G/SCM/N/25/EEC
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FRANCE
TABLE OFCONTENTS
Page
Listofschemes:
1. SME SCHEMES
Regional Premium fortheCreation ofEnterprises (PRCE) ................252
Regional Employment Premium (PRE) .............................252
Regional Advisory Assistance Fund (FRAC) .........................253
SME-SMI Development Fund (FDPME) ............................254
2. REGIONAL SCHEMES
*METROPOLITAN FRANCE
Profits TaxExemption forNewEnterprises SetUpin
Land-Use Management Areas ...................................256
Temporary Exemption from Professional Tax-PAT/TRDP ................256
Temporary Exemption from Professional Tax-ZRR ....................257
Temporary Exemption from Professional Tax-ZRU ....................257
Enterprise Zones ...........................................258
Land-Use Management Premium (PAT) ............................259
Special Scheme fortheOreFields andtheSambre-Avesnois ...............260
Mining Conversion Programme ..................................260
Industrial Development Company (SODIE) ..........................261
*CORSICA
TaxExemption forNewActivities .................................262
TaxExemption forNewly-Created Enterprises 21
Professional TaxReduction ....................................263
*FRENCH OVERSEAS DEPARTMENTS (FODs)
Long-Term TaxTreatment .....................................264
VAT Deduction forCertain Exempted Products .......................264
Reduction ofPayroll TaxRates ..................................265
Deduction ofInvested Proceeds andProfits ..........................266
Temporary TaxExemption fortheCreation ofActivities ..................266
Reduced Taxation ofProfits andLosses ............................267
Premium forJobCreation .....................................267G/SCM/N/25/EEC
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3. R&D SCHEMES
TaxCredit forResearch ......................................268
Research andTechnology Fund (FRT) .............................269
Industrial Innovation Fund (FII) .................................270
National Agency forthePromotion ofResearch (ANVAR) ................271
ATOUT-PUMA ...........................................272
AidtoR&D Institutions intheCivil Aeronautical .......................273
AidtoR&D fortheCivil Aeronautical Sector .........................273G/SCM/N/25/EEC
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REGIONAL PREMIUM FOR THE CREATION OFENTERPRISES (PRCE)
1. Name ofscheme
Regional Premium fortheCreation ofEnterprises (PRCE)
3. Form ofaid
Subsidy
4. Subsidy perunit
- Gross ceiling ofF200,000 perenterprise;
- totalamount for1996: notavailable (administered byregional councils);
- lastavailable data, 1993: F71,975 million.
5. Policy objective and/or purpose ofthesubsidy
Enterprise creation
6. Duration ofthesubsidy and/or anyother time-limits attached toit
Permanent arrangement
7. Statistical datapermitting anassessment ofthetrade effects
- Notavailable;
- small-scale subsidy.
REGIONAL EMPLOYMENT PREMIUM (PRE)
1. Name ofscheme
Regional Employment Premium (PRE)
2. Form ofaid
SubsidyG/SCM/N/25/EEC
Page253
3. Subsidy perunit
- Maximum amount perjob: F10,000 inurban areas >100,000 inhabitants
F20,000 outside those limits
F40,000 inmountain areas
- totalamount for1996: notavailable (administered byregional councils);
- lastavailable data, 1993: F39,319 million.
4. Policy objective and/or purpose ofthesubsidy
Creation, extension, conversion orresumption ofactivities (with consequent jobcreation)
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Permanent arrangement
6. Statistical datapermitting anassessment ofthetrade effects
- Notavailable;
- small-scale subsidy.
REGIONAL ADVISORY ASSISTANCE FUND (FRAC)
1. Title
Regional Advisory Assistance Fund (FRAC)
2. Form ofsubsidy
Direct subsidization oftheenterprise asregards:
- Recourse toconsultants inenterprises withinadequate internal operational services
(FRAC);
- recourse totechnical advice provided byalaboratory (FRATT);
- internal advisory service involving thecreation ofanewprofessional postwithin the
enterprise.G/SCM/N/25/EEC
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3. Amount perunit
Maximum levelofaid:
Type ofcounselling Lasting uptofivedays Exceeding fivedays
External counselling 80percentuptoamaximum
ofF25,00050percentuptoa
maximum ofF200,000
Introduction ofinternal counselling150percentuptoa
maximum ofF200,000
1Thesubsidy iscalculated onthebasis oftheamount corresponding tothefirstyearofsalary andsocial
costs forthenewly-appointed official.
