision makers 
in national training and qualifications systems; 
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- the evolving patterns of mobility within and into the Community, 
with consequences for the structure and operation of European 
labour markets. In this connection Community experience and 
capacities in the training field, already mobilised in PHARE, will 
help the countries of Eastern and Central Europe in their 
adjustment process with regard to training issues. The 
establishment of the European Training Foundation would improve 
the efficiency and visibility of these efforts. 
7. Moreover, it is essential to bear in mind that the boundaries 
between basic education on the one hand and training on the other 
one are gradually disappearing in many cases. It is clear, for 
example, that the competences provided by training are 
increasingly of educational value - particularly in the case of 
social and communication skills - whilst basic education provides 
a foundation of competences for later professional life. This 
dynamic interaction between the two areas of training and 
education will be fundamental for the years ahead. Another vital 
question is the "status" of technical education and vocational 
training, in institutional and financial terms. 
8. The current situation of the labour market in the majority of 
European countries is of great importance. One of the objectives 
should be to improve the impact of training policies on 
unemployment, particularly long-term unemployment. Here two 
aspects are particularly significant. On the one hand, Community 
action, particularly as regards information and exchange of 
expertise, should contribute to the transfer of innovation. On 
the other hand, the aim of raising the level and range of 
qualifications should assist both individuals and firms to be more 
prepared for economic fluctuations and hence better armed to cope 
with their negative effects, for example loss of Jobs and 
segmentation of the labour market. 
9. In this attempt to define new guidelines for Community poI icy, the 
balance between integration and diversity, as expressed in the 
principle of subsidiarity should be preserved. The objectives of 
integration and diversity are not mutually exclusive, but on the 
contrary need to be seen as complementary. Indeed, cultural 
diversity and the considerable variety of education and training 
systems is typical of Europe as compared with other advanced 
economies. Community policy should promote and support the 
synergies and cooperation which will make a virtue of these 
differences. 
10. Thus, in defining the way forward for Community policy it is 
essential both to underline the contribution of vocational 
training to the new phases of building Europe and at the same time 
to reinforce and assist action taken by individual Member States. 
Community action on training has two strands: setting common 
objectives to be pursued by Member States and identifying 
objectives and actions to be pursued by the Community to support 
and comp1emen t na t i ona1 po1i c i es. 
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I.COMMUNITY OBJECTIVES 
The accelerating pace of change 
11. Human resources will be a priority for the 1990s because the 
decade will be characterised by more of the economic restructuring 
which was such a prominent feature of recent years. This 
restructuring will concern a wide range of economic sectors. At 
the same time the general socio-economic climate will undergo 
rapid change as the Single Market becomes a reality and 
technological change accelerates - with a particularly marked 
effect on the structure of qualifications and their evolution. 
12. In order to prepare for an increasingly turbulent and 
unpredictable environment, firms are making systematic 
preparations and developing key resources for strategic action, 
including technologies, networks, information and human resources. 
Making full use of these resources requires foresight and 
planning: ad hoc improvisation does not work. Successful firms 
realise this and are developing these resources in order to be 
able to react quickly to events or opportunities for development 
as they emerge. 
13. The "globalisation" of firms - already well advanced in some 
technological sectors such as pharmaceuticals, information 
technology, telecommunications and materials - gives them a 
stronger and sometimes dominant position in spreading knowledge 
and technology. In this context, human resources become an 
increasingly important factor in competition, both for entreprises 
and national economic systems as a whole. 
14. Uncertainty and turbulence are the essence of the contemporary 
scene - and a capacity for continuing change the key to success. 
This means that it is essential to build up, by means of education 
and training policy, the capacity of the workforce to be flexible 
and innovative. European firms should receive the support of 
education and training infrastructures which will nourish such 
capabilities. 
The role of "intangible capital" 
15. The socio-economic context of the 1990s will be marked by the 
growing role of what might be termed^"intangible capital", without 
which physical capital (machines and equipment) will be 
inefficient. This includes not only professional qualifications 
and technological competences but also ability to organise and an 
entrepreneurial spirit. European "human capital" is thus a 
creative and dynamic force in the Community and should be seen as 
a common resource to be developed by mobility, exchanges and 
cooperation. The European space should certainly be seen as a 
forum for competition and as a market, but also as an arena for 
realising and mobilising the competences of its citizens and 
workers. 
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16. In the context of globalisation referred to above, enterprises and 
public authorities will be called upon to cooperate. The result 
should be new kinds of partnership - notably at Community level -
and new interventions and relationships meeting the needs both of 
economic objectives and social cohesion. 
17. By developing modern and competitive forms of production, and 
developing and using the qualifications of a well educated and 
trained population, Europe will be able to better manage the 
balance of migratory flows: particularly "brain drain" at the 
higher levels of qualifications and mobility which deprives the 
less developed regions of the qualified workers and managers 
needed to develop competitive economic activities. 
Qualifications and work organisation 
18. New techniques of information, communication, production, 
processing and automatisation are affecting many Jobs and altering 
the qualification profiles in many professions. Europe needs high 
quality performance in developing and using new technologies if it 
is to face up to international competition. 
