G/SCM/N/25/EEC
Page362
SPAIN
TABLE OFCONTENTS
Annex No. PageNo.
Central Administration
Ministry ofAgriculture, Fisheries andFood 1 364
Ministry oftheEconomy andFinance 2 393
Ministry oftheEnvironment 3 399
Ministry ofIndustry andEnergy 4 402
Autonomous Administrations
Autonomous Community ofAndalusia 5 428
Autonomous Community oftheBalearic Islands 6 452
Autonomous Community oftheCanary Islands 7 461
Autonomous Community ofCantabria 8 485
Autonomous Community ofCastilla -LaMancha 9 497
Autonomous Community ofCastilla -León 10 520
Autonomous Community ofCatalonia 11 555
Autonomous Community ofExtremadura 12 557
Autonomous Community ofGalicia 13 568
Autonomous Community ofLaRioja 14 596
Autonomous Community ofMadrid 15 599
Autonomous Community ofMurcia 16 605
Autonomous Community ofNavarra 17 621
Autonomous Community ofValencia 18 639
Autonomous Community oftheBasque Country 19 646
Principality ofAsturias 20 653G/SCM/N/25/EEC
Page363
Thenotification ofthesubsidies granted bytheCentral Administration andtheAutonomous
Communitiesduringthefinancialyear1996followsasfaraspossiblethelayoutemployedintheprevious
notification.
InthecaseoftheCentral Administration there areseveral programmes which, after the
administrative reform introduced inRoyal Decree 758/1996 of5May, wereadministered in1996by
different ministries. Thus, bywayofanexample, theSmall andMedium Enterprises Industrial
Development Initiative, which in1995wasadministered bytheMinistry ofIndustry andEnergy, was
transferred in1996 under theauthority oftheMinistry oftheEconomy andFinance, while thetwo
programmes notified in1995 bytheMinistry ofDevelopment have been transferred soastobe
administered bytheMinistry oftheEnvironment.
Themore common abbreviations usedare:
BOE: BoletínOficialdelEstado(OfficialGazetteoftheState).EachAutonomousCommunity
publishes itsregulations initsownOfficial Gazette, which isreferred tobytheinitials
BO(for"Boletín Oficial") followed bytheinitial(s) corresponding totheAutonomous
Community. Thus, asanexample, BOC refers totheOfficial Gazette ofthe
Autonomous Community oftheCanary Islands.
AC: Autonomous Community
SME: Small andMedium Enterprise
RD: Royal DecreeG/SCM/N/25/EEC
Page364
NOTIFICATION OFSUBSIDIES
CENTRAL ADMINISTRATION
ANNEX No.1
MINISTRY OFAGRICULTURE, FISHERIES AND FOODG/SCM/N/25/EEC
Page365
AGRICULTURE
Annual Report onSubsidies andCountervailing Measures for1996
(WTO Agreement onSCMs, Article 25)
Page
Promotion oftheagricultural andfoodsectors ..............................367
Promotion oftheeconomic andsocial sectors ofthefoodindustry .................368
Subsidization ofagricultural insurance ...................................369
Financial support fordamage caused bydrought in1995 .......................370
Subsidies totheagricultural andfoodsector cofinanced
bytheEuropean Union in1996 .......................................371
Facilities forfishing ports andimproved marketing at
source offishandaquaculture products ..................................372
Renovation ofthefishing fleet(construction and
modernization offishing boats) .......................................374
Aidforthetemporary stoppage ofactivities offishing
vessels during 1994, provided in1996 ...................................375
Special economic aidtoshipowners affected bythe
stoppage offishing (Ministerial Order of4May1995) .........................376
Special economic aidtoshipowners affected bythe
stoppage offishing (Royal Decree 798/95 of19May1995) .....................377
Special economic aidtoshipowners affected bythe
stoppage offishing (Royal Decree 798/95 of19May1995)
(Ministerial Order of21February 1996) .................................378
Special economic aidtoshipowners affected bythe
stoppage offishing (Royal Decree 798/95 of19May1995)
(Ministerial Order of21February 1996) .................................379
Special economic aidtoshipowners affected bythe
stoppage offishing (Royal Decree 798/95 of19May1995)
(Ministerial Order of21February 1996) .................................380
Special economic aidtoshipowners affected bythe
stoppage offishing during thefirsthalfofOctober 1994,
provided in1996 ................................................381
Establishment ofjointventures .......................................382G/SCM/N/25/EEC
Page366
Page
Temporary business associations ......................................383
Final halttofishing ...............................................384
Promotion ofinvestment inaquaculture ..................................385
Aidfortheestablishment andmanagement of
organizations offishproducers ........................................386
Aidtoimprove thestructures ofthefishing and
aquaculture sector ................................................387
Aidtoimprove theprocessing andmarketing offish
andaquaculture products ...........................................387
Subsidies totheagricultural sector cofinanced bythe
European Union in1996 ...........................................389
Agricultural vocational training .......................................389
Aidtoencourage activities topromote andseeknew
markets forfishandaquaculture products .................................391G/SCM/N/25/EEC
Page367
PROMOTION OFTHE AGRICULTURAL AND FOOD SECTORS
1. Titleofthesubsidy programme
Promotion oftheagricultural andfoodsectors.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Improve theconditions fortheprocessing andmarketing ofagricultural andfoodproducts.
4. Background andauthority forthesubsidy
Royal Decree 1462/86, of13June, topromote improved conditions fortheprocessing and
marketing ofagricultural andfishproducts.
5. Form ofthesubsidy
Non-repayable grant.
6. Towhom thesubsidy isprovided
Owners offirms submitting projects toimprove theconditions forprocessing andmarketing
ofagricultural andfishproducts.
7. Subsidies
Thetotalamount approved for1996wasPtas2,031 million, although therewereotherpayments
forcommitments undertaken inprevious years.
8. Duration ofthesubsidy
Notpredetermined. Specific, when therequirements were fulfilled.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noinformation isavailable forsuchanassessment, buttheeffect would appear tobeminimal
inanycase.G/SCM/N/25/EEC
Page368
PROMOTION OFTHE ECONOMIC AND SOCIAL
SECTORS OFTHE FOOD INDUSTRY
1. Titleofthesubsidy programme
Promotion oftheeconomic andsocial sectors ofthefoodindustry.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote theimplementation oftechnical assistance andmanagement plans fortheeconomic
andsocial sectors ofthefoodindustry.
4. Background andauthority forthesubsidy
Order of4July1985establishing subsidies fortechnical assistance andmanagement plans for
thefoodindustries.
5. Form ofthesubsidy
Non-repayable grant.
6. Recipients/beneficiaries
Associations offirms intheagricultural andfoodsector, associations ofagricultural producers,
tradeunions inthefoodindustry, professional associations, foundations andother organizations whose
objectives areconnected withtheagricultural andfoodindustry.
7. Subsidy
Total amount for1996: Ptas314,673,495.
8. Duration ofthesubsidy
Specific, when therequirements arefulfilled.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noinformation isavailable, buttheeffect would appear tobeminimal inanycase.G/SCM/N/25/EEC
Page369
SUBSIDIZATION OFAGRICULTURAL INSURANCE
1. Titleofthesubsidy programme
Subsidization ofagricultural insurance.
2. Period
1996 financial year
3. Purpose ofthesubsidy
Tosubsidize thecostofinsurance policies taken outbyfarmers toguarantee theircrops against
weather risks. Promoting thisinsurance makes itunnecessary togrant special payments fordamage
caused toinsurable crops.
4. Authority
Order of27February 1996 ofthePrime Minister 'sOffice.
5. Form ofthesubsidy
Discount onthecostoftheinsurance.
6. Beneficiaries
Thesubsidy isintended forfarmers whoareindividual orlegalpersons insuring theircrops.
Payment ismade when thepolicy istaken out,andthecostoftheinsurance isdeducted.
7. Amount ofthesubsidy
Theamount budgeted forthissubsidy in1996 wasPtas16,065 million.
Thepercentage ranges from50percentto13percent,depending onthecropandtheconditions
ofinsurance.
