WORLD TRADE  
ORGANIZATION  WT/DS307/1 
G/L/671 
G/SCM/D58/1 19 February 2004 
 
 
(04-0707) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES – AID FOR COMMERCIAL VESSELS 
 
Request for Consultations by Korea
 
  
 The following communication, dated 13 February  2004, from the delegation of Korea to the 
delegation of European Commission and to the Chairman of the Dispute Settlement Body, is 
circulated in accordance with  Article 4.4 of the DSU. 
 
_______________ 
 
  The Republic of Korea ("Korea") respectfully  requests consultations with the European 
Communities ("EC") and with the EC Member Stat es pursuant to Article 4 of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes   ("DSU"), Article XXIII:1 of the General 
Agreement on Tariffs and Trade 1994 ("GATT 1994") a nd Articles 4, 7 and 30 of the Agreement on 
Subsidies and Countervailing Measures ("SCM Agreemen t") with regard to measures affecting trade 
in commercial vessels, as elaborated below.   This follows an earlier request for consulta tions filed by Korea on 3 September 2003 under 
the same provisions and concerning also measures affecting trade in commercial vessels. 
Consultations were held on 9 Oc tober and 14 November 2003. The c onsultations held between Korea 
and the EC related to various EC and Member State measures in relation, inter alia  to the following:  
  i. The provisions of EC Regulation 1 177/2002 ("TDM Regulation") and EC Regulation 
1540/98 as such, as well as the EC Member States' implementing provisions as such. 
The above measures provide for subsidies in  favour of commercial vessels, whether 
directly to the shipbuilders or indirect aid, including operating aid, restructuring aid, insolvency and closure aid, aid for regional or other investment, research and development aid and aid for environmental protection; 
  ii. The EC and its Member States have in pa rticular instances, through federal, regional 
or local authorities and government-own ed or government-controlled financial 
institutions, provided subsidies in direct or indirect support of commercial vessels built in the EC particularly but not exclusiv ely in the form of (a) operating aid granted 
on a contractual basis in forms such as grants, export credits, guarantees or tax breaks, (b) restructuring aid, (c) regional or other investment aid, (d) research and 
development aid, (e) environmental protecti on aid and (f) insolvency and closure aid. 
  In the absence of a resolution of the disput e through consultations, on 5 February 2004, Korea 
requested the establishment of a panel with respect to the TDM Regulation and its inconsistency with 
certain provisions of the GATT 1994, the SCM Agre ement and the DSU. Korea wishes to proceed 
with consultations with the EC regarding other aspects of the TDM and other measures which were 
the subject of its September 3
rd request along with additional measures recently adopted by the EC. As WT/DS307/1 
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  a result, Korea submits this new request for consultations under the provisions referred to 
hereinabove.  I. The measures concerned
 
 
 Korea considers that the following EC and Me mber State measures establish subsidies that 
are inconsistent with the obligations of the EC  and its Member States under the SCM Agreement. 
These measures include, among others: 
 
 i. The provisions of the TDM Regulation, including as extended to cover LNGs by 
Notice 2003/C 148/10 published on 25 June 2003 (c urrently proposed to be extended 
until 31 March 2005 pursuant to European  Commission proposal COM(2004)26 final 
of 21 January 2004). This measure provides for the granting of direct aid in support 
of contracts for the building of container sh ips, product tankers, chemical tankers as 
well as LNG carriers. 
  ii. The provisions of EC Regulation 1540/98 as such, as well as the EC Member States' 
implementing provisions as such, to the exte nt that aid is still being disbursed under 
these provisions. The above measures provide for subsidies in favour of commercial 
vessels, whether directly to the shipbuilders or indirect aid, including operating aid, 
restructuring aid, insolvency and closure aid, aid for regional or other investment, research and development aid and ai d for environmental protection. 
  iii. Based on EC Regulation 1540/98, the EC and Member States have in particular 
instances, through federal, regional or lo cal authorities and government-owned or 
government-controlled financial institutions, prov ided subsidies in direct or indirect 
support of commercial vessels built in the EC particularly but not exclusively in the 
form of (a) operating aid granted on a contr actual basis in  forms such as grants, 
export credits, guarantees or tax breaks, (b) restructuring aid, (c) regional or other 
investment aid, (d) research and development aid, (e) environmental protection aid 
and (f) insolvency and closure aid. 
  iv. The provisions of the Framework on State Aid to Shipbuilding (Document 
No 2003/C 317/06 as well as the EC Member States' implementing provisions as such and any individual granting of aid thereunder inasmuch as they provide aid for  
 
