G/SCM/N/25/EEC
Page317
ITALY
Preliminary Note
Pursuant toArticle 25.2oftheWTO Subsidies Agreement, theItalian notification responds
tothefollowing criteria:
- Notification regards alltheState subsidies asdefined byArticles 1and2ofthe
above-mentioned Subsidies Agreement; therefore onlyspecific subsidies areincluded;
- Thefigures shown ineachitemrefertotheglobal amount ofsubsidies provided during
1996, unless otherwise specified. Asfarasnomethodological annex isprovided to
calculate gross ornetgovernment expenditure, reported figures arereferred mainly
togross government expenditure (which isfrequently much higher thannetgovernment
expenditure). Moreover, when subsidies aredistributed through financial institutions,
reported datarefertothesumwhich wasdistributed tothose institutions rather than
tothesubsidy which waseventually perceived bythebenefiting enterprises;
consequently, theamount ofsubsidy actually distributed totheenterprises could prove
tobeconsistently smaller;
- Dataareexpressed inmillions oflira;
- Asfarasthetrade effects ofthesubsidy areconcerned (question 7),measurements
have proven tobe,inthegreat majority ofcases, impossible, alsobecause no
methodology hasbeenproposed.G/SCM/N/25/EEC
Page318
TABLE OFCONTENTS
Page
Notified Schemes
SME
Law526/82 -Increase of"Artigiancassa" Fund forInterest Contributions toHandicraft Sector 319
Law317/91 -Support toInnovation andDevelopment inSMEs ...................320
Law902/76 -Interest RateSubsidies fortheIndustrial Sector ....................321
Law49/85 -Credit Scheme toCooperatives andUrgent Measures forEmployment Protection 322
Laws 696/83, 399/87, 185/89 -SMEs High Technology Equipment ................323
Law394/81 -Article 2-SoftLoans toCompanies which AimatEntering NewMarkets by
theOpening ofCommercial Structures inNon-EC Countries ....................324
Law304/90 -Article 2-Contribution toPilotProjects Promoted bySMEs intheFood and
Agriculture Sectors andAimed atFacilitating Connections withtheGreat Distribution
inNon-EC Markets ..............................................325
Law394/81 -Article 10-Annual Contribution inConsortia whose onlypurpose isthe
Export ofAgricultural Products ......................................326
Regional Aid
Law488/92 -Fund tobeshared forIndustrial Incentives toEnterprises inthe
Disadvantaged Regions oftheSouth ofItaly ..............................327
Laws 44/86 and236/93 -AidScheme forthePromotion ofYouth Enterprising
intheSouth ofItaly .............................................328
Research andDevelopment
Law46/82 -Technological Innovation Fund (FIT) andApplied Research Fund (FRA) .....329
Law10/91 -Contribution totheRealization ofNational Energetic Plant aimed
atRationalizing theUseofEnergy andRenewable Energy Sources ................330
Law675/77 -Coordination ofIndustrial Policy, Restructuring, Reconversion and
Sectorial Development ............................................331
Law308/82 -Support totheReduction ofEnergy Consumption ...................332
Mining Sector
Law257/92 -Special Fund fortheReconversion oftheAsbestos Production ...........333
Law41/89 -Contributions toEnterprises forSubstitutive Activities inMining
Districts involved inRestructuring Processes ..............................334
Shipbuilding Sector
Laws 234/89 and132/94 -Production AidstoShipyards .......................335
Laws 234/89 and132/94 -Home Credit Scheme toShipOwners ..................336G/SCM/N/25/EEC
Page319
INCREASE OF"ARTIGIANCASSA" FUND FOR INTEREST
CONTRIBUTIONS TOHANDICRAFT SECTOR
1. Name ofthesubsidy scheme andlegalbasis
Increase of"Artigiancassa" Fund forInterest Contributions toHandicraft Sector -Law526/82.
2. Form ofthesubsidy
Grant
Softloan
*Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Lit378,000 million represent theglobal amount ofsubsidies distributed in1996. Transactions
admitted tothesubsidy forthetotalamount ofroughly Lit2,996 billion.
Note: Itmustbestressedthattheactualamountofsubsidiesaimedatgoodsproductionaresubstantially
smaller, since forstatistical purposes itisimpossible todisjoint theamount perceived by
enterprises producing services.
4. Policy objective and/or purpose ofthesubsidy
Making credit more accessible tohandicraft undertakings.
