 WORLD  TRADE  
ORGANIZATION  G/SCM/N/95/EEC/Add.2 
15 December 2003 
 (03-6585) 
Committee on Subsidies and 
Countervailing Measures  Original:   English/ 
 French 
   
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI.1 of the GATT 1994
 
and Article 25 of the Agreement on Subsidies and  
Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
  
 The following addendum to the notification of  the European Community relates to subsidy 
programmes of Belgium . 
  
 G/SCM/N/95/EEC/Add.2 
Page 2  
 
 
BELGIUM 
 
TABLE OF CONTENTS 
Page 
 
I. BELGIUM - FEDERAL STATE - ANNUAL REPORT 2001..............................................4 
II. BELGIUM - BRUSSELS-CAPITAL RE GION - ANNUAL REPORT 2001 ......................7 
III. BELGIUM - WALLOON REGION - ANNUAL REPORT 2001 ......................................13 
IV. BELGIUM - FLEMISH REGION - ANNUAL REPORT 2001 .........................................16 V. BELGIUM - FEDERAL STATE - ANNUAL REPORT 2002............................................26 VI. BELGIUM - BRUSSELS-CAPITAL RE GION - ANNUAL REPORT 2002 ....................27 
VII. BELGIUM - WALLOON REGION - ANNUAL REPORT 2002 ......................................33 VIII. BELGIUM - FLEMISH REGION  - ANNUAL REPORT 2002 .........................................36 
 
  
 
  
 
Please note: 1 EURO = 40.3399 BEF (BELGIAN FRANCS)  
  G/SCM/N/95/EEC/Add.2 
 Page 3 
 
 
INTRODUCTION  
 
  Following recent reforms in Belgium, the greater part of investment policy is now 
constitutionally the responsibility of the Flemis h, Walloon and Brussels regions. Consequently, the 
regions are also responsible for applying legisla tion on economic growth and aiding SMEs in their 
respective areas. In the Belgian notification of subsidies, the evaluation of whether the subsidy is "general" or "specific" therefore relates to  the regulations in force in each region. G/SCM/N/95/EEC/Add.2 
Page 4  
 
I. BELGIUM - FEDERAL STATE - ANNUAL REPORT 2001 
1.1. SPECIAL TAXATION SCHEMES 
 1.1.1. INNOVATIVE FIRMS, LAW OF 31 JULY 1984, ARTICLES 68 TO 76 
  (a) Form of the subsidy
 
  Innovative firms originally benefited from the following tax concessions, inter alia :  
  - Exemption for profits up to a maximum of 13 per cent of the capital for innovation 
actually paid-up and remaining to be repaid  at the beginning of the financial year; 
  - increased rate of deduction for investment (see hereunder);   - exemption from tax on income from immovable assets for ten years; 
 
 - exemption from graduated registration duty on capital inflow.  (b) Total amount in 2001
 
  Exemption from corporate tax: (NCG
*)  EUR 0; 
 Deduction for investment (see hereunder).  
 (c) Policy objective
 
  To promote the creation of firms working in high technology sectors, set up from 1984 
onwards and specially authorized.  
 (d) Duration
 
  The Law of 28 December 1990 termin ated this scheme, nevertheless: 
 
 - Firms which submitted applications before 22 July 1990 may still take advantage of the 
tax benefits; 
  - capital paid up before 31 December 1990 may still be exempt from corporate tax;  
 - exemption from duty on capital inflow is only granted for capital paid up by 
31 December 1990 at the latest; 
  - deduction from taxable income for capital in flow is permitted for shares subscribed and 
paid up in 1990. 
 1.1.2. RESTRUCTURING COMPANIES, LAW OF 31 JULY 1984, ROYAL DECREE OF 
3 OCTOBER 1988, LAW OF 22 DECEMBER 1989 (ARTICLE 303), LAW OF 28 DECEMBER 1990 (ARTICLE 18)  
 
(a) Form of the subsidy
 
 
 Restructuring companies originally benefited from the following, inter alia :  
 
                                                      
* NCG = Net cost for the Government in Euros.  G/SCM/N/95/EEC/Add.2 
 Page 5 
 
 
 - Exemption from duty on capital inflow;   - exemption from corporate tax for ten consecutiv e financial years, restricted to the part 
of the dividends that did not exceed  13 per cent of the paid-up capital. 
 
(b) Total amount in 2001
 
  Exemption from corporate tax: (NCG
*) EUR 71.10 million. 
 (c) Policy objective
 
 
 The tax scheme applies to firms set up specially to carry out a conversion project under a 
"conversion contract" and established in one of  the zones defined for this purpose in the 
Royal Decree. 
 
(d) Duration  
  This scheme has not been availabl e since 22 July 1990, nevertheless: 
  - For firms set up before 1 January 1990, ex emption from corporate tax ends during the 
fiscal year 2007; 
 
 - for firms set up between 1 January and 22 July 1990, exemption from corporate tax 
ends during the fiscal year 2002; 
  - no exemption from corporate tax is granted to firms set up after 22 July 1990. 
 
1.1.3.   EMPLOYMENT ZONES, ROYAL DECREE NO. 118 OF 23 DECEMBER 1982 
 
(a)  Form of the subsidy
 
  Firms in employment zones originally benefited from the following, inter alia :  
 
 - Total exemption for ten years from corpor ate tax on profits reserved and distributed; 
  - total exemption from tax on income from movable assets for dividends distributed to 
shareholders; 
 
 - exemption from tax on income from movable assets;    - exemption from graduated registration duty on capital inflow.  (b)  Total amount in 2001
 
 
 Immunity from corporate tax: (NCG*) EUR 1.42 million. 
 
                                                      
 
* NCG = Net cost for the Government in Euros. G/SCM/N/95/EEC/Add.2 
Page 6  
 
(c)  Policy objective
 
  The tax scheme applies to enterprises set up in employment zones, the limits of which have 
been defined for Belgium's three regions in order to promote the creation of high-tech 
enterprises. 
 
(d) Duration
 
  This scheme is no longer available, although enterprises currently benefiting from it continue 
to do so until their ten-year period ends.  
 
 For firms set up before 24 July 1991, the last fi scal year in which they can take advantage of 
the tax concessions is 2001. 
 
1.2.  TAX MEASURES TO PROMOTE INVESTMENT 
 
1.2.1. DEDUCTION FOR INVESTMENT, ARTICLES 68 TO 77 CIR92 
 
(a) Form of the subsidy
 
  Deduction for investment allows a share of th e amount of investment made during the taxable 
period to be deducted from the basic taxable am ount. Firms or natural persons who declare 
gains or profits are eligible.  
 (b) Total amount in 2001
 
 
 NCG Deduction (NCG*):  EUR 226.84 million. 
 (c) Policy objective
 
  The objective is currently to facilitate inv estment in the research and development and 
energy-saving sectors, as well as in SMEs. 
  
(d) Duration
 
  The deduction for investment has been "deactivated" for investment made after 
27 March 1992. This means that the rate is now zero, except for the sectors mentioned under 
"Policy objective". 
 (e) Rules and conditions
 
  The deduction may apply to investment in tangi ble or intangible fixed assets used in Belgium 
to exercise a professional activity.  
 
 The redeemable amount determines  the basis for calculation and the basic rate is linked to the 
inflation rate. The basic rate may not exceed 10 pe r cent, nor be less than three per cent. It is, 
however, increased for investment in research and development, investment in innovative 
firms and investment in energy saving.  
 
                                                     
 
* NCG = Net cost for the Government in Euros.  G/SCM/N/95/EEC/Add.2 
 Page 7 
 
 
1.3. AID FOR RESEARCH AND DEVELOPMENT  
 
• Special Law of 8 August 1980, amended on 16 July 1993; 
 
• Cooperation Agreement of 5 April 1995 between  the Federal State and the regions on 
the public financing of joint centres. 
 
(a)  Form of the subsidy  
  Non-repayable subsidy.  (b) Total amount of the subsidies granted in 2001
 
 
 (b1) Projects for which the Federal State is responsible:    Total commitments: EUR 3,285,395.  
 (b2) Projects for which the regions are respons ible and which are jointly financed by the 
Federal State and the regions: 
   Total commitments paid by the Federal State: EUR 3,283,535.  (c) Purpose of the subsidy
 
 
 Precompetitive research for industrial purposes.  (d) Duration
 
 
 Subsidies are usually for a period of two years (maximum). 
  
II. BRUSSELS-CAPITAL REGION  
 
2.1. AID FOR ECONOMIC GROWTH  
 2.1.1. ORDER OF 1 JULY 1993 ON THE PROMOTION OF ECONOMIC GROWTH IN 
THE BRUSSELS-CAPITAL REGION 
 
(a) Form of the subsidy
 
 
 Financial aid is granted in the form of a non-recoverable investment premium.  (b) Total amount of the subsidies granted in 2001
 
 
Type of 
 Investment Number of 
programmes Subsidized 
amount 
(in BEF) Amount of 
premiums 
(in BEF) Average 
rate of aid
General investment 27 519,780,000 28,499,000 5.48%
   
Specific investment    
   G/SCM/N/95/EEC/Add.2 
Page 8  
 
Type of 
 Investment Number of 
programmes Subsidized 
amount 
(in BEF) Amount of 
premiums 
(in BEF) Average 
rate of aid
- rational energy use  
7  
52,140,000  
10,428,000 20%
- rational water use  
1  
 1,550,000 
  310,000 20%
- rational use of raw materials  
1 4,290,000 
   858,000 20%
- environmental protection  
19 152,850,000 
25,713,000 16.82%
- adaptation to European 
standards  
14  88,750,000 
13,314,000 15%
- change to the Euro 250 358,214,000 71,642,000 20%
TOTAL 319 1,177,574,000 150,764,000 12.80%
    
Use of consultancy services 134 101,055,445 49,305,446 48.79%
   
OVERALL TOTAL  453 1,278,629,445 200,069,446 15.65%
     
 
(c) Policy objective and/or purpose of the subsidy  
 
 The policy objective of the Order of 1 July 1993 is to promote economic growth by granting 
financial aid to industrial enterp rises in Brussels if they invest. 
 