19. Modern work organization is characterised by the erosion of the 
traditional division of labour and by techniques which can be 
adapted to take account of human needs. Modern management styles 
are characterised by more decentralisation of decision-making 
powers, one aim of which is to strengthen quality control by 
giving more responsibility to the various levels of staff, down to 
the operational level. The modern worker is thus a collaborator 
capable of planning, organising and executing his/her work 
autonomously. Multiple or interlocking qualifications are 
increasingly needed, where information technology and traditional 
qualifications are combined to adapt to the new working 
conditions. The overall result is that the content and methods of 
initial and continuing training should be changed so that the 
acquisition of technical skills is combined with executive and 
social competences. 
20. As a result the relationships between physical and intangible 
investment by firms are changing. Without investment in their 
human resources, and notably the qualifications of their 
workforce, they are unable to ful ly exploit the potential of new 
processes of production or to attain the standards of 
competitivity necessary to succeed in world markets, notably as 
regards quality of goods and services. Investment in research and 
development and investment in training and qualification should 
therefore go hand-in-hand so as to ensure complementarity and 
efficiency. 
Human resources: more important yet More scarce 
21. in this perspective demography and migration, renewal of the 
workforce and maintenance of its skill base are essential factors. 
The decline in the proportion of young workers means that the 
skills of the adult workforce will become more important: over 80% 
of the workforce of the year 2000 is already in the labour market, 
the stock of competence needs to be renewed by between 10% - 15% 
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per year, and the annual entry of young people to the labour 
market accounts for only 2% of the active workforce. This will put 
heavy pressure on the need to develop the continuing training of 
adults whilst at the same time keeping up efforts to improve the 
quality of initial training for young people. 
22. Education and training policies should be adapted to meet 
different needs from those of the last thirty years under the 
cumulative effect of three factors, with marked regional 
differences: (a) the decreasing proportion of young people in the 
workforce, (b) the active population - which grew during the 1980s 
-will stabilise from 1995 and then fail during the next thirty 
years, and (c) the retired population will grow in number, 
particularly from the year 2000. Together, these factors will lead 
to a progressive inversion of dependency ratios as inactive 
individuals (retired and children) begin to outweigh those of 
working age. These changes mean that training needs will come to 
extend beyond a single period and that the concepts of continuing 
and recurrent education will move up the agenda, in the context of 
a changing life cycle. 
Training and qualification of women 
23. Demographic evolution means that equal opportunities in access to 
training and in the kind of training opportunities offered to the 
female workforce will become more significant, particularly for 
women returning to the labour market. In a context of tight labour 
markets the problem of training and employment for women will 
become a priority: women will receive more offers of qualified 
employment, raise their level of professional qualification and 
have access to a greater diversity of Jobs. These objectives must 
be taken into account with regard to training and when developing 
training courses as well as when designing and implementing 
company training. 
24. Within the Community girls and young women should be supported and 
encouraged to enter higher-quality Jobs, which will require longer 
training and higher qualifications. Countries which find the best 
solutions to these questions will possess a considerable advantage 
in meeting the problem of skills shortages, which will be a new 
and characteristic feature of the labour market of the 1990s. 
Ski I Is shortages 
25. The labour market in the Member States has been suffering from a 
relatively new phenomenon currently known as skills shortages. 
This is a new challenge for education and training policy - to 
resolve the paradox of a high unemployment rate coinciding with a 
lack of skilled workers. 
26. Analysis of this worrying phenomenon requires an inter-linked 
approach at the macro-economic, regional and sectoral levels. The 
Commission has undertaken such an analysis and the first results 
have appeared recently in the 1991 report on employment in Europe. 
It is not simply a question of overall quantitative imbalance 
between demand and supply since shortages have developed alongside 
a persistently high level of unemployment - particularly long-term 
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unemployment. On the contrary, factors which influence 
quantitative and qualitative imbalances between training and 
employment need to be taken into account such as: demography, 
..._- mobj|jty) technological change, lack of initial training and 
absence or weakness of forward planning which limits the ability 
to promote continuing training. 
27. Community analysis will in particular need to focus on a certain 
number of indicators which help to define the levels of skills 
shortages (global and sectoral shortages, regional distribution, 
specific professional situations). Cooperation at Community level 
will need to focus not only on the kind of solutions - short and 
long term - available for improving training capacities and 
techniques, but also on appropriate forms of work organization, 
skill needs and ways and means of fully exploiting in the 
production processes the potential of the available 
qua I ificat ions. 
SMEs and the single market 
28. In recent years the role and importance of small and medium 
enterprises as a source of new Jobs and as a pillar of regional 
development has been underlined. SMEs account for over 80% of 
Community businesses but the vast majority do not develop training 
plans for their staff and are therefore a priority area for 
Community action, particularly as a predominant element of 
economic growth in less developed regions. In certain sectors they 
will need to develop strategies for innovation, for attaining the 
critical size necessary for economies of scale (without however 
adopting to organizational models of large firms), and developing 
specialised niches, in the market. 
29. It follows that if SMEs are to gain full benefit from the single 
market, it will be necessary to develop training policies which 
meet their specific needs. To master the special challenges of the 
single market they will need to develop their training activities 
within the constraints of time, money and their specific 
operating conditions. 
30. One of the main factors in the success of SMEs in creating 
employment Is their flexibility in adapting to market conditions. 
SMEs will thus have to take into account not only local, regional, 
and national factors but increasingly the impact of the Single 
Market when developing strategies. 
