COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 510 final 
Brussels, 16.11.1994 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
TO THE EUROPEAN PARLIAMENT, ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
EUROPEAN SOCUL FUND - THE NEW OBJECTIVE 4 
EUROPEAN COMMISSION 
EUROPEAN SOCIAL FUND - THE NEW OBJECTIVE 4: 
Mm COMMUNICATION TO THE COUNCIL AND PARLIAMENT 
CONTEXT 
As the Commission has now given its approval in principle to most of the 
programming documents relating to Objective 4, it considers that it is important 
to inform the institutions of the results of this first stage in the implementation of 
this new Objective as regards the European Social Fund. 
Article 123 of the Treaty on European Union requires the European Social Fund, 
in addition to its traditional tasks of promoting within the Community measures 
to facilitate employment and the geographical and occupational mobility of 
workers (measures which have been concentrated on fighting long-term 
unemployment and facilitating the occupational integration of young people), to 
facilitate adaptation to industrial changes and to changes in production systems, 
in particular through vocational training and retraining. This new task is described 
in the Structural Fund Regulations1 and is explained in the subject-related 
documents distributed by the Commission. 
The problem of adaptation to industrial change2 which relates to all sectors of the 
economy, including services, covers a wider scope than assistance under the 
European Social Fund. It is also referred to explicitly in Article 127 of the Union 
Treaty on Community vocational training policy and indirectly in Article 130, 
which requires the Community and the Member States to ensure the conditions 
necessary for the competitiveness of the Community's industry. 
Objective 4 constitutes a new approach within the context of employment, 
structural change and vocational training policies at European Union level: 
See in particular framework Regulation (EEC) No 2081/93 amending Regulation (EEC) No 
2052/88 on the tasks of the Structural Funds and Regulation (EEC) No 2084/93 amending 
Regulation (EEC) No 4255/88 laying down provisions for implementing Regulation (EEC) 
No 2052/88 as regards the European Social Fund. 
Includes changes in the services sector. 
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- by targeting workers employed in companies, it makes a contribution to 
stabilising the jobs of workers under threat of unemployment and to developing 
companies' human capital, thus increasing their competitiveness; 
- by combining needs-anticipation, structured training provision and the 
preparation and implementation of training measures, Objective 4 constitutes one 
of the pillars of a pro-active policy of adapting to industrial change; 
- action under Objective 4 encourages preventive adaptation to change in 
preference to a curative approach. 
Measures under Objective 4 must contribute to the simultaneous achievement of 
two goals: 
- to boost the competitiveness of the economy by improving companies' ability 
to adapt to industrial change; 
- to promote employment by encouraging the adaptation of workers to structural 
changes affecting companies. 
IMPLEMENTATION OF WHITE PAPERS 
In giving priority to investment in human capital, operations supported under 
Objective 4 are fully in line with the perspectives and priorities set out in the 
White Paper on Growth, Competitiveness and Employment: 
- In terms of objectives, both the framework regulation on the Structural 
Funds and the regulation governing the ESF implicitly require operations 
under Objective 4 to address "the underlying causes of problems relating 
to industrial adaptation", to generate a more competitive economy and to 
develop the quality of the workforce by way of education and vocational 
training. Among the priority action areas identified by the Member States 
in the follow-up to the White Paper, special mention is made of improving 
education and training systems, reorganising working patterns in companies 
and improving flexibility in firms and on the labour market, reflecting a 
convergence between the measures envisaged in the Objective 4 
programming operation and the follow-up to the White Paper in the 
Member States. 
- As regards the actual means, the idea of anticipating needs as part of a 
preventive policy, strengthening continuing training, developing appropriate 
training systems, developing cooperation structures between the various 
players in the fields of education and training, and paying particular 
attention to small and medium-sized businesses are all consistent features 
throughout the White Paper and constitute priority actions under Objective 
4. 
By strengthening non-material investment, measures under Objective 4 constitute 
one of the principal means of boosting the overall competitiveness of the 
economy, helping to achieve a better match between technological progress and 
labour force skills and qualifications. 
At European level, social policy has an essential role to play in this process of 
change. The White Paper on European Social Policy - A Way Forward for the 
Union seeks to set out the main approaches to action in this area at European 
Union level in the years to come: while considering social policy to be broader 
than just employment policy, one of the main priorities of this White Paper is the 
creation of jobs and investment in high-standard labour. 
