G/SCM/N/3/EEC
Page 233
Legal basis
Employment Decree (130/93)
17. Investment Aid to Promote Employment
Form of subsidy
Grant
Total amount granted (Fmk million) in 1994
32
Policy objective
Aid to employment
Duration of a subsidy
Ongoing
Legal basis
Employment Act (275/87) and
Employment Decree (130/93)
18. Interest Subsidy to Waste Management and Air Pollution Control
Form of subsidy
Interest subsidy
Total amount granted (Fmk million) in 1994
25.4
Policy objective
Environmental aid
Duration of a subsidy
Until 2 000
Legal basis
Act on interest subsidy loans granted by financial institutions (1015/77, 827/84)
Statistical data permitting an assessment of the trade effects of a subsidy is not yet available for
1994.G/SCM/N/3/EEC
Page 234
FRANCE
TABLE OF CONTENTS
Page
1. Land-use Management Premium (PAT) 247
2. Regional Premium for the Creation of Enterprises (PRCE) 249
3. Regional Employment Premium (PRE) 250
4. Enterprise Zone 251
5. Special Mechanism for the Ore Fields and the Sambre-Avesnoise (ZIP) 252
6. Temporary Exemption from the Professional Tax 253
7. Tax Exemption in Corsica 255
8. Industrial Development Company (SODIE) 256
9. Mining Conversion Programme 257
10. Deduction of Proceeds and Profits Invested in the French Overseas 258
Departments (FODs)
11. Reduction of the Payroll Tax Rates in the French Overseas Territories (FOTs) 259
12. Long-Term Tax Treatment in the FODs 260
13. Reduced Taxation of Profits and Losses in the FODs 262
14. Creation of Activities in the FODs 263
15. Fund for the Development of Small- and Medium-Sized Enterprises (FDPME) 264
16. Regional Advisory Assistance Fund (FRAC) 266
17. Research and Technology Fund (FRT) 268
18. ATOUT-PUMA 270
19. National Agency for the Promotion of Research (ANVAR) 272
20. Large-Scale Innovative Projects (GPI) 274G/SCM/N/3/EEC
Page 235
NOTE TO THE EUROPEAN COMMISSION
Purpose: Notification of government subsidies to the WTO
Content: 20 notifications
Pursuant to the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement)
the French authorities have the honour of transmitting to the Commission the following notification forms
concerning government subsidies to the manufacturing sector:
-Land-use Management Premium (PAT);
-Regional Premium for the Creation of Enterprises (PRCE);
-Regional Employment Premium (PRE);
-Enterprise Zone;
-Special Mechanism for the Ore Fields and the Sambre-Avesnois (ZIP);
-Temporary Exemption from the Professional Tax;
-Tax Exemption in Corsica;
-Industrial Development Company (SODIE);
-Mining Conversion Programme;
-Deduction of Proceeds and Profits Invested in the French Overseas Departments (FODs);
-Reduction of the Payroll Tax Rates in the French Overseas Territories (FOTs);
-Long-Term Tax Treatment in the FODs;
-Reduced Taxation of Profits and Losses in the FODs;
-Creation of Activities in the FODs;
-Fund for the Development of Small- and Medium-Sized Enterprises (FDPME);
-Regional Advisory Assistance Fund (FRAC);
-Research and Technology Fund (FRT);
-ATOUT-PUMA;
-National Agency for the Promotion of Research (ANVAR);
-Large-Scale Innovative Projects (GPI).
The notifications of subsidies in respect of the agricultural and fishing sectors will be submitted at
a later date.G/SCM/N/3/EEC
Page 236
1. LAND-USE MANAGEMENT PREMIUM
Internal references
Date of adoption by the European Commission: 27/09/1994.
Aid Number: N 515/94.
Additional information
Legal basis: Decree No. 95.149 of 6 February 1995.
Beneficiaries: Enterprises in the industrial, research, service, management, engineering, planning, study
and computer branches.
Conditions:
-Investment programme of 20 million francs net of tax;
-programme for the creation of a minimum 20 jobs;
-investment carried out in the designated zones with regionally-oriented aid.
Form of aid
Subsidy.
Amount per unit
The aid is determined for each project and may not exceed a ceiling of 17 per cent, 25 per cent or
33 per cent of the investment according to the zones.
