G/SCM/N/3/EEC
Page 262
20. INDUSTRIAL INNOVATION FUND
Internal references
Date of adoption by the Commission: For the Industrial Innovation Fund (FII), 10 November 1989
("Grands Projets Innovants" );
For the Electronic Systems part, 1 December 1986 (No. SG 86/D 14441).
Aid number: N 79/89 in 1989; N 5/95 on 23 February 1995.
Additional information
Legal basis: Annual Law on Finances. Approval by the Commission on 23 February 1995, 7 February
1994 and 19 May 1995 for the Electronics Systems part.
Beneficiary: General support scheme for projects pertaining to all industrial groups without size limit.
Conditions: The amounts taken into consideration are fairly substantial (approximately 15 to 50 million
francs).
Form of aid
Repayable advances which can be turned into subsidies in case the programme fails.
Amount of aid
The gross level of aid is 30 per cent, though that level may be increased by 10 per cent in cases
where intersectoral or cooperative projects are financed from the basic research stage onwards. The rule
regarding the cumulation of aid from different schemes applies to the FII. A detailed report on the
scheme is submitted to the Commission every year, and cases where it is applied to projects whose total
value exceeds 20 million ECU are notified.
Budget
-for 1994: 2824 million francs
-for 1995: 2412 million francs
Policy object
To encourage the development of large-scale, strategically or commercially important civilian
projects of a distinctly innovative nature and whose purpose is the marketing of a product or procedure
determined by the management of the enterprise within a period of less than five years.
Duration
Permanent arrangement funded on a yearly basis under the Law on Finances.G/SCM/N/3/EEC
Page 263
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 product or procedures in question are innovatory and cannot, therefore, compete with existing
products.
Consequently, the programme has no effect on trade.G/SCM/N/3/EEC
Page 264GERMANY
TABLE OF CONTENTS
Page
1. Investment Allowance for Companies in the Manufacturing and Craft Sectors 278
in Eastern Germany
2.Investment Allowance for Small and Medium-Sized Comapnies in the 279
Manufacturing and Craft Sectors in Eastern Germany
3. Joint Scheme on "Improving the Regional Economic Structure 281
4. Interest-Rate Grants to Finance Orders to Germany Shipyards 283
("Werfthilfen")
5. Competition Aid for German Shipyards (Wettbewerbshilfe) 285
6. Ad Hoc Subsidy 287
7. Bavarian Programme in Support of the Tourism Industry 288
8. Bavarian Regional Programmes in Support of Commerce and Industry 289
9. Sale at Reduced Prices of Land-Owned Real Estate 290
10. Reduction of Rates Payable on Inheritable Land-Use Rights 291
11. Subsidy for Construction of a Mechanical-Engineering User Centre 292
by Daimler Benz Aerospace
12. Consolidation Programme of the Land 294
13. Regional Economic Support Programme 295
14. Ad Hoc Aid as a Special Investment Grant of Land Saxony-Anhalt 296
15. Promotion of Rational Use of Energy 297G/SCM/N/3/EEC
Page 266
1.Investment Allowance for Companies in the Manufacturing and Craft Sectors in Eastern Germany
1.Member State
Federal Republic of Germany.
2.Name of the subsidy scheme or ad hoc subsidy
Investment allowance for companies in the manufacturing and craft sectors in eastern Germany
where the majority holding is in eastern German hands (Section 5 para. 2 of the 1993 Investment
Allowance Act).
3. Form of the subsidy
Tax allowance of up to 20 per cent for up to DM 1 million of investment.
4.Subsidy per unit
The maximum amount under figure 3 applies per company and per year; the subsidies actually
received by the individual company units are not known.
Tax revenue shortfall in 1994:
Manufacturing industry and craft trades DM million*
of which manufacturing industry (estimated) DM million*
No. of cases: approx.*
5. Policy objective and/or purpose of subsidy
To boost the ability to invest by promoting the equity capital provision of manufacturing and craft
companies in the area.
