Communication from the Commission - Framework on training aid
Date: 1998-11-11
Institutions: European Commission
Subjects: aid system, aid to undertakings, employment policy, fight against unemployment, integration into employment, vocational training

C  343/10

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11.11.98

FRAMEWORK  ON  TRAINING  AID

(98/C  343/07)

(Text  with  EEA  relevance)

I.(cid:217)INTRODUCTION

improving 

finding  ways  of 

the  discussions  of 

1.(cid:217)One  of  the  major  challenges  facing  the  Community
the  employment
is 
situation.  Despite  a  gradual  upturn 
in  economic
activity,  there  are  still  around  18  million  unemployed
people  in  the  Community.  Employment  was  at  the
the  Amsterdam
centre  of 
European  Council  and  promoting  a  "high  level  of
employment’  has  become,  by 
the
Amsterdam  Treaty,  a  matter  of  common  concern  to
Member  States.  The  new  title  on  employment  which
is  to  be  inserted  in  the  EC  Treaty  requires  Member
States 
for
employment  and  for  promoting  a  skilled,  trained  and
adaptable  workforce  and  labour  markets  responsive
to  economic  change.  This  objective  of  a  high  level  of
employment  must  also  be  taken  into  consideration  in
other  Community  policies  and  activities.

to  develop  a  coordinated 

virtue  of 

strategy 

2.(cid:217)The 

in 

important  part  played  by  training,  both 

in
enhancing  the  Community’s  competitiveness  and  in
creating  and  maintaining  jobs,  was  stressed  back  in
1993  in  the  White  Paper  on  growth,  competitiveness
and  employment.  European  Councils  in  subsequent
years,  and  in  particular  those  of  Essen,  Cannes  and
Madrid,  have  encouraged  Member  States  to  promote
training  as  a  significant  competi(cid:220)
investment 
tiveness  factor  and  as  a  catalyst  of  renewed  growth
and  the  re(cid:220)establishment  of  a  socially  acceptable
special  European
level  of  employment.  At 
in  Luxembourg  on
Council  on  employment  held 
20  and  21  November  1997,  Member  States’
Governments  agreed 
the  new  Treaty
provisions  on  employment  into  effect.  The  Council
Resolution  of  15  December  1997  on  the  employment
guidelines  for  1998(cid:216)(˛)  laid  down  a  set  of  recommen(cid:220)
dations  which  will  have  to  be  given  effect  in  every
Member  State  through  national  action  plans.  The
Council  of  Cardiff  confirmed  that  approach.

to  put 

the 

3.(cid:217)Numerous  studies  have  shown  that  the  existence  of  a
skilled  workforce  is  a  major  factor  in  firms’  location

(˛)(cid:217)OJ  C  30,  28.1.1998,  p.  1.

decisions.  Training  is  therefore  important,  not  only
to  the  worker,  who  becomes  more  employable  and
less  likely  to  be  made  redundant,  and  to  the  firm,  for
which  it  is  a  performance(cid:220)enhancing  factor,  but  also
to  the  economy  of  the  regions,  a  highly  skilled
workforce  being  an  undeniable  asset  when  it  comes
to  attracting  new  investment.

the 
itself  set 

4.(cid:217)The  work  to  be  done  to  improve  the  functioning  of
the  labour  market  and  to  reduce  the  skills  gap  calls
for  a  proactive  approach  by  all  concerned:  Member
two  sides  of
States,  firms, 
individuals  and 
industry.  The  Commission  has 
in  train
various  initiatives,  both  of  a  Community  nature  and
as  a  complement  to  national  action,  in  the  training
integrate  the
sphere.  It  has  also  endeavoured  to 
training  dimension  and 
favourable  approach
thereto  into  the  other  Community  policies,  including
competition  policy.  At  the  special  European  Council
on  employment,  held  in  Luxembourg  on  20  and
21  November  1997, 
"the
Commission  will  ensure  that  the  control  of  State  aid
does  not  constitute  an  obstacle  to  labour  market
policy  measures  compatible  with  the  Treaty’.

