Local view for "http://purl.org/linkedpolitics/eu/plenary/2007-10-23-Speech-2-318"
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"en.20071023.25.2-318"2
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"The Commission will analyse the planned subsidy to Volvo Cars in Ghent directly on the basis of the EC Treaty, since the matter exceeds the EUR 1 million ceiling laid down in the specific block exemption regulation on training aid. Article 87 of the Treaty provides that aid to facilitate the development of certain economic activities, and which does not unduly distort competition, may be considered compatible with the common market.
Training aid can be permitted when it creates incentives for activities which will increase the pool of skilled workers in the European Union and which would not otherwise be undertaken. That is the case where the training goes beyond what is normally done in the sector concerned; for instance, because more workers are trained or because the training is more extensive. That was the situation, for instance, in the recent Fiat case.
On the other hand, aid cannot be authorised for training that is an accessory for the good operation of the firm concerned and that would therefore be carried out even without aid. For instance, when a car assembly plant wants to produce a new model, workers have to be trained on the new techniques and new working methods to be adopted. Subsidising this type of training simply relieves the company from a cost it would normally bear. Accordingly, the Commission has in the recent past partially prohibited aid in favour of several assembly plants and you are certainly aware of General Motors in Belgium and Ford Genk.
The proposed eight measures for Volvo Cars Ghent relate to the introduction of a new production platform. The Commission cannot, at this stage, exclude that the training concerned would take place in any case and therefore would not contribute to increasing the pool of skilled workers in the EU. Therefore, the Commission has decided to open a formal investigation that is without prejudice to the final decision in the case. We need more time to find out what it is all about. The Belgian authorities, the beneficiary, as well as third parties, will have the opportunity to comment and to submit information before a final decision is taken."@en1
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