Total amount:
Budget estimate ofF800million peryearfortheperiod from 1994-1999. For1996:
F1.100 million (State, localauthorities, European Union).
4. Purpose ofprogramme
Tofoster thedevelopment ofSMIs byencouraging themtoresort tooutside skills, consultancy
firms, orlaboratories.
5. Duration
Permanent arrangement funded onayearly basis under theFinance Law.
6. Statistical data
Since thepurpose oftheprogramme istoimprove themanagement ofenterprises, ithasno
impact onproduction costs andconsequently doesnotaffect trade.
SME-SMI DEVELOPMENT FUND (FDPME)
1. Title
SME-SMI Development Fund (FDPME)
2. Form ofsubsidy
Direct subsidization oftheenterprise implementing theinvestment programme.G/SCM/N/25/EEC
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3. Amount perunitandtotalamount
Budget estimate ofF7,500 million (State loans, localauthorities, Community loans) forthe
period 1994-1998.
1996: anaverage ofF1,400 million (State, localauthorities, European Union)
Average aidperproject: F500,000.
Themaximum rateofcontribution isasfollows:
Type ofarea Small enterprise Medium-size enterprise
A(Unassisted areaaccording
totheECdefinition)15percentgross 7.5percentgross
B(Assisted areunder Article 92,paragraph 3(c),withan
authorized regional aidceiling of17percent)27percentgross
C(Assisted areaunder Article 92,paragraph 3(c),withan
authorized regional aidceiling of25percent)30percentnet
D(Assisted areaunder Article 92,paragraph 3(a) 75percentgross
Theratesprovided inlinesB,CandDalsocorrespond totheaidceilings inrespect ofany
given project incaseswhere thereiscumulation ofregional aids,including Community structural funds.
4. Policy objective
Topromote SMEs-SMIs byhelping toimprove theirtechnological level andthequality of
theirproducts.
5. Duration
Permanent arrangement
6. Statistical data
Theaidaimstocompensate forthedisadvantages associated withestablishment intheareas
inquestion (lack ofqualified subcontracting personnel, distance from market, suppliers etc.).
Consequently, ithasnoeffect ontrade.G/SCM/N/25/EEC
Page256
PROFITS TAX EXEMPTION FOR NEW ENTERPRISES
SETUPINLAND-USE MANAGEMENT AREAS
1. Title
Profits TaxExemption forNewEnterprises SetUpinLand-Use Management Areas
2. Form ofsubsidy
Taxconcession
3. Amount perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F3,800 million
4. Policy objective and/or purpose ofthesubsidy
Topromote thecreation ofnewenterprises inareas withgeographical, economic orsocial
disadvantages.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Fiveyears
6. Statistical datapermitting anassessment ofthetrade effects
Noavailable statistical data.