it  was  confirmed  that 

its 

skilled 

labour 

improving 

5.(cid:217)The  measures  taken  by  Member  States  cannot  be
confined  to 
initial  training,  vocational
training  and  the  training  of  the  unemployed.  Busi(cid:220)
nesses  cannot  adapt  to  structural  and  technological
change  simply  by  making  people  redundant  and
recruiting  more 
from  elsewhere.
Preventive  policies  should  be  developed  to  encourage
workers  to  improve  their  skills  and  adaptability  and
induce  firms  to  invest  in  training  their  workforce.
Such  policies  must  seek  to  prevent  the  least  skilled
from  sliding  into  unemployment  by  ensuring,  on  the
contrary,  that  they  are  retrained  and  acquire  trans(cid:220)
ferable  skills.  The  financial  resources  needed  are
considerable  and  government  support  may  constitute
a  necessary  incentive  in  the  interests  of  the  Com(cid:220)
munity  as  a  whole.  This  is,  moreover,  one  of  the
essential  bases  of  the  support  given  by  the  Structural

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Funds  to  investment  in  human  resources  as  part  of
the  economic  and  social  cohesion  policy.

account  of  any  beneficial  effects  of  the  aid  which
may  justify  a  distortion  of  competition.

the  scope  of 

6.(cid:217)Most  public  financing  in  the  training  sphere  does  not
fall  within 
the  competition  rules.
However,  where  Member  States  introduce  financial
and  tax  incentives  to  encourage  firms  to  invest  in
training  their  workforce,  steps  must  be  taken  to
make  sure  that  those  incentives  do  not  run  counter
to  the  objectives  of  competition  policy,  seeking  as  it
does,  like  the  common  training  policy,  to  ensure
the  competitiveness  of  businesses.  It 
the
Commission,  in  pursuance  of  the  state  aid  rules  in
Articles  92  and  93  of  the  Treaty,  to  examine  training
measures  which  are  liable  to  constitute  aid  within  the
meaning  of  Article  92(1)  of  the  Treaty  and  to  ensure
that  they  are  compatible  with  the  common  market.

is  for 

7.(cid:217)Training  costs  are  increasingly  forming  part  of  the
costs  that  have  to  be  borne  by  firms  if  they  are  to
remain  competitive.  Technical  progress,  the  intro(cid:220)
duction  of  new  technologies  and  the  pace  of  change
in  the  research  and  technological  development  field
staff
mean 
continuously.  A 
is
intended  to  reduce,  for  certain  firms,  the  costs  they
normally  have  to  bear,  in  their  own  interest,  in  order
to  improve  their  employees’  skills,  confers  on  them
an  advantage  over  their  competitors  and  is  therefore
liable  to  distort  competition.

training  aid  measure  which 

firms  have 

train 

their 

that 

to 

8.(cid:217)Where  a  measure  constitutes  State  aid  within  the
meaning  of  Article  92(1),  it  must  be  notified  in  good
time  to,  and  be  approved  by,  the  Commission  before
being  implemented.  The  sole  purpose  of  this  system
is  to  ensure  that  aid  is  vetted  by  the  Commission  so
that  measures  which  cause  distortions  of  competition
contrary  to  the  common 
imple(cid:220)
mented(cid:216)(ˇ).  When  assessing  a  measure’s  compatibility
with  the  common  market,  the  Commission  will  take

interest  are  not 

(ˇ)(cid:217)On  7  May  1998  the  Council  adopted  on  the  basis  of  Article
94  of  the  Treaty,  Regulation  (EC)  No  994/98  (OJ  L  142,
14.5.1998,  p.  1)  which  empowers  the  Commission  to  exempt
from  the  prior  notification  requirement  certain  categories  of
aid  meeting  criteria  which  ensure  their  compatibility  with  the
common  market.  The  categories  of  aid  in  question  include
training  aid.