Towards a European market for qualifications and training 
31. Community policies for professional qualifications should be seen 
in the framework of a double political objective: ensuring free 
movement of workers and developing common policies for vocational 
training. Actions taken should add up to a Community strategy tor 
ensuring the transparency and efficiency of the "European market 
of qualifications" which is already beginning to emerge, and which 
after 1992 should constitute one of the central poles for human 
resources policies. This means that the required qualifications 
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and competences, mobility of individuals, and enterprise 
recruitment and management policies should evolve with a view to 
this European dimension of the qualifications market. 
32. It is important to bear in mind that this approach should not 
simply be developed with a view to facilitating geographical and 
inter-sectoral mobility. Accessing qualifications from a European 
standpoint will become essential in many occupational fields as 
the single market becomes a reality - even if predictions of the 
immediate creation of a single European labour market are 
exaggerated. 
33. This means that the Community will have to make new arrangements 
to ensure transparency in the description of qualifications 
obtained in the Member States. This gradual emergence of a 
European dimension of qualifications, as yet not well defined, 
reflects the formative stages of a "European space for training 
and qualifications" which will lead those responsible (public 
authorities, enterprises and individuals) to change their 
perception and behaviour. Comparable information at Community 
level on professional qualifications acquired via training, 
continuing training and years of experience is in the interest 
both of employees and employers. Whilst the Community will need to 
allow for significant differences between Member States in the 
ways of acquiring qualifications and the various ways of 
validating competences acquired in the labour market, it will also 
need to encourage European-1 eve I cooperation to ensure progress in 
defining the problems and the methods for tackling them. 
34. Training on offer should equally develop a European dimension. 
Currently there is not one but a variety of training markets, for 
which mutual exchanges of information and transparency should be 
sought. If Community objectives are to penetrate the whole range 
of training systems, links should be established in the form of 
trans-European networks^1) giving each training operator or 
policy maker access to the necessary information on the situation 
and innovations in other Member States. The examples of the 
EURYDICE network for education systems or the role of the CEDEFOP 
and specialized research institutions in the Member States as a 
platform for exchanging information on vocational training show 
the results that can be achieved by developing information and 
mutual understanding of systems. Such trans-European networks 
should be pursued on a decentralised basis, using the potential 
created by action programmes, such as the UETPs University -
Enterprise Training Partnership, under the COMETT programme. 
Continued training founded on initial vocational training 
35. Acquiring, maintaining and expanding professional qualifications 
is part and parcel of training systems where training and work are 
closely linked. This is a learning process which should continue 
throughout working life. Vocational training designed with an eye 
to the needs of the labour market is therefore in the interests 
both of the economy and of individual workers. It should aim to 
supply a range of knowledge and skills of long-term value which 
give both the necessary technical skills and the capacity to 
change. The objective of the PETRA programme decided by the 
Council of giving all young people who so wish at least one and if 
(1) COM (90) 585 of 10/12/90 
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possible two years of vocational training after the official 
school-leaving age should be seen in this context. This means 
action to develop the potential of young people and to favour 
"sandwich" training so as to ensure the closest possible link 
between education and firms. 
36. In this way, modern training needs to be organised so as to ensure 
that methodological and social skills as well as the ability to 
continue self-motivated learning are an integral part of 
vocational training, laying the foundations for future continued 
training and learning at the workplace. Only if the private sector 
takes on responsibilities in the organisation of vocational 
training, and if the social partners participate actively, can 
work and learning be linked in a practical manner and the worïd of 
work given a proper place in vocational training programmes. 
37. For continuing training the value of diversified systems has been 
proved: the multiplicity of training organisations and programmes 
is in full accord with the principle of the market economy. Firms, 
training associations, private and public institutions and in 
particular the universities should offer a range of training 
opportunities. Transparency is thus a sine qua non of the market 
for continued training. Equally necessary is the definion of long-
term objectives by a process of concertation and eventually 
consensus between all those concerned. Continuing training is in 
the interests of the employee as much as the firm. The latter 
should take on as far as possible the responsibility for financing 
and where possible organising training related to its own needs. 
The responsibility of each employee for his/her own training, and 
the firm's responsibility for continued development of the stock 
of qualifications of its staff should be encouraged. Individual 
motivation and enterprise responsibility are two factors to take 
into account here, including in the definition of public policies. 
The Commission proposal on "access to continuing training" as 
foreseen in the programme of work of the Social Charter, will 
provide the occasion for a new breakthrough on a question which is 
vital for the future of European competitiveness. 
Social partnership 
38. Vocational training, particularly continuing training, is an area 
in which the social partners play an active - and often leading -
role. A reinforcement of this role and closer relationships 
between the socio-economic world, firms and educational 
institutions at all levels are necessary in the context of the 
qualifications challenge and forward-looking training strategies. 
At the level of the Community the active participation of the 
social partners, and in particular the important contribution of 
the Joint Opinions on Education and Training in the framework of 
the Social Dialogue are fundamental to the policy orientations of 
the Commission. 
39. In the debate it is equally important to take into account the 
responsibilities which fall to the social partners in the 
framework of collective bargaining, and the links between 
bargaining agreements and public intervention at national and 
Community level, within the perspective of the inherent 
responsibility of the social partners for matters such as work 
organisation and vocational training. 