8. Duration
Specific, when thepolicy istaken out.
9. Statistical data
Number ofbeneficiaries (thousands)
1996* 1995 1994
363 272 299
Area insured (thousands ofhectares)
1996* 1995 1994
6,943 4,774 4,900
__________________
*Provisional data.G/SCM/N/25/EEC
Page370
FINANCIAL SUPPORT FOR DAMAGE CAUSED BYDROUGHT IN1995
1. Titleofthesubsidy programme
Financial support fordamage caused bydrought in1995.
2. Period covered bythenotification
1996 financial year
3. Objective
Tomake goodthedamage caused bydrought andtohelpprovide alternative sources offinance
totheincome derived from normal activities.
4. Authority
Royal Decree Law4/1995 of12May.
Ministerial Order of30June1995 ofthePrime Minister 'sOffice.
Law8/1996 of15January.
5. Form ofthesubsidy
Discount of3percentontheinterest rateofloans granted.
6. Beneficiaries
Owners offarms situated inthezones affected bydrought, whose average losses were over
50percentofnormal production.
7. Amount
Ptas7,869 million.
8. Duration
Fiveyears, withoneyearfreeofrepayments.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page371
SUBSIDIES TOTHE AGRICULTURAL AND FOOD SECTOR COFINANCED
BYTHE EUROPEAN UNION IN1996
Title Ptas(millions)
Improved conditions fortheprocessing and
marketing ofagricultural products3,294
Improved conditions fortheprocessing and
marketing offishandaquaculture products63
Aidtothesugar industry 727.5G/SCM/N/25/EEC
Page372
FACILITIES FOR FISHING PORTS AND IMPROVED MARKETING
ATSOURCE OFFISH AND AQUACULTURE PRODUCTS
1. Titleoftheprogramme
Facilities forfishing ports andimproved marketing atsource offishandaquaculture products
(financing under thefisheries -oriented financing instrument (I.F.O.P)).
2. Period covered bythenotification
1996 financial year
3. Objective
Topromoteinvestmenttobenefitallfishermenandaquaculturalistsusingtheportsandtoimprove
marketing, including transparent pricing anddeveloping newmarketing channels, inparticular fornew
orunderutilized species.
4. Authority
Royal Decree 798/1995, of19May1995, oftheMinistry ofAgriculture, Fisheries andFood.
5. Form ofthesubsidy
Aidtopublic orprivate investment infishing portinstallations andfacilities andintended to
improve marketing from unloading rightthrough totheendproduct. Non-repayable subsidy.
Amount
Investment withparticipation ofprivate beneficiaries:
- Objective 1Regions:
A 50percent(eligible costs)
B 5percent(eligible costs)
C 25percent(eligible costs)
- Other Regions:
A 30percent(eligible costs)
B 5percent(eligible costs)
C 50percent(eligible costs)
Measures financed exclusively bytheEUandtheSpanish orother public authorities:
- Objective 1Regions:
50percent A 75percent(eligible costs)
B 25percent(eligible costs)
- Other regions:
25percent A 50percent(eligible costs)
B 50percent(eligible costs)
Note: A=Community participation
B=Spanish State participation
C=Participation ofprivate beneficiariesG/SCM/N/25/EEC
Page373
6. Beneficiaries
Public orprivate, which make suchinvestments.
Conditions:
Those established inECCouncil Regulation No.3699/93 of21December 1993.
Administration:
BytheAutonomous Communities. Coordinated bytheSubdirectorate ofFishMarketing as
theresponsible body inthese fields intheSupervisory Committees.
7. Amount
1995estimate oftheIFOP share, byprogramme component andObjective 1Regions andOther
Regions:
- Programme component 5:"Fishing portfacilities"
. Objective 1Regions =ECUs 11.25 million
. Other Regions =ECUs 1.43million
- Programme component 6:"Improved marketing atsource"
. Objective 1Regions =ECUs 44.99 million
. Other Regions =ECUs 5.70million.
Note:
These European Union subsidies aresupplemented byanoverall FROM credit of
Ptas195.17 million, allocated asfollows:
. 35.92 million forportfacilities;
. 159.25 million forimproved marketing atsource.
Thisamount istransferred totheAutonomous Communities, afterapproval bytheCouncil
ofMinisters.
Thisnational aidisintended tocover theminimum 5percentshare oftheestimated costs of
State participation inprivate investment.
8. Duration
Theperiod forthesupport andcommunity programmes forsuchstructural action inObjective 1
Regions andinOther Regions (i.e.1994-99).
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noinformation isavailable forsuchanassessment, butinanyevent theeffect would appear
tobeminimal.G/SCM/N/25/EEC
Page374
RENOVATION OFTHE FISHING FLEET (CONSTRUCTION
AND MODERNIZATION OFFISHING BOATS)
1. Titleofthesubsidy programme oradhocsubsidy
Renovation ofthefishing fleet(construction andmodernization offishing boats).
2. Period covered bythenotification
1996
3. Policy objective andpurpose ofthesubsidy
Thepolicy consists inreplacing oldvessels bynewones, aswellasmodernizing existing boats,
without anincrease inthefishing capacity oftheSpanish fleet, since anynewconstruction entails an
obligation toscrap oneormore vessels ofatonnage andengine capacity notlessthanthose ofthe
vessel tobebuilt. Thesame criteria apply tomodernized boats withincreased tonnage orengine
capacity.
Thisobligation toeffect reductions innewconstructions andmodernizations means thatwork
torenovate thefleetmust bewholly consistent withaction toadapt itscapacity, since those vessels
which aresubsidized when theyareexported orscrapped caninnocasebeusedforfurther building.
4. Authority
Royal Decree 798/95 of19Maysetting outthecriteria andconditions forstructural measures
infisheries, aquaculture andproduct marketing, processing andpromotion.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidy.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Inaccordance withthescale setoutinEEC Council Regulation 3699/93 of21December.
Thetotalsumallocated in1996 under these headings amounted toPtas1,346.3 million.
8. Duration ofthesubsidy oranyother period affecting it
Subsidies aregiven upon certification andjustification ofpayment ofthework performed.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page375
10. Oftheamount indicated insection 7,Ptas.843.96 million weretransferred totheAutonomous
Communities soastocofinance 5percentoftheestimated costsofStateparticipation ininvestment.
AIDFOR THE TEMPORARY STOPPAGE OFACTIVITIES OFFISHING
VESSELS DURING 1994, PROVIDED IN1996
1. Titleofthesubsidy programme oradhocsubsidy
Aidforthetemporary stoppage ofactivities offishing vessels during 1994, provided in1996.
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Theaimofatemporary cyclical haltistocutdown onfishing andthebasic objective isto
renew thefishing grounds.
4. Authority
EEC Council Regulation 4028/86;
Royal Decree 222/91, of22February;
Ministerial Order of19June1991;
Resolutions of9September 1993 and31May1993.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aid Number ofvessels
Ptas32,667,905 million 4
8. Duration ofthesubsidy oranyother period affecting it
Itisgranted foraperiod ranging from 45to150daysayear, withamaximum stoppage of
400dayspervessel.G/SCM/N/25/EEC
Page376
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.
SPECIAL ECONOMIC AIDTOSHIPOWNERS AFFECTED BYTHE STOPPAGE
OFFISHING (MINISTERIAL ORDER OF4MAY 1995)
1. Titleofthesubsidy programme oradhocsubsidy
Special economic aidtoshipowners affected bythestoppage offishing (Ministerial Order of
4May1995).
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Inaccordance withArticle 14ofCouncil Regulation 3699/93, therequisite aidisprovided
forowners offishing vessels operating intheMoroccan fishing grounds when theiractivity washalted
because anewfishing agreement between theEuropean Union andtheKingdom ofMorocco hadnot
beenapproved.
4. Authority
Order of4May1995 (BOE, 6May).
