WORLD TRADE
ORGANIZATIONG/SCM/N/38/EEC/Add.10
21 December 1998
(98-5135)
Committee on Subsidies
and Countervailing MeasuresOriginal:  French
SUBSIDIES
New and Full Notifications 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 Luxembourg .G/SCM/N/38/EEC/Add.10
Page 2
LUXEMBOURG
TABLE OF CONTENTS
Page
I. SYSTEM OF AID TO SMALL AND MEDIUM ENTER PRISES ........................3
II. SYSTEM OF RE GIONAL AID ................................................................................4
III. SYSTEM OF AID FOR R&D ....................................................................................5IV. SYSTEM OF AID FOR THE PROTECTION OF THE ENVIRONMENT
AND RATIONAL USE OF  ENERGY  ......................................................................6G/SCM/N/38/EEC/Add.10
Page 3
I. SYSTEM OF AID TO SMALL AND MEDIUM ENTERPRISES
1. Title
System of aid to small and medium enterprises.
2. Period covered by the notification
1997 financial year
3. Policy objective
To promote productive investment by small and medium enterprises
4. Background and authority for the subsidy
Framework Law of 27 July 1993 (Article 4) whose objective is:
1. Economic development and diversification;2. improvement of the economy's overall structure and regional balance, as amended by
the Law of 21 February 1997.
5. Form of the subsidy
Capital subsidy
6. To whom and how the subsidy is provided
The subsidies are granted to small and medium enterprises by ministerial decision in the form
of capital subsidies.
7. Total amount budgeted
Actual expenditure in 1997:  Lux F 11.8 million
8. Duration of the subsidy
Indefinite
9. Trade effects
Not determinedG/SCM/N/38/EEC/Add.10
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II. SYSTEM OF REGIONAL AID
1. Title
System of regional aid
2. Period covered by the notification
1997 financial year
3. Policy objective
Economic development and diversification of the regions
4. Background and authority for the subsidy
Framework Law of 27 July 1993 (Article 5) whose objective is:
1. Economic development and diversification;2. improvement of the economy's overall structure and regional balance, as amended by
the Law of 21 February 1997.
5. Form of the subsidy
Capital subsidy
6. To whom and how the subsidy is provided
The subsidies are granted to enterprises meeting the criteria in Article 5 by ministerial
decision in the form of capital subsidies.
7. Total amount budgeted
Actual expenditure in 1997:  Lux F 1,263.4 million.
8. Duration of the subsidy
Indefinite.
9. Trade effects
Not determinedG/SCM/N/38/EEC/Add.10
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III. SYSTEM OF AID FOR R&D
1. Title
System of aid for R&D
2. Period covered by the notification
1997 financial year
3. Policy objective
To promote the development of technologies for new products and processes.
4. Background and authority for the subsidy
Framework Law of 27 July 1993 (Article 6) whose objective is:
1. Economic development and diversification;2. improvement of the economy's overall structure and regional balance, as amended by
the Law of 21 February 1997.
5. Form of the subsidy
Capital subsidy
6. To whom and how the subsidy is provided
The subsidies are granted to enterprises meeting the criteria in Article 6 by ministerial
decision in the form of capital subsidies.
7. Total amount budgeted
Actual expenditure in 1997:  Lux F 104.9 million
8. Duration of the subsidy
Indefinite
9. Trade effects
Not determinedG/SCM/N/38/EEC/Add.10
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IV. SYSTEM OF AID FOR THE PROTECTION OF THE ENVIRONMENT AND
RATIONAL USE OF ENERGY
1. Title
System of aid for the protection of the environment and rational use of energy
2. Period covered by the notification
1997 financial year
3. Policy objective
To promote investment to protect the environment and implement new techniques for the
rational use of energy and new and renewable resources of energy.
4. Background and authority for the subsidy
Framework Law of 27 July 1993 (Article 7) whose objective is:
1. Economic development and diversification;
2. improvement of the economy's overall structure and regional balance, as amended by
the Law of 21 February 1997.
5. Form of the subsidy
Capital subsidy
6. To whom and how the subsidy is provided
The subsidies are granted by ministerial decision to enterprises meeting the criteria in
Article 7 in the form of capital subsidies.
7. Total amount budgeted
Actual expenditure in 1997:  Lux F 90.8 million
8. Duration of the subsidy
Indefinite
9. Trade effects
Not determined
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