6.Duration of subsidy
Investment begun before 1 January 1995, investment completed before 1 January 1997.
7.Statistical data permitting an assessment of the trade effects
No such statistical data are available.
__________________
*cf. Annex 1.G/SCM/N/3/EEC
Page 267
2.Investment Allowance for Small and Medium-Sized Companies in the Manufacturing and Craft
Sectors in Eastern Germany
1. Member State
Federal Republic of Germany.
2. Name of the subsidy scheme or ad hoc subsidy
Investment allowance for small and medium-sized companies (up to 250 employees) in the
manufacturing and craft sectors in eastern Germany (Section 5 paragraph 3 of the 1993 Investment
Allowance Act).
3. Form of the subsidy
Tax allowance of up to 10 per cent for up to DM 5 million of investment.
4. Subsidy per unit
The maximum amount under Figure 3 applies per company and per year; the subsidies
actually received by the individual company units are not known.
Tax revenue shortfall in 1994:
Manufacturing industry and craft trades DM million*
of which manufacturing industry (estimated) DM million*
No. of cases: approx.*
5.Policy objective and/or purpose of subsidy
To boost the ability to invest by promoting the equity capital provision of small- and
medium-sized manufacturing and craft companies.
6.Duration of subsidy
Investment begun before 1 January 1995, investment completed before 1 January 1997.
7. Statistical data permitting an assessment of the trade effects
No such statistical data are available.
*cf. Annex 1G/SCM/N/3/EEC
Page 268
ANNEX 1
The investment allowances (i.e. for all sectors of commerce) estimated for the 1995 budget year
amount to DM 4,540 million.
The total investment allowances (i.e. for all sectors of commerce) actually received in the 1994
budget year amounted to DM 4,436 million.
According to research by the Ifo Institute, about 40 per cent of total investment (including
non-subsidized investment) is occurring in the manufacturing and craft sectors. The varying rates of the
tax allowance makes it impossible to give a precise sectoral breakdown of the various investment
allowances. However, the investment allowances of 20 per cent or 10 per cent for the manufacturing and
craft sectors (Section 5 paragraphs 2 and 3 of the 1993 Investment Allowance Act) are likely to account for
over 50 per cent of the total investment allowances (see above).G/SCM/N/3/EEC
Page 269
3. Joint Scheme on "Improving the Regional Economic Structure"
1.Member State
Federal Republic of Germany.
2.Name of the subsidy scheme or the ad hoc subsidy
Joint Scheme on "Improving the Regional Economic Structure".
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Regional assistance in the form of investment grants to commerce and industry.
The purpose of promotion under the Joint Scheme is a selective regional strengthening of Land
economic promotion programmes in the fields of advice, schooling, human capital formation as well as
research and development; this allows greater precision in the use of funds.
This regional assistance consists of subsidies within the meaning of letter (b) of Article 8.2 of the
SCM Agreement and meets the requirement of numbers (i) to (iii) of letter (b) of Article 8.2.
Paragraph 2 of Article 72 of the Basic Law requires living conditions to be equal throughout the
Federal territory. Regional structural policy contributes to this end. According to paragraph 1 of Article
91 a of the Basic Law, it is the common task of the Federal and the Land Governments to improve the
regional economic structure. The basis of promotion is the Act on the Joint Scheme on Improving the
Regional Economic Structure", dated 6 October 1969.
4.Annual amount budgeted for the subsidy
In the 1994 budget, an amount of DM 4.68 billion was earmarked for commerce and industry.
This amount may be broken down by DM 420 million for the original federal laender and
DM 4,260 million for the new federal laender.
5.Policy objective and/or purpose of the subsidy
The primary regional policy objective is to enable structurally weak regions to keep pace with
general economic development by offsetting locational disadvantages and reducing regional development
differentials. Regional structural policy focuses on supporting regional development activity with a view to
raising the levels of employment and income in problem areas in this way. Eligible for subsidies under
this scheme are commercial and industrial firms.