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aidtoshipowners Number ofvessels
Ptas7,120,123 12
8. Duration ofthesubsidy oranyother period affecting it
From 1Mayto25November 1995.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page377
SPECIAL ECONOMIC AIDTOSHIPOWNERS AFFECTED BYTHE STOPPAGE
OFFISHING (ROYAL DECREE 798/95 OF19MAY)
1. Titleofthesubsidy programme oradhocsubsidy
Special economic aidtoshipowners affected bythestoppage offishing (Royal Decree 798/95
of19May).
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Inaccordance withArticle 14ofCouncil Regulation 3699/93, therequisite aidisprovided
forowners offishing vessels engaged inshrimp-fishing intheMoroccan fishing grounds, under the
Fishing Agreement between theEuropean Union andtheKingdom ofMorocco, anaccount ofthe
biological halttofishing during January andFebruary 1996.
4. Authority
Royal Decree 798/95 of19May(BOE, 29June).
Order of9January 1996 (BOE, 12January).
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aidtoshipowners No.ofvessels
Ptas409,216,057 151
8. Duration ofthesubsidy oranyother period affecting it
From 1January to29February 1996.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page378
SPECIAL ECONOMIC AIDTOSHIPOWNERS AFFECTED BYTHE STOPPAGE
OFFISHING (ROYAL DECREE 798/95 OF19MAY,
MINISTERIAL ORDER OF21FEBRUARY 1996)
1. Titleofthesubsidy programme oradhocsubsidy
Special economic aidtoshipowners affected bythestoppage offishing (Royal Decree 798/95
of19May, Ministerial Order of21February 1996).
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Inaccordance withArticle 14ofCouncil Regulation 3699/93, owing tothebiological halton
fishing inFebruary andMarch 1996 therequisite aidisprovided forowners offishing vessels using
northern purse netsintheMoroccan fishing grounds under theFishing Agreement between theEuropean
Union andtheKingdom ofMorocco.
4. Authority
Royal Decree 798/95 of19May(BOE, 29June).
Order of21February 1996 (BOE, 23February).
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aidtoshipowners No.ofvessels
Ptas84,141,942 35
8. Duration ofthesubsidy oranyother period affecting it
From 1February to31March 1996.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page379
SPECIAL ECONOMIC AIDTOSHIPOWNERS AFFECTED BYTHE STOPPAGE
OFFISHING (ROYAL DECREE 798/95 OF19MAY,
MINISTERIAL ORDER OF21FEBRUARY 1996)
1. Titleofthesubsidy programme oradhocsubsidy
Special economic aidtoshipowners affected bythestoppage offishing (Royal Decree 798/95
of19May, Ministerial Order of21February 1996).
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Inaccordance withArticle 14ofCouncil Regulation 3699/93, owing tothebiological halton
fishing inFebruary andMarch 1996 therequisite aidisprovided forowners offishing vessels using
southern purse netsintheMoroccan fishing grounds under theFishing Agreement between theEuropean
Union andtheKingdom ofMorocco.
4. Authority
Royal Decree 798/95 of19May(BOE, 29June).
Order of21February 1996 (BOE, 23February).
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aidtoshipowners No.ofvessels
Ptas105,014,114 10
8. Duration ofthesubsidy oranyother period affecting it
From 1February to31March 1996.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page380
SPECIAL ECONOMIC AIDTOSHIPOWNERS AFFECTED BYTHE STOPPAGE
OFFISHING (ROYAL DECREE 798/95 OF19MAY,
MINISTERIAL ORDER OF21FEBRUARY 1996)
1. Titleofthesubsidy programme oradhocsubsidy
Special economic aidtoshipowners affected bythestoppage offishing (Royal Decree 798/95
of19May, Ministerial Order of21February 1996).
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Inaccordance withArticle 14ofCouncil Regulation 3699/93, owing tothebiological halton
fishing from15March to15May1996therequisite aidisprovided forowners offishing vessels engaged
inlong-line fishing intheMoroccan fishing grounds under theFishing Agreement between theEuropean
Union andtheKingdom ofMorocco.
4. Authority
Royal Decree 798/95 of19May(BOE, 29June).
Order of21February 1996 (BOE, 23February).
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aidtoshipowners No.ofvessels
Ptas279,230,960 115
8. Duration ofthesubsidy oranyother period affecting it
From 15March to15May1996.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page381
SPECIAL ECONOMIC AIDTOSHIPOWNERS AFFECTED BYTHE STOPPAGE
OFFISHING DURING THE FIRST HALF OFOCTOBER 1994,
PROVIDED IN1996
1. Titleofthesubsidy programme oradhocsubsidy
Special economic aidtoshipowners affected bythestoppage offishing during thefirsthalf
ofOctober 1994, provided in1996.
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Inaccordance withArticle 14ofCouncil Regulation 3699/93, therequisite aidisprovided
forowners offishing vessels operating intheMoroccan fishing grounds when theiractivity washalted
because theKingdom ofMorocco hadnotgranted therelevant licences forthefourth quarter of1994.
4. Authority
Order of15November 1994 (BOE, 3December).
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidies.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Aidtoshipowners No.ofvessels
Ptas1,472,451 1
8. Duration ofthesubsidy oranyother period affecting it
From 1to15October 1994.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page382
ESTABLISHMENT OFJOINT VENTURES
1. Titleofthesubsidy programme oradhocsubsidy
Establishment ofjointventures.
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Thepolicy istoestablish jointventures fortheexploitation ofthefishstocks ofthethirdcountry
withaviewtomainly supplying theCommunity market.
4. Authority
Royal Decree 798/95 of19Maysetting outthecriteria andconditions forstructural measures
infishing, aquaculture andproduct marketing, processing andpromotion.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Non-repayable subsidy.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Theaverage subsidy perboatlisted inajoint-venture project isPtas200million.
8. Duration ofthesubsidy andanyother period affecting it
Single payment.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page383
TEMPORARY BUSINESS ASSOCIATIONS
1. Titleofthesubsidy programme oradhocsubsidy
Temporary business associations.
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Fisheries adjustment.
4. Authority
Royal Decree 798/95 of19Maysetting outthecriteria andconditions forstructural measures
infishing, aquaculture andproduct marketing, processing andpromotion.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Capital grant.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, theannual amount budgeted forthe
subsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious year)
Total amount: Ptas1,998.94 million.
8. Duration ofthesubsidy andanyother period affecting it
One-time grant.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page384
FINAL HALT TOFISHING
1. Titleofthesubsidy programme oradhocsubsidy
Final halttofishing.
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Restructuring ofthefleettoencourage acomplete endtofishing bycertain vessels.
4. Authority
Royal Decree 798/95 of19Maysetting outthecriteria andconditions forstructural measures
infishing, aquaculture andproduct marketing, processing andpromotion.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Capital grant.
6. Beneficiaries
Shipowners inthefishing sector.
7. Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year)
Nopredetermined fixed amount; Ptas3,636,159,849 were allocated in1996.
8. Duration ofthesubsidy oranyother period affecting it
One-time grant.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Noeffect ontrade.G/SCM/N/25/EEC
Page385
PROMOTION OFINVESTMENT INAQUACULTURE
1. Titleofthesubsidy programme oradhocsubsidy
Promotion ofinvestment inaquaculture.
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
- Theconstruction, expansion, equipment andacquisition ofinstallations.
- Fitting outorimproving water flowinaquaculture enterprises.
- Purchase andinstallation ofnewequipment andmachinery intended exclusively for
aquaculture, including vessels andcomputer andtelematics equipment.
- Projects todemonstrate onascale similar tothatofnormal productive investments
thetechnical andeconomic feasibility ofbreeding species notyetmarketed orexploited
inaquaculture orinnovative breeding techniques, provided theyarebased onresearch
already carried out.
- Measures toprepare andusestatistical toolsforeffective assessment andmonitoring
oftheinvestment mentioned intheprevious paragraphs andresearch initiatives,
on-the-spot training andconsolidation ofstructures representative ofthesector.
4. Authority
Royal Decree 798/95 19Maysetting outthecriteria andconditions forstructural measures
infisheries, aquaculture andproduct marketing, processing andpromotion.
5. Form ofthesubsidy
Aid
6. Beneficiaries
Enterprises intheaquaculture sector.
7. Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year)
Annual amount: Ptas210million
8. Duration ofthesubsidy oranyother period affecting it
AnnualG/SCM/N/25/EEC
Page386
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Thisaid,aspartoftheoverall support fortheaquaculture sector intheEU,isintended to
stabilize thesector, withanestimated 1999 production capacity of270,514 metric tonnes, forthe
following species:
Turbot 4,400
Bream 8,500
SeaBass 2,300
Salmon 10,000
Oysters 8,500
Clams 6,000
Mussels 198,600
Rainbow trout 29,839
Eel 500
Other species 1,875
AIDFOR THE ESTABLISHMENT AND MANAGEMENT OF
ORGANIZATIONS OFFISH PRODUCERS
1. Titleofthesubsidy programme
Aidfortheestablishment andmanagement oforganizations offishproducers.
2. Period covered bythenotification
1996 financial year
3. Objective
Granting aidtoestablish suchorganizations.
4. Authority
EEC Regulation No.3759/92.
EEC Regulation No.1452/83.
Ministerial Order, 15February 1993.
5. Form ofthesubsidy
Percentage ofactual administrative costs or3percent, 2percent, 1percentofthevalue of
production intheprevious year.
6. Beneficiaries
Organizations offishproducers.G/SCM/N/25/EEC
Page387
7. Amount
Ptas50.7million, 50percentofwhich ispaidbytheEU.
8. Duration
Three years, decreasing annually, 60percent, 40percentand20percent.
9. Statistical data
Noeffect ontrade.
AIDTOIMPROVE THE STRUCTURES OFTHE FISHING
AND AQUACULTURE SECTOR
1. Titleofthesubsidy programme
Aidtoimprove thestructures ofthefishing andaquaculture sector.
2. Period covered bythenotification
1996 financial year
3. Objective
Togrant aidtoimprove thestructures ofthefishing andaquaculture sector.
4. Authority
EEC Regulation No.4028/86.
Ministerial Order, 4July1991.
5. Form ofthesubsidy
Upto25percentoftheeligible costs.
6. Beneficiaries
Natural andlegalpersons inthefishing sector.
Conditions:SubmissionoftheinvestmentprojectforapprovalbytheCommunityAdministration.
7. Amount
Total amount: Ptas52.9million.G/SCM/N/25/EEC
Page388
8. Duration
Regulation derogated with theentry into force ofCouncil Regulation 3699/93 of
21December 1993. Theeconomic effects lasted until31December 1996.
9. Statistical data
Noeffect ontrade.
AIDTOIMPROVE THE PROCESSING AND MARKETING OF
FISH AND AQUACULTURE PRODUCTS
1. Titleofthesubsidy programme
Aidtoimprove theprocessing andmarketing offishandaquaculture products.
2. Period covered bythenotification
1996 financial year
3. Objective
Togrant aidfortheprocessing andmarketing offishproducts.
4. Authority
EEC Regulation No.4042/89.
5. Form ofsubsidy
Upto25percentoftheeligible costs.
6. Beneficiaries
Natural andlegalpersons inthefishing sector.
Conditions:SubmissionoftheinvestmentprojectforapprovalbytheCommunityAdministration.
7. Amount
Total amount: Ptas20.2million.
8. Duration
Regulation derogated with theentry into force ofCouncil Regulation 3699/93 of
21December 1993. Theeconomic effects lasted until31December 1996.G/SCM/N/25/EEC
Page389
9. Statistical data
Noeffect ontrade
SUBSIDIES TOTHE AGRICULTURAL SECTOR COFINANCED BY
THE EUROPEAN UNION IN1996
Theamounts shown arethepartfinanced bythemember State, asthepartcofinanced bythe
European Union hasnotbeenincluded.
Title Amount
(millions)
Identification ofagricultural production systems 20
Promotion ofnewtechnologies andrationalized useofagricultural
production methods 178.6
Reconversion ofvarieties ofdried fruitandcarobs 3,271
Restructuring inwinegrowing areas 703
Development oftheuseofhighquality nursery plants andseed 75
Animal breeding andselection 143.1
Promotion ofintegrated processing associations inagriculture 147.2
Cattle hygiene campaigns 1,857.5
Sanitary Protection Groups 160
Management ofagricultural supply bymeans ofagricultural associations 3,650.7
Total 10,206.1
AGRICULTURAL VOCATIONAL TRAINING
1. Titleofthesubsidy programme
Agricultural vocational training.
2. Period covered bythenotification
1996 financial yearG/SCM/N/25/EEC
Page390
3. Objective
Toimprove thequalifications ofprofessionals intheagro-food sector andinrural areas.
4. Authority
Order 8855 of11April 1996, Ministry ofAgriculture, Fisheries andFood.
5. Form ofthesubsidy
Aidtonon-profit making bodies andnon-governmental organizations directly connected with
theagro-food andruralsectors, operating within thepurview ofStateactivities andstriving toimprove
thequalifications ofprofessionals inrural areas.
Amount
Upto90percentoftheinstruction costs and70percentoftheattendance costs ofstudents
intraining activities. Innocasemaytheaidbemore than85percentofthecostofthetraining.
Themaximum period willbe96hours ofclasses andthemaximum subsidy willbe
Ptas2,000/student/hour ofclass.
6. Beneficiaries
Professional farmers, young farmers, women working inruralareas, members ofagricultural
associations andpersons involved inrural development work andnature conservation.
Conditions
Theobjectives ofthetraining are:
- Modernization offarms byusing environment-friendly technologies;
- thenatural environment asasustainable resource;
- initiatives onenvironmental activities inrural areas;
- newsocial demands inrural areas;
- diversification ofactivities inrural areas;
- improvement ofmarketing andprocessing structures foragricultural products;
- promotion anddevelopment ofinformation technology andoftheutilization ofdata
telephony systems inrural areas;
- improvement inmanagement andtechnologies fortheefficient useofwater inrural
areas;
- promotionanddevelopmentofagriculturalassociationsofaneconomicnature,especially
foragricultural production;G/SCM/N/25/EEC
Page391
- promotionofassociationsfortheprotectionofnaturalresources,thenaturalenvironment
andforestry work forthedevelopment ofrural communities.
7. Amount
Total amount: Ptas521,392,732
8. Duration
1996
9. Statistical data
Noeffect ontrade.
AIDTOENCOURAGE ACTIVITIES TOPROMOTE AND SEEK NEW MARKETS
FOR FISH AND AQUACULTURE PRODUCTS
1. Titleofthesubsidy programme
Aidtoencourage activities topromote andseeknewmarkets forfishandaquaculture products.
2. Period covered bythenotification
1996 financial year
3. Objective
Toensure themarketing ofsurplus orunder-exploited species, collective marketing andto
pursue policies toraisethequality offishandaquaculture products.
4. Authority
- EEC Council Regulation 3699/93 of21December 1993.
- Royal Decree 798/1995 of19Maysetting outthecriteria andconditions forstructural
measures infishing, aquaculture andproduct marketing, processing andpromotion.
5. Form ofthesubsidy
Direct aidfortheeligible costsoftheaction undertaken inwhich IFOP contributes 47.44 per
cent, themember States 24.36 percentandthebeneficiary 28.2percent.
6. Beneficiaries
Organizations andassociations offishproducers whose activities arenationwide andpromoted
bypersons based inmore thanoneautonomous community.G/SCM/N/25/EEC
Page392
7. Amount
Ptas13.54 million from theState budget
8. Duration
Theperiod forthesupport andcommunity programmes forsuchcultural action inObjective 1
Regions andinOther Regions (i.e.1994-1999).
9. Statistical data
Noeffect ontrade
Notes:
TheProgramme "Facilities forfishing ports andimproved marketing atsource offishand
aquaculture products" replaces thefollowing twoprogrammes notified in1996: "Subsidies tothe
fisheries sector cofinanced bytheEuropean Union" and"Aid forinvestment infishing ports and
processing offisheries andaquaculture products. National contribution inFROM funds".
TheProgramme "Renovation ofthefishing fleet" incorporates thefollowing twoprogrammes
notifiedin1996:"Aidformodernizationoffishingvessels"and"Aidforthebuildingoffishingvessels".