5. Duration ofthesubsidy
Theduration oftheloans isonaverage sixyears.
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Notavailable
Note: Thissubsidy programme should beconsidered non-specific, sincethehandicraft sector includes
awide range ofeconomic activities whose common feature isthesmall dimension ofthe
undertaking. Itisnotified allthesame forthesakeoftransparency.G/SCM/N/25/EEC
Page320
SUPPORT TOINNOVATION AND DEVELOPMENT INSMEs
1. Name ofthesubsidy scheme andlegalbasis
Support toInnovation andDevelopment inSMEs -Law317/91
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
*Tax concession
Equity participation
*Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Grant Lit70,845 (Article 5)
Taxconc. Lit123,700 (Article 5)
Taxconc. Lit2,000 (Article 8)
Guarantee 0
Note: Alsothisfigure refers totheamount distributed totheSpecial Fundfortechnological innovation
attheMinistry ofIndustry, Trade andHandicraft, andnottotheamount actually perceived
bythebenefiting enterprises. Moreover, itmust beconsidered thatalsoservices consortia
canbenefit from thisprogramme.
4. Policy objective and/or purpose ofthesubsidy
Development ofSMEs, SMEs consortia, SMEs services consortia
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Notavailable
Note: Thisprogramme should beconsidered non-specific, since itcovers averywide range of
economic sectors. Itisnotified allthesame forthesakeoftransparency.G/SCM/N/25/EEC
Page321
INTEREST RATE SUBSIDIES FOR THE INDUSTRIAL SECTOR
1. Name ofthesubsidy scheme andlegalbasis
Interest RateSubsidies fortheIndustrial Sector -Law902/76
2. Form ofthesubsidy
Grant
Softloan
*Interest subsidy (5/7years -medium-term loans)
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Lit56,688
4. Policy objective and/or purpose ofthesubsidy
SMEs development
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page322
CREDIT SCHEME TOCOOPERATIVES AND URGENT MEASURES
FOR EMPLOYMENT PROTECTION
1. Name ofthesubsidy scheme andlegalbasis
Credit Scheme toCooperatives andUrgent Measures forEmployment Protection -Law49/85
2. Form ofthesubsidy
*Grant
*Soft loan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Grant Lit13,200
Softloan Lit40,000
4. Policy objective and/or purpose ofthesubsidy
Thescheme isintended toprovide softloans tocooperatives andsubsidies inorder totackle
unemployment. Inparticular, itencourages newenterprises created byworkers whohavebeenfired,
areinamobility listorhavebeensuspended from work inanovermanned factory.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page323
SMEs HIGH TECHNOLOGY EQUIPMENT
1. Name ofthesubsidy scheme andlegalbasis
SMEs High Technology Equipment -Laws 696/83, 399/87, 185/89
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Theprogramme isnolonger inforce.
4. Policy objective and/or purpose ofthesubsidy
Toprovide SMEs withhightechnology equipment.
5. Duration ofthesubsidy
Expired
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NoneG/SCM/N/25/EEC
Page324
SOFT LOANS TOCOMPANIES WHICH AIM ATENTERING NEW MARKETS
BYTHE OPENING OFCOMMERCIAL STRUCTURES INNON-EC COUNTRIES
1. Name ofthesubsidy scheme andlegalbasis
SoftLoans toCompanies which AimatEntering NewMarkets bytheOpening ofCommercial
Structures inNon-EC Countries -Law394/81, Article 2
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Lit192,631
4. Policy objective and/or purpose ofthesubsidy
Theprogramme ismeant tofacilitate theinternationalization ofItalian companies (mostly small-
andmedium-sized), byhelping them tocreate stable commercial structures abroad.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page325
CONTRIBUTION TOPILOT PROJECTS PROMOTED BYSMEs INTHE FOOD AND
AGRICULTURE SECTORS AND AIMED ATFACILITATING CONNECTIONS WITH
THE GREAT DISTRIBUTION INNON-EC MARKETS
1. Name ofthesubsidy scheme andlegalbasis
Contribution topilotprojects promoted bySMEs inthefoodandagriculture sectors andaimed
atfacilitating connections withthegreat distribution innon-EC markets -Law304/90, Article 2.