Investments in commerce and industry are eligible for promotion if they generate additional
income to the region so that the region's total level of income is raised to a not insignificant extent in the
long run (primary effect). This is deemed to be the case if the company applying for subsidy payment
sells the better part of its products or services on a supraregional basis. The investment projects
concerned must create new jobs in the assisted areas or secure existing ones.
Assisted areas are redefined at pluriannual intervals on the basis of regional indicators (level of
income, unemployment, infrastructure). Assisted areas in the original laender including Berlin (West)
cover 22 per cent of the West German population in the period from 1994 to 1996. The new federal
states and Berlin (East) represent assisted areas in their entirety till 1996. Moreover, these areas have been
recognized as objective-one areas within the framework of the EU Structural Funds according to paragraph
3(a) of Article 92 of the EC Treaty till end-1999.G/SCM/N/3/EEC
Page 270
6.Duration of the subsidy
Regional assistance consists of a non-recurring payment and is granted to investment projects in
assisted areas. The programme is under no time-limit.
7.Statistical data permitting an assessment of the trade effects of the subsidy
Regional promotion is aimed at offsetting domestic locational investment disadvantages and
contributes to raising the levels of income and employment in structurally weak areas. Promotion under
the Joint Scheme therefore is neutral in terms of competition and has no effect on competition in
international trade.G/SCM/N/3/EEC
Page 271
4. Interest-Rate Grants to Finance Orders to Germany Shipyards ("Werfthilfen")
1.Member State
Federal Republic of Germany.
2.Name of the subsidy scheme or ad hoc subsidy
Interest-rate grants to finance orders to German shipyards ("Werfthilfen").
3.Form of the subsidy
Grant.
4.Subsidy per unit
Total amount of assistance provided in 1994:
- Support approved: DM 226.0 million
Average level of support per ship:
-From support approved in 1994: DM 3.9 million.
5. Objective and/or purpose of the subsidy
The eighth shipyard assistance programme (VIII. Werfthilfeprogramm) exists to provide
non-repayable interest-rate grants under the relevant OECD agreement regarding export credits for ships
and the relevant EU directives on shipbuilding subsidies.
Legal basis:Commitment authorizations in the Federal budget Guidelines from the Federal Ministry of
Economics.
Modes of payment:Those receiving the grants are shipbuilding companies in the Federal Republic
of Germany.
Support is given to the construction and reconstruction of high-technology marine vessels (merchant
vessels), respecting the OECD minimum conditions.
-8 1/2 year term
-20 per cent advance payment
-Minimum interest rate of 8 per cent p.a.
In addition, grants can be given for loans at conditions more favourable than those described above if this
appears justified, particularly in terms of development policy.
The support serves to lessen the cost of loans to the clients of German shipyards, thus achieving a
partial adjustment towards the international market conditions. The assistance is made available in the
form of tranches in the eighth shipyard assistance programme.
6. Duration of subsidy and other time-limits attached to itG/SCM/N/3/EEC
Page 272
Currently:-8th tranche (for Western German shipyards) for delivery years 1993-1998 with support
totalling DM 641.5 million;
-8th tranche (for Eastern German shipyards) with support totalling DM 471.0 million;
-9th tranche (for Western German shipyards) for delivery years 1996-1998 with support totalling DM
350.0 million.
7.Statistical data permitting an assessment of the trade effects of a subsidy
Figures in DM million
1992 1993 1994
Production 4,178 4,863 4,686
Imports from outside EU 305 477 277*
Exports to outside EU 2,929 3,018 2,033*
*Figures for 9 months .G/SCM/N/3/EEC
Page 273
5. Competition Aid for German Shipyards ("Wettbewerbshilfe)
1. Member State
Federal Republic of Germany.
2.Name of the subsidy scheme or ad hoc subsidy
Competition aid for German shipyards (Wettbewerbshilfe).
3.Form of the subsidy
Grant.
4.Subsidy per unit
Total amount of assistance provided in 1994:
-Support approved: DM 190.6 million.