There must be positive interaction between operations financed under Objective 4 
and LEONARDO, the European Community's action programme on the 
implementation of a vocational training policy, and the Community's ADAPT 
initiative. 
ADAPT, which aims to help workers under threat of unemployment as a result of 
industrial change to adapt to new working methods and practices, makes it 
possible to introduce a transnational dimension and reinforce the innovatory nature 
of specific measures. 
It is intended to have a major catalytic effect on efforts to promote employment 
and improve training service quality and standards. 
The aim of LEONARDO is for training measures to take account of far-reaching 
changes regarding skills and qualifications: special attention will be devoted to 
relational, methodological and social skills and to helping individuals contend with 
permanent change and manage their own development, as well as to facilitating 
the transferability of qualifications. 
THE MAIN PRIORITIES OF OBJECTIVE 4 
3.1 Guidelines and general principles 
The programming documents drawn up by the Member States in 
partnership with the Commission are part of the process of implementation 
of the broad guidelines and the general principles set out in the 
Commission's regulations and documents. They are the result of 
negotiations which have sometimes been difficult, owing to various 
reasons: 
- from the point of view of Structural Fund assistance, Objective 4 
is of a novel nature, necessitating a "running-in period" for the 
implementation of concepts and redefinition of measures; 
-«. in comparison with Objective 3, which supports and strengthens 
policies which are already well-established in the Member States, 
Objective 4 represents a specific approach to the employment, 
training and competitiveness problem. Although the constituent 
elements of the Objective are present in the Member States 
concerned, national policies are not necessarily structured in the 
terms of Objective 4; 
- the wide diversity of starting situations in the Member States does 
not make easy the implementation of a common framework of 
objectives and measures. 
During negotiations it became apparent that the joint involvement of the 
social partners and a "bottom-up" approach would be essential in the 
choice, design and implementation of measures under Objective 4. 
Negotiations have resulted in satisfactory agreements on the following 
main points, i.e. anticipation, the horizontal approach and activity 
concentration procedures. 
3.2 Anticipation 
The anticipation aspect has been strengthened vis-à-vis the plans as 
originally presented. By anticipating trends and the development of 
employment, trades, skills and qualifications as a preliminary to concrete 
training measures, it should be possible to provide firms with improved 
capacity for managing the process of change in production systems. 
33 The horizontal approach 
The horizontal approach, which is specifically referred to in the 
regulations, derives from the fact that industrial change and changing 
production systems affect all enterprises and all workers. At any one time, 
of course, there are sectors which are in the forefront of such changes. 
Whereas all sectors of the economy are confronted with the same 
competitive environments, each one has to contend with specific 
developments. The rates at which structural changes affect the different 
sectors and economic activities are therefore not the same, and vary in 
time. 
In other words industrial change, which is found to varying degrees in 
most sectors of activity, may at a given moment have greater implications 
for workers in certain activities where the process of change is speeding 
up. In these circumstances non-material investment, particularly in the 
development of human resources, helps to boost the competitiveness of 
undertakings in these sectors. In this context the anticipatory and training 
measures envisaged under Objective 4 and ADAPT are likely to play a 
specific role in respect of the workers employed in certain sectors. This 
lg|UUZ 
problem has recently been the subject of Commission communications 
emphasising the importance of the adaptation of workers to changes as a 
tangible manifestation of the horizontal approach. They include the 
automobile industry, construction of machine-tools, civil aviation^ textiles 
and maritime industry. 
3.4 Concentration 
The multisectoral horizontal approach combines positively with 
concentration, which comprises four aspects: 
• Concentration in terms of undertakings: special emphasis is placed 
on small and medium-sized undertakings, including relations with 
large concerns. 
• Concentration in terms of beneficiaries: workers whose jobs are 
liable eventually to disappear or undergo great change, workers 
halfway through their working lives, and workers whose initial 
qualifications are insufficient to allow them to participate 
effectively and actively in the process of change affecting their 
sector. The point here is to target ESF measures on workers with 
less chance of getting on a training course, in a manner which 
complements undertakings' efforts. 
• Concentration in terms of action: anticipation, counselling, training 
and better training provision to accompany industrial change. 