Thefollowing twoprogrammes notified in1996 have expired: "Special economic aidto
shipowners affected bythestoppage offishing" (Order of23October 1995, amending thatof
4May1995) and"Special economic aidtoshipowners affected bythestoppage offishing" (Order
of23October 1995).G/SCM/N/25/EEC
Page393
NOTIFICATION OFSUBSIDIES
CENTRAL ADMINISTRATION
ANNEX No.2
MINISTRY OFTHE ECONOMY AND FINANCEG/SCM/N/25/EEC
Page394
SMALLANDMEDIUMENTERPRISESINDUSTRIALDEVELOPMENTINITIATIVE1
1. Titleofthesubsidy programme
Small andMedium Enterprises Industrial Development Initiative: AidandPromotion
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
TheIndustrial Development Initiative incorporates anumber ofactivities forsmall andmedium
enterprises (SMEs) andconsists ofthefollowing subprogrammes:
3.1Subprogramme: Business cooperation assistance
Purpose: Theofficial aidisintended tofinance some ofthecostfornational partners
ofconcluding cooperation agreements andthecostofcooperation awareness
andpromotion plans.
Theactivities must notleadtorestrictive business practices, must offer
guarantees ofpermanence andstability andmustbedirected atpromoting and
supporting inter-business cooperation.
3.2. Subprogramme: Support forthepromotion ofbusiness information services
Purpose: Theaidisgranted tofacilitate cooperation between information centres which,
using telematics, promote ineachAutonomous Community thesupply of
sophisticated business information services.
3.3. Subprogramme: Industrial design support
Purpose: Product design projects bycompanies intended tosecure theincorporation and
developmentofdesigntechnologiesinbusinessactivitiesconnectedwithproduct
policy.
3.4. Subprogramme: Support forfinancing
Purpose: Cheaperaccessbysmallandmediumenterprisestovarioussourcesoffinancing,
andeasier investment andbetter economic andfinancial structures forsuch
enterprises.
3.5Subprogramme: Territorial networks andintermediate bodies
1Theautonomousbodyresponsibleforadministeringtheprogramme in1995,theSmallandMediumEnterprises
Institute,hasbeenabolishedanditspowerstransferredtotheDirectorate-GeneralforSmallandMediumEnterprises
Policy, which comes under theMinistry oftheEconomy andFinance.G/SCM/N/25/EEC
Page395
Purpose: Technicalassistancetobusinessesforactionplansorprojectstart-up,principally
thoseintended toutilize technological resources orimprove internal technology
learning processes orinnovation management.
Spreading ideas, andimproving practices, results andtechniques involving
technological content orindustrial design, including jointtraining activities
forthehuman resources ofSMEs and/or intermediate bodies ininnovation
management.
Measures toencourage participation bySMEs andintermediate organizations
ininternationalcooperationprogrammes,chieflythoseintheEuropeanUnion's
IVFramework Technological Research andDevelopment Programme, and
inother innovation-related programmes andintheEUREKA andIBEROEKA
Programmes.
Study andintroduce technological monitoring systems inappropriate sectors,
aboveallwithpatentedtechnologies,toimprovetheformulationoftechnological
andtrade plans andstrategies bytheSMEs.
Develop activities byintermediate organizations working asanetwork, to
encourage them tosupport SMEs, improve theirsolvency orholdashare of
theequity.
4. Authority
Ministerial Order of8May1995
5. Form ofthesubsidy
Direct subsidies
6. Towhom andhowthesubsidy isprovided
Small andmedium industrial enterprises orindustry-related services andintermediate
organizations areeligible forthisaid.
Forthepurposes ofthisOrder, asmall ormedium industrial enterprise (SME) isdeemed to
beaneconomic unitwithnatural orlegalpersonality which, atthetimeoftheapplication, meets the
following requirements:
(a) Notmore than250workers;
(b) either: anannual turnover ofnotmore thanECU 20million, oranoverall balance
ofnotmore thanECU 10million;
(c) aunitinwhich oneormore enterprises which donotmeet these conditions donot
holdmore than25percentoftheshares, unless theyarestateinvestment enterprises,
riskcapital enterprises or,provided theydonotexercise control, institutional investors.G/SCM/N/25/EEC
Page396
Forthepurposes ofthisOrder, anintermediate organization isdeemed tobe:
- Anypublic, semi-public orprivate organization which, regardless ofthewayitis
established orwhether ithaslegalpersonality, onanon-profit making andhabitual
basis, provides support services forsmall andmedium enterprises, byitselforthrough
associations, federations orother arrangements, bycarrying outjoint assistance
programmes orsupplying services topromote innovation orhelpimprove the
enterprise 'sfinancial structure.
- Organizationswhich,forprofit-makingpurposesandinwhichthemajorityofthecapital
isState owned, pursue theobjectives setoutintheprevious paragraph.
- Financial bodies, excluding credit bodies, engaged inactivities covered bythefinancial
support programmes intheSME initiative, aswellasbodies whose purpose istogrant
loanstoSMEs orprovide riskcapital, either fromtheirownresources orfromresources
managed bythem.
7. Amount ofthesubsidy
Ptas4,530 million
Budgeted annual amount:
Cooperation: 6.97percent
Information: 3.46percent
Design: 26.91 percent
Financing: 31.74 percent
Innovation networks: 13.31 percent
8. Duration ofthesubsidy
1995-1999
9. Statistical dataonthetrade effects ofthesubsidy
Given thenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page397
REGIONAL ECONOMIC INCENTIVES SYSTEM
1. Titleofthesubsidy programme
Regional Economic Incentives System
2. Period covered bythenotification
1January 1996 to31December 1996
3. Policy objective and/or purpose oftheprogramme
Theobjective istopromote theeconomic development ofthemore disadvantaged areas, foster
entrepreneurship andencourage firms tolocate inpreviously determined areas, forthepurpose of
reducing economic disparities onSpanish territory, securing amore equitable spread ofeconomic
activities andstrengthening theregions 'potential forinternally generated development.
4. Background andauthority fortheprogramme
Thebackground isthemandate under theSpanish Constitution, which setsoutinArticle 40.1
anobligation ontheauthorities tofoster favourable conditions foramore equitable distribution of
regional income. Similarly, Article 138laysdown thattheState shallestablish asuitable andjust
economic balance between thevarious parts ofSpanish territory.
Theauthority is:
- Law50/1985of27December,onregionaleconomicincentivestoremedyinter-regional
economic imbalances.
- Regulation approved byRoyal Decree 1535/1987 of11December andamended by
Royal Decree 897/1991 of14July, byRoyal Decree 302/1993 of26February, and
byRoyal Decree 2315/1993 of29December. Itwasapproved bytheEUCommission 's
Decision of1June1987.
- Royal Decrees delimiting the13Economic Promotion Areas.
5. Form ofthesubsidy
Non-repayable subsidies, granted forproductive investments andcalculated ontheinvestment
approved bytheAdministration.
6. Towhom andhowthesubsidy isprovided
Onceitisapproved thesubsidy isnotified individually tothepersons concerned inanIndividual
Resolution establishing thebasic datafortheproject, including thename oftherecipient enterprise
thathasapplied forit.
Theaidispaidoncetherelevant Autonomous Community hasissued areport substantiating
fullexecution oftheproject andonfulfilment, within thespecified periods, oftheconditions required
intherelevant Individual Resolution, accepted bythebeneficiary beforehand. Enterprises mayapplyG/SCM/N/25/EEC
Page398
toreceive thesubsidy ininstalments provided theyproduce evidence thatthepartoftheinvestment
foreachinstalment hasbeenmade together withadequate guarantees against failure tocomplete.
Thesubsidy isapercentage oftheproject investment andiscalculated onthebasis ofthe
following criteria:
- Location;
- sizeoftheproject andjobscreated;
- value added, when theproject isanewfacility orincreases productivity, inother kinds
ofprojects;
- technological value;
- useoflocalresources;
- impact oftheproject onthearea'seconomy.
