WORLD TRADE  
ORGANIZATION  G/SCM/N/95/EEC/Add.13 
15 December 2003 
 (03-6596) 
Committee on Subsidies and Countervailing Measures Original:   Spanish 
 
 
  
SUBSIDIES 
 
Notification Pursuant to Ar ticle 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 Spain . G/SCM/N/95/EEC/Add.13 
Page 2  
 
SPAIN 
 
TABLE OF CONTENTS 
Page  
 
I. FISHERIES ...................................................................................................................... .........4  
A. CO-FINANCED PROGRAMMES .  2001  BUDGET ..............................................................................4  
1. Individual compensatory premiums (for the definitive  stoppage of fishing).......................5  
2. Promotion of aquaculture ....................................................................................................... .6 
3. Marine cultivation plans....................................................................................................... ....6 
4. Reorganization and renovation of th e fishing fleet (renovation and 
modernization of the fishing fleet)...........................................................................................7  
5. Reorganization and renovation of the fishing fleet (definitive stoppage of fishing)............8  
6. Aid to ship owners affected by the stoppage of fi shing.  Aid in 2001 ...................................9  
7. Conversion of the fishing fleet:  jo int-venture projects .......................................................10  
8. Socio-economic measures as a result of the reo rganization of the fishing fleet.................11  
9. Pilot projects for experimental fishing..................................................................................12  
B. CO-FINANCED PROGRAMMES .  2002  BUDGET ............................................................................13  
1. Promotion of aquaculture ......................................................................................................1 4 
2. Marine cultivation plans....................................................................................................... ..14 
3. Reorganization and renovation of th e fishing fleet (renovation and 
modernization of  fishing vessels) ..........................................................................................15  
4. Reorganization and renovation of the fishing flee t (definitive stoppage of fishing)..........16  
5. Aid to ship owners affected by the stoppage of fi shing.  Aid in 2002 .................................17  
6. Conversion of the fishing fleet:  jo int-venture projects .......................................................18  
7. Socio-economic measures .......................................................................................................1 9 
8. Pilot projects for experimental fishing..................................................................................20  
II. MINING......................................................................................................................... ..........21  
A. MINING (OTHER THAN ENERGY ).  AID IN 2001...........................................................................21  
B. MINING (OTHER THAN ENERGY ).  AID IN 2002...........................................................................22  
III. INDUSTRY....................................................................................................................... .......23  
A. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME (PROFIT ).................................................23  
B. SHIPBUILDING .  SHIPBUILDING SUBSIDIES .................................................................................24  
C. SHIPBUILDING .  INTEREST SUBSIDY FOR SHIPBUILDING LOANS ................................................25  
IV. SMALL AND MEDIUM SIZED ENTERPRISES (SMES)................................................27  
A. ARTE -SME PROGRAMME ............................................................................................................27  
B. ARTE -SME PROGRAMME II .........................................................................................................28  
C. SME COMPETITIVENESS AND CONSOLIDATION PLAN .................................................................29   G/SCM/N/95/EEC/Add.13 
 Page 3 
 
 
1. Information society ............................................................................................................ .....29  
2. Innovation in business methods.............................................................................................30  
V. REGIONAL SUBSIDIES.......................................................................................................32  
A. REGIONAL ECONOMIC INCENTIVES SCHEME .............................................................................32  
 
1 EURO = 166,386 ESP (SPANISH PESETAS) G/SCM/N/95/EEC/Add.13 
Page 4  
 
I. FISHERIES 
A. 
CO-FINANCED PROGRAMMES .  2001  BUDGET  
 The information includes a summary of a ll the programmes together with detailed 
information on each of them. 
 
2001 Budget – Part of national aid co-financed by FIFG (Financial Instrument for Fisheries 
Guidance ) 
 
 Pursuant to Council Regulation (EC) 2792/1999 of  17 December 1999 (Official Journal of the 
EC L337/99), laying down the detailed rules and arrangements regarding Community structural 
assistance in fisheries, aquaculture and the proce ssing and marketing of products thereof;  and Royal 
Decrees 798/1995 of 19 May, adapting the above-mentioned Regulation, and 3448/2000 of 
22 December (Official J ournal of Spain (BOE) of 23 December 2000), establishing the basic 
regulations for structural aid in the fisheries sector, the following aid has been granted:   
  In the financial year for 2001 no co-financial subsidies were granted for the improvement of 
fishing. 
 
 The subsidies previously referred to as compensatory earlier retirement as a result of the 
reorganization of the fishing fleet  were, in the financial year for 2001, granted as socio-economic 
measures as a result of the reo rganization of the fishing fleet . 
 
Individual compensatory premiums
 
 
• 38.13 million pesetas (0.23 million euros)  were transferred to the Autonomous 
Communities. 
 
Promotion of aquaculture  
 
• 6,694,864.72 euros were transferred to the Autonomous Communities 
 
Marine cultivations plans  
 
• 1,040,099.52 euros were transferred to the Autonomous Communities. 
 
Reorganization and renovation of the fishing fleet  
 
• Renovation and modernization:  1,059.60 million pesetas (6.37 million euros) were 
transferred to the Autonomous Communities. 
 
• Definitive stoppage:  10.51 million euros were transferred to the Autonomous 
Communities. 
 
• Aid to shipowners affected by the stoppage of fishing.  Aid in 2001:  46.90 million 
euros were transferred to the Autonomous Communities. 
 
Conversion of the fishing fleet  
 
• Establishment of joint ventures:  1.14 million euros 
 
  G/SCM/N/95/EEC/Add.13 
 Page 5 
 
 
Socio-economic measures as a result of the reorganization of the fishing fleet  
 
• 29.96 million pesetas (0.18 millio n euros) were transferred to the to the Autonomous 
Communities 
 
Pilot projects for experimental fishing  
 
• Subsidies to pilot projects for experimental fishing:  506,000 euros 
 
1. Individual compensatory premiums (for th e definitive stoppage of fishing) 
(a) Title of the programme  
 
Individual compensatory premiums  
(b) Period covered by the notification
 
 
2001 
 
(c) Policy objective and/or purpose of the subsidy  
 
To introduce socio-economic measures to assist fishermen of boats subject to fisheries 
restructuring measures and who fulfil certain criteria. 
 
(d) Authority  
 
Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
 
Non-renewable subsidy of a percentage of the request 
 
(f) Beneficiaries to whom and how the subsidy is provided  
 Workers in the fisheries sector. 
 
(g) Subsidy per unit or total amount of the subsidy
 
 
0.23 million euros were transferred to the Autonomous Communities. Fixed amount.  
(h) Duration of the subsidy
 
 
The duration of the aid programmes depends on  the applicable Community Regulations, in 
this case Council Regulation (EC) 2792/1999 of 17 December 1999, laying down the detailed 
rules and arrangements regarding Community structural assistance in the fisheries sector. 
 
