The European Commission has adopted guidance papers on the criteria it uses in assessing the compatibility of training aid and aid to disadvantaged and disabled workers with State aid rules. Explaining the reasoning underlying Commission decisions on compatibility in these areas, the guidance papers will increase transparency for Member States and entities hoping to benefit from such aid.

Member States are permitted to grant training aid up to €2 million per training project without notification to the Commission. The Commission must investigate training aid exceeding this amount, weighing up the positive and negative effects of the aid. The guidance paper will assist Member States in ensuring that proposed aid is compatible and highlights that any proposed aid must offer an incentive to the beneficiary to provide better training than it would have without the aid.

Aid of up to €5 million for the employment of disadvantaged workers and €10 million for the employment of disabled workers per undertaking per year can be made without notification to the Commission. The guidance paper notes that in determining compatibility for aid above these amounts, the Commission must be satisfied, amongst other things, that such aid will result in the aid beneficiary changing its behaviour so that it employs more disadvantaged and disabled workers whilst the aid must not be such that it distorts competition.

The guidance should assist authorities in preparing notifications, increasing efficiency and shortening the decision making process. Ultimately, this may encourage State support for businesses seeking to up-skill their workforce or to employ disadvantaged or disabled workers.