WORLD TRADE  
ORGANIZATION  G/SCM/N/95/EEC/Add.7 
15 December 2003 
 (03-6590) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
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 Greece . 
 G/SCM/N/95/EEC/Add.7 
Page 2  
 
 GREECE  
 
 
I. SUBSIDIES TO PRIVATE INVESTMENT FOR THE ECONOMIC AND REGIONAL 
DEVELOPMENT OF THE STATE 
(a)  Title  
Law 2601/98 (published in the Official Gazette of  the Hellenic Republic of 15 April 1998) on 
subsidies to private investment for the economic and regional development of the state. Law 2601/98 
replaces Law 1892/90 as amended and supplemented by Law 2234/94. 
(b)  Period covered  
Law 2601/98 entered into force on the day of its publication in the Official Gazette 
(15 April 1998). 
(c)  Objective/Policy 
Article 1 of Law 2601/98 sets out the objective of the law as follows: – To contribute to regional development  
– To contribute to job creation  
– To increase competitiveness of business 
– To contribute to the restructuring of production sectors 
– To contribute to the exploitation of business opportunities in Greece and abroad 
– To contribute to the protection of the environment and the savings of energy 
(d)  Authority
 
As a general rule the authority responsible for ad ministering the Law is the Central Service of the 
Ministry of National Economy.  However, applica tions for aid investments up to Dr 700 million are 
administered locally by the Private Investment Serv ices of the Ministry's Regional Directorates.  In 
specific cases the Ministry of Development or other services may be involved. 
 
(e)  Form  
  Aid is granted in the following forms:   (i) grants 
 (ii) interest contributions 
 (iii) leasing payment contributions  (iv) tax exemptions   The incentives given through tax exemptions are not considered to be state aid because they 
are based on objective criteria.  
  G/SCM/N/95/EEC/Add.7 
 Page 3 
 
 
 (f)  Procedure  
  Companies from all economic sectors can av ail of aid under Law 2601/98 (including physical 
persons engaged in business activities).  With regard to the t ype of aid available, however, Law 
2601/98 distinguishes between two types of beneficiari es (new and old) depending on the time of their 
establishment.  Old beneficiaries (i.e. those establishe d at least five years before the application for 
aid is made) can avail only of aid in the form of  interest contributions and tax exemptions.  New 
beneficiaries (i.e. those established within five years of the application for aid) can avail of all of the 
above mentioned forms of aid (for the types of aid see answer to previous question).  
 The aid intensity varies depending on the region of the investment.  For the purposes of Law 
2601/98, Greece is divided into four regions on the basis of their level of development/unemployment/geographical position. Re gion 'A' covers the departments of Attica and 
Thessaloniki; investments in these areas are not nor mally eligible for aid under Law 2601/98 (with 
certain exceptions). In the other re gion aid intensity varies as follows: 
 
 - Region B: 15% (40 per cent for tax exemption)  - Region C: 30% (70 per cent for tax exemption)  - Region D: 40% (100 per cent for tax exemption)   Aid is granted in instalments in proportion to the degree of realisation of the investment in 
three distinct phases.  Firstly, 60 per cent of the aid is granted during realisation of the investment in 
two separate instalments.  Secondly, 20 per cent of  the aid is granted after the conclusion of the 
investment, and thirdly, the last 20 per cent is granted after the investment had been put into 
operation.  
(g)  Amount
 
  The total amount of subsidies authorised for 2001  totalled Dr 260,908.6 million. 
  The total amount of subsidies authorised for 2002 totalled Dr 234,742.8 million 
 
(h)  Duration 
 
  There is no time limit attached to the application of Law 2601/98.  (i)  Statistics
 
 
 The amount of Dr 260,908.6 million for 2001  is broken down according to sector of economic 
activity, as follows:   - Primary  Dr     4,144.5 million  - Secondary  Dr 190,705.3 million 
 - Tourism   Dr   53,689.8 million 
 - Services   Dr  12,369.0 million  G/SCM/N/95/EEC/Add.7 
Page 4  
 
  The amount of Dr 234,742.8 million for 2002  is broken down according to sector of economic 
activity, as follows:   - Primary  Dr     6,472.2 million  - Secondary  Dr 143,147.5 million 
 - Tourism   Dr   69,814.0 million 
 - Services   Dr  15,309.1 million   
Please note: 1 EURO = 340, 750 GRD (GREEK DRACHMAS) 
 
 
__________