The subsidies are granted annually.  Period 2000-2006. 
 G/SCM/N/95/EEC/Add.13 
Page 6  
 
(i) Statistical data permitting an assessmen t of the trade effect of the subsidy
 
 
It is deemed to have no effect on trade, sinc e the objective of the subsidy is to compensate 
workers in the sector who leave the industry. 
 
2. Promotion of aquaculture 
(a) Title of the programme  
Promotion of aquaculture 
 
(b) Period covered by the notification  
2001 
 
(c) Policy objective and/or purpose of the subsidy  
Promotion and development of tangible investment in marine and inland aquaculture. 
 
(d) Authority  
Royal Decree 3488/2000 of 22 December (BOE of 23.12.2000) establishing the basic 
regulations for structural aid in the fisheries sector.   
 
(e) Form of the subsidy  
Direct aid 
 
(f) Beneficiaries  
Enterprises in the aquaculture sector 
 
(g) Subsidy per unit or total amount of the subsidy  
6,694,864.72 euros were transferred to the Autonomous Communities 
 
(h) Duration of the subsidy  
The programme covers the period from 2000 to 2006 
 
(i) Statistical data permitting an assessment of the trade effects of the subsidy  
The promotion of aquaculture helps to alleviate th e crisis in the supply of fish, while at the 
same time reducing pressure on fish stocks a nd thus would not appear to have any negative 
effects on trade. 
 3. Marine cultivation plans 
(a) Title of the programme
 
 
 National Marine Cultivation Plans 
  G/SCM/N/95/EEC/Add.13 
 Page 7 
 
 
(b) Period covered by the notification  
 
2001 
(c) Policy objective and/or purpose of the subsidy  
 
 Development and implementation of Nationa l Marine Cultivation Plans as a means of 
strengthening the balanced development of aquaculture in the Autonomous Communities. 
 
(d) Authority  
  Law 23/1984, of 25 June, on marine cultivation. 
 
(e) Form of the subsidy
 
 
 Direct aid  (f) Beneficiaries:  to whom and how the subsidy is provided 
 
 
 Transfer to the Autonomous Communities which participate in each of the plans approved by 
JACUMAR (Advisory Board on Marine Cultivation). 
 (g) Subsidy per unit or total amount of the subsidy
 
 
 1,040,099.52 Euros were transferre d to the autonomous communities. 
 
(h) Duration of the subsidy  
 
 Annual  
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The promotion of aquaculture helps to alleviate the crisis in the supply of fish, while at the 
same time reducing pressure on fish stocks a nd thus would not appear to have any negative 
trade effects. 
 
4. Reorganization and renovation of the fishing fleet (renovation and modernization of the 
fishing fleet) 
(a) Title of the programme  
 
 Renovation and modernization of the fishing fleet 
 
(b) Period covered by the notification  
 
 Financial year 2001  
(c) Policy objective and/or purpose of the subsidy
 
 
 Promotion of investment in the renovation and modernization of the fishing fleet with a view 
to improving safety and working conditions in the fisheries sector. 
 G/SCM/N/95/EEC/Add.13 
Page 8  
 
(d) Authority
 
  
 Royal Decree 798/1995 of 19 May, laying down the detailed rules and arrangements for  
structural assistance in fisheries, aquaculture and the marketing, processing and promotion of 
fish products, and Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), 
establishing the basic regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
 
 Non-repayable subsidies   The subsidies are intended for capital investments in shipbuilding and may contribute towards 
a deduction of one or more percentage points from the interest payable by a shipowner to a 
financial institution that has granted him a loan to build a new vessel. 
 
(f) Beneficiaries
 
 
 The owners of new fishing vessels.  Shipowners in the fisheries sector. 
 
(g) Subsidy per unit or total amount of the subsidy  
  6.37 million euros were transferred to the Autonomous Communities  
(h) Duration of the subsidy
 
 
 The programme covers the period from 2002 to 2004. 
 
 One-time payment on completion and on justification of the cost 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 The subsidies for temporary and definitive stoppage exceed those granted for renovation and 
modernization.  Consequently, they represent a reduction in the gross registered tonnage 
(GRT) of the Spanish fishing fleet and thus have no effects on trade. 
 5. Reorganization and renovation of the fishing fleet (definitive stoppage of fishing) 
(a) Title of the programme
 
 
 Definitive Stoppage of Fishing  
 
(b) Period covered by the notification  
 
 Financial year 2001 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Restructuring of the fleet to encourage a complete end to fishing by certain vessels 
 (d) Authority
 
 
 Royal Decree 3448/2000 of 22 December, establis hing the basic regulations for structural aid 
in the fisheries sector.  G/SCM/N/95/EEC/Add.13 
 Page 9 
 
 
(e) Form of the subsidy  
 
 Capital grants 
 
(f) Beneficiaries  
 
 The aid is paid directly to shipowners in the fisheries sector. 
 
 The amount granted varies in accordance with Table 1 of Annex 1 of Royal 
Decree 3448/2000. 
 (g) Amount of the subsidy
 
 
 In 2001, 33.68 million euros were paid for a total of 174 boats. 
 
(h) Duration of the subsidy  
 
 The programme covers the period from 2000 to 2006. 
 
(i) Statistical data permitting an assessmen t of the trade effect of the subsidy  
  There is no effect on trade since the subsidies are directed towards the stoppage of fishing. 
 6. Aid to ship owners affected by the stoppage of fishing.  Aid in 2001 
(a) Title of the programme
 
 
 Special economic aid to owners of fishing vesse ls operating in the Moroccan fishing grounds, 
on account of the stoppage of fishing. 
 
(b) Period covered by the notification  
 
 Financial year 2001.  (c) Policy objective and/or purpose of the subsidy
 
 
 Pursuant to Article 61 of Royal Decree 789/1995, of 19 May, providing assistance for the 
temporary cessation of the activities of fishing fleets caused by unfores een and non-repetitive 
events, the requisite aid is granted to owners of fishing vessels operating in the Moroccan 
fishing grounds, on account of the non-renewal of the fisheries agreement between the 
European Union and the Kingdom of Morocco. 
 
(d) Authority  
 
 Order of 29 November 1999 (BOE of 1 December) and Order of 3 May 2000 (BOE of 
18 May). 
 
(e) Form of the subsidy  
  Non-repayable subsidies 
 G/SCM/N/95/EEC/Add.13 
Page 10  
 
(f) Beneficiaries
 
 
 Shipowners in the fisheries sector, through partner agencies. 
 
 The amount granted varies in accordance with Table 2 or 2 bis of the annex of Royal Decree 
798/1995 of 19 May. 
 
(g) Amount of the subsidy  
 
 The aid is co-financed by the EC.  The total amount granted is 46.90 million euros for an 
average of 320 boats per month. 
 
