Brussels, 8 January 2024
The European Commission has approved, under EU State aid rules, the re-introduction of a Danish scheme, including an overall €3.87 billion (DKK 28.9 billion) budget increase, to facilitate the integration in the labour market of employees and self-employed persons with significantly reduced working capacity.
The Commission approved the original scheme in April 2002 (SA.8562). The so-called “Flexi-jobs” scheme is aimed at supporting the employment of workers who would not be able to hold a job in regular terms, for example due to disabilities, through subsidies to the employer or the self-employed person. The aid amount is calculated as a percentage of the remuneration provided by the relevant collective agreements. With today’s decision the Commission approved its re-introduction until 31 December 2030.
The Commission assessed the reintroduced measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions. The Commission found that the scheme continues to be necessary and appropriate to support the integration in all economic sectors of persons who would otherwise be excluded from the labour market. Furthermore, the Commission concluded that the scheme remains proportionate, as it is limited to the minimum necessary to achieve its objective. Moreover, its positive effects outweigh any potential distortion of competition and trade in the EU. On this basis, the Commission approved the Danish scheme under EU State aid rules.
The non-confidential version of the decision will be made available under case number SA.103445 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission