. /.WORLD TRADE
ORGANIZATIONG/SCM/Q2/EEC/37
24 June 2002
(02-3487)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Replies by the EUROPE AN COMMUNITIES (Italy)
to Questions Posed by AUSTRALIA1
The following communication, dated 13 June 2002, has been received from the Permanent
Mission of the European Communities.
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The European Communities hereby submit their answers to the follow-up questions by
Australia to the replies of the European Communities contained in document G/SCM/Q2/EEC/32,
relating to capital gains, provided by the Italian Government.
Support to innovation and development in SME's
1. Are the grants under this programme discretionary?
Reply
No, they are not.  Under this programme the gr ants are provided in order to support the
innovation and development in SME’s using electron ic systems and with the purpose to reduce any
kind of pollution.  The SME’s send the application with proper requirements (such as technical
evaluation and cost appraisal).  The Italian Ministry  of Industry and the Italian regions will provide
the grants up to the limit of the available funds if the requirements are fulfilled.
2. On the basis of the information contained in document G/SCM/N/71/EEC/Add.9
regarding this programme, can beneficiaries determine whether the subsidy is paid as a
grant or tax concession?
Reply
Yes, they can.  As beneficiaries, they are free to choose between grants or tax concession.
3. What determines the size of the grant provided to a beneficiary?
Reply
The size is established by Decree of Ministry of Industry 1 June 1993 – Annex 1, published in
the Official Journal of the Italian Republic No. 151 – 30 June 1993.
                                                     
1 G/SCM/Q2/EEC/36.G/SCM/Q2/EEC/37
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4. What are the criteria for qualifying for a grant under this scheme?
Reply
The criterion is the existence of innovation, development and research targets in the SME’s
activities.
5. Do Italian furniture manufacturers qualify for capital grants under this scheme?
Reply
Yes, they are.  The Italian law No. 317/91 does not leave out any manufacture when the
above criteria are met.
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