(h) Duration of the subsidy  
 
 From 1 December 1999 to 31 December 2001. 
 (i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 There is no effect on trade since these payments are made to compensate for the stoppage of 
fishing. 
 
7. Conversion of the fishing fleet:  joint-venture projects 
(a) Title of the programme  
 
 Conversion of the fishing fleet.  Joint-venture projects 
 
(b) Period covered by the notification  
  2001 
 
(c) Policy objective and/or purpose of the subsidy
 
  Aid to the owners of fishing vessels who set up joint ventures with thir d countries with a view 
to exploiting their fish stocks and supplying principally the EU market. 
 
(d) Authority
 
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
 
 Non-repayable subsidy 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
 
 Owners of shipping vessels 
 (g) Subsidy per unit or total amount of the subsidy
 
 
 Average subsidy to joint ventures:  900,000 euros 
  G/SCM/N/95/EEC/Add.13 
 Page 11 
 
 
(h) Duration of the subsidy  
 
 The programme covers the period from 2000 to 2004. 
 
(i) Statistical data permitting an assessmen t of the trade effect of the subsidy  
 
 The subsidies are intended for th e creation of joint ventures wi th other countries and therefore 
will have a positive impact on the fisheries trade balance of third countries. 
 
8. Socio-economic measures as a result of  the reorganization of the fishing fleet 
(a) Title of the programme  
 
 Socio-economic measures as a result of the reorganization of the fishing fleet 
 
(b) Period covered by the notification  
  2001 
 
(c) Policy objective and/or purpose of the subsidy
 
 
 To set up early retirement schemes for fisherme n of boats subject to fisheries restructuring 
measures and who fulfil certain criteria. 
 
(d) Authority  
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 (e) Form of the subsidy
 
 
 Non-repayable subsidy of a percentage of the amount requested. 
 (f) Beneficiaries:  to whom and how the subsidy is provided
 
 
 Workers in the fisheries sector  
 
(g) Subsidy per unit or total amount of the subsidy  
 
 0.18 million euros were transferred to the Autonomous Communities. 
 Fixed amount. 
 
(h) Duration of the subsidy  
 
 The programme covers the period from 2000 to 2006. 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 Since the subsidies are intended for workers who leave the fisheries sector they have no 
effects on trade. 
 G/SCM/N/95/EEC/Add.13 
Page 12  
 
9. Pilot projects for experimental fishing 
(a) Title of the programme
 
 
 Pilot projects for experimental fishing 
 
(b) Period covered by the notification  
 
 2001 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Subsidies to the owners of Spanish fishing vessels for taking part in pilot projects for 
experimental fishing in external and international waters and waters under the jurisdiction of 
third countries. 
 (d) Authority
 
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
  Non-repayable subsidy of 80 per cent of the maximum subsidizable cost. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided
 
 
 Owners of fishing vessels. 
 (g) Subsidy per unit or total amount of the subsidy
 
 
 Average aid to pilot projects for experimental fishing:  90,000 euros per month for the 
duration of the scheme. 
 (h) Duration of the subsidy
 
 
 The programme covers the period from 2000 to 2006 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 The subsidies are for purposes of research on pilot projects for experimental fishing and 
 therefore have no effects on trade. 
  G/SCM/N/95/EEC/Add.13 
 Page 13 
 
 
B. CO-FINANCED PROGRAMMES .  2002  BUDGET  
 The information includes a summary of a ll the programmes together with detailed 
information on each of them. 
 
2002 Budget – Part of national aid co-financed by FIFG (Financial Instrument for Fisheries 
Guidance ) 
 
 Pursuant to Council Regulation (EC) 2792/1999 of  17 December 1999 (Official Journal of the 
EC L337/99), laying down the detailed rules and arrangements regarding Community structural 
assistance in the fisheries sector;  and Royal Decrees 798/1995 of 19 May, adapting the above-mentioned Regulation, and 3448/2000 of 22 D ecember (Official Journal of Spain (BOE) of 
23 December 2000), the following aid has been granted:   
 
 In the financial year for 2002 no co-financed subsidies were granted for the improvement of 
fishing.   The subsidies previously referred to as compensatory earlier retirement as a result of the 
reorganization of the fishing fleet and individual compensatory premiums were  granted as socio-
economic measures . 
 
Promotion of aquaculture
 
  3,986,222.37 euros were transferred to the Autonomous Communities 
 
Marine cultivations plans
 
 
 1,369,081.53 euros were transferred to the Autonomous Communities. 
 Reorganization and renovation of the fishing fleet
 
 
• Renovation and modernization:  6.75 million euros were tr ansferred to the 
Autonomous Communities. 
 
• Definitive stoppage:  5.41 million euro s were transferred to the Autonomous 
Communities. 
 
• Aid to shipowners affected by the stoppage of fishing.  Aid in 2002:  15.32 million 
euros were transferred to the Autonomous Communities. 
 
Conversion of the fishing fleet  
 
• Establishment of joint ventures:  3.53 million euros 
 
Socio-economic measures  
 
• 0.31 million euros were transferred to the Autonomous Communities 
 Pilot projects for experimental fishing
 
 
• Subsidies to pilot projects for experimental fishing:  360,000 euros G/SCM/N/95/EEC/Add.13 
Page 14  
 
1. Promotion of aquaculture 
(a) Title of the programme
 
Promotion of aquaculture 
 
(b) Period covered by the notification  
2002 
 
(c) Policy objective and/or purpose of the subsidy  
Promotion and development of tangible investment in marine and inland aquaculture. 
 
(d) Authority  
Royal Decree 3488/2000 of 22 December (BOE of 23.12.2000) establishing the basic 
regulations for structural aid in the fisheries sector.   
 
(e) Form of the subsidy  
Direct aid 
 
(f) Beneficiaries  
 Enterprises in the aquaculture sector 
 
(g) Subsidy per unit or total amount of the subsidy  
3,986,222.37 euros were transferred to the Autonomous Communities 
 
(h) Duration of the subsidy  
The programme covers the period from 2000 to 2006 
 
(i) Statistical data permitting an assessment of the trade effects of the subsidy  
The promotion of aquaculture helps to alleviate th e crisis in the supply of fish, while at the 
same time reducing pressure on fish stocks a nd thus would not appear to have any negative 
effects on trade. 
 
2. Marine cultivation plans 
(a) Title of the programme  
 
 National Marine Cultivation Plans 
  G/SCM/N/95/EEC/Add.13 
 Page 15 
 
 
(b) Period covered by the notification  
 
2002 
(c) Policy objective and/or purpose of the subsidy  
 
 Development and implementation of Nationa l Marine Cultivation Plans as a means of 
strengthening the balanced development of aquaculture in the Autonomous Communities. 
 
(d) Authority  
  Law 23/1984, of 25 June, on marine cultivation. 
 