Total amount:
For 1994: 739,355,000 francs;
For 1993: 261,555,700 francs.
Breakdown by activity:
For 1994:
-Agri-foodstuffs: 36,507,000 francs;
-Industry: 645,038,000 francs;
-Services: 57,810,000 francs.
For 1993:
-Agri-foodstuffs: 65,320,000 francs;
-Industry:149,148,000 francs;
-Services: 47,087,000 francs.G/SCM/N/3/EEC
Page 237
Subsidy per unit of product: As the premium concerns all sectors of activity subject to geographical
criteria and is linked to the creation of jobs for each project, this data is not available.
Policy objective
Assistance in creating jobs in priority zones designated by decree and covering 40 per cent of the
metropolitan territory.
Duration of the subsidy
The assistance programme is renewed in the budget each year, the aid to enterprises
corresponding for each individual case to a three-year programme. The subsidy was approved by the
European Commission for a duration of three years.
Statistical data permitting an assessment of the trade effects
Unavailable for the reasons provided above.G/SCM/N/3/EEC
Page 238
2. REGIONAL PREMIUM FOR THE CREATION OF ENTERPRISES
Internal references
Date of adoption by the Commission: 22 December 1987.
Additional information
Legal basis (reference, date): Law of 7 January 1982 - Decree 82-806 of 22 September 1982.
Beneficiaries: Enterprise.
Conditions: All enterprises that have been listed in the trade register for less than 12 months are eligible.
Form of subsidy (grant, loan, tax concession, etc.)
Subsidy.
Subsidy per unit, total amount or the annual amount budgeted for that subsidy (indicating, if possible, the
average subsidy per unit in the previous year)
Gross ceiling of 150,000 francs per enterprise.
Total annual amount: The only data available is for 1992, when total subsidies reached
61.38 million francs.
Policy objective and/or purpose of the subsidy
Enterprises creation.
Duration of the subsidy and/or any other time-limits attached to it
Permanent arrangement.
Statistical data
In view of its limited application and the relatively insignificant economic penetration of potential
beneficiaries, this mechanism has no effect on trade.G/SCM/N/3/EEC
Page 239
3. REGIONAL EMPLOYMENT PREMIUM
Internal references
Date of adoption by the Commission: 22 December 1987.
Additional information
Legal basis (reference, date): Law of 7 January 1982 - Decree 82-807 of 22 September 1982.
Beneficiaries: Enterprise.
Conditions: Enterprise with a turnover of less than 300 million francs.
Form of subsidy (grant, loan, tax concession, etc.)
Subsidy.
Subsidy per unit, (total amount or annual amount budgeted for that subsidy, indicating, if possible, the
average subsidy per unit in the previous year)
Total annual amount:The only data available is for 1992, when total subsidies reached
64.2 million francs.
Maximum amount per job:10,000 francs in the urban areas > 100,000 hours
20,000 francs outside those limits
40,000 francs in the PAT (Land-Use Management Premium) zones
Policy objective and/or purpose of the subsidy
Creation, extension, conversion or resumption of activities (with consequent job creation).
Duration of the subsidy and/or any other time-limits attached to it
Permanent arrangement.
Statistical data
In view of its limited application and the relatively insignificant economic penetration of potential
beneficiaries, this mechanism has no effect on trade.G/SCM/N/3/EEC
Page 240
4. ENTERPRISE ZONES
Internal references
Date of adoption by the Commission: 21 January 1987.
Aid number: 321009.
Additional information
Legal basis (reference, date): Article 208 quinquies of the General Tax Code, deriving from Articles 3 to
7 of Order No. 86-1113 of 15 October 1986.
Beneficiaries (whether paid to producers, exporters or in some other way): Legal persons subject to
corporation tax.
Conditions: Establishment during the years from 1987 to 1992 in one of the three enterprise zones each
covering an area of 300 hectares, located in the employment areas of Dunkerque,
Aubagne-La Ciotat and Toulon-La Seyne:
-Industrial activity;
-at least 10 salaried employees.
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession: exemption from cooperation tax for a period of 10 years.