 The amount of this aid depends on the enterprise's  sector of activity, its size and the type of 
investment: 
  - For all enterprises, "specific" investment for the purpose of:  
• Saving energy, water or raw materials; 
 
• protecting the environment; 
 
• adapting to European standards; 
  - for medium enterprises (maximum 250 employees and turnover of EUR 40 million), 
"general" investment; 
 
 - for small and medium enterprises (SMEs), "use of consultancy services".  (d) Duration of the subsidy and/or any other time-limits attached to it 
 
 
 Depending on the amount of the premium and the duration of the investment programme, the 
premium is paid in one, two or three annual tranches. 
  G/SCM/N/95/EEC/Add.2 
 Page 9 
 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy  
  With regard to the role played by the fi nancial incentives provided in the legislation on 
economic growth, it should be noted that th e amount of BEF 1,280 million of subsidized 
investment under the Order of 1 July 1993 and the amount of BEF 4,540 million of subsidized 
investment under the Law of 4 August 1978 only represent around 8.4 per cent of the 
investment made by enterprises situated in the Brussels-Capital region and working in the 
manufacturing, building and trade sectors.*  
  *Source: VAT declarations of investment for 2001 = BEF 69,000 million. 
 
 
2.1.2. ECONOMIC ADJUSTMENT LAW OF 4 AUGUST 1978 
 
(a) Form of the subsidy
 
 
 The financial aid is granted in the form of an  interest subsidy or a capital premium depending 
on the method of financing of the investment programme. 
 (b) Total amount of aid granted in 2001
 
 
 Interest subsidy  (in BEF) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
460 2,433,952,507 259,991,949 10.68% 
  Capital premium
 (in BEF) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
401 2,109,741,028 259,061,590 12.28% 
 (c) Policy objective and/or purpose of the subsidy
 
  The aim of the Law of 4 August 1978 is to promote investment by small enterprises. The 
amount of the aid depends on the enterprise's  field of activity and how long it has existed. 
 
 According to the Law of 4 August 1978, a sma ll enterprise is one which comprises less than 
50 people and the turnover of wh ich does not exceed EUR 7 million. 
  Fields of activity are divided into two groups:  
 - Group A: Industrial and non-industrial enterprises or enterprises in the building or 
finishing sector; 
 - Group B: trade and services enterprises.   Three types of investment are envisaged: 
 
 - Type 1: Investment by an enterprise that has existed for less than 12 months; 
 - Type 2: investment by an enterprise that has existed for over 12 months;  - Type 3: investment by an enterprise managed by one or more young people (< age 
35) setting up in business for the first time. G/SCM/N/95/EEC/Add.2 
Page 10  
 
  Aid is given in the form of:   - An interest subsidy where the investment is financed by a fixed-term credit;  - a capital premium where investment is self-financed. 
 
 Two types of tax concession may also be granted:   - The possibility of doubling straight-line depreciation during three successive financial 
years; 
 - exemption from tax on income from immovable assets. 
 (d) Duration of the interest subsidy and the capital premium
 
  In accordance with the criteria set out in subhead ing (c), the interest subsidy may be given for 
a period ranging from four to five years and the capital premium is paid in a lump sum. 
 The duration of the accelerated depreciation is fixed at three years.  The duration of exemption from tax on income from immovable assets is exactly the same as 
that for the interest subsidy. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 - 40 per cent of the subsidized enterpri ses are industrial, non-industrial or high 
technology enterprises and 60 per cent ar e trade or services enterprises. The 
percentages in terms of budgetary impli cations stand at 52 and 48 respectively. 
 
 - 83 per cent of the subsidized enterprises are normal enterprises, 11.5 per cent are start-
ups and 5.5 per cent are youth enterprises. The percentages in terms of budgetary 
implications stand at 82, 14 and 4 respectively. 
 
2.2. AID FOR RESEARCH AND DEVELOPMENT  
 
2.2.1. SUBSIDIES FOR BASIC INDUSTRIAL RESEARCH 
 
(a) Form of the subsidy  
  Optional non-repayable subsidy. 
 
(b) Total amount of aid granted in 2001
 
 
 Commitments: 
 BEF 293,329,163 (EUR 7,271,440) 
 or 13 new projects run by 11 enterprises, including seven new beneficiaries (no university or 
research centre projects).  
 
 Disbursements : 
 BEF 190,495,491 (EUR 4,722,260).  
(c) Policy objective and/or purpose of the subsidy
 
  To strengthen precompetitive research by regional enterprises.   G/SCM/N/95/EEC/Add.2 
 Page 11 
 
 
(d) Duration of the subsidy  
 
 Two years per subsidy. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Precompetitive research and, as such, not quantifiable in the medium or short term.   
2.2.2. "PROTOTYPE ADVANCES" 
 
(a) Form of the subsidy
 
  Interest-free loans repayable upon marketing.  
(b) Total amount of aid granted in 2001
 
 
 Commitments: 
 BEF 592,454,960 (EUR 14,686,575)  or 13 new projects run by 13 enterprises, including eight new beneficiaries (no university or 
research centre projects).  
 
 Disbursements: 
 BEF 327,820,969 (EUR 8,126,470).  
 (c) Policy objective and/or purpose of the subsidy
 
 
 To promote regional development through the creation of new products, processes or 
services. 
 (d) Duration of the subsidy
 
 
 One to five years. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term. 
  
2.2.3. EUROPEAN PROGRAMMES 
 
(a) Form of the subsidy
 
 
 Optional non-repayable subsidy.  (b) Total amount of aid granted in 2001
 
  Commitments:  
 BEF 4,840,788 (EUR 120,000) for a project de veloped in conjunction with a university. 
 
 Disbursements: 
 BEF 5,972,348 (EUR 148,051). 
 G/SCM/N/95/EEC/Add.2 
Page 12  
 
(c) Policy objective and/or purpose of the subsidy
 
  To compensate for the inadequacy of EC subsidies for European research programmes in 
universities or research centres with no commercial activities. 
 
(d) Duration of the subsidy
 
  Two to three years per dossier.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Precompetitive or socio-economic research and,  as such, not quantifiable in the medium or 
short term. 
  2.3. AID FOR PROMOTION OF FOREIGN TRADE 
 
2.3.1. ORDER OF 13 JANUARY 1994 ON THE PROMOTION OF FOREIGN TRADE 
 
(a) Form of the subsidy
 
  (A) Subsidies for: 
 
  • Participation in trade fairs abroad and in Belgium;    • the elaboration of information documents to promote exports; 
 
  • participation in training programmes;    • collaboration of foreign trade experts.  
 (B) Subsidies and interest-free loans for: 
 
  • Market surveys and market pr esence outside the European Union; 
   • participation in tenders for markets outside the European Union.  
(b) Total amount of commitments in 2001 (in BEF)
 
 
 Number of 
dossiers Total amount of 
commitments 
Trade fair subsidies 219 18,529,107 
Documentation subsidies 77 20,690,750 
Training subsidies 0 0 
Subsidies for collaboration of experts 10 215,000 
Market survey subsidies/loans 74 4,406,986 
Subsidies/loans for tenders 1 21,400 
TOTAL  381 43,863,243 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Support for trade survey efforts by smal l and medium enterprises in the region. 
  G/SCM/N/95/EEC/Add.2 
 Page 13 
 
 
(d) Duration of the subsidy  
  Ad hoc aid.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.   
III. BELGIUM - WALLOON REGION  
 
3.1. AID TO SMES 
 
3.1.1. LAW OF 4 AUGUST 1978 ON ECONOMIC ADJUSTMENT, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 9 JULY 1992 
 
(a) Form of the subsidy
 
   Investment premium (non-repayable premium)  irrespective of the investment financing 
method. Investments eligible to receive a premium are those in tangible and intangible fixed assets.  
 
 Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.  
   Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets. Exemption from the gr aduated registration dut y on capital inflow.  
 (b) 2001 budget
 
  The budget amounted to EUR 100.71 million.  The premiums are awarded for a wide ra nge of projects and sectors of activity.  
 
(c)  Policy objective
 
   The incentives created to assi st the socio-economic development of the Walloon region are 
awarded under contracts between the Walloon re gion on the one hand and on the other any 
natural or legal person who undertakes to carry out one or more operations aimed at achieving 
sustainable development and promoting job crea tion. The incentives are only awarded if they 
make a decisive contribution to achieving these aims.  
  In practical terms, the premiums are awarded in order to encourage investment by small and 
medium enterprises (SMEs). An SME is an ente rprise the payroll of which does not exceed 
250 persons and the turnover of which does not  exceed BEF 845,834,000 (ECU 20 million at 
the rate of exchange on 1 July 1991).  
   The premiums are awarded to SMEs in the industrial, non-industrial, tourism, trade and 
services sectors.  
 
 The scheme applies in the whole of the Wall oon region for all enterprises meeting the SME 
criteria.  
  The scheme is therefore not specific, ex cept that it only applies to SMEs.  
 G/SCM/N/95/EEC/Add.2 
Page 14  
 
(d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  
 
 
3.2. AID TO DISADVANTAGED REGIONS 
 
3.2.1. LAW OF 30 DECEMBER 1970 ON EC ONOMIC GROWTH, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 9 JULY 1992 
 
(a) Form of the subsidy
 
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method. Investments eligible to receive a premium are those in tangible and intangible fixed 
assets.  
  Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.  
  Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets.  
  Exemption from the graduated registration duty on capital inflow.   (b) 2001 budget
 
 
 The budget amounted to EUR 75.34 million.  The premiums are awarded for a wide ra nge of projects and sectors of activity.  
  (c) Policy objective
 
 
 The incentives created to assi st the socio-economic development of the Walloon region are 
awarded under contracts between the Walloon re gion on the one hand and on the other any 
natural or legal person who undertakes to carry out one or more operations aimed at achieving 
sustainable development and promoting job crea tion. The incentives are only awarded if they 
make a decisive contribution to achieving these aims.  
 