(e) Form of the subsidy
 
 
 Direct aid  (f) Beneficiaries:  to whom and how the subsidy is provided 
 
 
 Transfer to the Autonomous Communities which participate in each of the plans approved by 
JACUMAR (Advisory Board on Marine Cultivation). 
 (g) Subsidy per unit or total amount of the subsidy
 
 
 1,369,081.53 euros were transferred to the autonomous communities. 
 
(h) Duration of the subsidy  
 
 Annual  
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The promotion of aquaculture helps to alleviate the crisis in the supply of fish, while at the 
same time reducing pressure on fish stocks a nd thus would not appear to have any negative 
trade effects. 
 
3. Reorganization and renovation of the fishing fleet (renovation and modernization of  
fishing vessels) 
(a) Title of the programme  
 
 Renovation and modernization of fishing vessels 
 
(b) Period covered by the notification  
 
 Financial year 2002  
(c) Policy objective and/or purpose of the subsidy
 
 
 Promotion of investment in the renovation and modernization of the fishing fleet with a view 
to improving safety and working conditions in the fisheries sector. 
 G/SCM/N/95/EEC/Add.13 
Page 16  
 
(d) Authority
 
  
 Royal Decree 798/1995 of 19 May, laying down the detailed rules and arrangements for  
structural assistance in fisheries, aquaculture and the marketing, processing and promotion of 
fish products, and Royal Decree 3448/2000 of 22 December, establishing the basic 
regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
 
 Non-repayable subsidies   The subsidies are intended for capital inve stments in ship-building and may contribute 
towards a deduction of one or more percenta ge points from the interest payable by a 
shipowner to a financial institution that has granted him a loan to build a new vessel. 
 
(f) Beneficiaries
 
 
 The owners of new fishing vessels.  Shipowners in the fisheries sector. 
 
(g) Subsidy per unit or total amount of the subsidy  
  6.37 million euros were transferred to the Autonomous Communities  
(h) Duration of the subsidy
 
 
 The programme covers the period from 2000 to 2006. 
 
 One-time payment on completion and on justification of the cost 
 
(i) Statistical data permitting an assessment of the trade effects of the subsidy  
 
 The subsidies for temporary and definitive stoppage exceed those granted for construction 
and modernization.  Consequently, they represent a reduction in the gross registered tonnage 
(GRT) of the Spanish fishing fleet and thus have no effects on trade. 
 4. Reorganization and renovation of the fishing fleet (definitive stoppage of fishing) 
(a) Title of the programme
 
 
 Definitive Stoppage of Fishing  
 
(b) Period covered by the notification  
 
 Financial year 2002 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Restructuring of the fleet to encourage a complete end to fishing by certain vessels 
 (d) Authority
 
 
 Royal Decree 3448/2000 of 22 December, establishing the basic regulations for structural aid 
in the fisheries sector.  G/SCM/N/95/EEC/Add.13 
 Page 17 
 
 
(e) Form of the subsidy  
 
 Capital grants 
 
(f) Beneficiaries  
 
 The aid is paid directly to shipowners in the fisheries sector. 
 
 The amount granted varies in accordance with Table 1 of Annex 1 of Royal 
Decree 3448/2000. 
 (g) Amount of the subsidy
 
 
 In 2002, 5.41 million euros were paid for a total of 219 boats. 
 
(h) Duration of the subsidy  
 
 The programme covers the period from 2000 to 2006. 
 
(i) Statistical data on the trade effects of the subsidy  
  The subsidies for temporary and definitive stoppage exceed those granted for construction 
and modernization.  Consequently, they represent a reduction in the gross registered tonnage 
(GRT) of the Spanish fleet and thus have no effects on trade. 
 
5. Aid to ship owners affected by the stoppage of fishing.  Aid in 2002 
(a) Title of the programme
 
  Definitive stoppage of fishing by vessels dependent on the fisheries agreement with Morocco. 
 
(b) Period covered by the notification
 
  Financial year 2002.  
(c) Policy objective and/or purpose of the subsidy
 
 
 Pursuant to Council Regulation (EC) No. 2561/2001, of 17 December, establishing a series of 
requirements and complementary measures to promote the conversion of fishing vessels and 
of fishermen on account of the non-renewal of  the fisheries agreement between the European 
Union and the Kingdom of Morocco. 
 
(d) Authority  
 
 Royal Decree 137/2002, of 1 February, establishing measures to support shipowners and the 
crews of the fishing fleet affected by the termination of the fisheries agreement between the 
European Union and the Kingdom of Morocco. 
 
(e) Form of the subsidy  
 
 Non-repayable subsidies 
 G/SCM/N/95/EEC/Add.13 
Page 18  
 
(f) Beneficiaries
 
 
 Shipowners in the fisheries sector. 
 
 The amount granted varies in accordance with Table 1 of Annex I of Royal Decree 
3448/2000, increased by 30 per cent. 
 
(g) Amount of the subsidy  
 
 In 2002, 15.32 million euros were pa id out to a total of 149 boats. 
 (h) Duration of the subsidy
 
 
 From 1 December 1999 to 31 December 2001.  A part was paid in 2002. 
 
(i) Statistical data permitting an assessment of the trade effects of the subsidy  
 
 There is no effect on trade since these payments are made to compensate for the stoppage of 
fishing. 
 6. Conversion of the fishing fleet:  joint-venture projects 
(a) Title of the programme
 
 
 Conversion of the fishing fleet.  Joint-venture projects 
 
(b) Period covered by the notification  
 
 2002  
(c) Policy objective and/or purpose of the subsidy
 
 
 Aid to the owners of fishing vessels who set up joint ventures with thir d countries with a view 
to exploiting their fish stocks and supplying principally the EU market. 
 
(d) Authority  
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
 
 Non-repayable subsidy 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
 
 Owners of shipping vessels 
 
(g) Subsidy per unit or total amount of the subsidy  
 
 Average subsidy to joint ventures:  900,000 euros 
  G/SCM/N/95/EEC/Add.13 
 Page 19 
 
 
(h) Duration of the subsidy  
 
 The programme covers the period from 2000 to 2004. 
 
(i) Statistical data permitting an assessmen t of the trade effect of the subsidy  
 
 The subsidies are intended for the creation of joint ventures with other countries and therefore 
will have a positive impact on the fisheries trade balance of third countries. 
 
7. Socio-economic measures 
(a) Title of the programme  
 
 Socio-economic measures 
 
(b) Period covered by the notification  
  2002 
 
(c) Policy objective and/or purpose of the subsidy
 
 
 To set up early retirement schemes for fisherme n of boats subject to fisheries restructuring 
measures and who fulfil certain criteria. 
 