9.(cid:217)Training  usually  has  positive  external  effects  for
society  as  a  whole.  One  firm’s  expenditure  on
training  is  not  only  of  benefit  to  the  workers  who
are  trained  but  increases  the  pool  of  skilled  workers
from  which  other 
firms  may  draw.  Overall,
investment  in  training  increases  the  competitiveness
of  Community  industry  and  the  attractiveness  of  the
Community  as  a  place  in  which  to  set  up  in  business.
A  firm  will  not  take  these  secondary  effects  into
account  when  deciding  whether  to  invest  in  training,
and  it  is  possible  that  the  total  outlay  of  firms  on
training  is  lower  than  the  socially  optimum  level,
especially  since,  from  the  firm’s  point  of  view,
investment  in  training  involves  the  risk  that,  once
trained,  its  workers  might  leave  for  another  firm.
The  smaller  the  firm,  the  greater  this  risk  tends  to
be,  and  this  is  one  of  the  reasons  why  such  firms  are
unwilling  to 
is  also
proportionate  to  the  transferability  of  the  skills
acquired.  It  may  be  concluded  from  this  that  most
training  aid  measures  are  not  simply  operating  aid,
and  the  Commission  is  favourably  disposed  towards
them  to  the  extent  that  the  distortions  of  competition
to  which  they  may  give  rise  are  justified  or  counter(cid:220)
balanced  by  their  contribution  to  a  Community
objective  which  market  forces  alone  would  not  make
it  possible  to  attain.  Thus,  in  its  state  aid  policy,  the
Commission  has  generally  given  sympathetic  con(cid:220)
sideration  to  training  aid.

in  training.  The  risk 

invest 

10.(cid:217)In  order 

to  render 

the  Commission  has  drawn  up 

the  Community  control  of
training  aid  more  transparent  and  ensure  equality  of
treatment, 
this
Framework  indicating  how  it  will  assess  the  compati(cid:220)
bility  of  such  aid  whith  the  common  market.  The
criteria  set  out  herein  seek  to  ensure  that  only
training  aid  which  contributes  to  the  achievement  of
Community  objectives  is  approved,  that  such  aid
does  not  exceed  the  necessary  incentive  level,  and
that  it  does  not  amount  to  disguised  operating  aid.

11.(cid:217)This  Framework  therefore  pursues  a  number  of

objectives:

-(cid:217)to  clarify  the  interpretation  of  Articles  92  and  93
of  the  Treaty  with  regard  to  the  notion  of
legal
training  aid 

in  order  to  ensure  greater 

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11.11.98

certainty  and  transparency  in  the  light  of  the
prior  notification  requirement  in  Article  93(3),

they  afford 
acquire  such  skills.

their  employees 

the  opportunity 

to

-(cid:217)to 

the 

first 

ensure 

consistency, 

between 
the
implementation  of
competition  rules  and 
other  Community  policies,  particularly 
in  the
field  of  training  and  employment,  and  secondly
between  the  rules  on  training  aid  and  those  laid
down  for  other  types  of  aid  (notably  in  other
guidelines  or  frameworks),

-(cid:217)to 

increase  the  transparency  of  the  approach
which  the  Commission  will  follow  in  assessing
the  compatibility  of  training  aid.

the  scope  of 

12.(cid:217)Part  II  describes  the  types  of  measure  which  may
constitute  aid  as  covered  by  the  competition  rules  of
the  Treaty.  Part  III  defines 
the
Framework.  Part  IV  sets  out  the  principles  on  which
the  Commission  will  base 
its  assessment  of  the
compatibility  of  measures  constituting  aid.  In  the
light  of  these  principles,  which  make  it  possible  to
reconcile  the  objectives  of  an  active  employment
policy  with  a  level  playing  field  for  all  businesses,  the
Commission 
lays  down  a  series  of  thresholds  of
intensity  below  which  aid  may  be  considered  to  be
compatible  with 
common  market.  The
differences  between  the  thresholds  proposed  reflect
the  different  degrees  of  externality  and  necessity  of
the  aid  according 
the
the 
training,  the  size  of  the  firm  and  the  area  in  which  it
is  situated.