a. research, development and innovation in ex isting shipbuilding, ship repair or 
ship conversion yards for the industria l application of innovative products 
and processes; 
 
b. closure aid; 
 
c. employment aid; 
 
d. export credits; 
 
e. development aid and 
 
f. regional aid. 
  v. The decision by the Spanish Council of Ministers of 6 February 2004 in application 
of the above Framework to:  WT/DS307/1 
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– allow the Spanish Export Credit Agency  (CESCE) to provide State insurance 
on commercial risks arising from breaches of reimbursement obligations as 
regards loans granted to OECD shipbuilders for the construction of new 
ships; 
 
– the facilitation by the Official Credit  Institute (ICO) of the adoption of 
measures allowing its participation in  financial operations related to 
shipbuilding contracts under conditions equi valent to those of other financial 
agencies within the EU, in collaborati on with the private sector, on the one 
hand, and to establishment a specific credit line to finance shipbuilding operations for an amount of EU RO 300 million on the other hand; 
 
– the support by the Ministry of Science and Technology of R&D activities in 
shipbuilding sector for an amount of up to EURO 215 million, as direct aid, and up to EUR 200 million in loans thr ough the National Plan for Scientific 
Research, Development and Technol ogical Innovation and through the 
Restructuring fund for the period 2004-2007. 
 
 vi. The extension by authorities and financia l institutions in the EC Member States, inter 
alia, in Finland, France, Germany, Ital y and The Netherlands of financing and 
guarantees for the building of commercial vessels subject to a minimum domestic content. 
 
 vii. The guarantee by Germany of all obligations of the Kreditanstalt für Wiederaufbau 
("KfW" hereinafter) pursuant to Paragraph 1a of the Law on the KfW of 5 November 
1948 as last amended by the Law dated 10 December 2003 which also provides a transition period until January 1
st, 2008 at the latest for the commercial activities 
other than promotional activities listed in Pa ragraph 2(1) to be carried out by an 
independent legal entity. These activities are carried out by a separate division called 
"IPEX" since January 1st, 2004 but the Law on the KfW still provides the State 
guarantee for the commitments of KfW as a whole. 
  viii. The provision in Germany of public fallback guarantees with respect to credits 
granted for the financing of ships built in  German yards in the five coastal Länder 
(Niedersachsen, Bremen, Hamburg, Schleswig-Holstein and Mecklenburg-
Vorpommern) with differing premia based on six risk categories but seemingly without considering market interest rates for such premia. 
  ix. By way of example only, specific reference is made to the following: 
 
a. the granting by authorities and financ ial institutions in France, Sweden, 
Denmark, Finland, Germany, Italy, Th e Netherlands, Portugal, Spain and the 
UK of subsidies to beneficiary dome stic yards on a vessel-specific and 
product-related basis; 
 
b. export guarantees scheduled to be gran ted by the Finnish export guarantee 
institute, Finnvera in the form of  post- and pre-delivery guarantees; 
 
c. the guarantee by the Italian Shipbuilding Guarantee Fund for the recovery of 
loans for the construction and conversion of  ships, granted by banks to Italian 
and foreign shipowners, for works ca rried out in Italian shipyards; WT/DS307/1 
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d. the extension by Danish Sh ip Finance of fixed low-interest, long-term loan 
facilities to shipowners for the building of new ships at Danish yards; 
 