(d) Authority  
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 (e) Form of the subsidy
 
 
 Non-repayable subsidy of a percentage of the amount requested. 
 (f) Beneficiaries:  to whom and how the subsidy is provided
 
 
 Workers in the fisheries sector  
 
(g) Subsidy per unit or total amount of the subsidy  
 
 0.31 million euros were transferred to the Autonomous Communities. 
 One beneficiary has directly reviewed an i ndividual aggregate payment of 1,430.28 euros. 
 Fixed amount. 
 
(h) Duration of the subsidy  
 
 The programme covers the period from 2000 to 2006. 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Since the subsidies are intended for workers who leave the fisheries sector they have no 
effects on trade. 
 G/SCM/N/95/EEC/Add.13 
Page 20  
 
8. Pilot projects for experimental fishing 
(a) Title of the programme
 
 
 Pilot projects for experimental fishing 
 
(b) Period covered by the notification  
 
 2002 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Subsidies to the owners of Spanish fishing vessels for taking part in pilot projects for 
experimental fishing in external and internatio nal waters and waters un der the jurisdiction of 
third countries. 
 (d) Authority
 
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector. 
 
(e) Form of the subsidy  
  Non-repayable subsidy of 80 per cent of the maximum subsidizable cost. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided
 
 
 Owners of fishing vessels. 
 (g) Subsidy per unit or total amount of the subsidy
 
 
 Average aid to pilot projects for experimental fishing:  90,000 euros per month for the 
duration of the scheme. 
 (h) Duration of the subsidy
 
 
 The programme covers the period from 2000 to 2006 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 The subsidies are for purposes of research on pilot projects for experimental fishing and 
 therefore have no effects on trade. 
  G/SCM/N/95/EEC/Add.13 
 Page 21 
 
 
II. MINING 
A. MINING (OTHER THAN ENERGY ).  AID IN 2001 
(a) Title of the programme  
 
 Development of non-energy mining 
 (b) Period covered by the notification
 
 
 2001 
 
(c) Purpose of the subsidy  
 
 Development in the non-energy mining subsecto r of ore prospecting, mining and processing 
and, in some cases, environmental re habilitation of former mining sites. 
 (d) Authority
 
 
 Ministerial Order of 8 April 1997 (BOE 24.4.1997) 
 
(e) Form of the subsidy  
 
 Non-repayable subsidy 
 
(f) Beneficiaries to whom and how the subsidy is provided  
 
 Enterprises, associations of enterprises or in stitutions whose object is to promote and develop 
the use of non-energy mining raw materials are eligible for the subsidy. 
 
 Mining investment subsidies are confined to zones defined by the EU Commission as 
Objective 1, since the assistance under this  programme in this case is for regional 
development. 
  This aid is contingent on the applicants meeti ng their tax and social security obligations, and 
the recipients must produce documents showing that the subsidized activity has been carried 
out.   
 
(g) Amount of the subsidy
 
 
 735 million pesetas (4.41 million euros) 
 
 The maximum aid is 20 per cent  of subsidizable investment. 
 
(h) Duration of the subsidy  
  The programme lasts for five years, until 31 December 2001. 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The programme has no trade effects because of its small scale compared with the size of the 
sector (annual turnover of between 500,000 and 600,000 million pesetas) and the high number 
of recipients, since the programme has assisted 90 enterprises. G/SCM/N/95/EEC/Add.13 
Page 22  
 
B. 
MINING (OTHER THAN ENERGY ).  AID IN 2002 
(a) Title of the programme  
 
 Development of non-energy mining 
 
(b) Period covered by the notification  
 
 2002 
 
(c) Purpose of the subsidy  
 
 Development in the non-energy mining sector of geological-mining prospecting and research 
and the alleviation of the environmental impact of non-energy mining activities. 
 
(d) Authority  
  Ministerial Order ECO/2181/2002 of 29 August (BOE 3.9.2002). 
 
(e) Form of the subsidy
 
 
 Non-repayable subsidy and repayable subsidy.   Non-repayable subsidy in the environmental projects. 
 
 Repayable subsidy in geological-mining research projects if the result of the research is 
positive, with a repayment period of between five  and ten years at an interest rate of 0 per 
cent or the Euribor rate for one year according to the repayment period.  Non-repayable 
subsidy if the result of the research is negative. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided
 
 
 Enterprises, associations of enterprises and in stitutions which implement projects that meet 
the objectives set forth in section (c) are eligible for the subsidy. 
 
 The subsidies for environmental projects are intended for projects located in any region. 
 
 The subsidies to geological-mining prospect ing and research projects grant a maximum 
percentage of subsidy which varies according to  whether it involves a region which may avail 
itself of the exception under subparagraph (a) of the EC Treaty, the exception under 
subparagraph (c) or is not included in the previous exceptions. 
 
 This aid is contingent on the applicants meeti ng their tax and social security obligations, and 
the recipients must produce documents showing that the subsidized activity has been carried 
out. 
 
(g) Amount of the subsidy  
 
 5.025 million euros.  
 The maximum aid varies between 20 per cent an d 70 per cent of the subsidizable investment 
depending on the kind of project, the region where it is located and whether or not the 
enterprise is an SME. 
  G/SCM/N/95/EEC/Add.13 
 Page 23 
 
 
(h) Duration of the subsidy  
 
 The programme lasts for five years, until 31 December 2006. 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 The programme has no trade effects because of its small scale compared with the size of the 
sector (annual turnover of between 600,000 and 700,000 million pesetas) and the high number 
of recipients, since the programme has assisted 90 enterprises. 
 
III. INDUSTRY 
A. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME (PROFIT ) 
(a) Title of the programme  
 
 Technical Research Development Programme (PROFIT)  (b) Period covered by the notification
 
 
 2001 and 2002. 
 
(c) Policy objective and/or purpose of the subsidy  
 
 The PROFIT Programme is a support programme for research and development projects.  It is 
designed to help create favourable conditions for an increase in the capacity of enterprises to 
absorb technology, the consolid ation of research and development in rapid-growth sectors, 
and the development of research and development in enterprises devoted to the production of technology, especially those concerned with advance technology. 
 
(d) Authority
 
 
 Order of 7 March 2002, published in the Official Journal of the State (BOE) of 9 March 2002, 
setting out the basis, support arrangements and management of the Technical Research 
Development Programme (PROFIT), included in the National Scientific Research Development and Technological Innovation Plan (2002-2003). 
 
(e) Form of the subsidy
 
 
 Non-repayable subsidy and interest-free loans. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
 
 Enterprises, groups or associations of enterpri ses, private non-profit making research centres, 
public research agencies and other public bodies are eligible for the subsidy. 
  The PROFIT Programme invites applications for its subsidies each year in the BOE through a 
process open to all those who wish to carry out projects or activities in the various 
technological areas already defined as of interest by the Programme. 
 G/SCM/N/95/EEC/Add.13 
Page 24  
 
(g) Subsidy per unit or total amount of the subsidy
 
 
 In 2001 subsidies amounting to 87.3 millio n euros and loans amounting to 429.8 million 
euros were granted. 
 