transferability  of 

the 

to 

II.(cid:217)SCOPE  OF  ARTICLE  92(1)  OF  THE  EC  TREATY

13.(cid:217)This  Framework  concerns  only  measures 

threatens 

falling
within  the  scope  of  Article  92(1)  of  the  EC  Treaty,
which  provides  that  "any  aid  granted  by  a  Member
State  or  through  State  resources  in  any  form  what(cid:220)
to  distort
soever  which  distorts  or 
competition  by  favouring  certain  undertakings  or  the
production  of  certain  goods  shall,  in  so  far  as  it
affects  trade  between  Member  States,  be 
incom(cid:220)
patible  with  the  common  market’.  The  aid  covered
by  this  Framework  is  that  which  favours  one  or
more  firms  or  sectors  of  industry  by  reducing  the
costs  they  would  normally  have  to  bear  when  they
want  their  employees  to  acquire  new  skills  or  when

14.(cid:217)Being  general  measures,  many  training  measures  are
not  caught  by  Article  92(1)  of  the  Treaty.  Most
training  forms  part  of  the  tasks  traditionally  carried
out  by  the  State  and  by  and  large  benefits  people
and  workers  everywhere.  The  financing  by  the  State
of  this  sort  of  training  does  not  favour  certain
undertakings  or  the  production  of  certain  goods
within  the  meaning  of  Article  92(1).  The  decision(cid:220)
making  practice  of  the  Commission  and  the  case(cid:220)law
of  the  Court  of  Justice  illustrate  in  what  circum(cid:220)
stances  a  measure  is  in  the  nature  of  a  "general
measure’  and  is  accordingly  excluded  from  the  scope
of  Article  92(1)  of  the  Treaty.  Examples  are:

-(cid:217)schooling  and  initial  training  (such  as  appren(cid:220)

ticeships  and  day  release  schemes),

-(cid:217)the  training  or  re(cid:220)training  of  unemployed  people,

including  traineeships  in  enterprises,

-(cid:217)measures  directly  targeted  at  workers  or  even  at
certain  categories  of  worker,  affording  them  the
opportunity  of  receiving  training  unconnected
with  the  firm  or  industry  in  which  they  work
(e.g.  the  "learning  account’  system),

-(cid:217)general  tax  incentive  schemes  (e.g.  tax  credits)
which  are  open  to  all  firms  investing  in  employee
training  and  apply  automatically.

15.(cid:217)In  this  connection  it  must  be  pointed  out,  however,
that  a  measure  which,  while  being  theoretically
general  in  scope,  in  practice  favours  one  or  more
firms  or  sectors  is  in  fact  specific.  This  is  the  case,
for  example,  where  the  authorities  enjoy,  when
applying  a  general  measure,  a  discretionary  power
which  allows  them  to  vary  the  amount  of  financial
assistance  according  to  the  circumstances(cid:216)(—).  Such
measures  are 
liable  to  constitute  aid  within  the
meaning  of  Article  92(1)  and  must  be  notified
pursuant  to  Article  93(3)  of  the  Treaty.

(—)(cid:217)See  the  Judgment  of  the  Court  of  Justice  of  the  European
in  Case  C(cid:220)241/94  France  v.  Commission

Communities 
("Kimberly  Clark’)  [1996(cid:129)  ECR  I(cid:220)4551.

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trade  between  Member  States 

16.(cid:217)Aid  falls  within  the  scope  of  Article  92(1)  only  in  so
far  as 
it  affects  trade  between  Member  States.
Training  aid  granted  to  firms  or  sectors  whose
activities  do  not  or  are  not  likely  to  form  the  subject(cid:220)
(for
matter  of 
example,  certain  local  services)  thus  does  not  come
under  Article  92(1).  Aid  which 
the
requirements  of  the  de  minimis  rule  as  laid  down  by
is  also  deemed  not  to  affect
the  Commission(cid:216)((cid:209)) 
intra(cid:220)Community  trade.  Consequently,  it  does  not
come  under  Article  92(1)  and  does  not  need  to  be
notified  pursuant  to  Article  93(3).

