Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions -  Implementing the Lisbon Community Programme for Growth and Jobs - Transfer of Businesses - Continuity through a new beginning
Date: 2006-03-14
Institutions: European Commission
Subjects: EU programme, European Employment Strategy, aid to undertakings, business policy, family business, financing, public awareness campaign, small and medium-sized enterprises, tax system, transfer of businesses

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.03.2006 
COM(2006) 117 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE EUROPEAN 
ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE 
REGIONS 

Implementing the Lisbon Community Programme for Growth and Jobs 

Transfer of Businesses – Continuity through a new beginning 

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TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

1.3. 

Introduction .................................................................................................................. 3 

One third of European enterprises are facing a transfer............................................... 3 

Transfers foster the entrepreneurial spirit .................................................................... 3 

Not all businesses can be transferred … ...................................................................... 4 

1.4.  … but successful transfers offer a great potential for growth and jobs ....................... 4 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

2.7. 

2.8. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

Member States’ implementation of the 1994 recommendation ................................... 4 

Progress not sufficient.................................................................................................. 4 

Not enough is done to raise awareness for business transfers ..................................... 6 

Financial environment often not conducive to business transfers ............................... 6 

No major problems for restructuring a business to prepare a transfer ......................... 7 

Today it is easier to organise small companies as limited companies ......................... 7 

Continuity of partnerships can be ensured by partnership agreement ......................... 8 

Inheritance taxes abolished or reduced in many countries........................................... 8 

Not many tax reliefs for a sale to third persons available ............................................ 8 

Recommendations for future work............................................................................... 9 

Give political attention to both business transfers and start-ups.................................. 9 

Provide adequate financial conditions ......................................................................... 9 

Raise awareness, consider soft factors and support mentoring.................................... 9 

Organise transparent markets for business transfers.................................................. 10 

Ensure that tax systems are transfer-friendly ............................................................. 10 

Create the appropriate structures to broadly implement the recommendations......... 10 

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1. 

INTRODUCTION 

1.1. 

One third of European enterprises are facing a transfer 

In  February  2005  the  European  Commission  reaffirmed  its  commitment  to  the  Lisbon 
partnership  for  growth  and  jobs1  and  in  November  2005  launched  a  comprehensive  policy 
framework for SMEs which explicitly recognised the importance of business transfers.2  

Europe’s population is ageing and the potential for business transfers is increasing. One third 
of EU entrepreneurs, mainly those running family enterprises, will withdraw within the next 
ten  years.  According  to  estimates  this  could  affect  up  to  690,000  small  and  medium-sized 
enterprises and 2.8 million jobs every year.3 Business transfers are complex and all too often 
they go wrong, not because the business as such is not viable but just because of problems in 
the transfer phase. In order to increase Europe’s competitiveness the economic environment 
and support measures for business transfers needs to be improved. 

The  importance  of  business  transfers  is  also  underlined  by  national  data.  For  Germany  a 
transfer  volume  of  around  354,000  companies  is  expected  over  the  next  five  years.4  For 
France the transfer potential is estimated around 600,000 enterprises for the next decade.5 For 
Italy a transfer potential of 40% of all companies for the next decade has been forecasted.6 In 
Austria 23% of all businesses will undergo a transfer in the period 2004-2013.7 In Sweden 
between 45,000 and 50,000 enterprises with employees are expecting a generation change in 
the next decade.8 The United Kingdom Small Business Service identified one third of SME 
owners  as  vulnerable  to  age-related  transfer  failure.9  Despite  the  lack  of  fully  comparable 
data,  the  available  information  suggests  that  the  phenomenon  is  of  great  importance  for  the 
whole of Europe. 

1.2. 