 In 2002 subsidies amounting to 119.7 million euros and loans amounting to 619.1 million 
euros were granted. 
 
(h) Duration of the subsidy  
  The PROFIT Programme covers a period of four years from 2000 to 2003.  
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of the Programme, which mainly concerns the development of technology 
and which is open to enterprises of many industrial sectors and services, together with the considerable number of beneficiaries for spec ific projects submitted (over a thousand each 
year), the trade effects of these subsidies are minimal, given the fact that these subsidies are 
distributed over a wide range of economic activities. 
 
B. 
SHIPBUILDING .  SHIPBUILDING SUBSIDIES  
(a) Title of the programme  
 
 Shipbuilding Subsidies 
 
(b) Period covered by the notification  
 
 2001 and 2002  
(c) Policy objective and/or purpose of the subsidy
 
 
 The fundamental aim of Community and national policy is to ensure that the shipbuilding 
sector remains competitive on the world market. 
 
 Since other countries continue to apply aid an d/or measures that distort free competition in 
the ship building sector, in order to comp ete on the international market Community 
shipyards must have access to operational aid (l imited by a common ceiling:  9 per cent or 
4.5 per cent, depending on whether or not the va lue of the ship to be built exceeds ten million 
euros) and restructuring aid (for investments whic h do not imply an increase in capacity, total 
or partial closure of facilities and research and development). 
 
(d) Authority  
 
 Royal Decree 442/1994, of 11 March, on shipbuilding subsidies and financing, as 
subsequently amended by Royal Decrees 1395/1995, 1562/1997, 2600/1998 and 3452/2000.  
 
(e) Form of the subsidy  
  Non-repayable subsidy 
  G/SCM/N/95/EEC/Add.13 
 Page 25 
 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
 
 The subsidy is paid to shipyards building metal hull vessels of over 100 gross registered 
tonnes, with the exception of fishing vessels since 19 October 1997.   
 
 The subsidy is provided once the relevant construction or conversion contract has come into 
effect.  Payments are made as the ship is built or converted, subject to provision being made 
in the annual budget, which means an average delay in payments of approximately six months 
to one year.  
 (g) Subsidy per unit or total amount of the subsidy 
 
 
 The total subsidy granted in 2001 was 64,671,000 euros. 
 
 The total subsidy granted in 2002 was 47,746,140 euros. 
 (h) Duration of the subsidy 
 
 
 The period of application of the programme is the same as that provided for in Council 
Regulation (EC) 1540/1998 of 29 June 1998 (OJEC, 18 July 1998).   
 (i) Statistical data permitting an assessmen t of the trade effects of the subsidy 
 
 
 These subsidies are granted under Council Regulation (EC) 1540/1998 of 29 June 1998, on 
aid to shipbuilding applicable in all countries of the European Union.  
 
 The EU had 23.7 per cent of the world shipbuilding market in 1998, but only 12 per cent in 
2001, whereas Korea and Japan went from having 25.2 per cent and 33.5 per cent respectively 
in 1998 to 33 per cent and 34 per cent respectiv ely in 2001.  Consequently, these subsidies 
have not increased the European Union's share of the global market.   
 
C. SHIPBUILDING .  INTEREST SUBSIDY FOR SHIPBUILDING LOANS  
(a) Title of the programme  
 
 Interest Subsidy for Shipbuilding Loans  
 
(b) Period covered by the notification  
 
 2001 and 2002  
 
(c) Policy objective and/or purpose of the subsidy  
 
 The fundamental aim of Community and national policy is to ensure that the shipbuilding 
sector remains competitive on the world market. 
 
 Since other countries continue to apply aid an d/or measures that distort free competition in 
the shipbuilding sector, in order to compete on  the international market Community shipyards 
must have access to operational  aid (limited by a common ceiling:  9 per cent or 4.5 per cent, 
depending on whether or not the value of the sh ip to be built exceeds 10 million euros) and 
restructuring aid (for investments which do not impl y an increase in capacity, total or partial 
closure of facilities and research and development). 
 G/SCM/N/95/EEC/Add.13 
Page 26  
 
(d) Authority
 
 
 Royal Decree 442/1994 of 11 March, on shipbuilding subsidies and financing, as 
subsequently amended by Royal Decrees 1395/1995, 1562/1997, 2600/1998 and 3452/2000. 
 
(e) Form of the subsidy  
 
 Interest subsidy. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
  Domestic shipbuilders or those domiciled in the European Economic Area and, since 
19 October 1997 under certain conditions, shipbuilders domiciled outside the European 
Economic Area, are eligible for this subsidy.  It  consists of payment of up to three percentage 
points of the interest on ship building loans gr anted by domestic or foreign financial entities. 
  The subsidy is paid throughout the term of the loan (8.5 to 14 years), subject to provision 
being made in the annual budget, which means that there is a delay of about three months in 
payments. 
 
(g) Subsidy per unit or total amount of the subsidy
 
  The interest subsidy for shipbuilding loans in 2001 was 215, 965, 320 euros. 
 
 The interest subsidy for shipbuilding loans in 2002 was 130, 035, 290 euros. 
 
(h) Duration of the subsidy
 
 
 The period of application of the programme is the same as that provided for in Council 
Regulation (EC) 1540/1998 of 29 June 1998 (OJEC 18 July 1998). 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 The interest subsidy is included in the aid described in the section of this report entitled 
"Shipbuilding.  Shipbuilding Subsidies", that is  to say, for the purposes of calculation the 
interest rate subsidy is deducted from the maxi mum ceiling of the subsidy, which is 9 per cent 
or 4.5 per cent depending on whether or no t the value of the vessel to be built exceeds 
10 million euros. 
 
 Consequently, the observations noted in the section "Shipbuilding.  Subsidies to 
Shipbuilding" also apply in this case:   
 
 The subsidies are granted under Council Regulati on (EC) 1540/1998 of 29 June 1998 on aid 
to shipbuilding applicable to all countries of the European Union. 
 
 The European Union had 23.7 per cent of the world shipbuilding market in 1998, but only 
12 per cent in 2001, whereas Korea and Japa n went from having 25.2 per cent and 33.5 per 
cent respectively in 1998 to 33 per cent and 34 per cent respectively in 2001.  Consequently, these subsidies have not increased the European Union's share of the global market. 
  G/SCM/N/95/EEC/Add.13 
 Page 27 
 
 
IV. SMALL AND MEDIUM SIZED ENTERPRISES (SMEs) 
A. ARTE -SME PROGRAMME  
(a) Title of the programme  
 
 ARTE-SME programme under the operationa l programme of the "Community SME 
Initiative". 
 