TEMPORARY EXEMPTION FROM PROFESSIONAL TAX INCONNECTION WITH
LAND-USE MANAGEMENT AND PRIORITY RURAL DEVELOPMEANT AREAS
1. Title
Temporary Exemption fromProfessional TaxinConnection withLand-Use Management and
Priority Rural Development Areas
2. Form ofsubsidy
Taxconcession
3. Amount perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Estimated amount: F1,017 million
4. Policy objective and/or purpose ofthesubsidy
Toencourage thecreation anddevelopment ofenterprises inareaswithgeographical, economic
orsocial disadvantages.G/SCM/N/25/EEC
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5. Duration ofthesubsidy and/or anyother time-limits attached toit
Total orpartial exemption from professional taxforamaximum offiveyears.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
TEMPORARY EXEMPTION FROM PROFESSIONAL TAX IN
RURAL REVITALIZATION/AREAS
1. Title
Temporary Exemption from Professional TaxinRural Revitalization/Areas
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Estimated amount: F4.3million
4. Policy objective and/or purpose ofthesubsidy
Toencourage thecreation anddevelopment ofenterprises inareaswithgeographical, economic
orsocial disadvantages.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Total orpartial exemption from professional taxforamaximum offiveyears.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
TEMPORARY EXEMPTION FROM PROFESSIONAL TAX
INURBAN REVITALIZATION AREAS
1. Title
Temporary Exemption from Professional TaxinUrban Revitalization Areas
2. Form ofsubsidy
TaxconcessionG/SCM/N/25/EEC
Page258
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Estimated amount: F1.7million
4. Policy objective and/or purpose ofthesubsidy
Toencourage thecreation anddevelopment ofenterprises inareaswithgeographical, economic
orsocial disadvantages.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Total orpartial exemption from professional taxforamaximum offiveyears.
6. Statistical datapermitting anassessment ofthetrade effects
Noavailable statistical data.
ENTERPRISE ZONES
1. Title
Enterprise Zones
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted F1,700 million
4. Policy objective and/or purpose ofthesubsidy
Revival ofareas seriously affected bythelossofjobsinindustry.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Tenyears, butthezonehasbeenclosed since 31December 1991.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.G/SCM/N/25/EEC
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LAND-USE MANAGEMENT PREMIUM (PAT)
1. Name ofscheme
Land-Use Management Premium (PAT)
2. Form andpurpose ofsubsidy
Equipment subsidy for...
3. Total amount ofPATgranted: F717million
Dossiers submitted: 221 Dossiers approved: 187
Jobs(tobecreated): 16,948 Investment: F17,990 million
Programmes (innumber ofdossiers approved):
Creation: 67(35.8 percent)
Extension: 111 (59.4 percent)
Decentralization: 9(4.8percent)
Resumption/extension: 0
Conversion: 0
Average amount ofPAT/job: F42,305
(1995 average was: F47,277)
Sectors ofActivity (percentage ofdossiers approved)
Dossiers PAT
(millions offrancs)Jobs Investment
(millions offrancs)
Agri-food 39(20.8%) 68(9.5%) 3,012 (17.8%) 2,404 (13.4%)
Industry 106(56.7%) 540(75.3%) 10,859 (64.1%) 14,337 (79.7%)
Tertiary 42(22.5%) 109(15.2%) 3,077 (18.1%) 1,249 (6.9%)
4. Purpose
Topromote activities incertain zones inFrance specified intheAnnex toDecree No.95-149
of6February 1995.
5. Duration ofthesubsidy
ThePATaregranted under athree-year programme which, ifnecessary, canbeextended for
afurther maximum period oftwoyears.G/SCM/N/25/EEC
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6. Statistical data
Unavailable, because thepremium concerns allsectors ofactivity according togeographical
criteria andisrelated tojobcreation under eachproject.
SPECIAL SCHEME FOR THE ORE FIELDS AND THE SAMBRE-AVESNOIS
1. Name ofscheme
Special Scheme fortheOreFields andtheSambre-Avesnois
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: zerofortheyearinquestion (scheme notapplied).
4. Policy objective and/or purpose ofthesubsidy
Toencourage theestablishment ofenterprises incertain employment areasparticularly affected
byunemployment.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Tenyears.
6. Statistical datapermitting anassessment ofthetrade effects
Because oftheverylownumber ofenterprises established, there arenotrade effects.
MINING RECONVERSION PROGRAMME (SOFIREM, FINORPA)
1. Title
Mining Reconversion Programme (SOFIREM, FINORPA)
2. Form ofsubsidy
Long-term loans withinterest-rate subsidies without asecurity requirement. Theloans may
always berepaid before theduedateandredeemed without penalty (maximum financing: 30percent
oftheinvestment).
Acquisition ofminority holdings inenterprises.
Provision offreeadvice andservices tothebeneficiaries (SMEs) oftheabove measures.G/SCM/N/25/EEC
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3. Subsidy perunitandtotalamount
Twoto3percentbelow thenormal ratewithavariable period ofrepayment.