Transfers foster the entrepreneurial spirit 

In the past businesses were usually transferred inside the family and mostly these transitions 
went smoothly. Family businesses conserve a certain entrepreneurial spirit inside the society 
and  provide  a  natural  incubator  for  young  entrepreneurs.  In  general,  family  businesses  with 
their long-term orientation provide an important element of stability to our economies and are 
the source of a wealth of genuine corporate social responsibility-practices. 

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European  Commission  (2005),  Working  together  for  growth  and  jobs.  A  new  start  of  the  Lisbon 
strategy, Communication to the European Spring Council, COM(2005)24. 
European Commission (2005), Implementing the Lisbon Programme. Modern SME Policy for Growth 
and Employment, COM(2005)551. 
Extrapolations  from  the  BEST-project  report  on  the  transfer  of  small  and  medium-sized  enterprises, 
2002. 
Institut für Mittelstandsforschung, Bonn, 2005. 
Vilain (2004), La transmission des PME artisanales, commerciales, industrielles et de services, avis et 
rapport du conseil économique et social. 
European Seminar on the Transfer of Businesses, Vienna 23 and 24 September 2002, Final Report. 
Mandl, (2004), Business transfer and successions in Austria, Proceedings of the 27th Institute for Small 
Business Affairs National Conference. 
Generationsskiften 
generationsskiften företag, 2004.  
Passing the baton – encouraging successful business transfer – Evidence and key stakeholder opinion, 
2004. 

företag  –  Problemanalys  av  vilka  effekter 

förväntas  av  kommande 

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Yet, due to a wider accessibility of education today’s young generation has broader options 
than  that  of  continuing  a  family  business.  Moreover,  parents  have  fewer  children  and 
therefore businessmen have a lower chance of finding successors within the family, especially 
since  the  increased  competitive  environment  requires  higher  managerial  and  entrepreneurial 
skills. In this situation it is particularly worrying that daughters are still often overlooked as 
potential successors by (usually male) business owners.10 

1.3. 

Not all businesses can be transferred … 

There is no contradiction between a certain death rate of old firms and their replacement by 
new  companies  and  an  expanding  innovating  economy.  Not  every  business  is  transferable. 
The  transfer  of  a  business  is  a  particular  problem  in  shrinking  economic  sectors  or  sectors 
undergoing  structural  changes.  Moreover,  a  transfer  is  more  difficult  for  smaller  businesses 
and for businesses where the incumbent owner plays a dominant role.  

In the future we will see more transfers to third parties. Yet, finding a successor outside the 
family  is  not  easy.  The  age  group  most  active  in  setting  up  businesses  will  shrink  over  the 
next  decades.  Besides  only  less  than  half  of  the  Europeans  want  to  be  self-employed,  the 
majority preferring being an employee. And despite the advantages of taking over a business 
(existing production structure, customer network, established name etc.) even those interested 
in an entrepreneurial career prefer to start a new business. 

1.4.  … but successful transfers offer a great potential for growth and jobs 

Where businesses fail only because of problems in the transfers phase economic capital such 
as knowledge, established contacts and other intangible assets is destroyed, jobs are lost and 
economic  growth  is  reduced.  The  failure  to  transfer  competitive  businesses  is  particularly 
damaging  in  regions  that  already  suffer  from  economic  decline  or  rural  places  where  the 
disappearance of single companies may disrupt the economic tissue.  

More  successful  business  transfers  will  have  immediate  beneficial  effects  for  Europe’s 
economy. Existing companies conserve on average five jobs whereas a start-up generates on 
average two jobs.11 Moreover, the success rate of transfers is higher than that of start-ups. 

This  communication  reminds  Member  States  of  the  importance  of  adequate  conditions  for 
business transfers. It reports on past and present efforts by the European Commission and the 
Member States to facilitate business transfers and highlights some good practices. Moreover, 
the communication draws conclusions on what remains to be done by Member States and the 
European Commission to ensure more successful business transfers in the future. 

2. 

MEMBER STATES’ IMPLEMENTATION OF THE 1994 RECOMMENDATION 

2.1. 

