WORLD TRADE
ORGANIZATIONG/SCM/N/38/EEC/Add.7
21 December 1998
(98-5129)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
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 Greece .G/SCM/N/38/EEC/Add.7
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GREECE
1. 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 amende d and supplemented by Law 2234/94).
2. Period covered
Law 2601/98 entered into force on the day of its publication in the Official Gazette (15 April
1998).
3. 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 the competitiveness of businesses;
- 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.
4. Authority
As a general rule the authority responsible for administering the law is the Central Service of
the Ministry of National Economy. However, applications for aid for investments up to
Drs 700 million are administered locally by the Private Investment Services of the Ministry’s
Regional Directorates.  In specific cases the Ministry of Development or other services may be
involved.
5. Form
Aid is granted in the following forms:
(a) grants;
(b) interest contributions;(c) leasing payment contributions;
(d) tax exemptions.
6. Procedure
Companies from all economic sectors can avail of aid under Law 2601/98 (including physical
persons engaged in business activities). With regard to the type of aid available, however,  Law
2601/98 distinguishes between two types of beneficiar ies (new and old) depending on the time of their
establishment. Old beneficiaries (i.e. those established 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.  NewG/SCM/N/38/EEC/Add.7
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beneficiaries (i.e. those established within five years of the application for aid) can avail of all of the
abovementioned 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 ofdevelopment/unemployment/geographical position. Re gion ‘A’ covers the departments of Attica and
Thessaloniki; investments in these areas are not normally eligible for aid under Law 2601/98 (with
certain exceptions).  In the other regions aid intensity varies as follows:
-region B : 15% (40% for tax exemption)
-region C : 30% (70% for tax exemption)
-region D : 40% (100% 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 the realisation of the investment
in two separate instalments.  Secondly, 20 per cent of the aid is granted after the conclusion of theinvestment, and thirdly, the last 20 per cent is granted after the investment has been put into operation.
7. Amount
Data is not yet available.
8. Duration
There is no time limit attached to the application of Law 2601/98.
9. Statistics
No statistics are available with regard to Law 2601/98 as it only entered into force on 15 April
1998.
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