Average level of support per ship:
-From support approved in 1994: DM 2.7 million.
5.Objective and/or purpose of the subsidy
The assistance is intended to facilitate the restructuring being undertaken by the shipyards.
Grants towards production costs are given, where they are permissible under the relevant EU shipyard
subsidies directive.
The programme is funded jointly by the Federal and the Länder Governments.
Legal basis:Commitment authorizations in the Federal and Länder budgets
Guidelines from the Federal Ministry of Economics.
Modes of payment:Those receiving the grants are shipbuilding companies in the Federal Republic of
Germany.
Support is given to the construction and conversion of high-technology marine vessels (merchant vessels).
From 1 January 1994, the support rate is 7 per cent of the price in the
contract; for ships with a contract price of below 10 million ECU and
for conversion work, the rate is 4.7 per cent.G/SCM/N/3/EEC
Page 274
6.Duration of subsidy and other time-limits attached to it
The assistance has been provided over the following period and to the following extent:
For acquisition years:
1987-1990 (Western German shipyards) DM 1,000 million
1991-1992 (Western German shipyards) DM 538 million
up to 1993 (Eastern German shipyards) DM 803 million
1993-1994 (Western German shipyards) DM 166 million
1994-1996 (Western German shipyards) DM 291 million
1995 (all German shipyards) DM 580 million
In accordance with the OECD Agreement, no further assistance can be granted from 1996.
7. Statistical data permitting an assessment of the trade effects of a subsidy
Figures in DM million
1992 1993 1994
Production 4,178 4,863 4,686
Imports from outside EU 305 477 277*
Exports to outside EU 2,929 3,018 2,033*
*Figures for 9 months.G/SCM/N/3/EEC
Page 275
6. Ad Hoc Subsidy
1.Member State
Federal Republic of Germany.
2.Name of the subsidy scheme or the ad hoc subsidy
Ad hoc subsidy.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Loan.
4. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount
budgeted for the subsidy (indicating, if possible, the average subsidy per unit in the previous
year)
Loans granted: DM 57,287,500.00
5.Policy objective and/or purpose of the subsidy
Advance payment within the framework of the scheme to private Neue Maxhütte GmbH.
6.Duration of the subsidy and/or any other time-limits attached to it
Non-recurring.
7.Statistical data permitting an assessment of the trade effects of the subsidy
Data not available.G/SCM/N/3/EEC
Page 276
7. Bavarian Programme in Support of the Tourism Indusry
1. Member State
Federal Republic of Germany.
Responsible level of government: Free State of Bavaria.
2.Name of the subsidy scheme or the ad hoc subsidy
Bavarian programme in support of the tourism industry (as promulgated by the Bavarian Ministry
of State of Economics, Transport and Technology on 29 March 1995).
3.Form of the subsidy
-investment grant;
-Loan.
4.Total 1994 amount of subsidy
-investment grants: DM 18.8 million;
-loans: DM 244.9 million;
-assisted volume of investments: DM 472.2 million;
-number of assisted companies: 380.
5. Policy objective and/or purpose of the subsidy
Aid to finance investments in the tourism industry in assisted areas.
Objective:-improving the supply of tourism services;
-increasing the economic strength of structurally weak areas.
6.Duration of the subsidy
Indefinite.
7.Statistical data permitting an assessment of the trade effects of the subsidy
Not available.
Outside the assisted areas pursuant to the Joint Federal/Land Scheme on "Improving the Regional
Economic Structure", support is restricted to small and medium-sized enterprises (SMEs) within the
meaning of the Community Framework on State Aid to Small and Medium-Sized Enterprises
(EC-OJ C 213/2, dated 19 August 1992).G/SCM/N/3/EEC
Page 277
8. Bavarian Regional Programmes in Support of Commerce and Industry
1.Member State
Federal Republic of Germany.
Responsible level of administration: Free State of Bavaria.