 In practical terms, the premiums are awarded in order to encourage investment by large 
enterprises situated in disadvantaged zones, called development zones.  
  Development zones are determined by the Co mmission of the European Union following a 
proposal by a Member State. In defining the sc ope of such zones, the European Commission 
uses a method defined in 1988 in the "Coordinatio n principles for regional aid". This method 
is essentially based on an analysis of objec tive criteria, including per capita GDP and the 
unemployment rate.  
  The scheme is therefore not specific, except th at it applies only to enterprises located in 
disadvantaged areas which, as explained above, ar e defined on the basis of easily identifiable 
and quantifiable objective criteria.  
  G/SCM/N/95/EEC/Add.2 
 Page 15 
 
 
(d) Duration  
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  
 
 
3.3. RESEARCH AND TECHNOLOGY AID 
 3.3.1. DECREE OF 5 JULY 1990 ON AID AND ACTION BY THE WALLOON REGION TO 
PROMOTE RESEARCH AND TECHNOL OGY, AND THE IMPLEMENTING 
ORDERS THEREOF 
 
 - Walloon Government Decree of 29 Septemb er 1994 defining the "small or medium 
enterprise" with a view to granting ai d and taking action to promote research and 
technology;   
 
 - Walloon Government Decree of 29 Septem ber 1994 on aid and action to promote 
research and technology.  
 
(a) Form of the aid
 
 
 A. Subsidies granted to enterprises for basic industrial research work.  
  B. Repayable advances to enterprises fo r work related to applied research and 
development.  
 
 C. Subsidies granted to small and medium en terprises for preparatory or associated studies 
for research or development projects.  
 (b) 2001 budget
 
  The amount of aid per unit consists of a per centage of the admissible expenditure for the 
accepted project.  
  The annual global budget for the types of aid set out in point (a) are EUR 14.32 million,  
EUR 29.03 million and EUR 2.57 million respectively.  
 
(c) Policy objective
 
  This horizontal aid is designed to promote r esearch and development activities and encourage 
technological innovation and is availabl e to all sectors of economic activity.  
  The types of aid defined under A and B above are available to enterprises of any size. The aid 
mentioned under C is restricted to small and medium enterprises.  
  The aid is not awarded automatically, but is dependent upon an assessment by the 
administrative services of the quality of the project.  
 
 Where aid consists of a repayable advance, the beneficiary enterprise pays it back in the form 
of regular payments if it has decided to explo it the results of the research industrially or 
commercially.  
 G/SCM/N/95/EEC/Add.2 
Page 16  
 
(d) Duration
 
  The aid scheme may be applied indefinitely. The budget is adopted annually by the Walloon 
Parliament.  
 
 The duration of aid granted corresponds to th e duration of the research work or the study 
financed.  
 (e) Statistical data
 
 
 The aid has an impact on trade because it may lead to the marketing of innovative products, 
processes or services. The criteria for estimating this impact are so numerous and complex that it is extremely difficult to apply statistical tools to them.  
  IV. BELGIUM - FLEMISH REGION  
 
4.1. AID TO ECONOMIC GROWTH 
 4.1.1. LAW OF 30 DECEMBER 1970 ON ECONOMIC GROWTH  
 (a) Form of the aid
 
  - Interest subsidy (for investment  financed through credit or leasing); 
 - capital premium (for investment fina nced by the enterprise's own funds); 
 - tax concessions; 
 - loan guarantee by the Flemish region; 
 - interest-free repayable credit.  (b) Total amount of aid in 2001
 
  - Interest subsidy and capital premium: EUR 71,639,906.00 of commitments; 
 - tax concessions: 
  • Exemption from tax on income from immovable assets: EUR 82,279,521.49 
(amount of investment); 
  • accelerated amortization: EUR 103,678,406.65 (amount of investment);   • exemption from proportional levy on capital invested: EUR 0 (amount of 
investment exempted); 
 - loan guarantee: EUR 0 (amount of investment);      EUR 0 (amount of net losses);  - interest-free repayable credit: EUR 928,506.00.  (c) Purpose of the aid
 
 
 The aid is granted to promote the economic growth of medium and large enterprises in 
development and buffer zones in the Flemish regi on and applies to investment that leads to 
the creation of additional jobs.  
  
 The programme provides a definition of the sectors, investment and financing admissible.  
 (d) Duration of the programme
 
  Indefinite. 
  G/SCM/N/95/EEC/Add.2 
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(e) Statistical data  
  No statistical data permitting an assessment of the effects of the aid on WTO trade are 
available.  
 
(f) Rules and conditions
 
  The programme applies to large and medi um industrial, commerc ial and non-industrial 
enterprises, as well as to large and medium ente rprises in the tourism or services sectors.  
 
 It concerns investment in development or buffe r zones in the Flemish region that leads to the 
creation of additional jobs.  
  A medium or large enterprise is defined in  accordance with the Community framework for 
aid to SMEs, adopted by the European Commission on 20 May 1992. 
 
 An enterprise may obtain the following aid:    Interest subsidies and capital premiums are granted for investment projects that create 
additional jobs, are of strategic interest to the region or have a favourable impact on the 
environment.  
 
 Tax concessions:   
• Exemption from tax on income from immovable assets for a maximum of five years 
for investment in real property or fixtures that are included in the "allivrement 
cadastral"  (assessment of rateable value).  
 
• Accelerated depreciation is admissible for enterprises situated in the Limbourg 
development zones.  
   All investment eligible for subsidies that is  depreciated in a straight line is admissible. 
The concession gives the possibility of applying annual depreciation equal to double 
the normal annual straight-line depreci ation payment over a period of three 
consecutive years.  
 
• Exemption from graduated levies on capital in flow is granted for capital invested in 
medium or large enterprises with legal status  in respect of investment in development 
or buffer zones. This form of aid was w ithdrawn pursuant to the Flemish Government 
Decision of 17 July 2000. 
 
  The purpose of the loan guarantee by the Fl emish region is to facilitate the granting of 
professional credits to enterprises that inv est in economic growth. The guarantee is 
additional to the security provided by the ente rprise, but may not be used to cover the 
total risk. Part of the risk must be borne by the credit organization and by the security 
given by the enterprise. The credit orga nization and the enterprise each pay a 
contribution that depends on the am ount and term of the guarantee.  
  "Soft" aid consists of an interest-free repaya ble credit for training projects, consultancy for 
enterprises and investment studies.  
 
 G/SCM/N/95/EEC/Add.2 
Page 18  
 
4.1.2. ECONOMIC ADJUSTMENT LAW OF 4 AUGUST 1978 
 
(a) Form of the aid
 
  - Interest subsidy (for investment  financed through credit or leasing); 
 - capital premium (for investment fina nced by the enterprise's own funds); 
 - exemption from tax on income from immovable assets;  - loan guarantee by the Flemish region.   (b) Amount of aid in 2001
 
 
 - Interest subsidy and capital premium: EUR 189,166,655.00 of commitments;  - exemption from tax on income from immovable assets: EUR 851,793,486.51 (amount 
of investment) 
 - loan guarantee: EUR 3,852,888.48 (amount of investment) 
    EUR 185,920.14 (amount of net losses). 
 (c) Purpose of the aid
 
  The aid is granted to promote the economic gr owth of small, independent enterprises in the 
Flemish region.  
 
 The programme provides a definition of the sectors, investment and financing admissible.   (d) Duration of the programme
 
 
 Indefinite.  
 (e) Statistical data
 
  No statistical data permitting an assessment of the effects of the aid on WTO trade are 
available.  
 
(f) Rules and conditions
 
  The programme applies to small industrial, commercial and non-industrial enterprises, small 
enterprises in the tourism or services sectors and independent or professional occupations 
closely linked to the economic ac tivities of small enterprises.  
  A small enterprise is defined in accordance w ith the Community framework for aid to SMEs, 
adopted by the European Commission on 20 May 1992. 
  The amount of the interest subsidy and the cap ital premium are calculated according to the 
enterprise's activity, whether it is the enterprise's first establis hment in the Flemish region, the 
creation of additional jobs, the strategic interest  of the investment for the region, relocation 
for ecological reasons or the favourable impact on the environment.  
  Enterprises granted an interest subsidy or capital premium may be exempted from tax on 
income from immovable assets for investme nt in real property included in the "allivrement 
cadastral"  (assessment of rateable value) for a maximum period of five years. The exemption 
applies to real property and fixtures.  
  The purpose of the loan guarantee by the Flemish region is to facilitate the granting of 
professional credits to enterprises that invest in economic growth. The guarantee is additional  G/SCM/N/95/EEC/Add.2 
 Page 19 
 
 
to the security provided by the en terprise, but may not be used to cover the total risk. Part of 
the risk must be borne by the credit organizati on and by the security given by the enterprise. 
The credit organization and the enterprise each pay a contribution that depends on the amount 
and term of the guarantee.  
 4.1.3. DECREE OF 15 DECEMBER 1993 TO  PROMOTE ECONOMIC GROWTH IN THE 
FLEMISH REGION 
 
(a) Form of the aid
 
 
 - Investment premium; 
 - exemption from tax on income from immovable assets;  - loan guarantee by the Flemish region;  - interest-free repayable credit.   
(b) Amount of aid in 2001
 
  - Investment premium: EUR 47,142,707.00 of commitments;  - exemption from tax on income from immovable assets: EUR 487,066,488.89 (amount 
of investment); 
 - loan guarantee:  EUR 0 (amount of investment) 
    EUR 0 (amount of net losses); 
 - interest-free repayable credit: EUR 0.   (c) Purpose of the aid
 
 
 The aid is granted to promote the economic gr owth of medium and large enterprises in the 
Flemish region.  
  The programme provides a definition of the sectors, investment and financing admissible.   (d) Duration of the programme
 
 
 Indefinite.   (e) Statistical data
 
 
 No statistical data permitting an assessment of the effects of the aid on WTO trade are 
available.  
 (f) Rules and conditions
 
  The programme applies to large and medi um industrial, commerc ial and non-industrial 
enterprises, as well as to large and medium ente rprises in the tourism or services sectors.  
  It concerns investment in zones outside de velopment and buffer zones in the Flemish region 
or in development or buffer zones where it does not lead to the creation of additional jobs. 
 