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II. ACHIEVEMENTS OF COMMON POLICY AT COMMUNITY LEVEL 
A progressive build-up 
40. The Community policy on vocational training has developed step-by-
step with the growth of the Community itself. This progressive 
growth of Community policy was recognised legally by the Court of 
Justice (Gravier, 13 February 1985). Training policy has also been 
developed in close cooperation with other high priority Community 
actions, such as structural, and research and development 
policies, and the establishment of transeuropean networks. 
41. Article 128 of the Treaty is the legal basis for Community policy 
on vocational training. It provides for the establishment of a 
common policy on the basis of general principles established by 
the Council on a proposal by the Commission. The Treaty leaves 
open possibilities for future development without laying down 
over-strict definitions. The first concrete application of the 
article was the decision of 2 April 1963 setting out general 
principles for a Community policy on vocational training. At the 
same time the statutory tripartite Advisory Committee on 
Vocational Training was created with the role of assisting the 
Commission to implement that policy. 
42. From 1985 successive Judgements by the Court of Justice clarified 
the rules: confirmation of freedom of access to training courses 
in another Member State without discrimination on grounds of 
nationality (articles 7 and 128 of the Treaty); confirmation of a 
wide-ranging definition of vocational training, including higher 
education; confirmation of the progressive constitution of 
Community policy on vocational training; confirmation that the 
Commission could propose to the Council programmes with 
significant budgetary consequences. 
43. The review carried out during 1990 and 1991 with the Advisory 
Committee on Vocational Training have led to the conclusion that 
the general principles set put in 1963 remain valid as a general 
framework of reference. However, changes since 1963 make it 
necessary to define new objectives at Community level, in 
particular to ensure the increasing development of a European 
dimension in the field of qualifications and training. 
44. The development of a "European market for qualifications and 
training" will necessitate Community measures to regulate this 
market, In particular to improve its transparency and efficiency. 
Measures will also have to be taken to widen access to training 
for all workers at Community level. The Community will also need 
to develop its capacity to cover not only mutual recognition of 
diplomas, but also qualifications, in order to ensure the 
transparency of the European labour market and permit free 
movement. 
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The foundations of action by the Community 
45. An essential point of departure for Community action is the 
recognition of the diversity of education and training systems of 
Member States, which unanimously reject any attempt to impose 
blanket harmonization on them. This would in any case be 
counterproductive for the development of the Community because the 
diversity of educational systems and of culture reflect a strength 
which should be preserved in the building of Europe. 
46. From this starting-point Community training policy has been built 
on the following principles: 
-> co-ordination of policies: the general principles and common 
frameworks of Council decisions setting up action programmes 
provide the basis for relevant coordination of Member State 
policies in each domain of action. 
-> convergence of Inltatlves: the Council decisions set up in each 
domain a framework of common objectives which lead to a gradual 
convergence of national arrangements on the basis of initatives 
taken by Member States. 
-> transnational cooperation: transnational cooperation is encou­
raged between the various responsible parties in vocational 
training. This cooperation is reaching a level at which one can 
begin to talk seriously of a European training and qualifications 
market, in terms of the mobility of persons and the transfer of 
training programmes with induced effects on national arrangements 
and workers' skills including those workers who are not actually 
mob Me. 
47. To this should be added the significant role of procedures of 
concertation and the bodies involved in it, both member States and 
social partners. By its very nature vocational training relies on 
consultation between public authorities, employers and unions, the 
exact recipe varying with national practice. Community action 
helps to reinforce and systematise this consultation both in 
managing Community activities (ACVT, programme committees, social 
dialogue) and in Member States (national organs for follow-up, 
evaluation, participation of the social partners in projects). 
48. These basic approaches in the development of Community policy on 
vocational training have contributed to a forward-looking 
conception of subsidiarity, based not only on normative 
distinctions between areas of competence but rather on interaction 
between Community and national policies. This is an important 
point to build on in the 1990s, particularly in the context of 
current thought on how to improve the efficiency of policies at 
both Member State and Community level. 
Areas of activity 
49. The second half of the Eighties was characterised by the adoption 
of successive Council decisions based on Article 128, giving a 
wider interpretation of the competences based on that text, and 
leading to the establishment of Community action programmes in the 
field of vocational training and work on the comparability of 
vocational qualifications. 
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50. The setting up of these programmes represents an essential stage 
in the construction of Community policy in the areas fixed by 
Council decisions. The memorandum of the Commission of 21 August 
1990 on rationalisation and coordination of vocational training 
programmes at Community level established a framework for 
improving efficiency. 
Counc11 dec i s1ons 
51. Each programme of action is generally based on a Council decision 
based on the following common characteristics: 
1. common guidelines to promote convergence of initatives taken by 
and in Member States in relation to national arrangements; 
2. transnational measures at Community level which support the 
Council guidelines and promote transnational cooperation; 
3. evaluation procedures covering the operations under each 
programme and relationships with other interacting initatives, 
bringing out the Community dimension as such and the links with 
Member State policies-, 
4. an advisory programme committee to help programme development 
and follow-up, on which the social partners sit as observers. 
52. This coherent approach to the structure of action programmes forms 
part of the effort to rationalise and coordinate, and underpins 
the common policy of the cooperating bodies, involving both Member 
States and the social partners. The participation of both ensures 
transparency and follow-up. Taken together, these procedures and 
formal structures are an important factor in policy development 
and respect for the principle of subsidiarity. 