Amount per unit, total amount or the annual amount budgeted for that subsidy
Total amount for 1994: 850 million francs
Policy objective and/or purpose of the subsidy
Revival of areas seriously affected by the loss of jobs in industry.
Duration of the subsidy and/or any other time-limits attached to it
10 years.
Statistical data
This aid aims to compensate for disadvantages associated with establishment in the zone in
question. It has no impact on trade.G/SCM/N/3/EEC
Page 241
5. SPECIFIC ARRANGEMENTS FOR THE ORE FIELDS AND THE SAMBRE-AVESNOIS
Internal references
Date of adoption by the Commission: 11 November 1992.
Aid number: 321026.
Additional information (DGI note of 8 March 1995)
Legal basis (reference, date): Article 220 septies of the General Tax Code deriving from Article 51 of
Law No. 92-1476 of 31 December 1992.
Beneficiaries (whether paid to producers, to exporters or in some other way): Legal persons subject to
cooperation tax.
Conditions:
-Establishment between 1993 and 1998 in one of the preferential investment zones (overall area of
600 hectares) located in the Nord-Pas-de-Calais ore fields and the Sambre-Avesnois;
-industrial or commercial activity;
-at least 10 salaried employees.
Form of subsidy (grant, loan, tax concession benefit, etc.)
Tax concession: non-refundable tax credit equal to 22 per cent of the cost of the industrial
investments carried out during the first three years of existence; contribution of that tax credit to the
cooperation tax due during the first 10 years of existence.
Amount per unit, total amount or annual amount budgeted for that subsidy
Total amount for 1994: 0.
Policy objective and/or purpose of the subsidy
To favour the establishment of enterprises in certain working areas particularly affected by
unemployment.
Duration of the subsidy and/or any other time-limits attached to it
10 years.
Statistical data
The scheme aims to compensate for the disadvantages associated with establishment in the zone
in question (lack of qualified subcontracting personnel, distance from markets, suppliers etc).
Consequently, if applied, it will have no effect on trade.G/SCM/N/3/EEC
Page 242
6. TEMPORARY EXEMPTION FROM PROFESSIONAL TAX
Internal references
Date of adoption by the Commission: 10 October 1984 .
Aid numbers: 311008 and 321007 .
Additional information (DGI note of 8 March 1995)
Legal basis (reference, date): Article 1465 of the General Tax Code deriving from Article 10 of Law No.
80-10 of 10 January 1980.
Beneficiaries (whether paid to producers, to exporters or in some other way): Enterprises which, where
warranted by land-use management within the areas defined by Decree, either decentralize, extend
or create industrial or scientific and technical research activities or management, study, engineering
and computer services, or reconvert industrial activities, or take over ailing industrial
establishments.
Conditions:
-Exemption is subject to general approval by the local authorities and associations on whose territory the
enterprises carry out operations which may entitle them to a tax concession;
-for operations involving decentralization, extension or creation of industrial or scientific and technical
research establishments, entitlement to tax concessions is subject to a minium volume of
investment and the creation of a minimum number of jobs;
-for operations involving decentralization, extension or creation of management, study, engineering and
computer services, and in cases of reconversion of industrial activity or takeover of an
ailing industrial enterprise, exemption is subject to agreement by the Minister for the
Budget or his regional services.
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession in the form of a total or partial exemption from professional tax for a period not
exceeding five years.
Amount per unit, total amount or annual amount budgeted for that subsidy
Total amount for 1994: 1,044.1 million francs, of which 0.1 million for the FODs.
Estimated amount per unit of product: the amount of the tax concession per unit, corresponding
to the full amount or to part of the professional tax that would be due by the beneficiary enterprise, varies
according to the nature of the enterprise, its means of operation and the professional tax rate applied.G/SCM/N/3/EEC
Page 243
Policy objective and/or purpose of the subsidy
To encourage the establishment or maintenance of economic activities in areas where land-use
management calls for such activities.
Duration of the subsidy and/or any other time-limits attached to it
Exemption from professional tax may not be granted by the local authorities for a period
exceeding five years.
Statistical data
This aid aims to compensate for the disadvantages associated with establishment in the zone in
question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 244
7. TAX EXEMPTION IN CORSICA
Internal references
Date of adoption by the Commission: 24 April 1991.
Aid Number: 321013.