 A medium or large enterprise is defined in  accordance with the Community framework for 
aid to SMEs, adopted by the European Commission on 20 May 1992. 
  The investment premium for medium enterprises is granted for investment projects that create 
additional jobs, are of economic interest to th e region or have a favourable impact on the 
environment.  G/SCM/N/95/EEC/Add.2 
Page 20  
 
  Exemption from tax on income from immovable assets for a maximum of five years applies 
to real property or fixtures that are included in the "allivrement cadastral"  (assessment of 
rateable value).  
  
 The purpose of the loan guarantee by the Flemish region is to facilitate the granting of 
professional credits to enterprises that invest in economic growth. The guarantee is additional 
to the security provided by the en terprise, but may not be used to cover the total risk. Part of 
the risk must be borne by the credit organizati on and by the security given by the enterprise.  
 
 The credit organization and the enterprise each pay a contribution that depends on the amount 
and term of the guarantee.  
  "Soft" aid consists of an interest-free repaya ble credit for training projects, consultancy for 
enterprises and investment studies.  
 
 Aid to large enterprises is limited to ecological i nvestment and is in the form of an investment 
premium, "soft" aid, exemption from tax on income from immovable assets or a guarantee from the Flemish region.  
 
4.2. AID TO SOCIAL INTEGRATION ENTERPRISES (SOCIAL ECONOMY) 
 
 Flemish Government Decision of 16 November 1994 and Ministerial Decree of 22 December 1994 on integration enterprises " doorvoering van experimenten in verband met 
invoegbedrijven en leereilandprojecten " (period 1 July 1993 – 31 December 1994).  
 
 Flemish Government Decision of 26 March 1996 and Ministerial Decree of 22 April 1996 (as 
of 1 January 1995) introducing a regime for an indefinite period. The Ministerial Decree of 15 December 1999 concerns social integration en terprises recognized prior to 1 January 1999 and 
entered into force on 1 January 1999. Flemish Government Decree of 10 November 1998 concerns 
social integration enterprises recognized as from 1 November 1999 and also entered into force on 
1 January 1999 and is valid for an indefinite period. 
 
(a) Form of the aid
 
  - A degressive lump-sum wage premium for each full-time job;  - degressive over a three-year period. 
 
(b) Amount of aid in 2001
 
  - Total premiums granted in 2001:  EUR 1,388,203.  (c) Purpose of the aid
 
 
 Integration enterprises are newly created en terprises recognized by the Minister and the 
integration of which requires medium-term aid be fore they can take their place in the normal 
economy. The aim is to be able  to recruit workers with lowe r qualifications whose reduced 
productivity is offset by a premium given to the employer.  
 
(d) Duration of the programme  
  Indefinite.    G/SCM/N/95/EEC/Add.2 
 Page 21 
 
 
(e) Statistical data  
  No statistical data permitting an assessment of the effects of the aid on WTO trade are 
available.  
 4.3. AID TO ENTERPRISES FOR CONSULTANCY 
 
 Decree of 31 March 1993 on aid by the Flem ish region to small enterprises which use 
approved outside consultants.  
 Flemish Government Decision of 9 December 1997 on the granting of financial aid to small 
enterprises which use approved outsi de consultants, and on the approval of the consultants 
themselves.   The relevant Directives. 
 
(a) Form of the aid
 
  Consultancy bonus for indepe ndent firms and new SMEs.  
 (b) Amount of aid in 2001
 
 
 Amount: EUR 865,456.21 (197 dossiers).  (c) Purpose of the aid
 
 
 The largest number of bankruptcies occur during th e first five years of an enterprise. On this 
basis, it appeared useful to allow these ente rprises to call on management consultants during 
their start-up period.  
 (d) Duration of the programme
 
 
 Indefinite. 
 
4.4. AID FOR RESEARCH AND DEVELOPMENT  
 
 Decision of the Flemish Research and Technol ogical Development Fund of 23 October 1991. 
 
(a) Form of the aid  
  - Grants for basic research and prototyping and development  - Grants for technological innovation projects for SMEs  
(b) Amount of aid in 2001
 
  R&D projects from industry:  EUR 72.113 million  Innovation projects for SMEs:  EUR 5.106 million  Total for direct support to enterprises:  EUR 77.219 million 
 
 Collective research by sectoral research centres:  EUR 2.201 million  Support for innovation networks:   EUR 0.281 million  Total for direct and indirect suppor t to industry:   EUR 79.801 million 
 G/SCM/N/95/EEC/Add.2 
Page 22  
 
(c) Purpose of the aid
 
  Stimulation of technological innovation and industrial R&D.  (d) Duration of the programme
 
 
 The basic R&D support programme is contin uously open to applications. Specific sub-
programmes have to be renewed (SME scheme). 
 (e) Statistical data
 
 
 Division by applicant:   - Large companies  : 75%  - SMEs    : 25% 
 
 Division by type of research:   - Basic research   : 50%  - Prototyping and development : 50%  
 Division by type of technology: 
  - Basic technologies  :  6%  - Biotechnology   : 29%  - ICT    : 39% 
 - Materials and chemics  : 26% 
 (f) Rules and conditions
 
  Any industrial enterprise can apply for financ ial aid for R&D projects. Firms may at any time 
submit a file to the IWT (Institute for the Promotion of Innovation by Science and 
Technology in Flanders) which processes the files. 
  Universities and research institutes may also participate in industrial projects and obtain 
financial aid.  
 
 Basic research can obtain support for 50 per cent of project costs. The development of 
prototypes, new products or new manufacturing pr ocesses can secure a loan for 50 per cent of 
project costs, with a gross grant equivalent to 15 or 25 per cent. 
  Repayment, at market interest rate, is requi red in cases where the project meets with technical 
success. 
 
 In the case of SMEs, these percenta ges may increase by 10 per cent. 
  Projects for strategic basic research with indus trial relevance can obtain a subsidy of 100 per 
cent. 
 
 Costs of personnel, material and supplies re lated to R&D, instruments and equipment are 
eligible for aid. 
  G/SCM/N/95/EEC/Add.2 
 Page 23 
 
 
4.5. AID TO THE FISHERIES AND AQUACULTURE SECTOR 
 
 Following the abolition of the scheme to aid shipyards on 1 January 1996 and a transitional scheme in 1996 (Flemish Government Decree of 2 April 1996), a completely new set of regulations 
on aid for investment and new enterprise in the maritime fisheries and aquaculture sector was 
approved in 1998. The aid is given in the context of the "Financieringsinstrument voor de Vlaamse 
visserij – en Aquacultuursector – FIVA" (Financi ng instrument for the Flemish fisheries and 
aquaculture sector).   - Decree of 13 May 1997 establishing a fina ncing instrument for the Flemish fisheries 
and aquaculture sector; 
  - Flemish Government Decree of 7 July 1998 on aid for investment and setting up in 
the fisheries and aquaculture sector; 
 
 - Ministerial Decree of 14 July 1998 on aid for investment and setting up in the 
fisheries and aquaculture sector. 
 (a) Form of the aid
 
  - Interest rate subsidy: subsidized interest  rates on loans granted to shipowners and fish 
farmers and their cooperatives; 
  - capital subsidy when investment is financed by equity;   - loan guarantees for shipowners and fish farmers. 
 
(b) Total amount of aid in 2001 (in terms of commitments
) 
  - interest rate subsidies  EUR 738,088   - capital premiums  EUR 420,445   - loan guarantees  EUR 147,145  
 
(c) Purpose of the aid
 
  The aid is granted to shipowners and fish fa rmers and their organizations and cooperatives in 
order to promote all operations increasing the productivity of shipping and fish-farming 
companies, to ensure their profitability and reduce costs. 
 (d) Duration of the programme
 
  Indefinite. Nevertheless, the regulations  are scheduled to be adapted in 2002. 
 
(e) Statistical data
 
  The purpose of the aid is structural and in tended to promote fishing and aquaculture by 
improving the efficiency of the structures; no statistical data permitting an assessment of its 
effects on global trade are therefore available. 
 
 Given that the capacity of the fishing fleet and the aquaculture sector is very limited, the 
effect on global trade is negligible. 
 G/SCM/N/95/EEC/Add.2 
Page 24  
 
(f) Rules and conditions
 
  The beneficiaries of this aid are family sea-fi shing enterprises and fish farms. The aid is 
granted to beneficiaries after an individual ex amination of the dossiers. The subsidization 
limits set out in Council Regulation (EC) No. 2468/98 (formerly No. 3699/93) apply. 
 
4.6. AID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE - 
 FLEMISH AGRICULTURAL INVESTMENT FUND 
 
 In order to ensure continuity of aid to ag ricultural investment and new enterprise following 
the regionalization of the Agricultural Investment Fund as from 1 January 1993, a Flemish 
Agricultural Investment Fund (Vlaams Landbouwinvesteringsfonds) was created. 
  - Council Regulation (EC) No. 950/97 of 20 May 1997 on improving the efficiency of 
agricultural structures (coordination of Council Regulation (EC) No. 2328/91, as 
amended). 
  - Article 12 of the Decree of 22 December 1993 containing various measures in 
application of the 1994 budget (creation of  a Flemish Agricultural Investment Fund). 
  - Flemish Government Decree and Ministerial Decree of 4 July 1997 on aid for 
agricultural investment and new enterprise. 
  - Flemish Government Decree of 16 July 1997 on the operation and management of the 
"Vlaams Landbouwinvesteringsfonds" (Fle mish Agricultural Investment Fund). 
 
(a) Form of the aid
 
  - Interest subsidies: interest rate s ubsidies on loans granted for agriculture and 
horticulture; 
 - investment premiums;  - start-up grants; 
 - premiums on investments for young farmers/horticulturalists; 
 - guarantees for loans granted for agriculture and horticulture.  (b) Amount of aid in 2001 (granted: in terms of commitments)
 
 
 - Interest subsidies: EUR 37,030,224.02  
  - *new dossiers:  
 improvement: EUR 28,822,451. 52 with 25 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 950/97 or 1257/99); 
 
 start-up:   EUR 3,783,559.55 with 50  per cent co-financing by the EAGGF (Council 
Regulations (EC) Nos. 950/97 or 1257/99); 
  regional aid without EAGGF co-financing: EUR 3,799,421.37. 
 