Transnational measures 
53. The action programmes include measures partly financed by the 
Community, whose aim is to develop the transnational character of 
training programmes and systematise cooperation between the 
responsible European bodies in the training field. These measures 
have progressively gathered momentum and are now each based on 
networks of several hundred operators at national, regional and 
local levels who translate into action the objectives of the 
programmes. This transnational cooperation is developing at 
several levels: exchange of information, establishment of common 
frameworks of reference, exchanges and mobility of trainers, 
trainees and organizers, permanent partnerships, Joint projects or 
establishment of transeuropean networtks of communication and open 
and distance learning. 
Transparency of the labour market 
54. To open up labour markets the first thrust has been the mutual 
recognition of diplomas and degrees so as to promote access to the 
professions subject to regulations in other Member States. The 
Council Directive on the general system for recognition of 
qualifications acquired after at least three years of university 
50. The setting up of these programmes represents an essential stage 
in the construction of Community policy in the areas fixed by 
Council decisions. The memorandum of the Commission of 21 August 
1990 on rationalisation and coordination of vocational training 
programmes at Community level established a framework for 
improving efficiency. 
Counc iI dec i s Ions 
51. Each programme of action is generally based on a Council decision 
based on the following common characteristics: 
1. common guidelines to promote convergence of initatives taken by 
and in Member States in relation to national arrangements; 
2. transnational measures at Community level which support the 
Council guidelines and promote transnational cooperation; 
3. evaluation procedures covering the operations under each 
programme and relationships with other interacting initatives, 
bringing out the Community dimension as such and the links with 
Member State policies; 
4. an advisory programme committee to help programme development 
and follow-up, on which the social partners sit as observers. 
52. This coherent approach to the structure of action programmes forms 
part of the effort to rationalise and coordinate, and underpins 
the common policy of the cooperating bodies, involving both Member 
States and the social partners. The participation of both ensures 
transparency and follow-up. Taken together, these procedures and 
formal structures are an important factor in policy development 
and respect for the principle of subsidiarity. 
Transnational measures 
53. The action programmes include measures partly financed by the 
Community, whose aim is to develop the transnational character of 
training programmes and systematise cooperation between the 
responsible European bodies in the training field. These measures 
have progressively gathered momentum and are now each based on 
networks of several hundred operators at national, regional and 
local levels who translate into action the objectives of the 
programmes. This transnational cooperation is developing at 
several levels: exchange of information, establishment of common 
frameworks of reference, exchanges and mobility of trainers, 
trainees and organizers, permanent partnerships, Joint projects or 
establishment of transeuropean networtks of communication and open 
and distance learning. 
Transparency of the labour market 
54. To open up labour markets the first thrust has been the mutual 
recognition of diplomas and degrees so as to promote access to the 
professions subject to regulations in other Member States. The 
Council Directive on the general system for recognition of 
qualifications acquired after at least three years of university 
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The aim with respect to the occupational integration of young 
people is to help them find their first stable employment. The 
Social Fund supports operations covering basic training related to 
work experience on the Job or in appropriate centres, training 
requiring the use of new technologies, recruitment aids for newly 
created stable Jobs, and aid for setting up self-employed 
activities. 
The campaign against long-term unemployment and the occupational 
integration of young people accounts for about 60% of the Social 
Fund resources committed under the Community support frameworks 
established for all objectives. Objectives 3 and 4 account 
for 40% of available resources in developing regions, and 
nearly 80% of the resources the Fund can allocate to the rest of 
the Community. 
This concentration of Social Fund resources on Objectives 3 and 4 
corresponds to the regulations which established the campaign 
against long-term unemployment and the occupational integration of 
young people as Social Fund priorities. 
In the case of Objective 1, Social Fund action can be classified 
in three main categories: 
- continuing training operations representing about 70% of Social 
Fund Activities in regions covered by Objective 1; 
- basic training operations accounting for about one quarter of 
the programmes funded by the Social Fund in these regions; 
- reinforcing retraining structures (training for instructors). 
In regions in industrial decline (Objective 2), ESF funding is 
mainly directed to the development of productive activities, 
especially in small and medium-sized enterprises (SMEs) and 
operations aimed at supporting technological training. 
In the context of rural development, the Social Fund co-finances 
training and employment in the economic sectors supported by the 
EAGGF and the ERDF. \ 
59. This structural action has been reinforced by the recent adoption 
of a series of Community human resources initatives (EUR0F0RM for 
new qualifications and new employment opportunities, NOW for 
women's training, and HORIZON for disabled people). These 
supplementary interventions are currently being implemented in 
cooperation with the Member States. The aim of these initatives is 
to bring about closer links between these structural actions and 
Community training policies and action programmes for vocational 
training (notably FORCE and EUROTECNET). 
60. To be eligible for these initiatives actions must meet the 
following financing criteria of the ESF and ERDF (the total 
contribution of the Structural Funds (ESF and ERDF) is estimated 
at 600 MECU of which 300 MECU for EUR0F0RM, 120 MECU for NOW and 
180 MECU for HORIZON). The rate of funding, which varies depending 
on the region which is promoting and the specific nature of the 
action proposed generally amounts to 45% of eligible expenditure, 
this percentage being increased to 65% in Objective 1 regions. 
Projects are selected by the competent national authorities 
(Ministries of Employment and Labour) in accordance with criteria 
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jointly agreed with the Commission. The Member States must submit 
their applications in the form of operational programmes or global 
grants. Forty-three operational programmes were presented to the 
Commission by the Member States in June/July 1991 for the period 
up to the end of 1993. 