satisfies 

III.(cid:217)SCOPE OF THIS FRAMEWORK

A.(cid:217)Principles

into  effect  during 

17.(cid:217)This  Framework  applies  to  all  training  aid  measures,
notified  or  put 
its  period  of
application,  with  the  exception  of  those  taken  -  for
example  to  re(cid:220)skill  workers  -  as  part  of  the  rescuing
and  restructuring  of  firms  in  difficulty,  which  will  be
assessed  in  accordance  with  the  relevant  Commission
guidelines(cid:216)((cid:210)).  As  regards  small  and  medium(cid:220)sized
enterprises,  this  Framework  accordingly  replaces  the
provisions on training aid contained in the Community
guidelines  on  State  aid  for  small  and  medium(cid:220)sized
enterprises(cid:216)((cid:211)) currently applying.

18.(cid:217)In  principle,  this  Framework  covers  all  sectors  of
industry.  However,  for  sectors  considered  sensitive  by
special
for  which 
the  Commission 
Community  rules  on  aid(cid:216)((cid:212)),  this  Framework  applies

there  are 

((cid:209))(cid:217)OJ C 68, 6.3.1996, p. 9.
((cid:210))(cid:217)The guidelines on State aid for rescuing and restructuring firms
in  difficulty  currently  in  force  are  those  set  out  in  OJ  C  368,
23.12.1994,  p.  12.  For  agriculture  and  fisheries:  OJ  C  283,
19.9.1997, p. 2.

((cid:211))(cid:217)OJ C 213, 23.7.1996, p. 4.
((cid:212))(cid:217)This is currently the case with shipbuilding, synthetic fibres, the
motor  industry,  fisheries,  the  steel  industry  and  transport.  As
regards  agriculture,  the  framework  does  not  apply  to  the
sectors  concerned  with 
the  production,  processing  and
marketing of agricultural products (Annex II to the EC Treaty).
The  framework  does  not  apply  to  the  coal  and  steel  industry
which  is  covered  by  the  ECSC  Treaty.  However,  it  should  be
noted that the Decisions of the Commission of 24 June 1994 on
the suspension of funding for certain ECSC social aid continues
to  apply  until  the  expiry  of  the  ECSC  Treaty  (OJ  C  178,
30.6.1994, p. 21).

only in so far as there is no conflict between the two. It
nonetheless applies fully to the air transport sector.

19.(cid:217)This  Framework  applies  to  training  aid  whether  the
training be provided by firms themselves or by public or
private training centres.

B.(cid:217)Connection with employment aid

20.(cid:217)Training  aid  as  referred  to  in  this  Framework  must  be
distinguished  from  employment  aid,  the  compatibility
of  which  with  the  common  market  must  be  assessed
light  of  the  pertinent  guidelines(cid:216)((cid:213)).  Some
in  the 
employment  aid  measures  may  be  justified  to  some
extent by the fact that, when it takes on certain workers,
the  assisted  firm  has  to  bear  additional  training  costs.
This  is  the  case,  for  example,  with  aid  designed  to
encourage  the  hiring  of  certain  categories  of  unem(cid:220)
ployed  people  who  experience  particular  difficulty  in
entering  the  labour  market.  Where  the  purpose  and
direct effect of such aid is to stimulate employment by
giving  the  employer  a  financial  incentive  to  recruit
people he would not otherwise have recruited, the aid is
to be considered purely as employment aid. Training is
a  secondary  consideration  here,  just  one  aspect  of  the
recruitment process that is being assisted. In such a case,
moreover, it is often impossible to say which part of the
total aid package has been earmarked for training and
separate  it  from  the  rest.  Even  if  it  includes  a  training
component,  employment  aid  will 
therefore  be
examined as such. If an aid scheme is involved, Member
States may continue to use for notification purposes the
standard  form  for  employment  aid,  which  contains  a
section on training(cid:216)((cid:214)).

scope  of 

21.(cid:217)Only aid which is not linked to investment falls within
the  employment  aid  guidelines.
the 
Consequently,  where  investment(cid:220)linked  employment
aid contains a training component, that component will
be  examined  separately  on  the  basis  of  the  present
framework.