e. the granting by Spain, through the State holding company, Sociedad Estatal 
de Participaciones Industriales (SEPI ) and Astilleros Espanoles (AESA) – a 
SEPI subsidiary - of restructuring aid through the establishment of the purchase price for publicly held yards Ju liana, Cadiz, Astano, Puerta Real, 
Sestao, Sevilla sold to military sh ipbuilding group, Bazan, which later 
changed its name to IZAR below mark et price as well as through loans and 
capital injections by SEPI to the previ ously publicly-held yards and to IZAR; 
 
f. the granting by Spain of research an d development subsidies to Spanish 
shipbuilders; 
 
g. the granting by Spain of loan guarantees to Izar through Spain's industrial 
holding company; 
 
h. the granting by Spain through the "tax l ease scheme" of subsidies in the form 
of "tax incentives for renewing merchant fleet" indirectly in support of 
Spanish shipbuilders; 
 
i. the granting by France of subsidies to shipbuilding and industrial group 
Alstom under the mantle of a rescue plan of at least 2.8 bn euros; 
 
j. the granting by France through a tax l ease scheme subsidies for Chantiers de 
l'Atlantique shipbuilding which also appears to receive subsidies under the 
TDM; 
 
k. The granting by France of regional aid subsidies to the Loire Region 
benefiting shipbuilders among others; 
 
l. The granting by the EC Commission of research and development aid with 
the stated goal of enhancing compe titiveness of the shipbuilding industry; 
 
m. The granting by Germany of research and development and investment aid in 
favour of German shipbuilding. 
 
II. Product coverage of the measures
 
 
 The subsidies in question were granted directly or indirectly with respect to the production of 
commercial vessels, including: bulk carriers, containe r ships, oil tankers, product tankers, chemical 
tankers, bulk, car and combined carriers as well as general cargo vessels, reefers, LNG/LPG carriers, 
passenger and RoRo ferries as well as cruise ships, fishing vessels and other non-cargo vessels 
(including offshore units).  III. Beneficiary EC shipbuilding companies
 
 
 The EC shipbuilding companies which have directly or indirectly benefited from these subsidies include, but are not limited to, Odense Steel Shipyard, Meyer Werft Shipyard, Kvaerner 
Masa Yards, the Italian Cantieri T. Mariotti, IZ AR, JJ Sietas, Kvaerner Warnow Werft, Aker MTW, 
Howaldswerke Werft, Lindenau, Chantie rs de l'Atlantique, Volharding.  WT/DS307/1 
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IV. Breach of obligations
 
  Korea considers that the EC and Member St ate measures in question are in breach of the 
obligations of the EC and the EC Member Stat es under provisions of the SCM Agreement, GATT 
1994 and the DSU. In particular, but not necessarily exclusively of: 
 
• Articles 3.1(a), 1 and 2 of the SCM Ag reement, because measures such as for 
example the export guarantees scheduled to be granted by the Finnish export 
guarantee institute, Finnvera, in the form  of post- and pre-delivery guarantees are 
specific subsidies within the meaning of Articles 1 and 2 of the SCM Agreement and are de jure export contingent while other measures are de facto  export contingent; 
 
• Article 3.1(b), 1 and 2 of the SCM Agreem ent, because measures providing for the 
granting of financing or guarantees subject  to the use of domestic over imported 
goods as described Section I.vi above are sp ecific subsidies within the meaning of 
Articles 1 and 2 of the SCM Agreement and de jure  or de facto  contingent on a 
domestic content; 
 