Progress not sufficient 

In  its  communication  of  July  1994  the  European  Commission  identified  four  typical 
problems  of  transfers:  (1)  Ensuring  continuity  of  partnerships  and  sole  proprietorships;  (2) 

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Keese,  D.  (2002),  Geschlechtsspezifische  Nachfolgeprobleme  in  kleinen  und  mittleren  Unternehmen, 
in: Wirtschaftspsychologie, vol. 4, pp. 34-38. 
BEST-project report on the transfer of small and medium-sized enterprises, May 2002. 

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Preparation of transfers by adopting the most appropriate legal form; (3) Encourage transfers 
to third parties and (4) Help family transfers with appropriate tax measures.12 In December 
1994 the Commission published a recommendation on the transfer of small and medium-
sized enterprises13 in which it invited Member States to: 

•  Encourage initiatives to increase awareness, information and training in order to ensure a 

timely preparation of business transfers. 

•  Provide a financial environment conducive to business transfers. 

•  Provide legal possibilities to restructure a business to prepare a transfer. 

•  Establish legal principles that ensure continuity of partnerships and sole proprietorships in 

the event of the death of one of the partners or the owner. 

•  Help the survival of businesses with appropriate inheritance and gift taxes.  

•  Facilitate the transfer of a business to third parties by appropriate tax rules. 

In 1998 the Commission encouraged Member States in a second communication to increase 
their  efforts,  in  particular  through  legislative  and  administrative  simplification,  effective  tax 
reductions  and  easier  access  to  financial  support  for  the  takeover  of  a  business.14  In  2000  a 
group  of  experts  nominated  by  Member  States  found  that  less  than  half  of  the  1994 
recommendations  had  resulted  in  concrete  measures.  The  group  recommended  increased 
efforts to create market places for transfers to third parties, the development of better training 
tools  and  more  research  on  transfer  issues.15  A  further  project  in  2002/03  confirmed  the 
insufficient  implementation  of  the  recommendations,  emphasised  that  business  transfers 
should receive the same political attention as start-ups, recommended facilitating transfers to 
third parties and asked for more measures to encourage a timely planning of transfers.16 

Today there is still room for improvements: As the annexed table shows only in about 55% of 
the areas of the 1994 recommendations measures are in place (old Member States 60%, new 
45%,  each  column  represents  a  recommendation  of  1994.)  In  the  new  Member  States  there 
appear to be more efficient solutions regarding company law issues, maybe because business 
laws  in  many  of  these  countries  were  drafted  only  recently  and  could  be  based  on  efficient 
examples. The old Member States have relatively more support measures in place, are more 
active regarding awareness-raising and provide a better environment for sales to employees.17 

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Communication  from  the  Commission  on  the  transfer  of  businesses.  Actions  in  favour  of  SMEs, 
OJ C 204, 23.7.1994, pp. 1-23.  
Commission  recommendation  on  the  transfer  of  small  and  medium-sized  enterprises,  OJ  L  385, 
31.12.1994, pp.14-17. 
Communication from the Commission on the transfer of small and medium-sized enterprises, OJ C 93, 
28.3.1998, pp. 2-21. 
BEST-project report on the transfer of small and medium-sized enterprises, May 2002. 
European Commission (2003), Final report of the MAP 2002 project, August 2003. 
These assessments have to be interpreted with some care since the effectiveness of different measures is 
not comparable. 

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2.2. 

Not enough is done to raise awareness for business transfers 

Transfer preparations are complex and time consuming and are often postponed too because 
of the pressing needs of the daily operation of the businesses. Especially business founders, 
sometimes procrastinate with their transfer planning for fear that giving up the control of the 
business will impair their social status and their role in their family. 