Additional information
Legal basis (reference, date): Article 208 quater A of the General Tax Code deriving from Article 88 of
Law No. 90-1168 of 29 December 1990.
Beneficiaries (whether paid to producers, to exporters or in some other way): Companies subject to the
corporation tax.
Conditions:
-Establishment of a new activity in Corsica between 1 January 1991 and 31 December 1998 in the
industrial, building, agricultural and craft sectors;
-Ministerial approval.
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession: exemption from corporation tax for a period of eight years.
Amount per unit, total amount or annual amount budgeted for that subsidy
Total amount for 1994: insignificant.
Policy objective and/or purpose of the subsidy
To foster economic development in Corsica and the creation of jobs.
Duration of the subsidy and/or any other time-limits attached to it
Eight years.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 245
8. INDUSTRIAL DEVELOPMENT COMPANY (SODIE)
Internal references
Date of adoption by the Commission: Initial approval on 17 February 1988 for conversion companies on
condition that the aid component of their activities is incorporated into the overall regional aid
package for a given project, in order to ensure that the ceilings imposed under the PAT scheme
are respected.
Letter from the Commission dated 13 February 1995 for funding during the financial year 1993..
Aid Number : 762/94.
Additional information
Legal basis (reference, date): Decision by the Commission of 17 February 1988 relating to conversion
companies. As of 1 January 1993, the five conversion companies of the USINOR-SACILOR
group were merged to form one single entity, the Société pour le Développement de l'Industrie et
de l'Emploi (SODIE), comprising the following companies: SODINOR, SODINOR VNE,
SODIKERQUE, SODIKERQUE LITTORAL, SODIEST, SODICEM and SOCADEV.
Beneficiaries: Companies established in the iron and steel reconversion areas.
Conditions: Intervention zones to be defined in agreement with the Commission.
Form of subsidy
The loans provided may not be assigned to third parties and the subsidies granted for the
rehabilitation of iron and steel workers are not financed by State funds but by the USINOR-SACILOR
iron and steel group.
Total amount
For 1994: 200 million francs
For 1995: 200 million francs
Policy objective
Re-industrialization and diversification in areas affected by the decline of industry.
Duration of the subsidy
Variable.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 246
9. MINING RECONVERSION PROGRAMME (SOFIREM, FINORPA)
Internal references
Date of adoption by the Commission: Letter from the Commission dated 13 February 1995.
Aid Number: 758/94.
Additional information
Legal basis (reference, date): Decision of the Commission of 31 May 1989 concerning the Charbonnage
de France conversion companies: NN 2/89.
Beneficiary : Enterprises in the coal areas (zones recognized by the Commission).
Conditions: All of the enterprises of the coal areas may apply under the same conditions.
Form of subsidy
Long-term loans with interest-rate subsidies without a security requirement. These loans may
always be repaid before due date and redeemed without penalty (maximum financing, 30 per cent of the
investment).
Acquisition of minority holdings in enterprises.
Provision of free advice and services to the beneficiaries of the above measures (small- and
medium-sized enterprises).
Amount per unit and total amount
Two to three per cent below the normal rate with a variable period of repayment. In the areas of
activity of SOFIREM and FINORPA included in the zones qualifying for PAT, the aid component is
incorporated into the overall regional aid likely to be of benefit to a given project, in order to ensure that
the regional aid ceilings imposed under the PAT scheme are respected. In the zones of activity of
SOFIREM and FINORPA that are not included in the zones qualifying for the PAT, only the small- and
medium-sized enterprises (SMEs) may benefit from the measures.
Policy objective
Assistance in the conversion of zones affected by the restructuring of the mining industry.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 247
10. DEDUCTION OF PROCEEDS AND PROFITS INVESTED IN THE FRENCH
OVERSEAS DEPARTMENTS (FODs)
Internal references
Date of adoption by the Commission:
Aid Number: 311003.
Additional data (DGI note of 8 March 1995)
Legal basis (reference, date) : Articles 238 bis HA and 238 bis HC of General Tax Code deriving from
Article 22 of Law No. 86-824 of 11 July 1986. This arrangement was amended by Articles 115 to
122 of Law No. 91-1322 of 30 December 1992, 53-1 of Law No. 92-1476 of 31 December 1992,
30 of Law No. 93-859 of 22 June 1993 and 20 of Law No. 93-1352 of 30 December 1993.