61. Programmes must be transnational in character, thereby enabling 
transfer of know-how and must integrate with at least one partner 
from an Objective 1 region (except for the "disadvantaged" section 
of HORIZON). There are other priority criteria which do not 
necessarily have to be combined i.e. the exemplary and multiplier 
effect which allows the dissemination of good practice to all the 
activities financed by the Structural Funds in the field of 
training and employment; association with Community programmas 
FROCE, EUROTECNET, LEDA, ERGO, (EUROFORM), ILE, IRiS and the 
CHILDCARE network (NOW), HELIOS, HANDYNET and POVERTY Hi 
(HORIZON); and innovation in fields not so far adequately covered 
by the Structural Funds. 
62. Overall coherence should be sought in the implementation of the 
policy and action guidelines set out in this memorandum. Actions 
in favour of economic competitiveness and actions reinforcing 
social cohesion should be mutually supportive and enriching, with 
the particular aim of transferring innovations in methods and 
management. This should also facilitate cost control in order to 
obtain the best value for money from Community and Member State 
resources allotted to training. 
Key advantages of Community policy 
63. The Community action programmes of the last few years hav^ made, it 
possible to develop new networks (national coordinating bodies, 
operating groups such as the UETPs under COMETT) which are in 
fact decision-making, intermediary bodies to pursue new objectives 
and in setting up transnational operations. Evaluation of these 
networks shows how they have contributed to the development of E 
Community dimension amongst participants whose interosts already 
lay in that direction (e.g. universities), or how they have 
created Community activities in areas until recently little 
involved (e.g. SMEs). In financial and human resource terms, these 
action programmes (partnerships, Joint projects, networks) have 
mobiIised add-on human and financial investments, in support of 
specific Community objectives, with the widespread participation 
of public authorities, regional Jaodhes, and enterprises. A 
multipl1er effect oi Community contributions 1ta* result®*!. 
The achievements of the social dialogue 
64. Since the Working Group on Education and Training was set up in 
January 1989 it nas worked well and produced tangible results in 
the form of a Joint Opinion on education and training for -younç 
people (26 January 1990) and a proposed work programme to follow 
up this Initial result. This further work led to the adoption of a 
new Joint Opinion on the transition of young people from school to 
working life for young people. A fourth Joint ©pinion on it** 
quost'.on of ways of enabling the -greatest possible access to 
'continuing training l-n firms was adopted in October 1991. 
-I8­
60. The follow-up to these Joint Opinions will be an important 
catalyst for progress at national level. They represent a form of 
agreement on Joint action by the social partners to stimulate 
debate at all appropriate levels allocate and the relevant 
responsibility to all parties. New extensions to the social 
dialogue have also been accepted on two further essential themes: 
qualification and certification, and women and training. 
66. The process of social dialogue is of value in a field of action 
which by its nature belongs first and foremost to the social 
partners and depends on progress made in collective bargaining 
agreements. The results obtained in the Joint Opinions of the last 
two years are a solid basis for further bargaining agreements at 
national level, and for ensuring links between collective 
bargaining and the initiatives developed by the Community, notably 
with reference to access to continuing training. 
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III. GUIDELINES FOR THE 1990s 
A. Questions facing all Member States 
67. By launching this debate on which particular aspects of vocational 
training to promote during the 1990's, the Commission is well 
aware of the need to respond to and support the structural changes 
currently taking place. If the Community is to be competitive the 
changes must be facilitated through the provision of the necessary 
support measures. And yet at the same time, in the interest of 
social cohesion, it is necessary to limit or avoid some of the 
more adverse effects of these changes in terms of the labour 
market. The decade which has Just begun will be a period of great 
change in industrial processes in the various sectors and in the 
functioning of the qualifications market. It is therefore 
particularly important to deal with the key issues in some depth 
in the memorandum, and to find answers to the various questions 
facing all Member States, which are listed below. 
68. Discussions on intial training for young people, which were a 
major concern in the 1980's, have certainly lost none of their 
interest today as we witness a gradual increase in the skills 
levels demanded of Job-seekers and the increased difficulties 
encountered by those who failed to complete initial training. How 
can Improvements In the Quality of training, gradual convergence 
and partnerships between training systems and enterprise to 
develop "sandwich" courses, improvements In the basic skills 
provided for young people, the link between Initial training and 
the development of continuing training be made key aspects of the 
future? 
69. The labour market situation in the various Community countries 
shows that the highest unemployment rates and the persistence of a 
high level of long-term unemployment are increasingly linked to 
qualitative factors resulting from the mismatch between firms' 
skill needs (stressed by all the employers organisations) and the 
skills available in the work force. The creation of Jobs and the 
knock-on effects on the level of unemployment are thus closely 
linked to the impact made on training policies on the "quality" of 
the work force in terms of skill levels in keeping with modern 
methods of work organization. Similarly, the changes taking place 
in industries, particularly in the sectors most subject to world 
competition, call both for the creation of medium-term plans, 
particularly to cover skill needs, and for Joint efforts to 
provide retraining. How can the links between training, structural 
change and the labour market situation be more effectively 
dominated In the light of all these issues? 