((cid:213))(cid:217)The  employment  aid  guidelines  currently  in  force  being  those

set out in OJ C 334, 12.12.1995, p. 4.

((cid:214))(cid:217)OJ C 218, 27.7.1996, p. 4.

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IV.(cid:217)ASSESSMENT CRITERIA FOR TRAINING AID

work place. Its transferability to other firms or other
fields of work is very limited,

A.(cid:217)General principles

22.(cid:217)In certain circumstances, training aid prohibited under
Article  92(1)  may  qualify  for  one  of  the  exemptions
provided for in Article 92(3).

23.(cid:217)The main ground for exemption is that provided for in
Article  92(3)(c),  by  virtue  of  which  the  Commission
may  authorise  aid  to  facilitate  the  development  of
certain  activities  where  it  does  not  adversely  affect
trading conditions to an extent contrary to the common
interest.  Measures  to  improve  the  skills  of  a  firm’s
workforce  help  to  increase  that  firm’s  competitiveness
and  in  so  doing  facilitate  the  development  of  certain
activities.  Training  plays  an  essential  part  in  intro(cid:220)
ducing  new  technologies  and  stimulating  innovation
and investment. It may also help to create and maintain
jobs.  Training  aid  may  thus  fall  within  the  exemption
provided for in Article 92(3)(c).

24.(cid:217)The  main  argument  in  favour  of  training  aid  is  that  it
helps  to  correct  certain  imperfections  in  the  market.
This is particularly the case with vocational training as
it has numerous external effects. The importance of the
externalities of training is linked primarily to the trans(cid:220)
ferability  of  the  skills  and  qualifications  training
imparts.  The  Commission  accordingly  considers  that
a  more  favourable  attitude 
justified  vis(cid:220){(cid:220)vis
continuing  vocational  training  schemes  which  to  a
substantial extent actually benefit workers more than is
strictly  necessary  for  the  purpose  of  their  jobs  and  do
not simply meet the specific needs of the firm.

is 

25.(cid:217)In  this  connection,  the  Commission  will  draw  a
distinction  between  specific  training  and  general
training  actions:

-(cid:217)General  training  includes  tuition  which  is  not
applicable  only  or  principally  to  the  employee’s
present  or  future  position  in  the  assisted  firm.  It  is
linked  to  the  overall  activities  of  the  firm  and
provides  qualifications  which  are  largely  trans(cid:220)
ferable to other firms or other fields of work.

to  other 

transferable 

The latter equip the workers concerned with additional
skills  directly 
firms.  They
therefore effectively improve such workers’ skills level,
employability and adaptability and thus make a bigger
contribution 
the  achievement  of  Community
objectives  in  the  fields  of  employment  and  human
resource  development.

to 

26.(cid:217)Among  the  criteria  to  determine  the  transferability  of
the  skills  acquired  through  the  training,  the  following
can be mentioned as examples:

the  Community  has  conferred 

-(cid:217)Recognition,  certification  or  validation  of  qualifi(cid:220)
cations and skills by public authorities or bodies or
by other bodies or institutions on which a Member
the
State  or 
necessary  powers.  Training  leading  to  a  diploma,
certificate,  etc.,  recognised  by  a  Member  State  or
within  the  framework  of  systems  for  the  certifi(cid:220)
cation  and  validation  of  work  experience 
is
presumed to be of a general nature,

-(cid:217)The fact that employees of different firms may avail
themselves  of  the  training  or  it  is  organised  jointly
by a number of independent firms.

In  this  regard,  it  should  be  noted  that  in(cid:220)company
training,  even  if  it  directly  responds  to  the  contem(cid:220)
porary  needs  of  the  company,  can  have  a  transferable
character,  if  the  skills  it  provides  are  largely  trans(cid:220)
ferable.