Inzones covered bySOFIREM andFINORPA included inthezones qualifying foraland-use
management premium (PAT), theaidcomponent isincorporated intothetotalregional aidanticipated
foragiven project, inorder toensure thattheregional aidceilings imposed under thePATscheme
arerespected. Inzones covered bySOFIREM andFINORPA thatarenotincluded inthezones
qualifying forthePAT, onlySMEs areeligible forthemeasures.
4. Government appropriation
Thedatapreviously notified under Article 25referred tobudgetary commitments andnotactual
payments, which aremade (orsometimes cancelled) later.
For1994 For1995 (corrected) For1996 (provisional estimate)
F81million forSOFIREM F81million forSOFIREM F81million forSOFIREM
Nopayment toFINORPA F54million forFINORPA F54million forFINORPA
5. Policy objective
Toassist thereconversion ofareas affected bytherestructuring ofthemining industry.
6. Statistical data
Theaidaimstocompensate forthedisadvantages associated withestablishment intheareas
inquestion (lack ofqualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, ithasnoeffect ontrade.
INDUSTRIAL DEVELOPMENT COMPANY (SODIE)
1. Title
Industrial Development Company (SODIE)
2. Form ofsubsidy
Theloanmaynotbeassigned tothirdparties andthesubsidies granted fortheredeployment
ofironandsteelworkers arenotfinanced byStatefunds butbytheUSINOR-SACILOR ironandsteel
group.
3. Total amount
- for1994: F200million
- for1995: F200million
- for1996: F180millionG/SCM/N/25/EEC
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4. Policy objective
Re-industrialization anddiversification inareas affected bydecline inindustry.
5. Duration ofthesubsidy
Variable
6. Statistical data
Theaidaimstocompensate forthedisadvantages associated withestablishment intheareas
inquestion (lack ofqualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, ithasnoeffect ontrade.
TAX EXEMPTION, SUBJECT TOAPPROVAL, FOR PROFITS RESULTING
FROM NEW ACTIVITIES CREATED INCORSICA
1. Name ofsubsidy scheme
Taxexemption, subject toapproval, forprofits resulting fromnewactivities created inCorsica.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Insignificant
4. Policy objective and/or purpose ofthesubsidy
Toencourage jobcreation andeconomic development inCorsica.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Eight years.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.G/SCM/N/25/EEC
Page263
TAX EXEMPTION FOR PROFITS REALIZED BYENTERPRISES
CREATED INCORSICA INTHE CRAFT, INDUSTRIAL, HOTEL,
CONSTRUCTION AND PUBLIC WORKS SECTORS
1. Name ofsubsidy scheme
Taxexemption forprofits realized byenterprises created inCorsica inthecraft, industrial,
hotel, construction andpublic works sectors.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F2million
4. Policy objective and/or purpose ofthesubsidy
Toencourage thecreation ofnewenterprises inCorsica.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Eight years.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
REDUCTION OFPROFESSIONAL TAX INCORSICA
1. Name ofsubsidy scheme
Reduction ofprofessional taxinCorsica.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Estimated amount: F315million
4. Policy objective and/or purpose ofthesubsidy
Tostimulate investment andencourage thedevelopment ofemployment inCorsica.G/SCM/N/25/EEC
Page264
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Notime-limit
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
LONG-TERM TAX TREATMENT INTHE FRENCH
OVERSEAS DEPARTMENTS
1. Name ofsubsidy scheme
Long-term taxtreatment intheFrench Overseas Departments.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Notavailable, noauthorization given in1996.
4. Policy objective and/or purpose ofthesubsidy
Tocontribute tothepromotion oftheOverseas Departments and,more generally, tofoster
theireconomic development.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Theduration ofthesubsidy issetforth intheauthorization andislimited toamaximum of
25years plus, where appropriate, installation timenotexceeding fiveyears. Itapplies tocompanies
thatsubmit theirapplications forauthorization before 31December 2001.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatisticaldataavailable.Becauseofthelownumberofeligiblecompaniesandtheiractivities
(oneofthem isarefinery), thetrade effects areinsignificant.