Beneficiaries (whether paid to producers, to exporters or in some other way): Enterprises subject to
corporation tax or income tax under a genuine taxation system and which make productive
investments overseas intended for use in a limited number of listed sectors of activity, or which
subscribe in cash for shares either in companies subject to corporation tax that invest overseas in
those sectors, or in regional development companies in the FODs.
Conditions : Investments likely to benefit from the scheme are subject to prior agreement if they exceed a
total of 30 million francs. Agreement is necessary in any case for certain investments carried out
as from 1 July 1993 in the hotel and tourism sector and for all investments carried out in the
transport, manufacturing, audiovisual broadcasting and cinematography sectors or in the granting
of local public services of an industrial or commercial nature.
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession: tax deduction equal to the amount of the investment.
Amount per unit, total amount or annual amount budgeted for that subsidy
Total amount for 1994: 1,300 million francs (including service activities).
Policy objective and/or purpose of the subsidy
To foster economic development of the FODs and FOTs.
Duration of the subsidy and/or any other time-limits attached to it
The scheme is applicable until 31 December 2001 (Article 115 of Law No. 91-1322 of
30 December 1991).
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question. Consequently, it has no effect on trade.
11. AID TO THE FODs PAYROLL TAXG/SCM/N/3/EEC
Page 248
Internal references
Date of adoption by the Commission: unknown .
Aid Number: 311006.
Additional data
Legal basis (reference, date): Article 231-2 bis and 5 of the General Tax Code, deriving from Article 2
of Law No. 56-1327 of 29 December 1956 and Article 11 of Law No. 60-1368 of 21 December
1960.
Beneficiaries (whether paid to producers, to exporters or in some other way): Enterprises established
overseas.
Form of subsidy (grant, loan, tax concession, etc.)
Tax benefit: reduction of the rate of payroll tax in the FODs.
Amount per unit, total amount or annual amount budgeted for that subsidy (indicating, if possible, the
average subsidy per unit in the previous year):
Total amount for 1994: 360 million francs.
Policy objective and/or purpose of the subsidy
To foster the creation of enterprises and jobs by limiting the tax burden associated with salaries
paid by enterprises established overseas.
Duration of the subsidy and/or any other time-limits attached to it
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question. (Lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 249
12. LONG-TERM TAX TREATMENT IN THE FODs
Internal references
Date of adoption by the Commission:
Aid Number: 311014.
Additional information
Legal basis (reference, date): Article 1655 bis of the General Tax Code deriving from Decree 58-558 of
28 June 1958, extended under Articles 13 and 10 of Law No. 60-1368 of 21 December 1960
and most recently amended by Article 16-II of Law No. 66-935 of 17 December 1966.
Beneficiaries (whether paid to producers, to exporters or in some other way): Public limited liability
companies, limited partnerships with a share capital and private limited liability companies whose
purpose is research and mining in the FODs; public limited liability companies, limited liability
partnerships and private limited liability companies with agricultural, forestry or industrial activities
in the department of Guyane; companies whose sole purpose is to conduct industrial activities in
the departments of Guadeloupe, Martinique and la Réunion comprising an investment
programme for a minimum of 20 million francs.
Conditions : Prior authorization from the Minister for Economic and Financial Affairs.
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession: application of the scheme essentially involves exemption from corporation tax
on reinvested profits and from import and export duties and fees on certain products. It may not be
applied concurrently with the exemption arrangements provided for under Article 208 quater of the
General Taxation Code.
Amount per unit, total amount or annual amount budgeted for that subsidy (indicating, if possible, the
subsidy per unit in the previous year)
Total amount for 1994: unavailable.
Policy objective and/or purpose of the subsidy
To contribute to the promotion of the FODs, and in a more general way, to foster their economic
development.
Duration of the subsidy and/or any other time-limits attached to it
The duration of the subsidy is set forth in the authorization and is limited to a maximum of 25
years plus, where appropriate, the installation time not exceeding five years. It applies to companies that
submit their application for authorization before 31 December 1996.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question. It has no effect on trade.G/SCM/N/3/EEC
Page 250
13. REDUCED TAXATION OF PROFITS AND LOSSES IN THE FODs
Internal references
Date of adoption by the Commission:
Aid number: 311005.