-(cid:217)Specific  training  involves  theoretical  and  practical
tuition  directly  and  principally  applicable  to  the
employee’s present or future position in the assisted
firm. It is linked to a specific activity of the firm. Part
of  the  training  is  normally  given  at  the  employee’s

27.(cid:217)To approve an aid under Article 92(3)(c) of the Treaty,
the  Commission  must  ensure  that  the  aid  does  not

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adversely  affect  trading  conditions  to  an  extent
contrary  to  the  common  interest.  To  qualify  for
exemption  under  this  provision,  a  State  aid  must
therefore  have  an 
incentive  character  and  be
proportionate  to  the  objectives  of  common  interest  it
aims to achieve. The latter condition is considered to be
fulfilled  if  the  intensity  of  the  aid  does  not  exceed  the
thresholds defined in point 32.

within  Article  92(3)(c).  Finally,  as  far  as  general
training is concerned, the incentive effect can always be
presumed, given the important externalities of this type
of training. On the other hand, where the worker being
trained  is  required  by  contract  to  compensate  his
employer  if  he  leaves  the  firm  before  a  certain  period
has  elapsed,  the  positive  externalities  will  be  reduced
and  the  Commission  will  consider  that  a  training  aid
measure is in principle unjustified.

28.(cid:217)To determine the incentive effect, the Commission will
consider  whether  training  aid  has  the  effect  of
encouraging  firms  to  do  more  in  the  way  of  training
than  they  would  normally  do  or  to  spend  more  than
they would normally spend on training. An aid measure
which  relates  to  a  firm’s  normal  operating  costs
(standard  induction  courses  for  new  recruits  and  so
forth),  being 
reduce  either
continuously  or  periodically  the  costs  which  the  firm
normally has to bear, is not an incentive and cannot as a
rule  be  approved.  The  incentive  effect  will  have  to  be
demonstrated  if  aid  for  specific  training  is  awarded  to
big  enterprises  outside  areas  assisted  under  Article
92(3)(a)  or  (c).  In  all  other  cases,  the  incentive  effect
will be presumed for the reasons set out in point 29.

intended 

solely 

to 

29.(cid:217)Statistics  show  that  there  is  a  direct  link  between  a
firm’s size and the probability that its employees receive
training(cid:216)(˛˝).  In  general,  the  percentage  of  workers
attending a training course increase with the size of the
firm.  In  view  of  the  substantial  under(cid:220)investment  in
training in small and medium(cid:220)sized enterprises(cid:216)(˛˛) , the
Commission  considers  that  in  this  case  training  aid
always has an incentive effect and that higher intensities
are  authorisable.  In  those  areas  where  the  standard  of
living is abnormally low or where there is serious under(cid:220)
employment (Article 92(3)(a)), the incentive effect will
also  be  presumed,  even  for  large  enterprises,  owing  to
the relatively greater external impact training may have
there.  It  is  in  such  areas  that  expenditure  on  training
and  the  level  of  skills  are  the  lowest(cid:216)(˛ˇ)  and  that  the
common  interest  in  raising  that  level  with  a  view  to
improving  the  employment  situation  and  attracting
new 
in
allowable 
justified.
Inasmuch  as  the  training  and  re(cid:220)training  of  workers
also  plays  an  important  part  in  industrial  adjustment,
the  same  approach  is  justified  for  the  areas  falling

is  the  strongest.  An 

therefore  also 

investment 

intensities 

increase 

is 

B.(cid:217)Eligible costs

30.(cid:217)Eligible  costs  in  the  context  of  a  training  aid  project

are(cid:216)(˛—):

1.(cid:217)trainers’ personnel costs;

2.(cid:217)trainers’ and trainees’ travel expenses;

3.(cid:217)other current expenses (materials, supplies, etc.);

4.(cid:217)depreciation  of  tools  and  equipment,  to  the  extent
that they are used exclusively for the training scheme
in question;

5.(cid:217)cost  of  guidance  and  counselling  services  with

regard to the training project;

6.(cid:217)trainees’  personnel  costs  up  to  the  amount  of  the
total  of  the  other  eligible  costs  referred  to  in  (1)
to (5).

The  eligible  costs  must  be  supported  by  documentary
evidence,  transparent  and  itemised.  Under  trainees’
personnel costs referred to in (6) only the hours during
which  the  trainees  effectively  participated 
in  the
training, after deduction of any productive hours or of
their equivalent, may be taken into account.