7. Annual amount budgeted forthescheme
General State Budget for1996: Ptas11,771.9 million, fullydisbursed.
8. Duration oftheregional aidscheme
Thescheme willcontinue aslongasthereason forintroducing it,namely theimbalance in
regional development, persists.
9. Statistical data
Astothestatistical datapermitting anassessment oftheprogramme 'strade effects, itshould
benoted that,since thesubsidies taketheformofcapital forproductive investment indisadvantaged
regions, theprinciple offreecompetition isnotdeemed tobejeopardized.G/SCM/N/25/EEC
Page399
NOTIFICATION OFSUBSIDIES
CENTRAL ADMINISTRATION
ANNEX No.3
MINISTRY OFTHE ENVIRONMENTG/SCM/N/25/EEC
Page400
AIDTOTHE INDUSTRIAL WASTE MANAGEMENT ENTERPRISE (EMGRISA),
PARTICIPATION INTHE MELILLA INCINERATOR
1. Titleofthesubsidy programme
AidtotheIndustrial Waste Management Enterprise (EMGRISA), participation intheMelilla
incinerator.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose oftheprogramme
Financial participation intheconstruction oftheurban solidwaste incinerator forthecityof
Melilla.
4. Background andauthority fortheprogramme
Article 74:Law41/94 of30December, 1995 General State Budget
5. Form ofthesubsidy
Subsidy specifically approved intheGeneral State Budget Law(direct transfer offunds).
6. Towhom andhowthesubsidy isprovided
TotheIndustrial Waste Management Enterprise (EMGRISA)
7. Annual amount budgeted forthescheme
Programme terminated
8. Duration oftheregional aidscheme
Period ofexecution ofthework
9. Statistical data
Noeffect ontradeG/SCM/N/25/EEC
Page401
SUBSIDY FOR PRIVATE ENTERPRISES TOFINANCE AID
FOR THE REUTILIZATION OFUSED OILS
1. Titleofthesubsidy programme
Subsidy forprivate enterprises tofinance aidforthereutilization ofusedoils.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose oftheprogramme
Reutilization andrecycling ofresidues.
4. Background andauthority fortheprogramme
Article 77:Law41/94 of30December, ofthe1995 General State Budget, which was
automatically extended attheendof1995forthe1996 financial year, without aGeneral StateBudget
Lawbeing approved for1996.
5. Form ofthesubsidy
1. Public announcement ofaidforthereutilization ofusedoils.
2. Bywritten agreement withtheOfficial Credit Institute andMinistry ofIndustry and
Energy.
6. Towhom andhowthesubsidy isprovided
Toenterprises engaged inthereutilization ofoil,bydirect subsidy orbycredit line,in
accordance withtheconditions setoutintheannouncement.
7. Annual amount budgeted forthesubsidy
Atotalamount ofPtas222,437,269 fullydisbursed before 31December 1995, waspaidout
inaccordance withtheterms ofthepublic announcement ofaid.
8. Duration oftheregional aidscheme
Periodic, forperiods ofoneyear
9. Statistical data
Noeffect ontrade
Note: In1995, bothprogrammes wereadministered bytheMinistry ofPublic Works, Transport and
theEnvironment through theSecretariat ofStatefortheEnvironment andHousing. Itsfunctions
andaidprogrammes havebeentransferred totheMinistry oftheEnvironment, established
byRoyal Decree 758/1996 of5Mayrestructuring ministerial departments.G/SCM/N/25/EEC
Page402
NOTIFICATION OFSUBSIDIES
CENTRAL ADMINISTRATION
ANNEX No.4
MINISTRY OFINDUSTRY AND ENERGYG/SCM/N/25/EEC
Page403
ANNEX
Subsidies Granted in1997 (Including Non-Actionable Subsidies)
Contents
I. MINING (ENERGY)
II. MINING (OTHER THAN ENERGY)
III. ENERGY SAVING AND EFFICIENCY PLAN
IV. NATIONAL INDUSTRIAL QUALITY PLAN
V. ENVIRONMENTAL INDUSTRIAL AND TECHNOLOGICAL PLAN
VI. SUPPORT PLAN FOR TEXTILES AND CLOTHING
VII. AIDTOSHIPBUILDING
VIII. AIDTOTHE IRON AND STEEL INDUSTRY
IX. INDUSTRIAL TECHNOLOGY ACTION PLAN
X. INDUSTRIAL TECHNOLOGY DEVELOPMENT CENTRE (CDTI)
XI. R&D PLAN FOR THE AERONAUTICAL SECTOR
XII. AIDUNDER TECHNOLOGICAL PROGRAMMES CONNECTED WITH THE SEAT
MODERNIZATION PLANG/SCM/N/25/EEC
Page404
I.MINING (ENERGY) -AIDFOR THE COAL SECTOR
1. Titleofthesubsidy programme
Aidforcoalmining
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Theobjectives ofthescheme aretohelpmake enterprises more economically viable inthe
lightofinternational coalmarket prices, toalleviate thesocial andregional consequences ofmeasures
toachieve thisobjective andtobring thecoalindustry intolinewithenvironmental standards.
Rather thanforregional development, theprogramme isintended tohalteconomic decline
duetopitclosures. Itisaninterim scheme forapre-established period, withdecreasing subsidies.
4. Authority
European Union Commission Decision 3632/94/ECSC of28December.
5. Form ofthesubsidy
Non-repayable subsidy.
6. Towhom andhowthesubsidy isprovided
Enterprises, associations ofenterprises andinstitutions whose object istopromote anddevelop
theuseofcoal.
Thisaidiscontingent oncompliance byapplicants withtheirtaxandsocial security obligations,
anditisessential forrecipients toproduce documents showing thatthesubsidized activity hasactually
beencarried out.
7. Amount ofthesubsidy
- Coverage ofoperating costs: Ptas124,316 million.
- Costofpitclosures, including thesocial costs arising from joblosses andtechnical
costs, borne bytheMINER +OFICO budget: Ptas30,299 million.
8. Duration ofthesubsidy
Decision 3632/94/ECSC remains inforceuntiltheendof2002, when theECSC Treaty expires.G/SCM/N/25/EEC
Page405
9. Statistical dataonthetrade effects ofthesubsidy
1996
- ECSC coal(Hard coal+Sub-bituminous), produced inSpain: 17,806.100t.
- ECSC coalimported forpower stations: 8,809,500 t.
- ECSC coalimported forironandsteelplants: 3,318,400 t.
- ECSC coalexported: 0t.G/SCM/N/25/EEC
Page406
II.MINING (OTHER THAN ENERGY)
1. Titleofthesubsidy programme
Development ofNon-Energy Mining
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Development oforeprospecting, mining andprocessing, aswellasR&D inthese fields and,
insome cases, environmental rehabilitation offormer mining sites.
4. Authority
Ministerial Order of31July1992 (BOE, 13August 1992).
5. Form ofthesubsidy
Non-repayable grant, orrepayable subsidy andsubsidized loan.
6. Towhom andhowthesubsidy isprovided
Thebeneficiaries maybeenterprises, associations ofenterprises orinstitutions whose object
istopromote anddevelop theuseofnon-energy minerals. Mining investment subsidies areconfined
tozones defined bytheEUCommission asObjective 2,since theassistance under thisprogramme
inthiscaseisinthenature ofregional development.
Thisaidiscontingent ontheapplicants meeting theirtaxandsocial security obligations, and
therecipients must produce documents showing thatthesubsidized activity hasbeencarried out.
7. Amount ofthesubsidy
Ptas557million
Themaximum ratesare:
20percentforoperating investments;
50percentforbasic research (+10percentforsmall andmedium enterprises);
25percentforapplied research (+10percentforsmall andmedium enterprises);
15percentforenvironmental investments;
75percentor50percentforinvestment inareas covered bytheexisting Regional
Incentives Law.G/SCM/N/25/EEC
Page407
8. Duration ofthesubsidy
Theprogramme lastsforfiveyears, until31December 1996.