Additional information
Legal basis (reference, date) : Article 217 bis of the General Tax Code deriving from Article 40-I of Law
No. 65-566 of 12 July 1965, most recently amended by Article 53-II of Law No. 92-1476 of
31 December 1992.
Beneficiaries (whether paid to producers, to exporters or in some other way): Enterprises subject to
corporation tax and exercising, in the FODs, an activity in a limited number of listed sectors.
Conditions :
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession: deduction of one third of profits or losses resulting from business activities
located in the FODs.
Amount per unit, total amount or annual amount budgeted for that subsidy
Total amount for 1994: 130 million francs.
Policy objective and/or purpose of the subsidy
To foster economic development and employment in the FODs.
Duration of the subsidy and/or any other time-limits attached to it
The scheme is applicable to the accounting periods closed by 31 December 2001.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 251
14. CREATION OF ACTIVITIES IN THE FODs
Internal references
Date of adoption by the Commission:
Aid number: 311004.
Additional information
Legal basis (reference, date) : Article 208 quater of the General Tax Code deriving from Article 9 of Law
No. 60-1368 of 21 December 1960 and most recently amended by Article 22 of Law No. 86-824
of 11 July 1986.
Beneficiaries (whether paid to producers, to exporters or in some other way): Companies which, in a
limited number of listed sectors, create a new activity likely to contribute to development and job
creation in the FODs.
Conditions : Prior authorization by the Minister for the Budget.
Form of subsidy (grant, loan, tax concession, etc.)
Tax concession: temporary exemption from corporation tax on profits resulting from the
authorized activity within the limits set forth in the authorization. The exemption does not apply to capital
gains from the sale of all or some of the company's shares or fixed assets.
Amount per unit, total amount or annual amount budgeted for that subsidy
Total amount for 1994: 90 million francs.
Policy objective and/or purpose of the subsidy
To foster economic development and employment in the FODs.
Duration of the subsidy and/or any other time-limit relating to the subsidy
Exemption is granted for a period of 10 years starting from the effective commissioning of the
installations that are for the purpose of the authorized activity. The mechanism applies to companies that
were formed or that created a new activity before 31 December 1996.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question. Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 252
15. SME-SMI DEVELOPMENT FUND
Internal references
Date of adoption by the Commission: Letter of authorization from the Commission dated 4 April 1995.
Aid number: N 27/94.
Additional information
Legal basis : Approval of aid scheme by the Commission on 4 April 1995. Programme contracts
between the State and the regions.
Beneficiaries : The SMIs and SMEs that fit the community support criteria, i.e.:
-That belong to the following sectors: industry, transport, construction and public works, agri-foodstuffs,
tourism and supply;
- that are financially sound;
- that do not employ more than 250 persons;
-no more than 25 per cent of whose capital is in the hands of one or several enterprises not fitting the
above criteria. Shares held by public holding companies, companies with equity capital
and, provided they do not exercise any control, institutional investors, are not taken into
consideration.
Conditions : Enterprises (SME-SMI) that are financially sound.
Investment projects: material investment comprising technology and innovations specific to the
programme of the enterprise, non-material investments (research and development, engineering),
installation and adjustment work connected with the equipment provided for by the programme,
and external training costs (feasibility study).
Form of subsidy
Direct subsidization of the enterprise implementing the investment programme.
Total amount and amount per unit
Budget
The budget is estimated at 7.5 billion francs (State loans, local authorities, community loans) for
the period 1994-1998.G/SCM/N/3/EEC
Page 253
The maximum rate of contribution is as follows:
Type of area Small enterprise Medium-sized enterprise
A (unassisted area according to
the EEC definition)15% gross 7.5% gross
B (assisted area under Article 92, paragraph 3(c), with
an authorized regional aid ceiling of 17%)27% gross
C (assisted area under Article 92, paragraph 3(c), with
an authorized regional aid ceiling of 25%)30% net
D (assisted area under Article 92, paragraph 3(a) 75% gross
The rates provided in rows B, C, and D also correspond to the aid ceilings in respect of any given
project in cases where there is a cumulation of regional aids, including structural community funds.