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
None
4. Policy objective and/or purpose ofthesubsidy
Theprogramme aimsatfacilitating theinternationalization ofItalian companies ofthefood
andagriculture sector (generally small- andmedium-sized andoften family companies), byhelping
them tocreate connections withthegreat distribution.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page326
ANNUAL CONTRIBUTION INCONSORTIA WHOSE ONLY PURPOSE
ISTHE EXPORT OFAGRICULTURAL PRODUCTS
1. Name ofthesubsidy scheme andlegalbasis
Annual contribution inconsortia whose onlypurpose istheexport ofagricultural products -
Law394/81, Article 10.
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Lit1,609
4. Policy objective and/or purpose ofthesubsidy
Theprogramme isintended tofacilitate thecreation ofcooperative companies, provided that
theaidisnotmeant tosubsidize export initself.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page327
FUND TOBESHARED FOR INDUSTRIAL INCENTIVES TOENTERPRISES INTHE
DISADVANTAGED REGIONS OFTHE SOUTH OFITALY
1. Name ofthesubsidy scheme andlegalbasis
Fund tobeshared forindustrial incentives toenterprises inthedisadvantaged regions ofthe
South ofItaly-Legislative Decree 96/93, Article 19,Law488/92.
2. Form ofthesubsidy
*Grant
Loan
*Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofsubsidies distributed
during 1996)
Grants Lit401,913
Interest subsidies Lit146,154
(Budgeted amount isLit2,220,000 million, butthissumhasbeenpartially spent during 1996.)
4. Policy objective and/or purpose ofthesubsidy
ProvidingindustrialincentivestoenterprisesinthedisadvantagedregionsoftheSouth.Agensud,
theState agency which wasoriginally incharge ofthese transfers hasbeensuppressed in1994.
Legislative Decree 96/93 wasasunset regulation aimed atbridging thegapbetween Law64/86
(which hasexpired) andLaw488/92.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NoneG/SCM/N/25/EEC
Page328
AIDSCHEME FOR THE PROMOTION OFYOUTH ENTERPRISING
INTHE SOUTH OFITALY LAW
1. Name ofthesubsidy scheme andlegalbasis
AidScheme forthePromotion ofYouth Enterprising intheSouth ofItaly-Law44/86 and
236/93.
2. Form ofthesubsidy
*Grant
Softloan
*Interest subsidy
Taxconcession
Equity participation
Guarantee
*Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit
107,941 Grant
49,591 Interest subsidy
43,605 Management contribution
201,137 Total
4. Policy objective and/or purpose ofthesubsidy
Toencourage young people inthedisadvantaged regions ofthecountry toundertake industrial
activities; tolower youth unemployment intheSouth.
5. Duration ofthesubsidy
Three years
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Notavailable, duetotheverywide range ofactivities involved. TheGovernment ofItaly
considers thissubsidy programme non-specific, butnotifies itallthesameforthesakeoftransparency.
(1) Law236/93
Thisprogramme hasnotreceived financing funds.G/SCM/N/25/EEC
Page329
TECHNOLOGICAL INNOVATION FUND (FIT) AND
APPLIED RESEARCH FUND (FRA)
1. Name ofthesubsidy scheme andlegalbasis
Technological Innovation Fund (FIT) andApplied Research Fund (FRA) -Law46/82
2. Form ofthesubsidy
*Grant
*Soft loan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
FIT Lit
Grant 30,000
Softloan 311,000
Total 341,000
FRA
Grant 160,600
Softloan 192,700
Total 353,300
4. Policy objective and/or purpose ofthesubsidy
Research anddevelopment, technological innovation
5. Duration ofthesubsidy
Indefinite. Subsidies concern long-term credits (15years).
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NoneG/SCM/N/25/EEC
Page330
CONTRIBUTION TOTHE REALIZATION OFNATIONAL ENERGETIC
PLANT AIMED ATRATIONALIZING THE USEOF
ENERGY AND RENEWABLE ENERGY SOURCES
1. Name ofthesubsidy scheme andlegalbasis
Contribution totheRealization ofNational Energetic Plant aimed atRationalizing theUseof
Energy andRenewable Energy Sources -Law10/91.
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit26,430
4. Policy objective and/or purpose ofthesubsidy
Energyefficiency,researchanddevelopment,technologicalinnovation,environmentprotection.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page331
COORDINATION OFINDUSTRIAL POLICY, RESTRUCTURING,
RECONVERSION AND SECTORIAL DEVELOPMENT
1. Name ofthesubsidy scheme andlegalbasis
Coordination ofIndustrial Policy, Restructuring, Reconversion andSectorial Development -
Law675/77.