9. Statistical dataonthetrade effects ofthesubsidy
Theprogramme hasnotrade effects because ofthesmall amount compared withthesizeof
thesector (annual turnover between Ptas200,000 million andPtas300,000 million) andthehighnumber
ofrecipients, since theprogramme covers 32enterprises.G/SCM/N/25/EEC
Page408
III.ENERGY SAVING AND EFFICIENCY PLAN
1. Titleofthesubsidy programme
Energy Saving andEfficiency Plan
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
ThePlan'sobjectivesaretopromoteenergyefficiencyinindustry,transportandpublicbuildings;
todevelop theuseofsources ofrenewable energy, suchaswind, solar(thermal andphotovoltaic energy),
useofthebiomass andwaste (urban, industrial, forest andagricultural) andsmall-scale hydraulic power
(upto10MVA).
Theforegoing isentirely inaccordance withtheobjectives ofLaw82/80 onenergy conservation
andoftheNational Energy Plan, which defines theenergy objectives forthedecade 1991-2000.
4. Authority
Law82/80 onenergy conservation, Ministerial Order of28March 1995 establishing the
regulatory basisforsubsidies under thisprogramme andMinisterial Order of20December 1995, which
partly amends thelatter andsetsthesubsidies for1996.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Thefollowing areeligible forsuchsubsidies:
- Public orprivate enterprises;
- groups ofsuchenterprises;
- condominium owners 'associations;
- non-profit making institutions;
- localcorporations;
- natural persons engaging inactivities covered bythePlan.
Toreceive thissubsidy, thebeneficiary mustshow thathehasmethiscurrent taxandsocial
security obligations andalsoshow thatthesubsidized activity hasbeencarried out.G/SCM/N/25/EEC
Page409
7. Amount ofthesubsidy
Ptas1,251 million.
Thisaidwillbedistributed annually asfollows:
- Commitments in1996: 38percent;
- commitments in1997: 47percent;
- commitments in1998: 15percent.
8. Duration ofthesubsidy
Thisprogramme covers fortheperiod 1995-1999.
9. Statistical dataonthetrade effects ofthesubsidy
Since thesubsidy isforallenergy users, thisquestion doesnotapply.G/SCM/N/25/EEC
Page410
IV.NATIONAL INDUSTRIAL QUALITY PLAN
1. Titleofthesubsidy programme
National Industrial Quality PlanII
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
ThePlan'sobjectives are:
(a) Topromote quality management schemes inenterprises, soastoachieve thehighest
possible quality;
(b) topromotetheestablishmentofaccreditation,certification,inspectionandtestingbodies
andofstandardization organizations withproven technical capacity attheCommunity
andinternational levels asregards bothcompulsory regulation andthesetting of
voluntary, high-quality standards.
4. Authority
Ministerial Order of26April 1994onaidtopromote industrial quality andMinisterial Order
of29October 1996 amending theformer.
5. Form ofthesubsidy
Non-repayable subsidy.
6. Towhom andhowthesubsidy isprovided
Public orprivate enterprises orbodies; associations ofsuchenterprises andnon-profit making
institutions carrying outactivities defined inSection 3"Purpose ofthesubsidy".
Toreceive thesubsidy, thebeneficiary mustshow thattaxandsocial security payments have
beenmade andthatthesubsidized activity hasbeencarried out.
7. Amount ofthesubsidy
Ptas2,344 million.
8. Duration ofthesubsidy
Thissubsidy programme covers theperiod 1994-1997, butended in1996inaccordance with
theprovisions oftheOrder of29October 1996.G/SCM/N/25/EEC
Page411
9. Statistical dataonthetrade effects ofthesubsidy
Thisprogramme hascovered 802projects inallindustrial sectors, withanaverage subsidy
ofPtas2.9million perproject. This, together withtheabove-mentioned structure oftheprogramme,
means thatthedirect effect ontrade mayberegarded aspractically non-existent.G/SCM/N/25/EEC
Page412
V.ENVIRONMENTAL, INDUSTRIAL AND TECHNOLOGICAL PLAN (PITMA II)
1. Titleofthesubsidy programme
Environmental, Industrial andTechnological Plan(PITMA II)
2. Period covered bythenotification
Thedatainthisnotificationcoversubsidiesin1996,whichwasthefinalperiodwhenthePITMA
Programme wasmanaged bytheMinistry ofIndustry andEnergy, asitsadministration isnowthe
responsibility oftheMinistry oftheEnvironment.
3. Purpose ofthesubsidy
ThePITMA IIprogramme 'sbasic objectives are:
- Abatement orelimination ofpollution from industry andindustrial products;
- development ofthesupply ofclean technologies andenvironmentally sound capital
goods andservices forindustry.
- variousenvironmentalactivities(environmentalinformationandawareness,dissemination
ofclean technologies, environmental impact studies, etc.).
4. Authority
ThePITMA IIprogramme wasadopted under Law21/1992, of16July, onIndustry, which
establishes theneedforindustrial plants tocomply withdomestic andEuropean Union standards
(Article 11)byformulating plans designed toimprove competitiveness andadapt industrial activity
toenvironmental needs, bystrengthening preventive, protective andcorrective measures, aswellas
thedevelopment andincorporation ofappropriate technologies (Article 5).
PITMA IIaidisgoverned bytheMinisterial Order of23December 1994 (BOE 313of
31December 1994) andtheMinisterial Order of27November 1995(BOE 298of14December 1995),
amending theearlier Order.
5. Form ofthesubsidy
TheMinisterial Order regulating PITMA II(Article 1)establishes twokinds ofaid:
- Capital grants;
- loans atpreferential ratesofinterest.
6. Towhom andhowthesubsidy isprovided
ThePITMA IIsystem isintended forpublic orprivate enterprises inanyindustrial sector and
alsoforgroups orassociations ofprivate non-profit making enterprises andinstitutions.
Theprocedures forproviding capital grants issetoutinChapter 2oftheMinisterial Order
governing PITMA IIandforloans atpreferential ratesinChapter 3.G/SCM/N/25/EEC
Page413
Applicationsareassessedbyacommittee,whichagreesproposalsforsubsidies.Theseproposals
arethentransmitted tothecompetent body foradecision. Since itisasystem ofcompetitive
competition, thebestprojects areselected fromamong those submitted, inaccordance withthecriteria
setoutinArticle 9oftheMinisterial Order governing PITMA II.
Subsidies arepaidintwoways: afterverification ofproject implementation (Ministerial Order,
Article 15)orinadvance, afterthepayment ofabankguarantee (Ministerial Order, Article 16).
7. Amount ofthesubsidy
Thesubsidy perproject isapercentage oftheinvestment tobemade andvaries considerably
depending onthekindofproject, thesizeoftheenterprise andtheregion concerned. Themaximum
percentages arethose approved bytheEUandaresetoutintheregulatory Ministerial Order
(Article 11.4).
In1996, atotalofPtas1,662 million waspaidoutfor205projects, withanaverage subsidy
ofPtas8.1million perproject. Projects subsidized withloans atpreferential ratestotalled 58andthe
amount paidtodiscount interest ratesin1996 wasPtas415million (anaverage ofPtas7.1million
perproject).
8. Duration ofthesubsidy
ThePITMA IIprogramme covers fiveyears, starting in1995andending in1999. Asof1997
theMinistry oftheEnvironment isresponsible foritadministration.
Theaidisgranted annually forprojects executed inthecalendar yearinwhich theapplication
forasubsidy ismade. In1996, subsidized projects hadtobecarried outintheperiod 1January 1996
to31December 1996. Ifanextension wasnecessary, onjustified grounds, itwasgranted upto
30June1997.
Inthecaseofproject implementation lasting more thanayear, aidhastoberequested each
year.
9. Statistical dataonthetrade effects ofthesubsidy
ThePITMA IIprogramme concerns allindustrial sectors affected byenvironmental legislation.
Thefactors considered inproject evaluation donotinclude trade(imports, exports) orproduction data,
relate chiefly tocompliance withenvironmental standards andthefeasibility oftheprojects submitted.
Norisanypriority attached toaparticular sector.