About  one  half  of  EU-countries  introduced  measures  for  raising  awareness  or  have 
institutions that provide information and training for business transfers (table, column 2). But 
given  the  central  importance  of  this  issue  more  needs  to  be  done.  Such  measures  will  be 
particularly successful if they are targeted at individual companies as in the Netherlands and 
in  Austria  where  chambers  of  commerce  sent  letters  emphasising  the  need  of  a  timely 
transfer preparation to business owners over a certain age. 

Likewise  it  is  necessary  to  increase  the  awareness  among  potential  new  entrepreneurs  that 
taking over an existing business can be in many cases a good alternative to starting a new one.  

2.3. 

Financial environment often not conducive to business transfers 

A transfer generally requires more financial funds than a start-up since not only the material 
and  financial  assets  have  to  be  paid  for  but  also  the  relations  with  clients,  suppliers,  trade 
reputation, expectations of future returns etc. Financial facilities designed for start-ups are not 
always sufficient to finance a transfer. 

Where  a  small  business  is  transferred  to  a  private  person  or  another  small  business  there  is 
often no major collateral and repayment of the transfer related debt solely depends on the cash 
flow  of  the  business.  A  thorough  assessment  of  the  company’s  situation  is  thus  necessary 
which creates relatively high transaction costs. The costs and risks are, especially for smaller 
companies, often considered by banks as unfavourable in relation to the financing volume. 

For medium sized businesses the appropriate financing solution will often be a mix of equity, 
mezzanine finance and debt, taking into account the interests of the concerned parties and the 
repayment  limits  of  the  business.  Sometimes  a  tailor  made  solution  is  not  found  in  time  to 
maintain  a  viable  enterprise.  The  Commission  proposed  through  the  new  programme  for 
competitiveness  and  innovation  to  support  the  direct  provisions  of  quasi  equity  (mezzanine 
finance)  and  a  guarantee  to  share  the  risk  of  such  transactions.  Moreover,  the  Commission 
initiative “Joint European Resources for Micro to Medium Enterprises” will help authorities 
responsible for cohesion programmes to bridge gaps in the provision of financial engineering. 

To help finance transfers in Belgium and Luxembourg interest reduced loans are offered, in 
Denmark,  France  and  Austria  loan  guarantees  exist  which  decrease  the  risk  premium.  In 
Ireland  tax  reliefs  for  investment,  including  business  transfers  are  available.  More  indirect 
measures  are  consultancy  services  and  databases  operated  by  banks  that  help  to  better 
estimate the value of a business. Of the EU25 countries less than half provide some direct or 
indirect financial assistance targeted at promoting business transfers (table, column 3). Tailor 
made  measures  for  transfers  are  rare;  usually  support  for  start-ups  can  also  be  used  for 
financing transfers. 

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2.4. 

No major problems for restructuring a business to prepare a transfer 

Especially,  in  smaller  businesses  the  link  between  the  business  and  the  incumbent 
entrepreneur will often be close and thus a change of the structure has to precede the transfer. 
The transferee(s) might also feel a need to change the legal structure in order to adjust it to 
new decision making processes or a new number of owners/managers. A successful transfer is 
greatly hindered if a change in the legal structure requires winding up the business. 

In  a  large  majority  of  EU  countries  measures  allowing  for  a  change  of  the  legal  form,  in 
particular the incorporation of a business, exist (table, column 4). These provisions for a legal 
change are either explicitly incorporated in the law or follow from general legal principles. 

Legally restructuring a company can result in tax charges (e.g. capital gains tax, corporation 
tax)  or  the  payment  of  registration  fees  and  stamp  duties.  Council  Directive  90/434/EEC 
(“Merger Directive”) provides for deferral of capital gains taxation but applies only to cross-
border restructuring and not to wholly domestic restructuring operations or to a conversion of 
a sole proprietorship or partnership into a limited company. Further, the tax relief is subject to 
certain  conditions,  e.g.  the  transferred  assets  must  remain  connected  with  a  permanent 
establishment in the Member State of the transferring company. Finally, this Directive does 
not cover indirect transfer taxes such as stamp duties on the transfer of immovable property. 
These latter taxes were identified by the 2001 Company Tax Study18 as a major obstacle to 
business  restructuring,  inasmuch  as  they  may  amount  to  up  to  10%  of  the  immovable 
property’s  value.  A  relatively  large  number  of  countries  report  some  provisions  to  alleviate 
such charges in the context of a transfer (table, column 5).  