 - *reviews and facilities relating to  existing dossiers: EUR 624,791.58  
  - Investment premiums 
  G/SCM/N/95/EEC/Add.2 
 Page 25 
 
 
 - agriculture: EUR 14,057,955.60 with 25 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
  - cooperative societies:  EUR 23,902.32 without EAGGF co-financing.  
 - Start-up grants 
 
 - EUR 5,344,732.66 with 50 per cent co -financing by the EAGGF (Council Regulation 
(EC) No. 1257/99) 
 
 - investment premiums: EUR 999,226.91  
  - *on first start-up: BEF 867,602.89 (regulated prior to 2000) with 50 per cent 
co-financing by the EAGGF (Council Regulation (EC) No. 950/57) 
 
 - *pig-farming sector: EUR 131,624.02 with 25 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 950/97) 
 
 - Loan guarantees: BEF 33,764,177.50 of guarantees.  
 
(c) Purpose of the aid
 
 
 This aid is awarded to farmers and market ga rdeners and their organizations and cooperatives 
to encourage all operations which increase th e productivity of agricultural and horticultural 
enterprises, maintain and improve their profitability and reduce costs, such as: 
 
 (a) Investment operations, i.e., operations whereby natural or legal persons acquire, 
extend or improve capital assets such as la nd, buildings and c onstructions, including 
housing for the operator and his family, indu strial plant, facilities, machines, tools 
and materials. This Decree is only applicab le to the acquisition of land and buildings 
when this is economically necessary to main tain the profitability of the existing 
enterprise; 
 
 (b) restructuring of enterprises fo llowing changes in economic conditions; 
  (c) agricultural and horticultural start-ups;  
 (d) processing and marketing of agricultural and horticultural products, mainly through 
cooperatives. 
 (d) Duration of the programme
 
  Indefinite. 
 
(e) Statistical data
 
   The aid has a structural objective of improving agriculture through enhanced efficiency of 
agricultural enterprises; no statistical data are therefore available to assess the effects of the 
aid on world trade. 
 (f) Rules and conditions
 
  The beneficiaries of this aid are natural or legal persons engaged in agriculture and 
horticulture as their main activity, as well as th eir organizations and cooperatives. They must G/SCM/N/95/EEC/Add.2 
Page 26  
 
be adequately qualified and the business must represent at least one man work unit (MWU) and a maximum of twelve man work units per family work unit (FWU). 
  The aid is granted for three major categories of operation:  
• Improvement of an existing business: investment in long-term improvement in the 
structure of the business. There are several sectoral restrictions. Co-financing with the EAGGF exists up to a certain ceiling, beyond which the aid is wholly charged to the Flemish region with an absolute ceiling; 
 
• a young farmer setting up in business for the first time, including movable assets 
(machines and material, livestock, etc.). Co-financing with the EAGGF exists up to a 
certain ceiling, beyond which the aid is wholly  charged to the Flemish region with an 
absolute ceiling; 
 
• various operations without EAGGF co-financ ing, such as the purchase of occupied 
farm buildings, investment in the environment and animal welfare (in compliance with the provisions of Council Regulation (EC) No. 950/97). 
 
4.7. AID FOR SHIPBUILDING 
 
 Flemish Government Decision of 29 December 1992.   
(a) Form of the subsidy
 
  Direct subsidy, interest subsidy, guarantees.  (b) Subsidy amounts
 
 
 - Investment in fishing boats  EUR 0  
 - Other shipbuilding projects    EUR 0   - Income supplement for former shipbuilders  EUR 419,354.04  - Severance payments and decommissioning subsidy    EUR 0   - Consultancy and study costs    EUR 0  
 
 
V. BELGIUM - FEDERAL STATE 
 
1. AID FOR RESEARCH AND DEVELOPMENT  
 
• Special Law of 8 August 1980, amended on 16 July 1993; 
 
• Cooperation Agreement of 5 April 1995 be tween the Federal State and the regions on 
the public financing of joint centres. Th is Agreement was denounced with effect from 
1 January 2002. 
 (a)  Form of the subsidy
 
 
 Non-repayable subsidy.   G/SCM/N/95/EEC/Add.2 
 Page 27 
 
 
(b) Total amount of subsidies granted in 2002  
  (b1) Projects for which the Federal State is responsible:   Total commitments: EUR 1,549,350  
 (b2) Projects for which the re gions are responsible and which are jointly financed by the 
Federal State and the regions: 
   Total commitments paid by the Federal State: EUR 1,487,000 
 
(c) Purpose of the subsidy
 
  Precompetitive research for industrial purposes.  (d) Duration
 
 
 Subsidies are for one year.   
VI. BELGIUM - BRUSSELS-CAPITAL REGION 
 
2.1. AID TO ECONOMIC GROWTH  
 2.1.1. ORDER OF 1 JULY 1993 ON THE PROMOTION OF ECONOMIC GROWTH IN THE 
BRUSSELS-CAPITAL REGION 
 
(a) Form of the subsidy
 
  Financial aid is granted in the form of a non-recoverable investment premium.  G/SCM/N/95/EEC/Add.2 
Page 28  
 
(b) Total amount of the subsidies granted in 2002
 
 
Type of 
Investment Number of 
programmes Subsidized 
amount 
(in EUR) Amount of 
premiums 
(in EUR) Average 
rate of aid
General investment 35 14,943,207 818,985 5.5%
  
Specific investment   
  
- rational energy use 
12 
893,468  
178,682 20%
- rational water use 
2 
95,825 
19,164 20%
- rational use of raw materials 
4 882,971 
176,593 20%
- environmental protection 
14 3,748,254 
648,626 17.30%
- adaptation to European standards  18 3,968,366 
595,234 15%
- change to the Euro  51 2,497,100 499,419 20%
TOTAL (general + specific) 136 27,029,189 2,936,704 10.90%
  
Use of consultancy services 137 2,493,577 1,196,329 48%
  
OVERALL TOTAL  273 29,522,766 4,133,033 14%
     
 
(c) Policy objective and/or purpose of the subsidy  
  The policy objective of the Order of 1 July 1993 is to promote economic growth by granting 
financial aid to industrial enterp rises in Brussels if they invest. 
  The amount of this aid depends on the enterprise's  sector of activity, its size and the type of 
investment: 
 
 - For all enterprises, "specific" investment for the purpose of: 
 
• Saving energy, water or raw materials; 
 
• protecting the environment; 
 
• adapting to European standards; 
 
 - for medium enterprises (maximum of 250 employees and turnover of EUR 40 
million), "general" investment; 
  - for small and medium enterprises (SMEs), "use of consultancy services".   G/SCM/N/95/EEC/Add.2 
 Page 29 
 
 
(d) Duration of the subsidy and/or an y other time-limits attached to it  
  Depending on the amount of the premium and the duration of the investment programme, the 
premium is paid in one, two or three annual tranches. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  With regard to the role played by the fi nancial incentives provided in the legislation on 
economic growth, it should be noted that the amount of EUR 27,029,189 of subsidized 
investment under the Order of 1 July 1993 and the amount of EUR 139,402,269 of subsidized 
investment under the Law of 4 August 1978 onl y represent around 8.7 per cent of investment 
made by enterprises situated in the Brussels-Ca pital region and working in the manufacturing, 
building and trade sectors.*  
  *Source: VAT declarations of investment for 2002 = BEF 77,000 million   2.1.3. ECONOMIC ADJUSTMENT LAW OF 4 AUGUST 1978  
(a) Form of the subsidy
 
 
 The financial aid is granted in the form of an  interest subsidy or a capital premium depending 
on the method of financing of the investment programme. 
 (b) Total amount of aid granted in 2002
 
 
 Interest subsidy  (in EUR) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
520 98,218,762 5,197,958 5.3% 
  Capital premium
 (in EUR) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
242 41,183,507 3,338,719 8.1% 
 (c) Policy objective and/or purpose of the subsidy
 
  The aim of the Law of 4 August 1978 is to promote investment by small enterprises. The 
amount of the aid depends on the enterprise's field of activity and how long it has existed. 
 
 According to the Law of 4 August 1978, a sma ll enterprise is one which comprises less than 
50 people and the turnover of wh ich does not exceed EUR 7 million. 
  Fields of activity are divided into two groups:  
- Group A: Industrial and non-industrial ente rprises or enterprises in the building 
and finishing sector; 
 - Group B: trade and services enterprises.  G/SCM/N/95/EEC/Add.2 
Page 30  
 
 Pursuant to Directive B6, three types of investment are envisaged: 
  - Type 1 (START-UP): investment by an enterprise that has ex isted for less than 
12 months; 
 - Type 2 (NORMAL):  investment by an enterprise that has existed for over 
12 months; 
 - Type 3 (YOUTH): investment by an enterprise managed by one or more young 
people (< age 35) setting up in business for the first time. 
  Since 1 April 2002, certain changes have b een made under Directive No. 7, including in 
particular the elimination of type 3. 
  Aid is given in the form of:   - An interest subsidy where the investment is financed by a fixed-term credit; 
 - a capital premium where investment is self-financed. 
  Two types of tax concession may also be granted:   - The possibility of doubling straight-line depreciation during three successive financial 
years; 
 - exemption from tax on income from immovable assets. 
 (d) Duration of the interest subsidy and the capital premium
 
  In accordance with the criteria set out in subhead ing (c), the interest subsidy may be given for 
a period ranging from three to five years and th e capital premium is paid in a lump sum. 
   The duration of the accelerated depreciation is fixed at three years.   The duration of exemption from tax on income from immovable assets is exactly the same as 
that for the interest subsidy. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  - 38 per cent of subsidized enterprises are i ndustrial, non-industrial or high-technology 
enterprises and 62 per cent are trade or serv ices enterprises. The percentages in terms 
of budgetary implications are 59 and 41, respectively. 
  - 83 per cent of subsidized enterprises are "normal" enterprises and 17 per cent are 
"start-ups". The percentages are simila r in terms of budgetary implications. 
 
