WORLD TRADE
ORGANIZATIONG/SCM/N/48/EEC/Add.10
9 November 1999
(99-4830)
Committee on Subsidies
and Countervailing MeasuresOriginal:  French
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Luxembourg.G/SCM/N/48/EEC/Add.10
Page 2
LUXEMBOURG
TABLE OF CONTENTS
Page
I. SYSTEM OF AID TO SMALL AND MEDIUM ENTERPRISES
AND INDUSTR IES .....................................................................................................3
II. SYSTEM OF RE GIONAL AID ................................................................................4
III. SYSTEM OF AID FOR R&D ....................................................................................5
IV. SYSTEM OF AID FOR THE PROTECTION OF THE ENVIRONMENT
AND RATIONAL USE OF  ENERGY  ......................................................................6G/SCM/N/48/EEC/Add.10
Page 3
I. SYSTEM OF AID TO SMALL AND MEDIUM ENTERPRISES AND INDUSTRIES
1. Title
System of aid to small and medium enterprises and industries.
2. Period covered by the notification
1998 financial year
3. Policy objective
To promote productive investment by small and medium enterprises and industries.
4. Background and authority for the subsidy
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 aid is granted by ministerial decision to small and medium enterprises and industries
which meet the Community definition.
7. Total amount budgeted
Actual expenditure in 1998:  Lux F 39.1 million
8. Duration of the subsidy
Indefinite
9. Trade effects
Not determinedG/SCM/N/48/EEC/Add.10
Page 4
II. SYSTEM OF REGIONAL AID
1. Title
System of regional aid
2. Period covered by the notification
1998 financial year
3. Policy objective
Economic development and diversification of the regions assisted.
4. Background and authority for the subsidy
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, tax exemption.
6. To whom and how the subsidy is provided
The aid is granted by ministerial decision to enterprises meeting the criteria in Article 5 of the
law.
7. Total amount budgeted
Actual expenditure in 1998:  Lux F 1,241.7 million.
8. Duration of the subsidy
Indefinite.
9. Trade effects
Not determinedG/SCM/N/48/EEC/Add.10
Page 5
III. SYSTEM OF AID FOR R&D
1. Title
System of aid for R&D
2. Period covered by the notification
1998 financial year
3. Policy objective
To promote the development of technologies for new products and processes.
4. Background and authority for the subsidy
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 aid is granted by ministerial decision to enterprises meeting the criteria in Article 6 of the
law.
7. Total amount budgeted
Actual expenditure in 1998:  Lux F 169.7 million
8. Duration of the subsidy
Indefinite
9. Trade effects
Not determinedG/SCM/N/48/EEC/Add.10
Page 6
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
1998 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 sources of energy.
4. Background and authority for the subsidy
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 aid is granted by ministerial decision to enterprises meeting the criteria in Article 7 of the
law.
7. Total amount budgeted
Actual expenditure in 1998:  Lux F 72.6 million
8. Duration of the subsidy
Indefinite
9. Trade effects
Not determinedG/SCM/N/48/EEC/Add.10
Page 7
Table Showing the Net Subsidy Equivalents, in Percentages and Absolute Terms,
of Equipment Credits and Innovation Loans Granted by the Société Nationale de Crédit
et d'Investissement in 1998
1998
Net subsidy equivalentEquipment credit
(SME/SMI)Innovation loans
Percentage of investment 1.43 0.80
In absolute terms (Lux F) 30,473,011 6,176,401
__________