• Articles, 1, 2, 5(a), (b) and (c), 6.3(a),(b)  and (c), 6.4 and 6.5 of the SCM Agreement, 
because in particular but not exclusively the ot her subsidies referred to in Sections I(i) 
to (ix) above are specific subsidies within the meaning of Articles 1 and 2 of the SCM 
Agreement, cause injury to the domestic i ndustry, nullify or impair benefits accruing 
directly or indirectly to Korea, and cause or  threaten to cause serious prejudice to the 
interests of Korea. 
  It is considered that the above-described me asures nullify or impair benefits accruing to 
Korea under the WTO Agreements, within the mean ing of Article XXIII:1(a) and (b) of the GATT 
1994. The Government of Korea reserves the right  to address additional measures and claims under 
other WTO provisions during the course of the consulta tions, taking into account in particular that the 
EC is proposing to extend the period of valid ity of Regulation 1177/2002, EC Member States may 
still adopt or implement subsidy schemes pursuant to Regulation 1177/2002 and EC Member States 
are still in the process of adopting or implementin g measures in accordance w ith the EC Framework 
on State aid to shipbuilding.   Korea notes that Annex I contains a list of information available at this time. Korea would like to incorporate the information contained in Annex I into this request for consultation by 
reference.  
 
 Korea notes that consultations on a number of the topics were held pursuant to the 3 September 2003 request.  A number of inquiries pursu ant to those consultations remain outstanding.  
Korea hopes that those consultations can continue without undue repetition and include the additional 
items noted above pursuant to this request for cons ultations.  Accordingly, Korea looks forward to 
receiving the response of the EC to the present requ est and to setting a mutually convenient date and 
place to hold consultations. 
 
 A copy of this request is being sent to the Chairman of the Dispute Settlement Body and to the Chairman of the Council for Trade in Goods a nd the Chairman of the Committee on Subsidies and 
Countervailing Measures. WT/DS307/1 
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Statement of Available Evidence
 
 
  I. Operating aid
 
 
(i) Council Regulation (EC) No 1540/98 of 29  June 1998 establishing new rules on aid to 
shipbuilding (Official Journal No L 202, 18 July 1998, p. 1). 
 
(ii) For the EC Member State implementing me asures of Council Regulation (EC) No 1540/98: 
 
 – Denmark 
   New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 3, 18 December 2001. 
   New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document no G/SCM/N/95/EEC/Add.3, 
15 December 2003. 
  – Finland  
  New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 4, 18 December 2001. 
   New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Community, Addendum, Document No G/SCM/N/95/EEC/Add.4, 15 December 2003. 
  – Germany 
 
  New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 6, 18 December 2001 
 
  New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Docume nt No G/SCM/N/95/EEC/Add.6, 
15 December 2003. 
  WT/DS307/1 
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   – Italy    New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 9, 18 December 2001. 
   New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Docume nt No G/SCM/N/95/EEC/Add.9, 
15 December 2003. 
  – The Netherlands 
 
  New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 11, 18 December 2001. 
 
  New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/95/EEC/Add.11, 15 December 2003. 
 
 – Portugal 
   New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 12, 18 December 2001 
 
 – Spain    New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 13, 
18 December 2001. 
   Notification Pursuant to Article XVI :1 of the GATT 1994 and Article 25 of the 
Agreement on Subsidies and Countervaili ng Measures, European Communities, 
Addendum, Document No G/SCM/N/95/EEC/Add.13, 15 December 2003. 
 
 – the United Kingdom    New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/71/EEC/Add. 15, 
18 December 2001. 
 WT/DS307/1 
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    New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures, European 
Communities, Addendum, Document No G/SCM/N/95/EEC/Add.15, 
15 December 2003. 
 (iii) With regard to extensions of the three-y ear delivery date for commercial vessels provided for 
under Council Regulation (EC) No  1540/98 and extending the deadline for the payment of the 
State aid accordingly: 
 
 – Commission Decision  of 5 June 2002 concerning aid No N 843/01 regarding  Meyer 
Shipyard (Germany) and Commission  approves extension of delivery limit for cruise ship being built at Meyer Shipyard (Germany ) – State aid may therefore still be paid, 
Commission Press Release IP/02/815
, 5 June 2002; 
 