Policy objective
To promote the SMEs-SMIs by helping to improve their technological level and the quality of
their product.
Duration of the subsidy
Permanent arrangement.
Statistical data
The aid aims to compensate for the disadvantages associated with establishment in the zone in
question (lack of qualified subcontracting personnel, distance from markets, suppliers, etc.).
Consequently, it has no effect on trade.G/SCM/N/3/EEC
Page 254
16. REGIONAL ADVISORY ASSISTANCE FUND (FRAC)
Internal references
Date of adoption by the Commission : Approval for the period from 1994 to 1998 in a letter from
FRAC-FRAT dated 2 May 1994; arrangement already approved on 23 February 1989 and 7
June 1990.
Aid Number : N 89/94.
Additional information
Legal basis : State-Region Programme Contract 1989-1993. Approval by the Commission on
2 May 1994
Beneficiaries and conditions
The SMIs must fulfil the following conditions:
-They must belong to one of the following sectors: industry, transport, construction and public works,
agri-foodstuffs, tourism and supply;
-they must be financially sound;
-they must not employ more than 500 persons;
-no more than 25 per cent of their shares must be held by one or several enterprises not fitting the above
criteria. Shares held by public holding companies, companies with equity capital and,
provided they do not exercise any control, institutional investors, are not taken into
consideration.
Form of subsidy
Direct subsidization of the enterprise as regards:
-Recourse to consultants in enterprises with inadequate internal operational services (FRAC);
-recourse to technical advice provided by a laboratory (FRATT);
-internal advisory service involving the creation of a new professional post within the enterprise.G/SCM/N/3/EEC
Page 255
Amount per unit
Maximum level of aid:
Type of counselling Lasting up to 5 days Exceeding 5 days
External counselling 80% up to a maximum of
25,000 francs50% up to a maximum of
200,000 francs
Introduction of internal counselling150% up to a maximum of 200,000 francs
1The subsidy is calculated on the basis of the amount corresponding to the first year of salary and social costs
for the newly-appointed official.
Total amount : Budget estimate of 800 million francs for the period 1994-1999.
Objective of the programme
To foster the development of the SMIs by encouraging them to resort to outside skills,
consultancy firms and laboratories.
Duration of the subsidy
Permanent arrangement funded on a yearly basis under the Law on Finances.
Statistical data
Since the purpose of the programme is to improve the management of enterprises, it has no
impact on production costs and consequently does not affect trade.G/SCM/N/3/EEC
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17. RESEARCH AND TECHNOLOGY FUND (FRT)
Internal references
Date of adoption by the Commission : 14 March 1994 for 1994 and 27 December 1994 for 1995.
Aid Number : N 44/94 for 1994 and N 706/94 for 1995.
Additional information
Legal basis :
-Initial approval by the Commission of the aid scheme on 16 February 1988 and 18 October 1990.
-Decree No. 91-347 of 8 April 1991 on contributions by the Research and Technology Fund to research
projects of industrial and commercial enterprises.
Beneficiaries :
-All enterprises and public institutions engaged in fundamental research work or pre-competition
development activities.
The FRT is a multi-purpose support instrument for the financing of different procedures. Some of the
aids target industrial enterprises only (upstream phase of the Eureka projects, technological
breakthrough projects, large-scale industrial programmes, etc.) whereas others target both
enterprises and public institutions in the framework of thematic actions defined by the Ministry
and made public through calls for tenders.
Conditions :
-No restriction as to the size of the beneficiary enterprises, their field of activity or their location;
-the selection of research projects is based on their scientific and technological quality, whatever the
industrial sector concerned.
Form of subsidy
-Subsidy (grant) appearing on the green list (Article 8.2a) representing a maximum of 50 per cent of the
total cost of the programme for the enterprises;
-managing authority: Ministry of Higher Education and Research;
-scope of management: Central and regional (120 million francs allocated at the regional level in 1994
and 100 million francs in 1995).
Total amount of the Research and Technology Fund
-For 1994: 433.43 million francs (PA spent);
-for 1995: 399 million francs (PA opened under preliminary financial law).G/SCM/N/3/EEC
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Policy objective
-To establish new partnerships between public research and industrial research;
-to launch projects in new fields of research and technology;
-to foster the development of research and the transfer of technology to the regions.