2.2. AID FOR RESEARCH AND DEVELOPMENT  
 
2.2.1. SUBSIDIES FOR BASIC INDUSTRIAL RESEARCH  
 
(a) Form of the subsidy
 
 
 Optional non-repayable subsidy. 
  G/SCM/N/95/EEC/Add.2 
 Page 31 
 
 
(b) Total amount of aid granted in 2002  
 
 Commitments: EUR 2,976,296  
 or nine new projects run by nine enterpri ses, including one new beneficiary (no university or 
research centre projects).  
  Disbursements : EUR 5,379,183. 
 (c) Policy objective and/or purpose of the subsidy
 
 
 To strengthen industrial research by regional enterprises. 
 (d) Duration of the subsidy
 
 
 Two years per subsidy.  
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Industrial research and, as such, not quantifiable in the medium or short term.  
2.2.2. PRECOMPETITIVE DEVELOPMENT (e.g., prototype advances)  
 
(a) Form of the subsidy
 
  Interest-free loans repayable upon marketing.  
(b) Total amount of aid granted in 2002
 
 
 Commitments: EUR 4,234,919  
 or eight new projects run by eight enterprises, including five new beneficiaries (no university 
or research centre projects).  
 
 Disbursements:  EUR 3,738,858. 
 
(c) Policy objective and/or purpose of the subsidy  
  To promote regional development through the creation of new products, processes or 
services. 
 
(d) Duration of the subsidy
 
  One to five years.  
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term. 
 2.2.3. EUROPEAN PROGRAMMES  
 
(a) Form of the subsidy
 
  Optional non-repayable subsidy. 
 G/SCM/N/95/EEC/Add.2 
Page 32  
 
(b) Total amount of aid granted in 2002
 
 
 Commitments: None, no projects submitted.  
 
 Disbursements: EUR 129,517 (former dossiers).  
 (c) Policy objective and/or purpose of the subsidy
 
  Joint financing of EC subsidies for European  research programmes in universities or research 
centres with no commercial activities. 
 
(d) Duration of the subsidy
 
  Two to three years per dossier.  
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Industrial or socio-economic research and, as such, not quantifiable in the medium or short 
term. 
 
2.3. AID FOR PROMOTION OF FOREIGN TRADE 
 
2.3.1. ORDER OF 13 JANUARY 1994 ON THE PROMOTION OF FOREIGN TRADE 
 
(a) Form of the subsidy  
  (A) Subsidies for:  
 • Participation in trade fairs both abroad and in Belgium; 
 • the elaboration of information documents to promote exports;  • participation in training programmes;  • collaboration of foreign trade experts.  (B) Subsidies and interest-free loans for:  
 • Market surveys and market pr esence outside the European Union; 
  • participation in tenders for markets outside the European Union. 
 (c) Total amount of commitments in 2002 (in EUR)
 
 
 Number of 
dossiers Total amount of 
commitments 
Trade fair subsidies 261 500,000 
Documentation subsidies 98 505,681 
Training subsidies 0 0 
Subsidies for collaboration of experts 3 4,958 
Market survey subsidies/loans 56 205,841 
Subsidies/loans for tenders 1 31,972 
TOTAL  419 1,248,451 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Support for trade survey efforts by smal l and medium enterprises in the region. 
  G/SCM/N/95/EEC/Add.2 
 Page 33 
 
 
(d) Duration of the subsidy  
  Ad hoc aid.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.   
VII. BELGIUM - WALLOON REGION  
 
3.1. AID TO SMES 
 3.1.1. LAW OF 4 AUGUST 1978 ON ECONOMIC ADJUSTMENT, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 9 JULY 1992 
 
(a) Form of the subsidy
 
   Investment premium (non-repayable premium)  irrespective of the investment financing 
method. Investments eligible to receive a premium are investments in tangible and intangible fixed assets.  
 
 Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.  
   Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets. Exemption from the gr aduated registration dut y on capital inflow.  
 (b) 2002 budget
 
  The budget amounted to EUR 89.93 million.  The premiums are awarded for a wide ra nge of projects and sectors of activity.  
 
(c)  Policy objective
 
   The incentives created to assi st the socio-economic development of the Walloon region are 
awarded under contracts between the Walloon re gion on the one hand and on the other any 
natural or legal person who undertakes to carry out one or more operations aimed at achieving 
sustainable development and promoting job crea tion. The incentives are only awarded if they 
make a decisive contribution to achieving these aims.  
  In practical terms, the premiums are awarded in order to encourage investment by small and 
medium enterprises (SMEs). An SME is an ente rprise the payroll of which does not exceed 
250 persons and the turnover of which does not  exceed BEF 845,834,000 (ECU 20 million at 
the rate of exchange on 1 July 1991).  
   The premiums are awarded to SMEs in the industrial, non-industrial, tourism, trade and 
services sectors.  
 
 The scheme applies in the whole of the Wall oon region for all enterprises meeting the SME 
criteria.  
  The scheme is therefore not specific, except that it applies only to SMEs.  
 G/SCM/N/95/EEC/Add.2 
Page 34  
 
(d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  
 3.2. AID TO DISADVANTAGED REGIONS  3.2.1. LAW OF 30 DECEMBER 1970 ON EC ONOMIC GROWTH, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 9 JULY 1992  
 (a) Form of the subsidy
 
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method. Investments eligible to receive a premium are investments in tangible and intangible fixed assets.  
 
 Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.  
   Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets.  
  
 Exemption from the graduated registration duty on capital inflow.   (b) 2002 budget
 
 
 The budget amounted to EUR 139.25 million. 
 The premiums are awarded for a wide ra nge of projects and sectors of activity.  
  (c) Policy objective
 
  The incentives created to assi st the socio-economic development of the Walloon region are 
awarded under contracts between the Walloon re gion on the one hand and on the other any 
natural or legal person who undertakes to carry out one or more operations aimed at achieving 
sustainable development and promoting job crea tion. The incentives are only awarded if they 
make a decisive contribution to achieving these aims.  
 
 In practical terms, the premiums are awarded in order to encourage investment by large 
enterprises situated in disadvantaged zones, known as development zones.  
  Development zones are determined by the Co mmission of the European Union following a 
proposal by a Member State. In defining the sc ope of such zones, the European Commission 
uses a method defined in 1988 in the "Coordinatio n principles for regional aid". This method 
is essentially based on an analysis of objec tive criteria, including per capita GDP and the 
unemployment rate.  
  The scheme is therefore not specific, except th at it applies only to enterprises located in 
disadvantaged areas which, as explained above, ar e defined on the basis of easily identifiable 
and quantifiable objective criteria.  
 (d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.   G/SCM/N/95/EEC/Add.2 
 Page 35 
 
 
 
3.3. RESEARCH AND TECHNOLOGY AID 
 3.3.2. DECREE OF 5 JULY 1990 ON AID AND ACTION BY THE WALLOON REGION TO 
PROMOTE RESEARCH AND TECHNOL OGY, AND THE IMPLEMENTING 
ORDERS THEREOF 
 
 - Walloon Government Decree of 29 Septemb er 1994 defining the "small or medium 
enterprise" with a view to granting ai d and taking action to promote research and 
technology;   
 
 - Walloon Government Decree of 29 Septem ber 1994 on aid and action to promote 
research and technology.  
 
(a) Form of the aid
 
 
 A. Subsidies granted to enterprises for basic industrial research work.    B. Repayable advances to enterprises for work related to applied research and 
development.  
 
 C. Subsidies granted to small and medium enterprises for preparatory or associated 
studies for research or development projects.  
 (b) 2002 budget
 
  
 The amount of aid per unit consists of a per centage of the admissible expenditure for the 
accepted project.  
   The annual global budget for the types of aid set out in point (a) are EUR 13.12 million,  
EUR 41.85 million and EUR 1.49 million respectively.  
 
(c) Policy objective
 
  This horizontal aid is designed to promote r esearch and development activities and encourage 
technological innovation and which is availa ble to all sectors of economic activity.  
 
 The types of aid defined under A and B above are available to enterprises of any size. The aid 
mentioned under C is restricted to small and medium enterprises.  
  The aid is not awarded automatically, but is dependent upon an assessment by the 
administrative services of the quality of the project.  
 
 Where aid consists of a repayable advance, the beneficiary enterprise pays it back in the form 
of regular payments if it has decided to explo it the results of the research industrially or 
commercially.  
 (d) Duration
 
 
 The aid scheme may be applied indefinitely. The budget is adopted annually by the Walloon 
Parliament.  
  The duration of aid granted corresponds to th e duration of the research work or the study 
being financed.  G/SCM/N/95/EEC/Add.2 
Page 36  
 
 (e) Statistical data
 
  The aid has an impact on trade because it may lead to the marketing of innovative products, 
processes or services. The criteria for estimating this impact are so numerous and complex 
that it is extremely difficult to apply statistical tools to them.  
  
VIII. BELGIUM - FLEMISH REGION  
 
4.1. AID TO ECONOMIC GROWTH  4.1.1. LAW OF 30 DECEMBER  1970 ON ECONOMIC GROWTH  
 
(a) Form of the aid
 
 
 - Interest subsidy (for investment financed through credit or leasing); 
 - capital premium (for investment fi nanced by the enterprise's own funds); 
 - tax concessions;  - loan guarantee by the Flemish region;  - interest-free repayable credit.  
(b) Amount of aid in 2002
 
  - Interest subsidy and capital premiu m: EUR 139,003,945.89 of commitments; 
 - tax concessions: 
  • Exemption from tax on income from immovable assets: EUR 147,541,585.89 
(amount of investment); 
  • accelerated amortization: EUR 84, 549,728.99 (amount of  investment); 
  • exemption from proportional levy on capital invested: EUR 0 (amount of 
investment exempted); 
 - loan guarantee: EUR 0 (amount of investment); 
     EUR 1,859,201.44 (amount of net losses); 
 - interest-free repayable credit: EUR 9,816.00.  (c) Purpose of the aid
 
 
 The aid is granted to promote the economic growth of medium and large enterprises in 
development and buffer zones in the Flemish regi on and applies to investment that leads to the 
creation of additional jobs.  
   The programme provides a definition of the se ctors, investment and financing admissible.  
 