2.Name of the subsidy scheme or the ad hoc subsidy
Bavarian regional programmes in support of commerce and industry (Bayerische
Förderprogramme für die gewerbliche Wirtschaft) as promulgated by the Bavarian Ministry of State of
Economics, Transport and Technology, 5 July 1994.
3.Form of the subsidy
-investment grant;
-loan.
4.Total 1994 amount of subsidy
-investment grants: c. DM 102.2 million;
-loans: c. DM 492.2 million;
-assisted volume of investments: DM 1,503 million;
-number of assisted companies: 218.
5.Policy objective and/or purpose of the subsidy
Aid to finance investments in commerce and industry to create and secure jobs and training places
in assisted areas.
Objective:-Improving the regional economic structure;
-Increasing the economic strength of structurally weak areas.
6.Duration of the subsidy
Indefinite; review to be made before end-1996.
7.Statistical data permitting an assessment of the trade effects of the subsidy
Not available.
Outside the assisted areas pursuant to the Joint Federal/Land Scheme on "Improving the Regional
Economic Structure", support is restricted to small and medium-sized enterprises within the meaning of
the Community Framework on State Aid to Small- and Medium-Sized Enterprises (EC-OJ C 213/2, dated
19 August 1992).
9.Sale at Reduced Prices of Land-Owned Real EstateG/SCM/N/3/EEC
Page 278
1.Member State
Federal Republic of Germany; Land Berlin.
2.Name of the subsidy scheme or the ad hoc subsidy
Sale at reduced prices of land-owned real estate, either built up or not, for being used as
commercial sites.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Reducing land acquisition costs by a 25 per cent rebate from the current value of the land.
4.Subsidy per unit or, where this is not possible, the total amount of the annual amount budgeted for the
subsidy
No payments in 1994.
5.Policy objective and/or purpose of the subsidy
Reducing land acquisition costs to manufacturing for regional promotion purposes.
6.Duration of the subsidy and/or any other time-limits attached to it
Programme deadline: 31 December 1998.
7.Statistical data permitting an assessment of the trade effects of the subsidy
WTO-scale effects of the subsidy not measurable because of the limited funding of the
programme.G/SCM/N/3/EEC
Page 279
10.Reduction of Rates Payable on Inheritable Land-Use Rights
1.Member State
Federal Republic of Germany; Land Berlin.
2.Name of the subsidy scheme or the ad hoc subsidy
Reduction to between 3 and 5 per cent of the, rates payable on inheritable land-use rights in the
case of projects, worthy of special promotion, of manufacturing firms depending on the degree of use of
the buildings.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Cutting land costs by granting a reduced rate on land-use rights.
4.Subsidy per unit or, where this is not possible, the total amount of the annual amount budgeted for the
subsidy
1994 payments: DM 545,398.00.
5.Policy objective and/or purpose of the subsidy
Reducing land acquisition costs to manufacturing for regional promotion purposes.
6.Duration of the subsidy and/or any other time-limits attached to it
Unlimited
7.Statistical data permitting an assessment of the trade effects of the subsidy
WTO-scale effects of the subsidy not measurable because of the limited funding of the
programme.G/SCM/N/3/EEC
Page 280
11.Subsidy for Construction of a Mechanical-Engineering User Centre by Daimler-Benz Aerospace
1.Member State
Federal Republic of Germany; Land Berlin.
2.Name of the subsidy scheme or the ad hoc subsidy
Subsidy to launch finance and fund the construction of a mechanical-engineering user centre by
Daimler-Benz Aerospace (DASA) in Berlin.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
General grant to launch finance and fund the construction of a mechanical-engineering user centre
as well as project-related promotion (DM 6 million) for developing especially user technologies.
The total subsidy of DM 12 million accounts for about 27 per cent of the outlays of about
DM 43.7 million estimated for construction of the user centre.
4.Subsidy per unit or, where this is not possible, the total amount of the annual amount budgeted for the
subsidy
The funds budgeted for 1994 amount to DM 2,965,000.00 of which a total of DM 965,000.00
was disbursed.