 – Decision of the European Commission dated 19 June 2002, Document 
C(2002)2139fin as regards Odense; 
  – Decision of the European Commission dated 13 November 2002, Document 
C(2002)3768fin as regards Kvaerner Masa yards; 
 
 – Decision on Aid No N 751/02 dated 19 March 2003 (Official Journal No C 108, 
7 May 2003, p. 9) as regards Italian yard Cantieri T. Mariotti SpA; 
  – Commission Decision of 9 July 2003 on State aid which Spain is planning to 
implement in the form of operating aid for three LNG ships built by IZAR, Official 
Journal No L252, 4 October 2004, p. 18. 
 (iv) The EU's Surveys on State Aid and State Aid Scoreboards, i.e.:   – Seventh Survey on State Aid in the European Union in the manufacturing and certain 
other sectors, Brussels, 30 March 1999, p.  11 and following, p. 20, p. 67 and 
following; 
  – Eight Survey on State Aid in the European Union in the manufacturing and certain 
other sectors, Brussels, 11 April 2000, p. 17, p. 22 and following, p. 94; 
 
 – Ninth Survey on State Aid in the European Union in the manufacturing and certain 
other sectors, Brussels, 18 July 2001, p. 37 and following, p. 94; 
  – State Aid Scoreboard, Brussels, 18 July  2001, Document COM(2001)412 final, p. 27, 
28, 51; 
 
 – State Aid Scoreboard, Brussels, 30 April 2001, Document COM(2003)225 final, 
p. 18; 
   And 
 
  Third report from the Commission to the Council on the situation in World 
shipbuilding, Brussels, 15 November 2002,  Document COM(2000)730 final, p. 21 
and following.  
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  (v) Council Regulation (EC) No 1172/2002 of 27 June 2002 concerning a temporary defensive 
mechanism to shipbuilding (Official Journal No L 172, 2 July 2002, p. 1) of which the Commission proposes the extension until March 31, 2005 in Proposal for a Council 
Regulation amending Regulation (EC) No 1177/2002 concerning a temporary defensive 
mechanism to shipbuilding, January 21, 2004, COM(2004)26 final. 
 (vi) For the EC Member State implementing me asures of Council Regulation (EC) No 1172/2002: 
 
 – Germany: 
   "Richtlinien des Bundesministerium fü r Wirtschaft und Arbeit zu befristeten 
Schutzmassnahmen für den Schiffbau", 24 October 2002. 
 
  Case N 744/2002, Commission Deci sion (2003)788 fin of 19.3.2003. 
 
  Commission authorizes "Temporary Defensive Mechanisms" for the German 
shipbuilding industry , Commission Press Release IP/03/405
, 19.3.2003. 
 
  Sietas attacks Hamburg government , Lloyd's List , 24 December 2002; German 
Hamburg approves 4.0 Mln EU RO subsidy for Shipyard, German News Digest , 
13 November 2002. 
 
  Subsidy gives Aker and Kvaerner boxship trio boost , Lloyd's List , 12 June 2003; 
German yards feel pinch as competition bites , Lloyd's List , 15 April 2003. 
 
  HDW lines up four-ship boxship order , Lloyd's List , 26 June 2003. 
   Lindenau warns of lay-offs ahead , Fairplay Daily News
, 27 January 2003. 
  – Denmark    Lov om midlertidig, kontraktbetinget drift sstotte til bygning af visse skibstyper, LOV 
No 305 dated 30 April 2004. 
 
  Case N 141/2003, Commission Decision of 24.6.2003.  
  Financing deal aids Danish shipyards,  Lloyd's List
, 12 February 2003. 
 
  Aftale mellem Skibskreditfonden og regeringen endeligt p ∆ plads  (Agreement 
between the ship finance fund and government is finally in place), Press Release of 
Danish government, 7.2.2003. 
  – France 
 
  LNG order driven by French politics , TradeWinds
, 27 June 2003. 
 
  SeaFrance car ferry order goes to Chantiers yard , Lloyds List , 26 June 2003. 
   Gaz de France still to make LNG choice , TradeWinds, 26 June 2003. 
 