• Concentration in terms of subject: the aim here is to address 
subjects common to several economic activities, such as adaptation 
to technological developments and changes, introduction of total 
quality, internationalisation of markets, new forms of company 
management as well as techniques and methods for increasing 
productivity. 
These different concentration criteria make it possible to identify the 
workers most affected by change and to take the most suitable measures 
to improve their ability to adapt to change and boost the competitiveness 
of undertakings by encouraging non-material investment. 
Finally, it should be emphasised that the objective of concentration is not 
to exclude other potential beneficiaries - workers or undertakings - from 
the measures in question. 
Emphasis has also been placed on strengthening technical assistance, 
particularly for small and medium-sized businesses. 
Finally, co-financed measures must have a complementary effect 
alongside efforts already made by firms and public authorities in this 
domain. 
THE SALIENT FEATURES OF THE PROGRAMMING DOCUMENTS 
The measures envisaged with a view to implementing Objective 4 are set against 
four priorities which are common to the various programming documents. 
In accordance with the current Structural Fund regulations, these are as follows: 
- anticipation of labour market trends and vocational qualification 
requirements; 
- vocational training and retraining, guidance and counselling; 
- improvement and development of appropriate training systems; 
- technical assistance or horizontal measures relating to the CSF as a whole. 
Within this common framework of priorities the Member States, in partnership 
with the Commission, have designed series of measures to implement Objective 4. 
These measures reflect the genera] principles of Objective 4 and the specific 
circumstances in each Member State. 
The main aspects of these programming documents are set out below, in relation 
to the four priorities. 
4.1 Anticipation 
This is a question of anticipating labour market trends and needs in terms 
of skills and qualifications. The anticipation dimension is characterised by 
the fact that it recurs throughout the programming process, and must 
prepare the way for counselling, guidance and worker training measures, 
as well as back-up and adaptation measures relating to the training 
structures at the appropriate level. 
Measures to be adopted here include both prospective studies and activities 
at various levels (national, regional, sectoral, group and undertaking) and 
application of these results and anticipation practices in businesses. 
The manner in which this priority is taken into account varies from one 
Member State to another, in terms of the relative level of financial 
resources allocated to it (between 10% and 17% of the total for 
Objective 4), the approach envisaged and the existing structures. 
- cases where structures permitting anticipation exist: measures are 
designed to enhance the awareness of those concerned -
undertakings, training establishments and workers - of the 
importance of such an approach and of the use of the results to 
define training measures; 
- cases where such structures exist, but need reinforcing before 
dissemination and use of the results by the actors involved; 
cases where structures do not exist or are completely inadequate, 
necessitating a special effort at the beginning of the programming 
period in order to set up appropriate structures, possibly at the 
same time as a continuing training system. 
4.2 Training 
The training priority is concerned with the development of the training 
effort and with guidance and counselling, the aim being to prevent 
exclusion from the labour market of the workforce of companies affected 
by industrial change and changes in organisation systems and to train staff 
likely to be one of the key elements of increased competiveness of 
European companies. 
These measures are intended to stabilise employment by making it easier 
for workers to change jobs within undertakings and, where redundancies 
are unavoidable, by providing workers with qualifications so as to improve 
their employability in other undertakings and sectors. 
The financial resources allocated to this priority vary between 52% and 
83% of the total available under the various programming documents. 
In all prograrnming documents an attempt is made to concentrate measures 
on the workers under threat of unemployment and on the workforce and 
management of small and medium-sized undertakings. 
Workers under threat of unemployment are basically identified in two 
ways: 
- through their particular situation in terms of inadequate 
qualifications or a vulnerable situation on the labour market which 
reduces their chances of gaining access to training (fixed-term 
contract, involuntary part-time work); 
- through the type of job they exercise, in that certain jobs are likely 
to disappear or be significantly be affected by organisational 
changes with an across-the-board impact on a number of economic 
sectors. The approach is thematic rather than based on target 
groups. 
The concept of "worker under threat of unemployment" does not therefore 
correspond to a predefined socio-economic profile, but is seen in terms of 
the need for reorganisation within undertakings. 
The emphasis on small and medium-sized undertakings covers not only 
workers under threat of unemployment, but also management and staff. 
Workers' access to training operations is improved by measures involving 
training, counselling and boosting awareness of the importance of human 
resource management. 
Other workers and undertakings are not excluded from such operations, as 
long as they comply with the objectives of adaptation. 