AIDTOTHE FRENCH OVERSEAS DEPARTMENTS
GUADELOUPE, MARTINIQUE, REUNION)
1. Name ofsubsidy scheme
AidtotheFrench Overseas Departments (Guadeloupe, Martinique, Réunion). VATdeduction
forcertain exempted products.G/SCM/N/25/EEC
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2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F570million
4. Policy objective and/or purpose ofthesubsidy
Tofoster economic development intheFrench Overseas Departments.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Notime-limits.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
REDUCTION OFPAYROLL TAX RATES INTHE
FRENCH OVERSEASON DEPARTMENTS
1. Name ofsubsidy scheme
Reduction ofpayroll taxratesintheFrench Overseas Departments.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F450million
4. Policy objective and/or purpose ofthesubsidy
Topromote thecreation ofjobsbylimiting thetaxburden onemployers subject tothepayroll
taxestablished overseas.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Notime-limits
6. Statistical datapermitting anassessment ofthetrade effects
Theaidhasnoeffect ontrade given thenature ofthesector subjected tothepayroll tax
(associations, medical sector, banking, insurance).G/SCM/N/25/EEC
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DEDUCTION OFPROCEEDS AND PROFITS INVESTED INTHE
FRENCH OVERSEASON DEPARTMENTS AND TERRITORIES
1. Name ofsubsidy scheme
Deduction ofproceeds andprofits invested intheFrench Overseas Departments andTerritories.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F1,300 million.
4. Policy objective and/or purpose ofthesubsidy
Tofoster economic development intheFrench Overseas Departments andTerritories.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Thescheme applies until31December 2001.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
TEMPORARY EXEMPTION FROM CORPORATION TAX FOR
THE CREATION OFNEW ACTIVITIES INTHE FRENCH OVERSEAS DEPARTMENTS
1. Name ofsubsidy scheme
Temporary exemption from corporation taxforthecreation ofnewactivities intheFrench
Overseas Departments.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F100million.
4. Policy objective and/or purpose ofthesubsidy
Tofoster economic development andemployment intheFrench Overseas Departments.G/SCM/N/25/EEC
Page267
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Exemption isgranted foraperiod oftenyears starting fromtheactual commissioning ofthe
installations tobeusedincarrying outtheauthorized activity. Thescheme applies tocompanies that
areformed orcreate anewactivity before 31December 2001.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
REDUCED TAXATION OFPROFITS AND LOSSES IN
THE FRENCH OVERSEAS DEPARTMENTS
1. Name ofsubsidy scheme
Reduced taxation ofprofits andlosses intheFrench Overseas Departments.
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F200million.
4. Policy objective and/or purpose ofthesubsidy
Tofoster economic development andemployment intheFrench Overseas Departments.
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Thescheme isapplicable toaccounting periods closed by31December 2001.
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
PREMIUM FOR JOBCREATION INTHE
FRENCH OVERSEAS DEPARTMENTS
1. Name ofprogramme
Premium forjobcreation intheFrench Overseas Departments.G/SCM/N/25/EEC
Page268
2. Form ofsubsidy
Subsidy
3. Total amount
In1996 thetotalamount wasF10,588,000.
Theamount budgeted for1997 isF22million.
4. Policy objective
Toencourage jobcreation intheFrench Overseas Departments byenterprises which contribute
toopening uptheireconomy bydiversifying theirtrading opportunities.
5. Duration ofthesubsidy
Thepremium isproportionate tothenumber ofnewjobscreated andamounts toF205,000
perjob.Itispaidovertenyears asfollows:
- Years onetofive: F24,000/job;
- years sixtoseven: F20,000/job;
- years eight toten: F15,000/job.
In1996, thetotalamount wasF10,588,000 andtheamount budgeted for1997isF20million.
Permanent arrangement, funded onayearly basisunder theFinance Law(FEDOM Chapter -Ministry
ofOverseas Departments andTerritories)
6. Statistical datapermitting anassessment ofthetrade effects
Nostatistical dataavailable.