  EC rapid response to Alstom , Lloyds, 22 August 2003. WT/DS307/1 
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    Application du Réglement N° 1177/ 2002 du Conseil par la décision d'une 
commission interministérielle (as referred  to by the European Commission in the 
publication of the approval of the French aid for LNGs). 
 
  Case N 232/03, Commission Decision (2003)3234 fin of 17 September 2003.   – The Netherlands 
 
  Subsidy saves shipyard subsidiary  and All is well at Volharding , Fairplay Daily 
News , 8 November 2002. 
 
  Tijdelijke regeling ordersteun scheepsn ieuwbouw, Regeling van de Staatssecretaris 
van Economische Zaken van 17 juli 2003 No WJZ3040972 with regard to the 
provisions for affording subsidies to the shipbuilding sector as temporary defensive 
aid. 
 
  Case N 780/2002, Commission Decision ( 2002)2019 fin of 9 July 2003 and Case N 
339/03, Commission Decision (2003)3378 of 18 September 2003. 
 
 – Spain 
 
  PDV picks Izar for tanker trio ,  Fairplay Daily News , 25 February 2003. 
   Dutch group protests over ‘Spanish handout' , Lloyd's List
,  9 December 2002. 
 
  Dutch anger over alleged subsidy , Fairplay Daily News , 4 December 2002. 
 
  EU/State aid: Spain hopes to give temporary support to its shipyards , Agence 
Europe , 19 July 2003, p. 15. 
 
  Third LNG carrier launched at Izar , Lloyds, 18 August 2003. 
   Case N 812/02, Commission Decision (2003)4079 fin of 11 November 2003.    Real Decreto 442/1994 of 11 March 1994 as amended by Real Decreto 1274/2003 of 
10 October 2003. 
 (vii) As regards the German State guarantees:   Mr. Monti and Mr. Clement meet to disc uss State guarantees for German shipyards , Agence 
Europe , 5.3.2003. 
 
 EC turns sights on German loans , Fairplay , 24.1.2003. 
  German loans under scrutiny , Lloyd's List
, 24.1.2003. 
 
 Mario Monti expresses concern about impact of State guarantees on shipbuilding , Agence 
Europe , 24.1.2003. 
  Monti hat Subventionsverdacht EU-Kommission erhöht Druck auf Deutsche Werftindustrie , 
Handelsblatt
, 23.1.2003.  WT/DS307/1 
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   Commission gives green light for new German ship-financing guarantee schemes , 
Commission Press Release
 No IP/03/1740, 16/12/2003. 
 
 Risky business , Tradewinds Today, 16 December 2003. 
 (viii) Replies from the European Community to the request from the Republic of Korea to the 
European Community and its Member States pur suant to Article 25.8 of the Agreement on 
Subsidies and Countervailing Measures. 
 
(ix) With regard to requirements of domestic content to afford aid:  
• Europe – Blohm + Voss Shipyard, Hamburg,  the federal government has put forward 
a war chest of E62m to induce shipowners  to build in Germany, Lloyd's List, 
10 December 2002; 
 
• OECD handbook on export credits, Section 2.1.22 regarding Finland, page 7; 
 
• OECD handbook on export credits,  Section 2.1.2 regarding France, at page 7; 
 
• OECD handbook on export credits, Section 2. 1.2.2 regarding Germany, page 9; 
 
• OECD handbook on export credits, Section 2.1.2.2 regarding Italy, page 6; 
 
• OECD handbook on export credits, Section 2.1.2.2 regarding The Netherlands, 
page 6. 
 
 II. Loan facilities to Danish shipowners
 
 
See in I-(vi) above and Case N 286/2003, Commission Decision of 26.11.2003. 
 
 III. Guarantee by the Italian Shipbuilding Guarantee Fund  
 
(i) Formal investigation into Ita lian shipbuilding guarantee scheme , Commission Press Release 
IP/03/604 , 30.4.2003. 
 