(˛˝)(cid:217)Eurostat, Statistics in Focus, Population and social conditions,

1996, No 7, Table 2.

(˛˛)(cid:217)See  the  Commission  Recommendation  of  3  April  1996
concerning the definition of SMEs (OJ L 107, 30.4.1996, p. 4).
(˛ˇ)(cid:217)Eurostat, Statistics in Focus, Population and social conditions,

1996, No 7, Figure 1.

(˛—)(cid:217)The  Commission  will  ensure  that  in  practice  the  definition  of
eligible costs is coherent with the rules establishing eligibility of
expenditure  under  the  Structural  Funds,  as  defined  in  the
Commission Decision of 23 April 1997 (OJ L 146, 5.6.1997).

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C.(cid:217)Authorised intensities

31.(cid:217)Training  aid  is  authorisable  under  Article  93(3)  of
the  Treaty  if  it  complies  with  the  following  permiss(cid:220)
ible intensities in relation to eligible costs as defined in
point 30.

32.(cid:217)The  admissible  intensity  is  50(cid:216)%  for  general  training
projects  and  25(cid:216)%  for  specific  training  projects.  It  is
increased  by  10  points  (specific  training)  or  20  points
(general  training)  for  SMEs  and  by  five  points  for
assisted  areas  under  Article  92(3)(c)  and  10  points  for
assisted  areas  under  Article  92(3)(a).  This  gives  the
following  result:

Large firms

Specific
training

General
training

outside an assisted area

in an Article 92(3)(c) area

in an Article 92(3)(a) area

25

30

35

50

55

60

SMEs

Specific
training

General
training

outside an assisted area

in an Article 92(3)(c) area

in an Article 92(3)(a) area

35

40

45

70

75

80

34.(cid:217)Training  aid  measures  may  be  cumulated  only  within
the limits of the intensities indicated in points 32 and 33.

V.(cid:217)NOTIFICATION AND EXISTING SCHEMES

35.(cid:217)Measures  identified  in  this  document  as  not  consti(cid:220)
tuting state aid caught by Article 92(1) of the Treaty do
not  need  to  be  notified  to  the  Commission.  However,
all training aid schemes and all ad hoc training aid cases
which fall outside authorised schemes and do not fulfil
the conditions of the de minimis rule must be notified to
the  Commission,  pursuant  to  Article  93(3)  of  the
Treaty,  in  sufficient  time  to  enable  it  to  submit  its
comments  on  their  compatibility  with  the  common
market.

is 

published, 

36.(cid:217)This  Framework  is  without  prejudice  to  schemes
already  authorised  by  the  Commission  when  the
including  measures
Framework 
co(cid:220)financed  by  the  Structural  Funds.  The  Commission
will, however, review such schemes pursuant to Article
93(1) of the Treaty. In this connection the Commission
proposes  to  Member  States  as  an  appropriate  measure
within the meaning of Article 93(1):

-(cid:217)that they should notify to it is from 1 January 1999
any  plan  to  grant  aid  under  an  approved  scheme
where  the  amount  of  aid  to  any  one  firm  exceeds
ECU  2,5  million  gross  grant  equivalent  over  a
period of three years; and

-(cid:217)that  they  should  notify  to  it  all  existing  schemes
which do not expire before 31 December 1999.

37.(cid:217)If  Member  States  do  not  accept  the  appropriate
measures proposed, the Commission will be obliged to
initiate proceedings under Article 93(2) of the Treaty.

VI.(cid:217)DURATION AND REVIEW OF THIS FRAMEWORK

33.(cid:217)The intensities mentioned in point 32 can be increased
by  10  points  when  the  beneficiaries  of  the  training  are
categories  of  disadvantaged  workers  (low  skilled
workers,  handicapped  persons,  older  workers,  women
returning to the labour market and so forth).

38.(cid:217)The Commission will use this Framework as a basis for
assessing training aid for a period of five years from the
date  of  its  publication.  Before  that  period  expires,  the
provisions  of  this  Framework  will  be  evaluated  and,  if
necessary,  revised.