70. The exploitation of investments in Research & Development and the 
dissemination of innovation throughout the economy, in particular 
in sectors exposed to worldwide competition rely heavily on 
activities designed to improve skills. The combating of skills 
shortages, changes in qualifications and work organisation are all 
part and parcel of competitiveness nowadays. Increased access to 
training for all workers throughout their working life is one of 
the prerequisites for these changes. How can activities be stepped 
-20-
up In connect ion with qualifications, links between training 
policy and the overall economic strategies of firms and regions, 
the design and financing of training policies for all wage-and 
salary-earners and for the unemployed! 
71. From what has been observed the way in which firms have been 
organized and how the labour market has functionned in recent 
years. The answer to these different questions is underpinned by 
an aggressive thrust towards structural adaptation. It is those 
countries with the mostly decisively forward-looking and dynamic 
attitudes towards structural change which have been most 
successful in combating unemployment levels. Conversely, it is 
those countries, which have been the least prepared for and open 
to these qualitative changes that are experiencing more marked and 
lasting mismatches between supply and demand for Jobs accompanied 
by the gradual emergence of persistent exclusion from the labour 
market and a consequent upswing in long-term unemployment. 
B. Community Action 
Underpinning Community action 
72. It is beyond question that Community policy on vocational training 
has reached a new stage of its development. The challenges now are 
without doubt greater and more complex than any previously faced. 
The different challenges analysed in this paper show that 
investment in training at all levels should grow in quantity and 
quality. Allowing for what should be done at national and 
Community level, the challenge can only be met by increased 
cooperation and convergence between all participants - whether 
public authorities, enterprises or educational institutions. 
73. The new conditions facing the European Community underline the 
importance of developing human resources, particularly by means of 
vocational training. Human resources should be developed from two 
points of view: economic competitiveness on the one hand, and 
economic and social cohesion on the other. Training, especially 
continuing training, will play a central and vital role in the 
development of an active society able to cope with economic, 
technological, cultural and social change; able to face the 
challenges from outside the EEC area; and able to develop the 
concept of European citizenship. The quality and level of 
education and training lies at the heart of Community 
preoccupations, and the same is true for all Member States. 
74. Developing a Community policy on vocational training is necessary 
if the Community is to succeed in priority economic sectors vital 
to the future. The sectoral actions by the Community to improve 
its capacity to compete on world markets, are likewise dependent 
on the development of human resources as an ingredient for 
success. 
75. The strategy for developing human resources also plays a role in 
strengthening the Community's world role, as witnessed by the 
growing links with other countries and regions. Improved external 
cooperation in the field of education and training is a basic 
foundation for reciprocal advantage and influence. 
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76. Theso external relations enrich mutual knowledge, thereby building 
up the cultural and social understanding which enables political, 
technological and commerical links to be established. At the same 
time they strengthen outside understanding of the Community, its 
institutions, operations and objectives, and comparisons with the 
institutions of other countries or economic regions enriches the 
action of the Community itself. 
77. Relations are now being worked out between the training 
institutions in the Community area and those in other countries, 
notably through specific arrangements whereby the EFTA countries 
take part in the Community's action programmes. These external 
requests for participation are proving to be considerable in 
volume and rich in content. 
78. Along these lines cooperative action has now been developed with 
Central and Eastern Europe, for whom the development of human 
resources is key to moves towards a market economy, EFTA countries 
in the steps towards a European Economic Space, the United States, 
the Soviet Union and other Third countries or international 
organisations such as OECD and the ILO. As regards collaboration 
with the countries of Central and Eastern Europe, the creation of 
the European Training Foundation would provide the framework for 
an improved assessment of needs and investments. 
Respecting subsidiarity 
79. Respect for the principle of subsidiarity implies clear 
identification of responsibilities and measures at each level, 
especially those arising out of Member States' domestic action and 
those which may be taken up by the Commission by virtue of 
Community competence and the particular role of catalyst which 
falls to it. This in turn means defining the main policy 
objectives to be pursued at Community level in the area of 
vocational training and the added value which can be brought to 
Member States' own policies and activities by Community action. 
80. From this perspective a double change Is in train: innovation and 
research (which often give rise to new needs for training) and the 
provision of training itself by firms or training organisations 
are developing increasingly as Community-wide as well as national 
act ivit les. 
81. In other words, transnational training is beginning to overlay 
and influence national training markets. Thus the operators 
involved in Community vocational training programmes are 
increasingly multinational European firms, partnerships between 
firms and professional organisations pursuing Community 
objectives, territorial groupings participating in multi-regional 
European actions, or transnational partnerships of training 
organisations. The organisation of actions must have a Community 
dimension. 
-22-
New objectives for Community policy 
82. The economic conditions of the 1990s and the realisation of the 
single market are bringing into the open new stakes for Community 
policy on vocational training. This policy should be developed 
around the objectives in the areas of activity identified by the 
Memorandum on the coordination and rationalisation of action 
programmes adopted by the Commission in August 1990. The central 
objectives for Community training policy can be grouped under 
three headings: INVESTMENT, IMPROVEMENT, TRANSPARENCY. 
83. Increased Investment In training: the Member States and the 
Community should make greater efforts in vocational training if 
they are to be able to cope with the economic, technological and 
social changes of the Nineties and reduce regional disparities. 
Access to and participation in appropriate vocational training 
should be made easier. This means supplying all young people with 
a broadly based and acknowledged professional qualification in 
order to facilitate their transition to working life and entry 
into the labour market, and developing opportunities for access to 
training throughout working life. It is equally necessary to 
forecast skill needs, given the increasing speed and complexity of 
change in qualifications and competences. Entry and reentry to the 
Community labour market should thus become easier, both from an 
occupational and social viewpoint. 