2.5. 

Today it is easier to organise small companies as limited companies 

The limited company offers several advantages for the transfer of a business. Such companies 
are  legally  independent  from  the  owner  and  do  not  cease  to  exist  when  the  owner  dies. 
Moreover, their structure makes it easy to distribute shares between heirs according to their 
share in the heritage and allows for the possibility of purchasing back shares to concentrate 
decision power and pay out heirs not interested in the business. 

For  small  enterprises  the  strictly  regulated  management  procedures  for  limited  companies 
might be too cumbersome (e.g. the requirement of a minimum number of shareholders, high 
minimum capital requirements, the need for a supervisory board, formalities regarding calling 
meetings and requirements regarding accounts, audits and reporting). Fourteen EU countries 
report special simplifications for small public limited companies (table, column 6). 

Compared to the situation at the time of the Commission recommendation it is now possible 
in most countries to establish a small business as a limited company or even as a plc with only 
one  (or  maximum  two  members)  -  a  development  which  marks  a  clear  improvement.  In 
several countries simplifications e.g. regarding accountancy have been installed, especially for 
rather small companies and for companies without generally traded shares (table, column 7). 

18 

SEC (2001) 1681, Company Taxation in the Internal Market. 

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2.6. 

Continuity of partnerships can be ensured by partnership agreement 

In general, partnerships dissolve with the death of one partner but it is generally possible to 
ensure continuity by an adequately drafted partnership agreement which will also prevail over 
the individual will of a partner in case of contradictions between the two (table, column 8). 

If a business is inherited by more than one heir there can be diverging interests as to whether 
the  business  should  be  continued  or  liquidated.  In  Latvia  and  Austria  it  appears  not  to  be 
mandatory that all heirs have to decide on the continuation of the business together, and even 
in the few countries where a majority decision appears to be sufficient certain conditions have 
to be fulfilled. In general, legal systems attach more importance to the right of the individual 
heir than to the continuity of businesses (table, column 9).  

One  way  of  ensuring  the  continuity  of  the  business  in  the  case  of  the  owner’s  death  are 
succession pacts. Although such pacts have proven useful in some countries they are still not 
permitted  in  a  relatively  large  number  of  others,  only  Spain,  France,  Latvia,  Hungary, 
Malta, Austria and Finland reported that such pacts could be concluded. 

2.7. 

Inheritance taxes abolished or reduced in many countries 

Where  inheritance  taxes  extract  liquidity  and  assets  from  businesses  their  short-term  tax 
revenues  might  be  more  than  outbalanced  by  long-term  revenue  losses  resulting  from  the 
discontinuation of businesses. Estonia, Italy, Cyprus, Slovakia and Sweden have abolished 
inheritance  taxes.  In  Spain,  Ireland  and  Finland  the  taxable  base  can  be  reduced  if  the 
transferred business is kept as a going concern for several years. In the United Kingdom the 
transfer  of  business  assets  can  be  completely  exempted  from  taxes.  Other  countries  provide 
tax free amounts or other tax reliefs. In 21 countries inheritance tax on business transfers no 
longer exists or preferential treatment is granted to reduce the tax burden (table, column 10). 

Apart  from  reductions  of  the  tax  debt,  a  drain  of  assets  might  also  be  prevented  by  the 
possibility  to  defer  the  payments  of  inheritance  taxes  and/or  spread  their  payment  over  a 
longer period of time. Such possibilities were reported by 18 countries (table, column 11). 

2.8. 

