EASA (The European Aviation Safety Agency, which is progressively replacing the JAA) have just published on their website the Notice of Proposed Amendment ("NPA") covering flight crew licensing.
Click here
The somewhat indigestible document seems to confirm a rumour that, under the new rules due for implementation in April 2009, instructors delivering training for EASA licenses must hold a JAA or EASA license themselves. This is a radical change from the current arrangements, and will have a dramatic effect on many European FTOs who use overseas training locations to reduce costs, where the instructors are approved to teach on JAA courses, but do not hold JAA licenses.
It seems logical that the implications are that the FTOs' costs will rise as a result of this rule change, and the capacity of the European training industry will reduce; both of which suggest increasing training prices.
The NPA is published to elicit feedback from the industry and individuals. While you may wish to vent your thoughts about this change here, you should also do so on the EASA website, as I can guarantee that opinions expressed on PPRuNe will not change the rules.