TAX CREDIT TOPROMOTE RESEARCH
1. Name ofsubsidy scheme
Taxcredit topromote research
2. Form ofsubsidy
Taxconcession
3. Subsidy perunitor,where notpossible, totalamount oramount budgeted forthesubsidy
Amount budgeted: F4,000 million.
4. Policy objective and/or purpose ofthesubsidy
Toencourage better organization ofresearch activities.G/SCM/N/25/EEC
Page269
5. Duration ofthesubsidy and/or anyother time-limits attached toit
Arrangement applicable upto31December 1998.
6. Statistical datapermitting anassessment ofthetrade effects
Theaidhasnoeffects ontrade, since itislinked totheenterprise 'sresearch activity interms
ofincreased expenditure onresearch, andnottoitsproductive orcommercial potential. Itisageneral,
non-specific taxmeasure which theFrench authorities donotconsider asubsidy.
RESEARCH AND TECHNOLOGY FUND (FRT)
1. Name ofprogramme
Research andTechnology Fund (FRT)
2. Form ofsubsidy
- Subsidy (grant) appearing onthegreen list(Article 8.2(a)) representing amaximum
of50percentofthetotalcostoftheprogramme fortheenterprise;
- allenterprises engaged inbasicresearch workorprecompetition development activities
mayapply under thesame conditions.
3. Total amount oftheResearch andTechnology Fund
- For1996: F424.64 million (PAspent)
- For1997: F406million (PAopened under preliminary Finance Law)
4. Policy objective and/or purpose ofthesubsidy
- Tosupport industrial research (upstream phase oftheEureka projects, technological
breakthroughs, large-scale industrial programmes;
- toestablish newpartnerships between enterprises andpublic research atthenational
andregional levels;
- tofoster thedevelopment andexploration byenterprises ofinnovative methods that
meetthenewneeds ofsociety.
5. Duration
Permanent arrangement, funded onayearly basis under theFinance Law.
6. Statistical datapermitting anassessment ofthetrade effects
Theprojects inquestion arepartoftheupstream phase oftheresearch anddevelopment process.
Thesubsidies havenomeasurable impact onthetrade performance oftheenterprises inquestion.
Only scientific andtechnical content isconsidered intheselection andevaluation ofprojects.G/SCM/N/25/EEC
Page270
INDUSTRIAL INNOVATION FUND
1. Title
Industrial Innovation Fund (formerly "Grands Projets Innovants" GPI)
2. Form ofsubsidy
Repayable advances which canbeturned intosubsidies intheevent oftheproject 'sfailure.
3. Amount ofsubsidy
Thegross levelofaidis30percent,though itmaybeincreased by10percentincases where
intersectoral orcooperative projects arefinanced from thebasic research stage onwards. Therule
onthecumulation ofaidfrom different schemes applies totheIndustrial Innovation Fund.
Adetailed report onthescheme issubmitted totheCommission every year, andcases where
itisapplied toprojects whose totalvalue exceeds ECU 20million arenotified.
Budget
- For1994: F2,824 million
- For1995: F2,412 million
- For1996: F2,500 million
4. Policy objective
Toencourage thedevelopment oflarge-scale, strategically orcommercially important civilian
projects ofadistinctly innovative nature andwhose purpose isthemarketing ofaproduct orprocess
determined bythemanagement oftheenterprise within aperiod oflessthanfiveyears.
5. Duration
Permanent arrangement funded onayearly basis under theFinance Law.
6. Statistical data
Thepurpose oftheprogramme istofinance innovation:
- Theexpenditure financed concerns research anddevelopment andconsequently has
noeffect onproduction costs;
- being innovatory, theproducts orprocesses inquestion cannot compete withexisting
ones.
Consequently, theprogramme hasnoeffect ontrade.G/SCM/N/25/EEC
Page271
NATIONAL AGENCY FOR THE PROMOTION OFRESEARCH (ANVAR)
1. Title
National Agency forthePromotion ofResearch (ANVAR)
2. Form ofsubsidy
Aidtoinnovation: advances repayable, intheevent oftechnical andcommercial success, over
aperiod ofthree tofiveyears following theendoftheprogramme.