(d) Duration of the programme
 
  Indefinite.  (e) Statistical data
 
 
 No statistical data permitting an assessment of th e effects of the aid on WTO trade are available.  
 (f) Legal basis
 
 
 Law of 30 December 1970 on economic growth.  G/SCM/N/95/EEC/Add.2 
 Page 37 
 
 
 (g) Rules and conditions
 
  The programme applies to large and medium  industrial, commerci al and non-industrial 
enterprises, as well as to large and medium enterprises in the tourism or services sectors.  
 
 It concerns investment in development or buffer zones in the Flemish region that leads to the 
creation of additional jobs.  
  A medium or large enterprise is defined in acc ordance with the Community framework for aid to 
SMEs, adopted by the European Commission on 20 May 1992. 
  An enterprise may obtain the following aid:    Interest subsidies and capital premiums are granted for investment projects that create additional 
jobs, are of strategic interest to the region or  have a favourable impact on the environment.  
  Tax concessions:   
• Exemption from tax on income from immovabl e assets for a maximum of five years 
applies to real property or fixtures that are included in the "allivrement cadastral"  
(assessment of rateable value).  
 
• Accelerated depreciation is admissible for enterprises situated in the Limbourg 
development zones.  
   All investment eligible for subsidies that is depreciated in a straight line is admissible. 
The concession gives the possibility of appl ying annual depreciation equal to double the 
normal annual straight-line depreciation paym ent over a period of three consecutive 
years.  
 
• Exemption from graduated levies on capital inflow is granted for capital invested in 
medium or large enterprises with legal status in respect of investment in development or 
buffer zones. This form of aid was wit hdrawn pursuant to the Flemish Government 
Decision of 17 July 2000. 
  The purpose of the loan guarantee by the Flemish region is to facilitate the granting of 
professional credits to enterprises that invest in economic growth. The guarantee is additional 
to the security provided by the enterprise but may not be used to cover the total risk. Part of 
the risk must be borne by the credit organizati on and by the security given by the enterprise. 
The credit organization and the enterprise each pay a contribution that depends on the amount 
and term of the guarantee. 
  "Soft" aid consists of an interest-free repaya ble credit for training projects, consultancy for 
enterprises and investment studies. 
 G/SCM/N/95/EEC/Add.2 
Page 38  
 
4.1.2. ECONOMIC ADJUSTMENT LAW OF 4 AUGUST 1978 
 
(a) Form of the aid
 
  - Interest subsidy (for investment financed through credit or leasing); 
 - capital premium (for investment fi nanced by the enterprise's own funds); 
 - exemption from tax on income from immovable assets;  - loan guarantee by the Flemish region.   (b) Amount of aid in 2002
 
 
 - Interest subsidy and capital prem ium: EUR 95,762,103.33 of commitments; 
 - exemption from tax on income from immovable assets: EUR 630,661,868.84 (amount of 
investment); 
 - loan guarantee: EUR 3,632,0 45.59 (amount of investment); 
    EUR 1,528,562.49 (amount of net losses). 
 (c) Purpose of the aid
 
  The aid is granted to promote the economic growth of small, independent enterprises in the 
Flemish region.  
 
 The programme provides a definition of the se ctors, investment and financing admissible.  
 (d) Duration of the programme
 
 
 Indefinite. 
 (e) Statistical data
 
  No statistical data permitting an assessment of th e effects of the aid on WTO trade are available.  
 
(f) Legal basis
 
 
 Economic Adjustment Law of 4 August 1978 
 (g) Rules and conditions
 
 
 The programme applies to smal l industrial, commercial and no n-industrial enterprises, small 
enterprises in the tourism or services sectors and independent or professional occupations closely linked to the economic activities of small enterprises.  
  A small enterprise is defined in accordance with the Community framework for aid to SMEs, 
adopted by the European Commission on 20 May 1992. 
  The amount of the interest subsidy and the capital premium are calculated according to the 
enterprise's activity, whether it is the enterprise's first establishment in the Flemish region, the creation of additional jobs, the strategic interest  of the investment for the region, relocation for 
ecological reasons or the favourable  impact on the environment.  
  Enterprises granted an interest subsidy or capital premium may be exempted from tax on income 
from immovable assets for investment in real property included in the "allivrement cadastral"  
(assessment of rateable value) for a maximum period of five years. The exemption applies to real 
property and fixtures.   G/SCM/N/95/EEC/Add.2 
 Page 39 
 
 
  The purpose of the loan guarantee by the Fl emish region is to facilitate the granting of 
professional credits to enterprises that invest in economic growth. The guarantee is additional to the security provided by the enterprise but may not be used to cover the total risk. Part of the risk must be borne by the credit organization and by  the security given by the enterprise. The credit 
organization and the enterprise each pay a contri bution that depends on the amount and term of 
the guarantee.  
 
4.1.3. DECREE OF 15 DECEMBER 1993 TO PROMOTE ECONOMIC GROWTH IN THE 
FLEMISH REGION  
 
(a) Form of the aid
 
  -  Investment premium;  -  exemption from tax on income from immovable assets; 
 -  loan guarantee by the Flemish region; 
 -  interest-free repayable credit.   (b) Amount of aid in 2002
 
  - Investment premium: EUR 103,521,272.00 of commitments; 
 - exemption from tax on income from immovable assets: EUR 469,612,903.77 (amount of 
investment); 
 - loan guarantee:  EUR 0 (amount of investment);     EUR 3,813,160.80 (amount of net losses); 
 - interest-free repayable credit: EUR 0  
 
(c) Purpose of the aid
 
  The aid is granted to promote the economic growth of medium and large enterprises in the 
Flemish region.  
 
 The programme provides a definition of the se ctors, investment and financing admissible.  
 (d) Duration of the programme
 
  Indefinite.  
 
(e) Statistical data
 
  No statistical data permitting an assessment of th e effects of the aid on WTO trade are available.  
 (f) Legal basis
 
 
 Decree of 15 December 1993 to promote economic growth in the Flemish region. 
 (g) Rules and conditions
 
 
 The programme applies to large and medium  industrial, commerci al and non-industrial 
enterprises, as well as to large and medium enterprises in the tourism or services sectors.  
  It concerns investment in zones outside develo pment and buffer zones in the Flemish region or in 
development or buffer zones where it does no t lead to the creation of additional jobs. 
 G/SCM/N/95/EEC/Add.2 
Page 40  
 
 A medium or large enterprise is defined in acc ordance with the Community framework for aid to 
SMEs, adopted by the European Commission on 20 May 1992. 
  The investment premium for medium enterprises
 is granted for investment  projects that create 
additional jobs, are of economic interest to  the region or have a favourable impact on the 
environment.  
  Exemption from tax on income from immovable assets for a maximum of five years applies to 
real property or fixtures  that are included in the "allivrement cadastral"  (assessment of rateable 
value).  
 
 The purpose of the loan guarantee by the Fl emish region is to facilitate the granting of 
professional credits to enterprises that invest in economic growth. The guarantee is additional to the security provided by the enterprise but may not be used to cover the total risk. Part of the risk must be borne by the credit organization and by the security given by the enterprise.  
 
 The credit organization and the enterprise eac h pay a contribution that depends on the amount 
and term of the guarantee.  
  "Soft" aid consists of an interest-free repayable credit for training projects, consultancy for 
enterprises and investment studies.  
 
 Aid to large enterprises
 is limited to ecological investment and is in the form of an investment 
premium, "soft" aid, exemption from tax on income from immovable assets or a guarantee from the Flemish region.  
 
4.2. AID TO SOCIAL INTEGRATION ENTERPRISES (SOCIAL ECONOMY) 
 
 Flemish Government Decision of 16 November 1994 and Ministerial Decree of 22 December 
1994 on integration enterprises " doorvoering van experimenten in verband met invoegbedrijven en 
leereilandprojecten " (period 1 July 1993 - 31 December 1994).  
  Flemish Government Decision of 26 March 1996 and Ministerial Decree of 22 April 1996 (as of 1 January 1995) introducing a regime for an indefinite period. The Ministerial Decree of 
15 December 1999 concerns social integration en terprises recognized prior to 1 January 1999 and 
entered into force on 1 January 1999. Flemish Government Decree of 10 November 1998 concerns 
social integration enterprises recognized as from 1 November 1999 and also entered into force on 
1 January 1999 and is valid for an indefinite period.  (a) Form of the aid
 
 
 - A degressive lump-sum wage premium for each full-time job;  - degressive over a three-year period.  (b) Amount of aid in 2002
 
 
 - Total premiums granted in 2002:   EUR 1,239,000.  (c) Purpose of the aid
 
  Integration enterprises are newly created en terprises recognized by the Minister and the 
integration of which requires medium-term aid be fore they can take their place in the normal  G/SCM/N/95/EEC/Add.2 
 Page 41 
 
 
economy. The aim is to be able  to recruit workers with lowe r qualifications whose reduced 
productivity is offset by a premium given to the employer.  
 (d) Duration of the programme
 
 
 Indefinite.  
 (e) Statistical data
 
  No statistical data permitting an assessment of the effects of the aid on WTO trade are 
available.  
 
4.3. AID TO ENTERPRISES FOR CONSULTANCY 
 
 Decree of 31 March 1993 on aid by the Flem ish region for small enterprises which use 
approved outside consultants. 
  Flemish Government Decision of 9 December 1997 on the granting of financial aid to small 
enterprises which use approved ou tside consultants, and on the approval of consultants. 
  The relevant directives. 
 
(a) Form of the aid
 
  Consultancy bonus for indepe ndent firms and new SMEs.  
 
(b) Amount of aid in 2002
 
  Amount: EUR 1,475,907.99.  (c) Purpose of the aid
 
 
 The largest number of bankruptcies occur during th e first five years of an enterprise. On this 
basis, it appeared useful to allow these ente rprises to call on management consultants during 
their start-up period.  
 (d) Duration of the programme
 
 
 Indefinite.  
4.4. AID FOR RESEARCH AND DEVELOPMENT  
 
 Decision of the Flemish Research and Technol ogical Development Fund of 23 October 1991. 
 