2. Form ofthesubsidy
Grant
Softloan
*Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit129,600
Note: Although theLaw675/77 isnolonger inforce, theabove figure refers totheamount
theAdministration isstilldistributing duetotheprevious decisions.
4. Policy objective and/or purpose ofthesubsidy
Research anddevelopment, technological innovation
5. Duration ofthesubsidy
Residual payments
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NoneG/SCM/N/25/EEC
Page332
SUPPORT TOTHE REDUCTION OFENERGY CONSUMPTION
1. Name ofthesubsidy scheme andlegalbasis
Support totheReduction ofEnergy Consumption -Law308/82
2. Form ofthesubsidy
Grant
*Soft loan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit16,900
Note: Although theLaw308/92 hasbeenreplaced bytheLaw10/91, theabove figure refers
totheamount theAdministration isstilldistributing duetoprevious decisions.
4. Policy objective and/or purpose ofthesubsidy
Energy efficiency, research andtechnology innovation.G/SCM/N/25/EEC
Page333
SPECIAL FUND FOR THE RECONVERSION OFTHE
ASBESTOS PRODUCTION
1. Name ofthesubsidy scheme andlegalbasis
Special Fund fortheReconversion oftheAsbestos Production -Law257/92
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Although theexecutive regulation hasbeenpublished nopayment hasbeenmade during 1966.
4. Policy objective and/or purpose ofthesubsidy
Policy objective istofacilitate thereconversion oftheasbestos production. Allowances are
granted tothose enterprises which giveupproducing asbestos, inorder toimprove environmental
standards ofthewhole industrial sector.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Notrade effectG/SCM/N/25/EEC
Page334
CONTRIBUTIONS TOENTERPRISES FOR SUBSTITUTIVE
ACTIVITIES INMINING DISTRICTS INVOLVED IN
RESTRUCTURING PROCESSES
1. Name ofthesubsidy scheme andlegalbasis
Contributions toEnterprises forSubstitutive Activities inMining Districts involved in
Restructuring Processes -Law221/90 (Refinancing ofLaw41/89).
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit9,782
4. Policy objective and/or purpose ofthesubsidy
Thesubsidy isaimed atfacilitating therestructuring ofmining districts andtohelpclosing
mining districts whose activity hasbecome uneconomic.
5. Duration ofthesubsidy
Indefinite
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
NotavailableG/SCM/N/25/EEC
Page335
PRODUCTION AIDS TOSHIPYARDS
1. Name ofthesubsidy scheme andlegalbasis
Production AidstoShipyards -Laws 234/89 and132/94
2. Form ofthesubsidy
*Grant
Softloan
Interest subsidy
Taxconcession
Equity participation
Guarantee
Other
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit988,960
4. Policy objective and/or purpose ofthesubsidy
Thegrants provided following Laws 234/89 and132/94 -which implement the6thand7th
Directive onaidstoshipbuilding -areduetobridge thegapbetween themostcompetitive EUshipyard
andthemarket prices.
5. Duration ofthesubsidy
Theyard'ssubsidies aregranted inlump-sum payment.
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asregards thecommercial effects, theItalian shipyards wereallowed tomaintain theirown
position onthemarket onanequal basis asfarascompetitive conditions areconcerned.G/SCM/N/25/EEC
Page336
HOME CREDIT SCHEME TOSHIP OWNERS
1. Name ofthesubsidy scheme andlegalbasis
Home Credit Scheme toShipOwners -Laws 234/89 and132/94
2. Form ofthesubsidy
Grant equivalent toloans atOECD terms (According totheUnderstanding onExport Credits
forShips -OECD Council Resolution of3August 1981).
3. (Subsidy perunitor,incasethisisnotpossible, theglobal amount ofthesubsidies distributed
during 1996)
Lit362,270
4. Policy objective and/or purpose ofthesubsidy
Contributions granted under theabove-mentioned provisions -which implement the5thand
7thDirective onaidstoshipbuilding -areduetobridge thedifference between theItalian financing
terms andstandards OECD financing terms.
5. Duration ofthesubsidy
17half-yearly instalments
6. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asregards thecommercial effects theItalian shipowners wereallowed towork onanequal
basis onthemarket asfarasfinancing conditions areconcerned.