Direct subsidies forstudies priortothelaunching ofresearch anddevelopment andinnovation
projects, andfeasibility andadvisory studies.
3. Amount ofthesubsidy
Repayable advances withaceiling of50percentoftheintangible investment (maximum of
24.6percentingross subsidy equivalents inthecaseofsuccess).
Direct subsidies uptoaceiling ofF200,000 withamaximum rateof50percent.
Budget
- For1994: F1,000 million
- For1995: F1,020 million
- For1996: F1,000 million
4. Policy objective
Tomake fulluseoftheresults ofscientific andtechnical research. Topromote innovation
andtechnological progress. Tofacilitate thetransfer toindustry oftheresults oflaboratory research.
5. Duration
Permanent arrangement funded onayearly basis under theFinance Law.
6. Statistical data
Thepurpose oftheprogramme istofinance innovation:
- Theexpenditure financed concerns research anddevelopment andconsequently has
noeffect onproduction costs;
- being innovatory, theproducts andprocesses inquestion cannot compete withexisting
ones.
Consequently, theprogramme hasnoeffect ontrade.G/SCM/N/25/EEC
Page272
"ATOUT-PUMA"
1. Title
"ATOUT-PUMA"
2. Form ofsubsidy
Subsidy (forprojects involving thefeasibility stage): maximum of50percentingross subsidy
equivalent (subsidy ceiling atF300,000).
Advances repayable incaseofsuccess: 16.5percentingross subsidy equivalent (advance
fullyrepaid) and40percentingross subsidy equivalent (incaseoftotalfailure oftheresearch project
andnon-repayment oftheadvance).
Aceiling ofF1.5million francs perproject hasbeenestablished foralladvances.
3. Total amount ofATOUT-PUMA programme
- For1994: F145million
- For1995: F145million
- For1996: F145million
TheATOUT-PUCE andATOUT-LOGIC budgets arepartoftheIndustrial Innovation Fund.
4. Policy objective
Tosupport research anddevelopment projects aimed atintroducing advanced materials in
industrial technologies.
5. Duration
Permanent arrangement funded onayearly basis under theFinance Law.
6. Statistical data
Thepurpose oftheprogramme istodisseminate technologies andtofinance training expenses
andresearch anddevelopment costs without affecting thecostofproduction.
Byitsverynature, thetechnology dissemination programme targets small enterprises thatare
involved insectors withlittleworldwide impact. Consequently, theprogramme hasnoeffect ontrade.G/SCM/N/25/EEC
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AIDTORESEARCH INTHE CIVIL AERONAUTICAL SECTOR
1. Title
Aidtoresearch institutions inthecivilaeronautical sector.
2. Form ofaid
Subsidy
3. Total amount
For1996: F28million.
4. Policy objective
Themain purpose oftheprogramme istohelpanumber ofnon-profit-making research
institutions tohaveaccess totheequipment necessary totheiractivity.
5. Duration
Permanent arrangement funded onayearly basis under theFinance Law.
6. Statistical data
Theinstitutions inquestion arenon-profit-making.
CIVIL AERONAUTICAL RESEARCH
1. Titleofprogramme
Civil aeronautical research
2. Form ofsubsidy
Participation indirect research costs.
3. Total amount
For1996: F481million
4. Policy objective
Themainobjective oftheresearch istodevelop knowledge toimprove thetechnological base
oftheindustry.G/SCM/N/25/EEC
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Theresearch involves improving theunderstanding ofphenomena withaview toselective
investigation ingreater depth ofareas likely toyield gains inperformance andintheprecision of
calculations withaviewtoshorter design cycles, aswellasfull-size testing.
5. Duration
Permanent arrangement funded onayearly basis under theFinance Law.
6. Statistical data
Approximately 50enterprises wereinvolved in1996. Theaidgoesentirely toresearch and
therefore hasnobearing ontheproduction ofproducts.