As for the actual content, measures include refresher courses, general or 
specialised technical training, market or quality-related training schemes, 
preparation of skills balance-sheets, and personalised guidance and follow-
up for workers. Examples of the fields covered by training measures are 
new forms of work organisation, technological change, new production 
processes, environmental constraints and productivity improvements. 
In this context, Member States have drawn up proposals concerning, 
firstly, improvement of basic and multi skills enabling enterprises to 
develop their capacity to react to changing situations by this flexibility of 
the workforce and, secondly, the promotion of new multi-discipline 
qualifications linked to the introduction, exploitation and development of 
new technologies and production techniques, to reorganisation of 
production and to distribution systems. 
The programming documents also provide for training measures addressing 
the necessity for SMEs to adapt to new forms of cooperation with big 
companies, particularly in the context of sub-contracting. In addition there 
are 're-cycling' measures enabling workers affected to keep their job or 
facilitate their reintegration into suitable jobs. 
4.3 Improvement of training systems and structures 
The improvement of training systems and structures is intended to achieve 
a balance between the training courses on offer and the needs of the 
persons concerned. 
Depending on the Member State, between 5% and 30% of resources 
available for Objective 4 are allocated to this priority. 
The content and the actors involved vary considerably between Member 
States. Activities may involve: 
- support for the creation of an in-company continuing training 
structure where one does not exist; 
- training for trainers, including company employees required to act 
as trainers; 
- investment in training tools, involving new subject matter or 
supports (distance learning); 
- development of networks between enterprises, research institutes 
and training centres to permit the rapid adaptation of training 
course contents. 
4.4 Technical assistance 1 
Technical assistance is particularly important given the novel character of 
Objective 4. It accounts for between 5% and 17% of the ESF resources 
under the various programming documents. The operations envisaged are 
horizontal in nature and cover a range of areas: 
- coordination and organisation of partnership between undertakings, 
the social partners and the authorities; 
assistance for the improvement of anticipation tools; 
publicity and dissemination of information on the results of 
measures under Objective 4; 
- assistance with the implementation of individual projects, 
monitoring and assessment. 
FINANCIAL ASPECTS 
The sums available for Objective 4 outside Objective 1 regions for the Member 
States concerned were arrived at by a three-stage procedure: 
- the overall budget available for the CSFs for Objectives 3 and 4 outside 
Objective 1 regions was fixed by the Commission on 21 November 1993 
at ECU 13 948 million for the period 1994-99 (at constant 1994 prices); 
- at the beginning of the year, the Commission undertook a provisional 
distribution of the budget for Objectives 3 and 4 amongst the Member 
States on the basis of several objective criteria in accordance with the 
conclusions of the European Council in Edinburgh; 
- in the process of planning for Objectives 3 and 4, the Member States 
divided up their financial allocations between these objectives, taking 
account of the considerations mentioned in the joint declaration by the 
Council and the Commission on Article 1 of the framework regulation. 
Over the period 1994-99 Objective 4 (outside Objective 1 regions) 
accounts, outside the United Kingdom, for an average of almost 19% of 
the total envelope for Objectives 3 and 4. 
An appropriate balance between national and regional public funding, private 
funding and Community support has been achieved. 
The ratio, which varies with the Member State and is adjusted in accordance with 
the priority and the size of the enterprises concerned, is around one-third national 
and regional public funding, one-third private funding and one-third Community 
support. 
Measures will be implemented in a manner consistent with the provisions on state 
assistance, application of which will have to be examined in the context of the 
framework on employment and training aids to be approved by the Commission. 
MONITORING AND EVALUATION PROCEDURES 
The programming documents submitted to the Commission provide for stronger 
monitoring mechanisms, in line with the arrangements made for the other 
objectives. The powers of the monitoring committees have thus been increased, 
especially with regard to interim assessments and the option to propose that certain 
activities be reinforced and/or new activities created within the CSF, inter alia by 
allocating the resources generated by annual indexing of the initial schedule. The 
principle of partnership has also been strengthened in the context of the new 
monitoring committees. 
Emphasis must be placed in this regard on the vital role of the social partners, 
who should contribute jointly to the development of measures to permit the 
anticipation of industrial change. 