(ii) State Aid – Italy, Aid C 28/03 (ex N 371/01) – Guarantees for ship financing – Invitation to 
submit comments pursuant to Article 88(2) of the EC Treaty (2003/C 145/04), Official Journal No C 145, 21 June 2003, p. 48. 
 
 IV. Spanish tax leasing scheme  
 
(i) Spanish Act 50/1998 on Tax and Administrative Measures and Social Order , with 
modifications introduced by Article 3.9 of  Act 55/1999 of 29 December 1999, a new 
supplementary clause (in the form of a regul ation) has been introduced to Act 43/1995 on 
Corporate Tax under the title "Tax incentives for renewing merchant fleet". 
 
 V. Spanish restructuring aid  
 (i) Commission extends state aid investigation into fu rther restructuring of public shipyards in 
Spain , Commission Press Release IP/01/1672
, 28.11.2001. 
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  (ii) State Aid – Spain, C-40/00 (ex NN 61/00) – Further restructuring of Spanish shipbuilding – 
Invitation to submit comments pursuant to Ar ticle 88(2) of the EC Treaty, Document 2000/C 
328/03, Official Journal No C 328, 18 November 2000, p. 16; Document 2002/C 21/03, 
Official Journal No C 21, 24 January 2002, p. 17. 
 (iii) Commission by Decision 2000/131/EC of 26 October 1999, Official Journal No L 37, 
12 February 2000, p. 22 as upheld in Judgmen t of 21 March 2002, Case C-36/00, Spain v. 
Commission , European Court Reports (ECR) 2002 I- 3243; Judgment of 26 June 2003, Case 
C-404/00, Commission v. Spain , not yet published in the ECR. 
 (iv) Commission extends state aid investigation into  further restructuring of public shipyards in 
Spain European Commission Press Release, IP /01/1672, 28 November 2001; also European 
Commission Press Release, IP/00/760, 12 July 2000, Official Journal No C 328, 
18 November 2000 and European Commission Press Release, IP/01/1672, 28 November 
2001, Official Journal No C 21, 24 January 2002, p. 17. 
 
(v) Commission takes two decisions on state ai d procedures to public shipyards in Spain
, 
European Commission Press Release, IP/03/754, 27 May 2003. 
 
(vi) State Aid – Spain, Invitation to submit comme nts pursuant to Article 88(2) of the EC Treaty, 
concerning document C 38/03 (ex NN 10/03), O fficial Journal No C 201, 26 August 2003, 
p 3. 
 
(vii) State Aid – Spain, Invitation to submit comme nts pursuant to Article 88(2) of the EC Treaty, 
concerning aid C40/2000 (ex NN 61/000), Offici al Journal No C 199, 23 August 2003, and 
p. 9. 
 
 VI. Framework on State aid to Shipbuilding  
 
(i) Framework on state aid to shipbuilding  (2003/C 317/06), Official Journal No C 317, 
30 December 2003, p. 11. 
 
(ii) As regards the Spanish  aid decided upon by the Spanish Council of Ministers, the Note of the 
Council of Ministers on the meeting held  on 6 February 2004, available at 
http://www.la-moncloa.es/web/asp/m uestraDocImp.asp?Codigo=c0602040 . 
 
 VII. State guarantee for KfW  
 
(i) Gesetz zur Neustrukturierung der Förderbanken des Bundes 
(Förderbankenneustrukturierungsgesetz) , 15 August 2003, Bundesgesetzblatt, 2003, Part I, 
No 42, 21 August 2003. 
 (ii) Law concerning KfW, English translation in corporating the amendments to the law dated 
5 November 1948 up to the amendment of 10 December 2003, www.kfw.de
, visited on 
10 December 2003. 
 
(iii) Commission informs Germany of its pos ition regarding guarantees to public banks , 
Commission Press Release  No IP/01/1999, 26 January 2001. 
 