Duration
-Permanent arrangement, funded on yearly basis under the Law on Finances.
Statistical data permitting an assessment of the trade effects of the subsidy
-The projects in question are part of the upstream phase of the research and development process. The
subsidies have no measurable impact on the trade performance of the enterprises in question.G/SCM/N/3/EEC
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18. ATOUT-PUMA
Internal references
Date of adoption by the Commission: Letter of 23 February 1995.
Aid number: 4/95.
Additional information
Legal basis: Authorization by the Commission subject to the submission of a detailed annual report.
Law on Finances of 1994 grouping together the PUCE, PUMA and LOGIC programmes.
Beneficiaries: Industrial enterprises wishing to conduct technical, financial and commercial feasibility
studies in the following areas:
-Use of electronic components (PUCE);
-use of advanced materials (PUMA);
-robotics (LOGIC).
Conditions: Financially sound enterprises employing less than 2,000 persons that are not subsidiaries of a
group comprising 2,000 persons or more.
Form of aid
Subsidy (for projects involving the feasibility stage): maximum of 50 per cent in gross subsidy
equivalent (subsidy ceiling at 300,000 francs).
Advances to be repaid in case of success: 16.5 per cent in gross subsidy equivalents (advance fully
repaid) and 40 per cent in gross subsidy equivalent (in case of total failure of the research project and
non-repayment of the advance).
A ceiling of 1.5 million francs per project has been established for all advances.
Total amount of subsidy for the programme: ATOUT-PUMA
For 1994: 145 million francs
For 1995: 145 million francs
The ATOUT-PUCE and ATOUT-LOGIC budgets are part of the Industrial Innovation Fund.
Policy objective
To support research and development projects aimed at introducing advanced materials in
industrial technologies.
Duration of the subsidy
Permanent arrangement funded on a yearly basis under the Law on Finance.G/SCM/N/3/EEC
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Statistical data
The purpose of the programme is to disseminate technology and to finance training expenses and
research and development costs without affecting the cost of production.
By its very nature, the technology dissemination programme targets small enterprises that are
involved in sectors with little worldwide impact, and consequently, the programme has no effect on trade.G/SCM/N/3/EEC
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19. NATIONAL AGENCY FOR THE PROMOTION OF RESEARCH (ANVAR)
Internal references
Date of adoption by the Commission: Letter of 17 July 1993 for the adoption by the Commission of the
European Union of the 1994 Scheme for aid to innovation.
Aid number: N 75/94 for 1994 .
Additional information
Legal basis: Initial approval of the aid in a letter from the Commission, SG(89)9616 of 17 July 1989.
Decree on Innovation No. 79/616 of 13 July 1979.
Annual Law on Finance.
Beneficiaries: Vocation to assist enterprises with less than 500 salaried employees.
Conditions: Aid to innovation granted increasingly to technological enterprises currently being created or
that have existed for less than three years, following a technical and financial study of the
programme.
Form of subsidy
Aid to innovation: Advances repayable in case of technical and commercial success over a period
of three to five years following the end of the programme.
Direct subsidies for studies prior to the launching of research and development and innovation
projects, and feasibility and advisory studies.
Amount per unit
Repayable advances with a ceiling of 50 per cent of the non-material project investment
(maximum of 24.6 per cent in gross subsidy equivalents in case of success).
Direct subsidies up to a ceiling of 200,000 francs with a maximum rate of 50 per cent.
Amount budgeted
For 1994: 1,000 million francs
For 1995: 1,020 million francs
Policy objective
To make full use of the results of scientific and technical research.
To promote innovation and technological progress.
To facilitate the transfer to industry of the results of laboratory research.G/SCM/N/3/EEC
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Duration of the subsidy
Permanent arrangement funded on a yearly basis under the Law on Finance.
Conditions
Annual report to the Commission.
Notification in case of application of a value exceeding 20 million ECU.
Statistical data
The purpose of the programme is to finance innovation:
-The expenditures financed concern research and development, and consequently have no effect on
production costs;
-The products or procedures in question are innovatory and cannot, therefore, compete with existing
products;
Consequently, the programme has no effect on trade.