Most programming documents (SPDs and CSFs) have been established for the 
period 1994-1996. Assessment of this initial period, which will take place at the 
halfway stage of implementation of the second reform of the Structural Funds, 
will be able to take account of aspects such as the data, experience and evaluations 
under the LEONARDO action programme and the Community's ADAPT 
initiative. 
THE FORM OF PROGRAMMING DOCUMENTS 
The programming documents for Objective 4 outside the Objective 1 regions have 
been approved in principle for eight Member States. In the case of the three 
Member States covered exclusively by Objective 1 (Greece, Ireland and Portugal), 
action under Objective 4 is covered by the programming documents adopted for 
Objective 1. The United Kingdom has not put forward a plan for Objective 4. The 
sum allocated to the United Kingdom for Objective 3 for 1994-96 amounts to 95% 
of the total figure available for that country under Objectives 3 and 4. As regards 
the form of documents, it should be noted that these are Single Programming 
Documents for all the Member States except Belgium, which has opted for a 
Community Support Framework. 
CONCLUSIONS 
Generally speaking, the programming documents translate well the aims and 
priorities of Objective 4 and constitute the first stage in the implementation of 
measures in the Member States. 
10 
In the course of the following stages and throughout the programming period the 
need for more in-depth action relating to a number of major points should form 
the basis for specific measures, as well as representing priorities for the work of 
the new monitoring committees: 
- anticipation of employment and qualifications must take place at the 
various levels of economic activity (national as well as regional, local and 
company) and must involve all economic and social players. "Forward 
management of employment at company level" and "prospective 
employment policy at other appropriate levels" are also part of the panoply 
of job creation means identified by the social partners;3 
- the "bottom-up" approach must be developed in a dynamic manner and 
must be reflected above all in concrete procedures for designing and 
selecting projects; 
- consultation of the enlarged partnership has taken place in principle in 
conjunction with the preparation of national plans for Objective 4. Such 
consultations must be continued and developed throughout the 
implementation period, taking account of the specific features and 
institutional practices of the Member States, in such a way as to ensure a 
broad consensus among all those involved in operations. 
In this context, the effective joint contribution of the social partners should 
be improved and developed. Consequently, the Commission will examine 
with the social nartners the modalities of an European wide level 
mechanism which will ensure this contribution. More precisely, meetings 
and seminars will be arranged, both at national and European level, to 
explore relevant aspects of the implementation of objective 4. Finally, a 
conference will be arranged at an EU level in 1995. 
- an attempt to achieve positive interaction with other national and 
Community policies such as vocational training and industrial 
competitiveness is a necessary condition if the anticipated multiplier effect 
of structural measures is to be achieved. 
See joint opinion of 13 February 1990 on the creation of a European vocational and geographical 
mobility area and the improvement of the operation of the European labour market, point 12 in 
European Social Dialogue, "Joint Opinions", documentary series, Commission of the European 
Communities. 
11 
N 
t 
Objective 4. Distribution of EFS resources by country and by priority axis 1994-1996 
Anticipation 
Training 
Training systems 
Technical Assistance 
TOTAL Belgium 
8.3 (33%) 
8.7 (34%) 
6.4 (25%) 
2.0 ( 8%) 
25.5 Denmark 
1.9(14%) 
6.7 (52%) 
3.9 (30%) 
0.5 (4%) 
13 Germany 
11.6(11%) 
73.6 (70%) 
13.7(13%) 
5.7 (6%) 
104.5 Spain 
36.9 (10%) 
308.4(83%) 
23.3 (7%) 
368.6 
For Spain, Italy and the Netherlands, the period covered is 1994 -1999 
The percentages for France are based on the total costs France 
32.1 (11%) 
227.8(78%) 
14.6 (5%) 
25.4 (6%) 
299.6 
For Spain and Italy, the axis training includes the improvement of training systems Italy 
56.9 (15%) 
321.8 (80%) 
19.9 (5%) 
398.7 Luxembourg 
0.09(10%) 
0.5 (57%) 
0.15 (16%) 
0.17(17%) 
0.895 in MECU 
Netherlands 
15.1 (10%) 
105.4(67%) 
23.9(15%) 
11.7(8%) 
156.2 
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ISSN 0254-1475 
COM(94) 510 final 
DOCUMENTS 
EN !3 05 
Catalogue number : CB-CO-94-546-EN-C 
ISBN 92-77-82437-9 
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