(iv) Commission requests Germany to bring State guar antees for public banks into line with EC 
law, Commission Press Release  No IP/01/665, 8 May 2001. 
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  (v) New round in talks on German bank guarantees , Commission Press Release
 MEMO/01/224, 
13 June 2001. 
 
(vi) Press statement after the meeting of Commi ssioner Monti and State Secretary Koch-Weser on 
17.7.2001 , Commission Press Release  No IP/01/1007, 17 July 2001. 
 
(vii) Common press statement on the understanding on Anstaltslast and Gewährträgerhaftung for 
special credit institutions , Commission Press Release  No IP/02/354, 1 March 2002. 
 
(viii) Commissioner Monti welcomes formal acceptance by  Germany of the abolition of State aid to 
public banks , Commission Press Release  No IP/02/643, 26 April 2002. 
 
(ix) Mario Monti welcomes the abolition of Stat e guarantees for German public sector banks , 
Commission Press Release  No IP:03/49, 15 January 2003. 
 
(x) KfW restructures to fit EU framework , Lloyd's List, 17 December 2003. 
 
(xi) Launch of KfW IPEX-Bank, KfW's Export and Project Finance division to become an 
independent Bank;  Statement by Dr. Peter Klaus, Spokesman of the Board of Managing 
Directors of KfW IPEX-Bank, Member of the Board of Managing Di rectors of KfW; KwW 
IPEX-Bank Press Conference , documents available at the Kf W IPEX website regarding the 
press conference for launching IPEX on 8 December 2003, www.kfw-ipex-bank.com  visited 
on 10 February 2004. 
  VIII. Other aid of the kind referred to in I.iii to ix
 
 
(i) Commission approves EUR 1,870.9 million assistance package for Loire region  (regional 
aid), Rapid press release, 11 January 2001. 
 (ii) Commission calls on scientific and industrial communities to apply for EUR 5 billion    
research funding  (research and development aid), Rapid press release, 16 December 2002. 
 
(iii) Authorization for state aid pursuant to Articles 87 and 88 of the EC Treaty, (German research 
and investment aid to shipbuilding) Official Journal C 277, 14 November 2002, p 2. 
 
(iv) Case N 360/2003, Commission Decision of 01.10.2003 (authorization of R&D aid for 
Flensburger Schiffbau-Gesellchaft mbH & Co.KG). 
 (v) Cases N 145/2003, N 146/2003, N 147/2003 and N 148/2003, Commission Decision of 
13.05.2003 (authorization of R&D aid for  Blohm + Voss GmbH, Aker MTW GmbH, Kvaerner Warnow Werft GmbH and Nordseewerke GmbH. 
 
(vi) Izar breathes more easily , Lloyds, 8 July 2003. 
 (vii) Spanish Government boosts shipbuilding industry with E500 million lifeline , Lloyds, 
1 October 2002. 
 
(viii) Aker Kvaerner thrown lifeline , Lloyd's List
, 22 May 2003 and State guarantees Masa-Yards 
$2.9bn,  Lloyds' List , 22 May 2003. 
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 IX. Adverse effects
 
 
(i) Lost sales cases reported by the Korean shipyards. 
 
(ii) Article 2(1) of Council Regulation (EC) No  1177/2002 to the effect that operating aid shall 
only be granted " when there has been competition for th e contract from a Korean shipyard 
offering a lower price ", i.e., the aid is granted to prevent the sale of Korean vessel or to cause 
lost sales for Korean shipyards. 
 
(iii) German yards enter 2004 on a hi gh, Lloyds' List, 6 January 2004. 
 (iv) Dutch yards cry out for subsidies, TradeWinds, 5 December 2003.  
(v) Communication from the Commission to the Coun cil, the European Parliament, the European 
Economic and Social Committee and the Committee of the Regions on "LeaderSHIP 2015 – Defining the Future of the European Shipbu ilding and Repair Industry - Competitiveness 
through Excellence", COM(2003)717final, 25 November 2003. 
 
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