Not many tax reliefs for a sale to third persons available 

In  order  not  to  discourage  the  transfer  to  a  third  party  tax  systems  need  to  recognise  that 
taxable gains from a sale represent an increase in value that has taken place over a long period 
of  time.  Less  than  half  of  the  countries  have  introduced  solutions  to  avoid  an  exaggerated 
progressive  personal  income  taxation  of  such  gains  (table,  column  12),  e.g.  tax  exemptions 
(up to a certain threshold) in France and Ireland, reduction of tax rates (Belgium, Germany, 
Austria)  or  taper  reliefs  (United  Kingdom).  Often  these  provisions  are  subject  to  special 
conditions (minimum age of the seller, special tax treatment can only be used once). 

A transfer sale can uncover taxable reserves. Only a few countries provide for special income 
tax  reliefs  in  cases  where  the  proceeds  of  a  sale  are  reinvested  in  another  business.  Some 
former  reliefs  have  even  been  abolished  (table,  column  13).  While  the  Merger  Directive 
provides  for  the  carryover  of  reserves,  the  scope  of  the  directive  is  limited  to  cross-border 
restructuring  (see  above).  Further,  the  Directive  excludes  for  example  transfers  where  more 
than 10% of the consideration takes the form of cash. 

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If  no  family  successor  can  be  found  a  transfer  to  employees  ensures  a  large  degree  of 
continuity of the business. Yet, only few Member States encourage such transfers by special 
income tax reliefs (table, column 14). Where they, exist such measures are designed for the 
general promotion of employees’ financial participation rather than for business transfers. 

3. 

RECOMMENDATIONS FOR FUTURE WORK 

Where  progress  is  insufficient  the  following  recommendations  reinforce  the  ones  of  1994, 
others reflect changes in the economic environment during the last decade. 

3.1. 

Give political attention to both business transfers and start-ups 

Especially  since  transferred  businesses,  on  average,  have  a  higher  success  rate  and  create 
more  employment  than  start-ups  the  succession  in  or  acquisition  of  an  existing  enterprise 
should consistently be promoted as an alternative to starting up. In each case where start-ups 
are promoted it should be considered if the same initiative will also be applicable to transfers. 
In some countries initiating more start-ups might currently appear more urgent, but conditions 
that help the continuation of businesses are also a stimulus for the entrepreneurial initiative. 

3.2. 

Provide adequate financial conditions 

The  promotion  of  succession  concerns  in  particular  financing  business  transfers.  Start-up 
facilities, loans and guarantees should be available not only for creating a new business but 
also for taking over existing ones. The size of the instruments should take into account that 
business transfers often require more financing than start-ups. 

Given the growing importance of transfers to third parties the guarantees for equity or quasi-
equity fund investments in SMEs should include investments by local or regional funds which 
provide seed capital and/or capital in the start-up phase, as well as mezzanine finance, in order 
to reduce the difficulties which SMEs face due to of their financial structure, and those arising 
from business transfers (in this sense see art 18:2 of the proposed programme for innovation 
and competitiveness currently under discussion by the European Parliament and the Council ).  

3.3. 

Raise awareness, consider soft factors and support mentoring 

Many failures could be avoided if transfers were planned well ahead and specialised advice 
was sought. Member States should organise or support activities (e.g. organised by chambers 
of commerce) to make business owners aware of the need for a timely preparation. Member 
States should especially consider direct approaches such as personal mails to business owners 
above  a  certain  age.  Moreover,  important  interlocutors  of  small  businesses  (as  tax  advisers, 
accountants, banks etc.) should be included in awareness raising campaigns. 

Especially for founders it is psychologically difficult to hand over their business and witness 
changes introduced by the new owner. Mentoring the transfer process by neutral and informed 
third parties can help to overcome such difficulties. Member States should actively promote 
and  support  mentoring  schemes  provided  e.g.  by  chambers  of  commerce  and  crafts  and 
similar organisations. 