84. Improving the quality of training: the quality and hence the 
practical results of training and education systems will have to 
be improved to meet the explosion in training needs, notably by 
exchange of information and experience in this area. Such 
exchanges at Community level should be based on increased 
transnational mobility of trainers and trainees. The development 
of European distance learning systems also comes under this 
heading, since its long-term aim is that each citizen of Europe 
and each firm should have access to the full range of potential 
European training capacities related to the subject of their 
interest. 
85. Ensuring transparency: equal access to vocational training should 
not only be established by removing all discrimination on grounds 
of nationality, but also practically and explicitly encouraged. 
The Community should ensure genuine transparency of the training 
market and recognition of the training courses available. 
Diplomas, certificates and qualifications should be clearly 
recognised and mutually acknowledged. Cooperation between 
providers should lead to more training activities and professional 
itineraries worked out at Community level, and mutually 
recognised. Similarly, trans-European networks should be set up to 
connect national databases and to interlink, at the European 
level, training providers and decision-makers. 
86. These new stages in Community policy should build on what has 
already been achieved, using the networks already established by 
the action programes and by the European Social Fund - which are 
in fact unique structures with a genuine Community dimension. The 
mutual enrichment of national systems is well under way, 
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partlcularly in the framework of Community action programmes. In 
future there should be greater concertation and cooperation in 
this area, supported by efficient and decentralised management of 
Community programmes. 
Coherent and visible Commun Ity action 
87. During the last few years the means allocated by the Community to 
policy and action programmes in the area of vocational training 
have sharply increased although they are still limited compared to 
those available to structural policy and R&D policy. This is 
clear evidence of the priority given to human resources in the 
Community's overa11 strategy. 
88. However, the effect of these actions is heavily dependent on their 
impact on structural problems in the Member States, which are 
likely to change rapidly during the 1990s. In a nutshell, the 
financial investments made in Member States and by the Community 
to make progress towards the above objectives will be more 
efficient if action is taken in three directions: better 
evaluation, improved coherence, and continually improving 
concertât ion. 
89. Evaluation systems, conceived and set up Jointly with Member 
States, should lead to greater emphasis on the real impact and 
value of Community actions to achieve common objectives. This 
clarity of Community action is important at a time when all 
participants (firms, organisations, social partners, public 
authorities, regions) are seeking to develop a Community dimension 
in their activities. The Council decision to include evaluation 
and follow-up in each of these programmes should contribute to 
this end. Evaluation will be coordinated with measures taken by 
the competent authorities in Member States, and defined and 
implemented in close collaboration with them. One of the aims will 
be to analyse the effects of Community actions on national policy 
and practice, with particular reference to the general objectives 
already described, thus promoting innovation in the management and 
planning of programmes and coordination at national level. 
90. Effective links between vocational training policy and other 
Community human resource policies is another component of 
progress. The aim of the Commission is to serve better convergence 
of objectives between those of vocational training policy and 
those in other areas such as economic competitiveness, and 
structural action (notably by structural funds) to promote 
economic and social cohesion. To this end an overview framework 
has been set up to rationalise the various initatives taken by the 
Commission in fields such as the vocational training action 
programmes, training activity in the framework of structural 
policies, and the promotion of human capital and mobility in the 
framework programme of research and development. Improved means of 
cooperation with Member States are needed if these measures of 
rationalisation and coordination are to be fully effective. 
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91. Similarly the Commission intends In future to establish closer 
links between human resource development and its objectives in 
developing competitiveness in certain, particularly industrial, 
sectors. This lies behind the guidelines set for Community 
industrial policy and the debates on the future of certain 
sectors. Community action programmes in the field of vocational 
training with horizontal effects should also take into account the 
sectoral dimension, particularly with regard to skills shortages 
and retaining measures in order to bring about better integration 
of workers' competences into efforts to develop European 
competitivity and realise the beneficial effects of the single 
market and EMU. 
92. The working method adopted for the preparation of this document on 
guidelines for the 1990s has shown how fruitful concertation both 
with Member States and the social partners can be. The principles 
of subsidiarity and diversity - both with particular implications 
for training and education - mean that greater exchanges between 
Member States are essential for defining priorities, facilitating 
convergence where appropriate, and promoting experimentation both 
in Member States and in Community activities. 
93. The Community should contribute to the development of dialogue 
between the social partners at Community level, through which they 
can express their agreement on the development of training as part 
of the construction of Europe, and also develop their own action. 
94. These challenges facing the Community may well seem immense. The 
idea of a Europe of Training will no doubt take on its full 
meaning in the years to come. Joint action between public 
authorities, firms and the social partners will bring about 
improvements in continuing training, raise the level of workforce 
qualifications in Europe - thereby assuring the competitiveness 
both of firms and the European economy. The Commission counts on 
the fact that this memorandum will contribute to promoting the 
debate on these issues, thereby consolidating the foundations for 
building effective training policies in the Member State and at 
Community level. 
KSN 0254-1475 
COM(91) 397 final 
DOCUMENTS 
EN 04 
Catalogue number : CB-CO-91-451-EN-C 
ISBN 92-77-76635-2 
OÊBce for Officiai Publications of the European Communities 
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