5.Policy objective and/or purpose of the subsidy
The task of the mechanical-engineering user centre is to develop software for freely
programmable control systems. This includes inter alia software for processing, diagnosing, process
reduction, user-surface, machine interface (CAD/CAM) technologies and internetting.
The user centre's activities are to result in new products, new processes a well as production
structures in the fields of electronics, information technology, communications technology as well as
system control technology in order to adapt to changes in technological and market conditions.
The subsidy is aimed at expanding scientific and technological knowledge at the level of research
establishments and business and, thus, at increasing the innovative strength especially of Berlin mechanical
engineering and control-systems manufacturing companies facing difficulties in the process of
restructuring.
Against this background, the user centre concept provides for cooperation with research
institutions, machine tool producers and their (mainly small and medium-sized) subsuppliers as well as end
users. The partners are to pool their know-how and to develop it in a manner that it is suitable for being
used in production. The results of such cooperation will be available not only to the partners in the
scheme, but also to other users upon request.
6.Duration of the subsidy and/or any other time-limits attached to it
The subsidy to the construction of the user centre covers the period 1994/1996.G/SCM/N/3/EEC
Page 281
7.Statistical data permitting an assessment of the trade effects of the subsidy
The effects on trade of the subsidy granted is not measurable - at least not on an international
scale. Pertinent statistical data are not available.G/SCM/N/3/EEC
Page 282
12.Consolidation Programme of the Land
1.Member State
Federal Republic of Germany; Land Mecklenburg-Vorpommern.
2.Name of the subsidy scheme or the ad hoc subsidy
Consolidation programme of the Land.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Loans of up to DM 5 million at market conditions, as a rule restricted to small and medium-sized
enterprises within the meaning of the Community Framework on State Aid to Small and Medium-Sized
Enterprises.
4.Subsidy per unit or, where this is not possible, the total amount of the annual amount budgeted for the
subsidy
Approved loans in 1994: approximately, DM 25 million.
5.Policy objective and/or purpose of the subsidy
Liquidity aid for enterprises of regional importance.
6.Duration of the subsidy and/or other time-limits attached to it
Granted as from July 1994, the programme expired in 1995.
7.Statistical data permitting an assessment of the trade effects of the subsidy
No assessment is made of statistics on trade effects. Most of the supported enterprises operate
on regional markets only. As far as we know, one firm has started to operate on international markets. It
may be assumed, therefore, that effects on trade have remained insignificant.G/SCM/N/3/EEC
Page 283
13.Regional Economic Support Programme
1.Member State
Federal Republic of Germany; Land North-Rhine/Westphalia.
2.Name of the subsidy scheme or the ad hoc subsidy
Regional economic support programme.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Grants towards investment projects of trade and industry and local infrastructure.
4.Subsidy per unit or, where this is not possible, the total amount of the annual amount budgeted for the
subsidy
The total amount budgeted for 1994; scheme of the Land: DM 66 million.
5.Policy objective and/or purpose of the subsidy
Improving the regional economic structure and supporting small- and medium-sized businesses.
6.Duration of the subsidy and/or other time-limits attached to it: No time-limit.
7.Statistical data permitting an assessment of the trade effects of the subsidy
In 1994, no projects of trade and industry were promoted under the scheme of the Land.
Promotion of trade and industry was not reintegrated into the programme until 28 August 1994.
As the European Commission gave its approval only in June 1995, commitments were not made until
1995. The total amount budgeted in 1994 was used in industry-related infrastructure projects.G/SCM/N/3/EEC
Page 284
14.Ad Hoc Aid as a Special Investment Grant of Land Saxony-Anhalt
1.Member State
Federal Republic of Germany.
2.Name of the subsidy scheme or the ad hoc subsidy
Ad hoc aid as a special investment grant of Land Saxony-Anhalt.
3.Form of the subsidy (i.e. grant, loan, tax concession, etc.)
Grant.
4.Subsidy per unit or, where this is not possible, the total amount or the annual amount budgeted for the
subsidy
1994: DM 100 million.