As  requested  by  the  European  Parliament  the  Commission  will  consider  to  launch  the  pilot 
project  “Transfer  of  expertise  through  mentoring  in  SMEs”  to  improve  the  management  of 

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human  capital  by  laying  down  principles  for  a  European  training  and  mentoring  scheme 
involving the transfer of knowledge and core competencies essential for business transfers.19 

3.4. 

Organise transparent markets for business transfers 

To facilitate transfers to third parties the match making between potential buyers and sellers 
should be helped by establishing and supporting impartial services for the concerned parties. 
Such  services  have  to  go  beyond  the  mere  establishments  of  databases  for  transferable 
businesses and  to  include a comprehensive mediation service  to guarantee ordered and well 
structured transfers in the spirit of partnership. 

The  2004  MAP-project  “Fostering  transparent  market  places  for  the  transfer  of  businesses” 
examines  good  practices  of  existing  buyer-seller-contact  systems  for  transferring  SMEs  to 
third parties. E.g. in Germany, France, Italy, Luxembourg, the Netherlands and Austria 
there are market places operated by chambers of commerce or similar impartial institutions. 

3.5. 

Ensure that tax systems are transfer-friendly  

In a number of countries inheritance and gift taxes have been reformed to facilitate transfers 
within the family. As regards taxes that affect the transfer to third parties, i.e. personal income 
tax, corporation tax, capital gains taxes, only few countries appear to have followed the 1994 
recommendations,  occasionally  measures  have  even  been  revoked.  It  is  recommended  that 
(partial) income tax exemptions for the gains from the sale of a business are considered if the 
owner is approaching retirement age as well as special reliefs for proceeds that are re-invested 
into another business or used to finance the retirement of the business owner. 

More  needs  to  be  done  to  encourage  the  sale  of  businesses  to  employees.  In  particular,  tax 
exemptions for investments by employees into their own companies (e.g. tax favoured savings 
plans, share plans and stock option plans) have been used successfully by some countries. 

3.6. 

Create appropriate structures to broadly implement the recommendations 

Only  the  Member  States,  their  national,  regional  and  local  administrations  and  business 
support organisations can create the conditions for successful business transfers. Apart from 
reforms  of  laws  and  regulations,  implementing  a  supporting  infrastructure  to  reach  the 
hundred thousands of businesses across Europe which will be facing a transfer over the next 
years will be equally important. This includes the distribution of information to administrators 
and  support  providers,  training  the  trainers,  the  development  of  teaching  material,  tool  kits 
and many related activities. 

19 

EP  budget  reference  line  02 02 03 03,  pilot  project  within  the  meaning  of  Article  49(2)  of  Council 
Regulation  (EC,  Euratom)  No  1605/2002  of  25.6. 2002  on  the  Financial  Regulation  applicable  to  the 
general budget of the European Communities, OJ L 248, 16.9.2002, p.1. 

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Implementation of the 1994 recommendation20 

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F

m
r
o
f

l
a
g
e
l

f
o

e
g
n
a
h
C

+
+ 
+ 
B 
+
- 
- 
CZ 
(+)
+ 
- 
DK 
+
+ 
+ 
D 
+
Ø 
Ø 
EE 
-
- 
- 
EL 
+
- 
(+) 
E 
+ 
+
+ 
F 
(+)  Ø
(+) 
IRL 
+
+ 
(+) 
I 
+
(+)  Ø 
CY 
(+)
Ø 
- 
LV 
+
- 
(+) 
LT 
+
+ 
L 
+ 
+
Ø 
HU  Ø 
(+)
Ø 
MT  Ø 
+
- 
+ 
NL 
(+)
+ 
+ 
A 
(+)
(+) 
- 
PL 
+
- 
(+) 
P 
(+)
Ø 
SI 
Ø 
(+)
Ø 
SK  Ø 
(+)
+ 
+ 
FIN 
(+)
- 
(+) 
S 
+
- 
(+) 
UK 
EU
23
10 
15 
Legend 