(a) Form of the aid
 
  Grants for basic research and for prototyping and development.  
(b) Amount of aid in 2002
 
  EUR 72,554,211 for 312 projects.  G/SCM/N/95/EEC/Add.2 
Page 42  
 
(c) Purpose of the aid
 
  The primary objective is aid for R&D.  (d) Duration of the programme
 
 
 The data are related to continuous pr ogrammes and specific action programmes. 
 (e) Statistical data
 
 
 Division by type of research: 
  - strategic basic research  : 38%  - industrial basic research  : 32%  - prototyping & development : 30% 
 
 Division by applicant:   - large companies   : 28%  - SMEs    : 23%  - universities, research institutes : 49% 
 
(f) Rules and conditions
 
 
 Any industrial enterprise can apply for financ ial aid for R&D projects. Firms may at any time 
submit a file to IWT (Institute for the Promotion of Innovation by Science and Technology in 
Flanders) which processes the files. 
  Universities and research institutes may also participate in industrial projects and obtain 
financial aid.  
  Basic research can obtain support for 50 per cent of project costs. The development of 
prototypes, new products or new manufacturi ng processes can secure support for 25 per cent 
of project costs. 
  In the case of SMEs, these percenta ges may increase by 10 per cent. 
 
 Projects for strategic basic research with indus trial relevance by research centres can obtain a 
subsidy of 100 per cent. 
  Costs of personnel, material and supplies re lated to R&D, instruments and equipment are 
eligible for aid. 
 4.5. AID TO THE FISHERIES AND AQUACULTURE SECTOR 
 
 Following the abolition of the scheme to aid shipyards on 1 January 1996 and a transitional scheme in 1996 (Flemish Government Decree of 2 April 1996), a completely new set of regulations 
on aid for investment and new enterprise in the maritime fisheries and aquaculture sector was 
approved in 1998. The aid is given in the context of the "Financieringsinstrument voor de Vlaamse 
visserij - en Aquacultuursector – FIVA" (Financi ng instrument for the Flemish fisheries and 
aquaculture sector).   - Decree of 13 May 1997 establishing a fina ncing instrument for the Flemish fisheries 
and aquaculture sector;  G/SCM/N/95/EEC/Add.2 
 Page 43 
 
 
  - Flemish Government Decree of 7 July 1998 on aid for investment and setting up in 
the fisheries and aquaculture sector; 
  - Ministerial Decree of 14 July 1998 on aid for investment and setting up in the 
fisheries and aquaculture sector. 
 (a) Form of the aid
 
  - Interest rate subsidy: subsidized interest  rates on loans granted to shipowners and fish 
farmers and their cooperatives; 
 - capital subsidy when investment is financed by equity;  - loan guarantees for shipowners and fish farmers.  (b) Total amount of aid in 2002 (in terms of commitments
) 
  
 - interest rate subsidies: EUR 126,559.38   - capital premiums: EUR 518,580.85   - loan guarantees:  EUR 0.00   (c) Purpose of the aid
 
 
 The aid is granted to shipowners and fish fa rmers and their organizations and cooperatives in 
order to promote all operations increasing the productivity of shipping and fish-farming 
companies, to ensure their profitability and reduce costs. 
 
(d) Duration of the programme  
  Indefinite.  (e) Statistical data
 
 
 The purpose of the aid is structural and in tended to promote fishing and aquaculture by 
improving the efficiency of the related structur es; no statistical data permitting an assessment 
of the effects on global trade are therefore available. 
  Given that the capacity of the fishing fleet and the aquaculture sector is very limited, the 
effect on global trade is negligible. 
 (h) Rules and conditions
 
  The beneficiaries of this aid are family sea-fi shing enterprises and fish farms. The aid is 
granted to beneficiaries after an individual ex amination of the dossiers. The subsidization 
limits set out in Council Regulation (EC) No. 2468/98 (formerly No. 3699/93) apply. 
 
4.6. AID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE - 
 FLEMISH AGRICULTURAL INVESTMENT FUND 
  In order to ensure continuity of aid for ag ricultural investment and new enterprise following 
the regionalization of the Agricultural Investment Fund as from 1 January 1993, a Flemish Agricultural Investment Fund (Vlaams Landbouwinvesteringsfonds) was created. 
 G/SCM/N/95/EEC/Add.2 
Page 44  
 
 - Council Regulation (EC) No. 950/97 of 20 May 1997 on improving the efficiency of 
agricultural structures (coordination of Council Regulation (EC) No. 2328/91 as amended). 
  - Article 12 of the Decree of 22 December 1993 containing various measures in 
application of the 1994 budget (creation of  a Flemish Agricultural Investment Fund). 
  - Flemish Government Decree and Ministerial Decree of 4 July 1997 on aid for 
agricultural investment and new enterprise. 
 
 - Flemish Government Decree of 16 July 1997 on the operation and management of the 
"Vlaams Landbouwinvesteringsfonds" (Fle mish Agricultural Investment Fund). 
 (a) Form of the aid
 
 
 - Interest subsidies: interest rate s ubsidies on loans granted for agriculture and 
horticulture; 
 - investment premiums;  - start-up grants;  - premiums on investments for young farmers/horticulturalists;  - guarantees for loans granted for agriculture and horticulture. 
 
(b) Amount of aid in 2002 (granted: in terms of commitments)
 
  - interest rate subsidies:  EUR 35,997,888.31  
 
 - *new dossiers: 
improvement: EUR 26,649,783.84 with 25  per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
start-up:  EUR 3,219,205.07 with 50 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99); 
  regional aid without EAGGF co-financing: EUR 5,671,584.07; 
 
 - *reviews and facilities relating to  existing dossiers: EUR 457,315.33. 
  - Investment premiums 
 
 - agriculture: EUR 19,600,871.71 with 25 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
  - * cooperative societies:  EUR 479,643.86 (without EAGGF co-financing);   - * review of existing dossiers: EUR 830,296.70. 
 
 - Start-up grants 
  - EUR 5,059,909.07 with 50 per cent co -financing by the EAGGF (Council Regulation 
(EC) No. 1257/99); 
 
 - * review of existing dossiers: EUR 45,419.30.   - Investment premiums:  EUR 51,709.78  
  G/SCM/N/95/EEC/Add.2 
 Page 45 
 
 
 - *on first start-up: EUR 38,138.10 with 50 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 950/57) 
  - *pig-farming sector: EUR 13,571.68 with 25 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 950/97) 
 
 - Loan guarantees: EUR 33,666,929.00 of loan guarantees granted (EUR 
907,729.65 of guarantees committed for actual payment).  
 
(c) Purpose of the aid
 
 
 This aid is awarded to farmers and market ga rdeners and their organizations and cooperatives 
to encourage all operations which increase th e productivity of agricultural and horticultural 
enterprises, maintain and improve their profitability and reduce costs, such as: 
 
(d) Investment operations, i.e., operations wher eby natural or legal pe rsons acquire, extend or 
improve capital assets such as land, buildings and constructions, including housing for the 
operator and his family, industrial plant, facilities,  machines, tools and ma terials. This Decree 
is only applicable to the acquisition of land a nd buildings when this is economically necessary 
to maintain the profitability of the existing enterprise; 
 
(e) restructuring of enterprises fo llowing changes in economic conditions; 
 (f) agricultural and horticultural start-ups;  (g) processing and marketing of agricultural and horticultural produc ts, mainly through 
cooperatives. 
 (d) Duration of the programme
 
  Indefinite.  
(e) Statistical data
 
   The aid has a structural objective of improving agriculture through enhanced efficiency of 
agricultural enterprises; no statistical data perm itting an assessment of the effects of the aid on 
world trade are therefore available. 
 
(f) Rules and conditions
 
  The beneficiaries of this aid are natural or legal persons engaged in agriculture and 
horticulture as their main activity, as well as th eir organizations and cooperatives. They must 
be adequately qualified and the business must represent at least one man work unit (MWU) 
and a maximum of twelve man work units per family work unit (FWU). 
  The aid is granted for three major categories of operation:  
• Improvement of an existing business: investment in long-term improvement in the 
structure of the business. There are several sectoral restrictions. Co-financing by the 
EAGGF exists up to a certain ceiling, beyond which the aid is wholly charged to the 
Flemish region with an absolute ceiling; 
 G/SCM/N/95/EEC/Add.2 
Page 46  
 
• a young farmer setting up in business for the first time, including movable assets 
(machines and material, livestock). Co-financing by the EAGGF exists up to a certain ceiling, beyond which the aid is wholly charged to the Flemish region with an absolute ceiling; 
 
• various operations without EAGGF co-financ ing, such as the purchase of occupied 
farm buildings, investment in the envir onment and animal welfare, (in compliance 
with the provisions of Council Resolution (EC) No. 950/97). 
 
4.8. TRAINING CHEQUES 
 
 Flemish Government Decision of 14 December 2001 on training cheques. 
 
 Ministerial Order of 21 December 2001 on the implementation of the Flemish Government 
Decision of 14 December 2001 on training cheques.  (a) Form of the aid
 
 
 Training cheques: maximum of 200 cheques per enterprise per year. Value of EUR 30 per 
cheque, 50 per cent of which is paid by the enterprise. 
 (b) Amount of aid in 2002
 
 
 Amount: EUR 10,882,980  
 Number of cheques  Small enterprises: 490,685 cheques   Medium enterprises: 143,976 cheques   Large enterprises: 90,871 cheques  
 Total     725,532 cheques of EUR 15 
  N.B.: Figures correspond to the period 5 February 2002 to 5 January 2003.  (c) Purpose of the aid
 
 
 Research has shown that Flemish enterprises do not  invest sufficiently in the training of their 
employees. The Flemish government established the training cheque system to encourage 
enterprises to purchase training courses organized by recognized training providers. 
 (d) Duration of the programme
 
 
 Three years.  
__________ 
  