5.Policy objective and/or purpose of the subsidy
Offsetting the extra costs arising for meeting mandatory German environmental and safety
standards.
6.Duration of the subsidy and/or any other time-limits attached to it
Three years.
7.Statistical data permitting an assessment of the trade effects of the subsidy
Not available.G/SCM/N/3/EEC
Page 285
15.Promotion of Rational Use of Energy
1.Member State
Federal Republic of Germany - State of North-Rhine/Westphalia.
2.Name of the subsidy scheme or ad hoc subsidy
Promotion of rational use of energy: programme segment "Expansion of the supply of district
heating on the basis of CHP, industrial waste heat and the incineration of waste".
3.Form of the subsidy
Grant.
4.Total expenditure in 1994 budget year
Approximately DM 19 million.
In 1994, the support rate averaged 20 per cent of the eligible expenditure. Support was given to a
total of 35 district heating projects (heat distribution lines of various lengths and dimensions, heat
exchangers of various capacities, heat transfer points for the customers). The projects are being
implemented over one to six years, depending on the scale. The project-related support is usually
approved before construction of the project begins; the funding is disbursed as the project progresses. It
is not possible to determine a "subsidy per unit", as it is impossible to define a "unit".
5.Policy objective and/or purpose of subsidy
The aim of the support is to utilize heat from CHP, industrial waste heat and the incineration of
waste for heating purposes. Support is given to facilities to remove and distribute heat, other facilities to
use waste heat from power stations, and other energy from industrial and waste disposal facilities.
6.Duration of subsidy
There is no time-limit on the support programme.
7.Statistical data permitting an assessment of the trade effects
District heating competes on the heating market with other input energies (gas, oil, electricity).
Because of the high level of investment in the distribution network, district heating usually has a very weak
competitive position. The support only partially offsets this disadvantage; it certainly does not result in
distortions of competition. No effects on trade are therefore anticipated.G/SCM/N/3/EEC
Page 286GREECE
Notification of Grants Approved
During 1994 in Greece
1. State - Member
Greece.
2. Authority responsible for the implementation of the investment incentives
Ministry of National Economy and its Regional Directorates, the National Organisation of SMEs,
the Agricultural Bank of Greece.
3.Legal basis
Law 1892/90 "For the renovation and the development".
4.Form of subsidy
Grants.
5.Grants approved during 1994
-Manufacturing: Dr 28.8 billion
-Agriculture, stockbreeding, forestry and fish farming: Dr 1.7 billion
-Tourism (hotels, conference centres, golf courses, marinas):Dr 0.15 billion
-Other: Dr 1.5 billion
TOTAL AMOUNT OF GRANTS Dr 32.0 billion
6. Policy objectives
The evolution of the investing initiatives.
7. Duration
Unless future law specifies otherwise, there is no expiration date for the implementation of the
above referred subsidy.
8. Statistical data permitting the evaluation of the effect that the incentives may have on trade are not
available.
Note:Eligible to the benefits of the investing law are only the investments defined as "productive" by it.
Trade is not included in this definition.G/SCM/N/3/EEC
Page 288IRELAND
Form of subsidy:
Repayment of hydrocarbon oil and LPG excise duty in the case of mushroom growing and
glasshouse operation.
Subsidy per unit:
£3.29 per hectolitre of oil
Policy objective/purpose:
Fuel is a high proportion of operating costs and relief is considered desirable to maintain
competitiveness.
Duration of Subsidy:
Open ended.
Statistical data permitting an assessment of trade effects of the subsidy:
None available.G/SCM/N/3/EEC
Page 290
Form of subsidy:
Repayment of hydrocarbon oil and LPG excise duty in the case of sea fishing.
Subsidy per unit:
£3.73/hectolitre
Policy objective/purpose:
Fuel is a high proportion of operating costs and relief is considered desirable to maintain
competitiveness.
Duration of Subsidy:
Open ended.
Statistical data permitting an assessment of trade effects of the subsidy:
None available.