s
C
L
P
/
s
E
M
S
n
o
i
t
a
c
i
f
i
l
p
m
i
S

+ 
+ 
+ 
+ 
- 
- 
+ 
- 
+ 
Ø 
+ 
Ø 
+ 
(+) 
Ø 
+ 
+ 
+ 
Ø 
- 
+ 
Ø 
+ 
- 
- 
14 

g
n
i
r
u
t
c
u
r
t
s
e
r

l
a
r
t
u
e
n
x
a
T

+ 
(+) 
+ 
+ 
- 
- 
- 
+ 
+ 
Ø 
- 
+ 
+ 
- 
+ 
+ 
+ 
+ 
+ 
- 
+ 
Ø 
+ 
+ 
- 
16 

r
e
b
m
e
m
e
n
o

h
t
i

w
C
L
P

Ø
Ø
+
+
+
-
+
+
Ø
+
(+)
+
+
+
+
Ø
+
+
+
Ø
+
+
+
+
(+)
19

y
t
i
u
n
i
t
n
o
c

f
o

e
l
p
i
c
n
i
r
p

l
a
g
e
L

+
(+)
+
+
-
-
(+)
-
(+)
+
(+)
+
+
+
+
(+)
+
(+)
(+)
+
(+)
-
+
Ø
-
19

d
e
r
i
u
q
e
r

t
o
n

y
t
i

m
i
n
a
n
U

Ø
Ø
-
Ø
-
-
-
-
-
+
-
+
Ø
Ø
+
Ø
-
+
Ø
-
-
Ø
Ø
Ø
Ø
4

x
a
t

e
c
n
a
t
i
r
e
h
n
i
d
e
c
u
d
e
R

+
(+)
+
+
+
(+)
+
+
+
+
+
-
+
-
(+)
+
+
+
+
Ø
-
+
+
+
+
21

x
a
t

e
c
n
a
t
i
r
e
h
n
i
g
n
i
r
r
e
f
e
D

(+)
(+)
Ø
+
+
+
+
Ø
+
+
+
-
+
(+)
-
+
+
(+)
-
Ø
(+)
-
+
+
+
18

f
e
i
l
e
r
x
a
t

t
n
e
m
t
s
e
v
n
i
-
e
R

f
e
i
l
e
r
x
a
t

t
n
e
m
e
r
i
t
e
R

+ 
+ 
+ 
+ 
Ø 
+ 
+ 
+ 
Ø 
Ø 
- 
- 
+ 
- 
+ 
+ 
+  Ø ! 
Ø 
Ø 
Ø 
Ø 
- 
- 
Ø 
Ø 
Ø 
Ø 
Ø 
+ 
Ø 
Ø 
Ø !  Ø 
Ø 
+ 
Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
- 
- 
+ 
Ø ! 
6 
8 

f
e
i
l
e
r
x
a
t

s
e
e
y
o
l
p
m
e
o
t

e
l
a
S

(+) 
Ø 
+ 
Ø 
Ø 
- 
(+) 
(+) 
(+) 
Ø 
Ø 
- 
Ø 
Ø 
+ 
Ø 
Ø 
(+) 
Ø 
Ø 
Ø 
Ø 
Ø 
Ø 
(+) 
8 

)
+
(

r
o
+

l
a
t
o
T

11
8
9
11
4
2
9
9
9
8
7
5
8
7
8
6
8
12
6
3
6
3
9
6
7
181

+  Recommendation implemented  
Ø  Recommendation not implemented 
+  Recommendation recently implemented 

(+)  Partial or planned implementation 
-  No information 
Ø !  Former implementation revoked 

20 

The table shows in which areas measures have been reported by Member States but does not reflect an 
assessment of measures. 

EN 

11 

   EN