(b) Period covered by the notification  
 
 2001 and 2002 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Aid for the financing of advanced telecommunication services projects of common interest to 
small and medium-sized enterprises. 
 (d) Authority
 
 
 Ministerial Order of 31 July 1995 (BOE 21 August 1995). 
 
(e) Form of the subsidy  
 
 Non-repayable subsidy 
 
(f) Beneficiaries:  to whom and how the subsidy is provided.  
  Only legally established non-profit making pu blic or private entities are eligible for the 
subsidy. 
 
 Zones classified as Objective 1 under the European Regional Development Fund (ERDF) are 
priority zones for action. 
  Action may also be undertaken in Objective 2 and 5-b zones, although to a much lesser 
degree.  Some residual allocations go to non-ERDF zones. 
 
 The aid is contingent on applicants meeting th eir tax and social security obligations and the 
recipients must produce documents showing that  the subsidized activity has been carried out 
and that the relevant costs have been paid. 
 
(g) Subsidy per unit or total amount of the subsidy
 
 
 Subsidies paid in 2001:  9.09 million euros. 
 
 Subsidies paid in 2002:  0 (Programme terminated in 2001.  See section (h)).  
 Around 70 per cent of this amount was used to acquire computer equipment (hardware and 
software), to develop customized software a nd to purchase telecommunications terminals 
(modems, PCs) for use by small and medium sized enterprises.  The remainder was used for 
communications costs and costs relating to feas ibility studies, promoting the use of advanced 
telecommunications services and providing technical assistance. 
 G/SCM/N/95/EEC/Add.13 
Page 28  
 
(h) Duration of the subsidy
 
 
 The ARTE-SME programme lasted for five years,  remaining in effect until June 1999 for the 
submission of new projects.  Nevertheless, subsid ized projects could finance costs relating to 
the programme until 31 December 2001, in accordance with the Commission Decision of 
26 July 1996, concerning support from the European Regional Development Fund (ERDF) 
for an operational programme for Spain under th e Community SME Initiative.  This states in 
Article 5 that "the deadline for expenditure on costs relating to these activities will be 
31 December 2001". 
 (i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The aid regime has no trade effects owing to its  small scale in comparison with the scale of 
trade and the large number of small and medi um sized enterprises that have indirectly 
benefited from this aid, given that the programme is multi-sectoral. 
 B. 
ARTE -SME PROGRAMME II  
(a) Title of the programme  
 
ARTE/SME II programme II under the "Information Society" operational programme. 
 (b) Period covered by the notification
 
 
2001 and 2002 
 
(c) Policy objective and/or purpose of the subsidy  
 
 Aid for the financing of advanced telecommunic ation services projects, through the use of the 
internet and electronic commerce, of common in terest to small and medium-sized enterprises. 
 
(d) Authority  
 Ministerial Order of 8 February 2001 (BOE 22.2.2001). 
 
(e) Form of the subsidy
 
 
 Non-repayable subsidy. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
 
 Only legally established non-profit-making public or private entities whose purpose is to 
provide support services to small and medium-sized enterprises are eligible for the subsidy. 
 
 Zones classified as Objective 1 under the European Regional Development Fund (ERDF) are 
priority zones for action. 
 
 The aid is contingent on applicants meeting th eir tax and social security obligations and the 
recipients must produce documents showing that  the subsidized activity has been carried out 
and that the relevant costs have been paid. 
  G/SCM/N/95/EEC/Add.13 
 Page 29 
 
 
(g) Subsidy per unit or total amount of the subsidy  
 
 Subsidies paid in 2001:  3,518,882 euros. 
 
 Subsidies paid in 2002:  11,875,987 euros. 
 
 Around 70 per cent of this amount was used to acquire computer equipment (hardware and 
software), to develop customized software a nd to purchase telecommunications terminals 
(modems, PCs) for use by small and medium- size d enterprises.  The remainder was used for 
communications costs and costs relating to feas ibility studies, promoting the use of advanced 
telecommunications services and providing technical assistance. 
 
(h) Duration of the subsidy  
 
 The ARTE-SME programme II lasts for five years, remaining in effect until 30 June 2006 for 
the submission of new projects.  Nevertheless, subsidized projects may finance costs relating 
to the programme until 31 December 2008, in accordance with the Commission Decision of 
13 December 2001, concerning support from th e European Regional Development Fund 
(ERDF) for an operational programme for Spain under the "Information Society" Operational 
Programme.  This states in Article 5 that  "the deadline for expenditure will be 
31 December 2008". 
 (i) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The aid regime has no trade effects owing to its  small scale in comparison with the scale of 
trade and the large number of small and medium - sized enterprises that have indirectly 
benefited from this aid, given that the progr amme is multi-sectoral.  However, in various 
SME sectors the Programme has had the effect of increasing development in the technological 
field of telecommunications and the use of electronic commerce. 
 
C. SME COMPETITIVENESS AND CONSOLIDATION PLAN  
(a) Title of the programme  
  SME Competitiveness a nd Consolidation Plan 
 
(b) Period covered by the notification
 
 
 2001 and 2002  
 
(c) Policy objective and/or purpose of the subsidy  
 
 The SME Competitiveness and C onsolidation Plan, which covers  the period from 2000 to 
2006 provides for a series of support measur es and development activities for small and 
medium-sized enterprises (SMEs), with a view  to consolidating enterprises and enhancing 
competitiveness, such as the following measures: 
 1. Information society 
 Objective:  The subsidies provided for in this re gard are intended to support projects 
designed to ensure that SMEs are fully inte grated into the information society through: 
 G/SCM/N/95/EEC/Add.13 
Page 30  
 
The improvement of production, marketing, in formation and management processes in SMEs, 
incorporating information and communications technologies.   
 
 Support for the installation and use of data  transmission services (electronic commerce, 
telecommuting, portals, etc.) 
 
2. Innovation in business methods  
 Objective:  This measure is designed to promote and support projects that seek the 
incorporation of a culture of innovation through design, the introduction of quality systems, 
cooperation between enterprises, innovation in management and organizational processes in 
SMEs, by means of the following categories of support: 
 2.1. Design   
 Objective:  Projects to be used to incorporate, include  or apply  design technology in SMEs 
are eligible to receive support.   
 
 Support will be given to finance projects designed to: 
 
Improve new or existing products and/or services.  The design of products with a short life-
cycle (of less than one year) is excluded, with the exception of products which involve a new line of activity for the enterprise.   
 
Improve the marketing, promotion and communic ation of products and services, design of 
corporate identity, development of trademarks , packing and packaging,  electronic design, 
spatial design and aspects of communication. 
 
 Improve design management in SMEs, situation analysis, design seminars and the 
incorporation of more effective design management methods.   
 
2.2. Cooperation networks between enterprises  
 Objective:  The aim is to promote and strengthen ne tworks between enterprises with a view 
to assisting SMEs to acquire the means to adapt to the level of competition required in the 
global marketplace.  
 
 Support is to be used to finance projects designed to: 
 
 Identify possible groups of related en terprises and their collective needs. 
 
Carry out feasibility studies of possible measures, together with their possible 
implementation, with a view to improving the competitive position of certain groups.   
 
Implement joint measures to secure cooperation agreements between enterprises, with a view 
to improving their competitive position.   
 
2.3. Quality systems 
 
 Objective:  The support is to be used to finance projects designed to introduce environmental 
quality and regeneration systems in SMEs, through projects designed to: 
 
 Develop standardization proc esses for the various non-industrial business sectors.   
  G/SCM/N/95/EEC/Add.13 
 Page 31 
 
 
 Design and introduce quality control systems in SMEs in the commercial, construction and 
services sectors, through situation analysis and advice in the installation of such systems, 
designed to enable them in the short term to acquire a quality certificate issued by an 
approved certification authority.   
 
 SMEs will be entitled to this support either on an individual basis or through projects 
submitted by intermediate bodies for a group of enterprises.  For individual enterprises, the 
project will be taken as complete when the ente rprise provides proof that it has initiated the 
certification process.   
 
2.4. Process innovation:  management and organization in SMEs 
  Objective:  The support is to be used to finance projects designed to: 
 
Provide technical support to enterprises to ca rry out situation analysis and to incorporate 
innovatory processes and introduce management and organizational methods. 
 
 Provide advice on the introduction of new technologies.   
 
(d) Authority
 
  Royal Decree 582/2001, of 1 June 2001 (B OE 2.6.2001).  Pursuant to Article 153 of the 
General Budget Law, credits released in one year may be granted until 31 December of the 
following year. 
 
(e) Form of the subsidy
 
 
 Non-repayable subsidies. 
 
(f) Beneficiaries:  to whom and how the subsidy is provided  
 
 Small and medium-sized enterp rises and intermediate bodies are eligible for this aid.   
 
 Intermediate bodies are deemed to be: 
 
• Any public, semi-public or private organizations which, on a non-profit-making basis, 
and with their own legal personality, habitual ly provide business s upport services to 
SMEs. 
 
• Bodies in which the majority of the capi tal is state-owned and which habitually 
provide business support services to SMEs, provided they are engaged in projects 
consistent with the measures in the Annex and that they do not pursue these projects 
for profit-making purposes. 
 
 A small or medium-sized enterprise (SME) is deemed to be an economic unit with natural or 
legal personality which, at the time of the application, meets the following requirements: 
 
• Employs not more than 250 workers. 
 
• Has either: an annual turnover of not more than 40 million euros, or an overall 
balance of not more than 27 million euros. 
 G/SCM/N/95/EEC/Add.13 
Page 32  
 
• Twenty-five per cent or more of its capi tal or shares do not belong to another 
enterprise, or have not been jointly acquired by other enterprises which do not 
conform to the definition of an SME. 
 
 Before receiving this subsidy, beneficiaries must  show that they have complied with their tax 
and social security obligations. 
 
 They must also show that the subsidized  activity has actually  been carried out. 
 (g) Amount of the subsidy
 
  85,764,427 euros for 2001 and 60,101,210 euros for 2002, allocated according to the 
territorial scope laid down in Article 153 of the Revised General Budget Law;  costs may also 
be met, with the opportunity to acquire commitments until 31.12.2001. 
 
(h) Duration of the subsidy
 
 
 The programme covers the period 2000 – 2006. 
 
(i) Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
 In view of the objective of this subsidy programme, there are no trade effects.   
 
V. REGIONAL SUBSIDIES 
A. REGIONAL ECONOMIC INCENTIVES SCHEME  
(a) Title of the programme  
 
 Regional Economic Incentives Scheme 
 
(b) Period covered by the notification  
 
 2001 and 2002 
 
(c) Policy objective and/or purpose of the programme  
 
 The purpose is to promote economic development in the most disadvantaged areas.  The 
objective of regional incentives is to foster business activity and to encourage firms to locate 
in previously determined areas, so as to reduce economic disparities on Spanish territory, 
secure a more equitable spread of economic activity and strengthen the regions' potential for 
internally genera ted development. 
 
(d) Authority  
  A mandate under Article 40.1 of the Spanish Constitution, which provides an obligation for 
authorities to foster favourable conditions fo r a more equitable distribution of regional 
income.  Similarly, Article 138 provides that  the State shall establish a suitable and fair 
economic balance among the various parts of Spanish territory. 
 
 The legislative basis is:   G/SCM/N/95/EEC/Add.13 
 Page 33 
 
 
 Law 50/85 of 27 December, on regional econ omic incentives to remedy inter-regional 
economic imbalances. 
 
 Regulation adopted by Royal Decree 1535/19 87 of 11 December, as amended by Royal 
Decree 897/1991 of 14 July, Royal Decree  302/1993 of 26 February, Royal Decree 
2315/1993 of 29 December and Royal Decree 78/1997 of 24 January.  
 
 The regional incentives scheme was approved by a Decision of The European Commission 
communicated to the Spanish Government by a letter dated 1 June 1987. 
  Pursuant to this authorization, 13 Royal Decrees delimiting the economic promotion areas 
were promulgated with successive amendments  so as to adapt them  to the successive 
authorizations of the European Commission with regard to the distribution of regional 
subsidies within Spain. 
 
(e) Form of the subsidy
 
 
 Non-repayable subsidies, granted for production investments and calculated on the investment 
approved by the administration. 
 
(f) Beneficiaries:  to whom the subsidy is provided   
  Once it is approved, the subsidy is notified individually to the those concerned in an 
individual resolution establishing the basic data for the project, including the name of the 
recipient enterprise that has applied for it. 
 
 The aid is paid once the relevant Autonomous Community has issued a report substantiating 
full execution of the project and on fulfilment, within the specified periods, of the conditions 
required in the relevant individual resolution, accepted by the beneficiary beforehand.  
Enterprises may apply to receive the subsidy in instalments provided they produce evidence 
that the part of the investment for each instal ment has been made together with adequate 
guarantees against failure to complete. 
 
(g) Subsidy per unit or total amount of the subsidy
  
 
 Total amount of the subsidy:  
 2001: 268,510,230 euros 
 2002: 268,513,741 euros 
 
(h) Duration of the subsidy
 
 
 The scheme will continue as long as the reas on for introducing it, namely the imbalance in 
regional development, persists.   
 
(i) Statistical data permitting an assessment of the of trade effects of the subsidy  
 
 As to the statistical data permitting an assessm ent of trade effects, it should be noted that, 
since the subsidies take the form of capital  for productive investment in disadvantaged 
regions, authorized by the European Commission, the principle of free competition is not 
deemed to be jeopardized. 
 
__________