Additional note
ThePlanconcernsprojectstocounteractenvironmentalpollution,forwhichreasonitisregarded
asanon-actionable programme pursuant toArticle 8.2(c) oftheSCM Agreement. Itisnotified under
Article 25because itwasapplied in1996.G/SCM/N/25/EEC
Page414
VI.COMPETITIVENESS PLAN FOR THE TEXTILE AND CLOTHING SECTOR
1. Titleofthesubsidy programme
Competitiveness PlanfortheTextile andClothing Sector
2. Period
Thepresent notification relates totheyear1996.
3. Purpose ofthesubsidy
Thepurpose ofthesubsidy istomake asubstantive contribution toadjustments totheeconomic
structure oftheareas selected, among other means bystreamlining themanufacturing andcommercial
structure oftextile andclothing enterprises, provided theaiddoesnotentail anincrease inproduction
capacity.
4. Authority
ThisPlanisprincipally regulated bytheOrder of16July1992oninternational competitiveness
anddiversification measures forareas withtextile andclothing manufacturing.
5. Form ofthesubsidy
Theaidisintheform ofnon-repayable subsidies andtheamount varies, depending onthe
action:
(a) Upto70percentofthecostoftraining personnel outside theenterprise orentity
submitting theapplication;
(b) upto50percentofthecostofstudies anddiagnosis;
(c) upto25percentoftechnological development costs, with thepossibility ofa
10percentincrease inthecaseofSMEs;
(d) upto50percentofthecostofestablishing groups orassociations, either permanently
orforaperiod ofnotlessthanthree years;
(e) upto50percentofthecostforproduct design, quality andstandardization measures
andtheimprovement ofmarketing andcommunication channels.
6. Towhom andhowthesubsidy isprovided
Thefollowing areeligible:
(a) Industrial enterprises orgroups ofenterprises;
(b) public orprivate entities andorganizations.
Thesubsidy, which isafixed amount, ispaidwithin thelimits indicated inSection 5.G/SCM/N/25/EEC
Page415
Thisaidiscontingent upontheapplicants meeting theirtaxandsocial security obligations and
onthepresentation ofdocuments showing thatthesubsidized activity hasbeencarried out.
7. Amount ofthesubsidy
Theaverage subsidy perunitin1996 wasPtas6.7million, withanoverall amount of
Ptas1,777 million foratotalof355subsidies.
8. Duration
Theprogramme lastsforfiveyears, covering theperiod 1992-1996.
Subsidies aregranted foroneyear, andanannual application isrequired forprojects lasting
more thanayear.
9. Statistical dataonthetrade effects ofthesubsidy
Thestatistical dataavailable onthesector inrecent years isasfollows:
(a) Inthepastthree years (millions ofpesetas).
1994 1995 1996*
Production
Imports
Exports
Apparent consumption2,238.8
588.7
350.9
2,476.62,304.0
634.2
449.2
2,489.02,205.0
696.0
498.0
2,403.0
_____________________
*Estimated figures.
(b) Intheyearprevious totheissue oftheOrder:
1991
Production 2,134.6
Imports 460.6
Exports 207.8
Apparent consumption 2,387.7
Additional note
TheCompetitiveness PlanfortheTextile andClothing Sector ispartoftheCommunity RETEX
Initiative andapplies togeographical areas thatdepend heavily onthetextile andclothing industry.
Itistherefore regarded asanon-actionable programme, pursuant toArticle 8.2(b)(aidfordisadvantaged
regions) oftheWTO Agreement onSubsidies andCountervailing Measures.G/SCM/N/25/EEC
Page416
VII. AIDTOSHIPBUILDING
A. Shipbuilding Subsidies
A.1 Titleofthesubsidy programme
Shipbuilding subsidies
A.2 Period covered bythenotification
1996
A.3 Purpose ofthesubsidy
Thefundamental aimofCommunity andnational policy istoensure thattheshipbuilding sector
remains competitive ontheworld market.
Since third countries continue toapply aidand/or measures thatdistort freecompetition in
theshipbuilding sector, inorder tocompete ontheinternational market Community shipyards must
haveaccess tooperational aid(limited byacommon ceiling: 9percentor4.5percent, depending
onwhether ornotthevalue oftheshiptobebuiltexceeds ECU 10million) andrestructuring aid(for
investments which donotimply anincrease incapacity, totalorpartial closure offacilities andresearch
anddevelopment).
A.4 Authority
Royal Decree 442/1994, of11March, onshipbuilding subsidies andfinancing, amended by
Royal Decree 1395/1995.
A.5 Form ofthesubsidy
Non-repayable.
A.6 Towhom andhowthesubsidy isprovided
Thesubsidy ispaidtoshipyards building metal-hull vessels ofover100gross registered tonnes.
Thesubsidy isprovided oncetherelevant construction orconversion contract hascome into
effect andpayments aremade astheshipisbuiltorconverted, subject toprovision being made inthe
annual budget, which means anaverage delay inpayments ofapproximately oneyear.
A.7 Amount ofthesubsidy
Total subsidy granted in1996: Ptas33,854 million
Number ofsubsidies granted in1995: 62
Average subsidy perunit: Ptas546million
OfthePtas33,854 million, 9,537 million areforoperating aidand24,317 forrestructuring
aid,asdefined inSection 3above.G/SCM/N/25/EEC
Page417
A.8 Duration ofthesubsidy
Theperiod ofapplication oftheprogramme isthesameasthatoftheSeventh Directive, which,
inprinciple, extends upuntil theentry intoforce oftheOECD Agreement andnotlater than
31December 1997.
A.9 Statistical dataonthetrade effects ofthesubsidy
Thesubsidiesgrantedin1996didnotincreaseSpain'sshareintheworldmarket,since,according
toavailable data, newcontracts in1996 forships tobebuiltinSpanish shipyards account foronly
2percentoftheworld total, whereas historically thefigure washigher (approximately 4to5percent).
B. Interest Subsidy forShipbuilding Loans
B.1 Titleofthesubsidy programme
Interest Subsidy forShipbuilding Loans
B.2 Period covered bythenotification
1996
B.3 Purpose ofthesubsidy
Thesame objectives asthose described insection A.3above.
B.4 Authority
Royal Decree 442/1994, of11March, onshipbuilding subsidies andfinancing, amended by
Royal Decree 1395/1995.
B.5 Form ofthesubsidy
Interest subsidy
B.6 Towhom andhowthesubsidy isprovided
Thisapplies solely todomestic shipbuilders orthose domiciled intheEuropean Union and
consists ofpayment ofupto3percentage points oftheinterest onshipbuilding loansgranted bydomestic
orforeign financial entities.
Thesubsidy ispaidthroughout thetermoftheloan(8.5to14years) subject toprovision being
made intheannual budget, which means thatthere isathree toninemonths delay inpayments.
B.7 Amount ofthesubsidy
Total subsidy granted in1996: Ptas36,201 million2
Number ofsubsidies granted in1996: 73
Average subsidy perunit: Ptas495million
Period forrepayment ofloans: 8.5to12years
Average annual subsidy perunit(approx.): Ptas45million
2Relating tocontracts forshipbuilding andshipconversion for1994 to1996.G/SCM/N/25/EEC
Page418
B.8 Duration ofthesubsidy
Theperiod ofapplication oftheprogramme isthesameasthatoftheSeventh Directive, which,
inprinciple, extends upuntil theentry intoforce oftheOECD Agreement andnotlater than
31December 1997.
B.9 Statistical dataonthetrade effects ofthesubsidy
Thesubsidies granted inthethree years from 1994 to1996 didnotleadtoanincrease inthe
number oforders fromdomestic shipowners orshipowners domiciled intheEuropean Union toSpanish
shipyards, since these accounted forsome 75percentofallneworders inthatperiod toSpanish
shipyards, compared with70percentin1993, before thelastmajor change inthissubsidy, andbearing
inmind thatthenumber ofStates members oftheEuropean Union increased in1995.G/SCM/N/25/EEC
Page419
VIII. AIDTOTHE IRON AND STEEL INDUSTRY
A. AidtoCSI
A.1 Titleofthesubsidy programme
AidbytheSpanish Statetothepublic ironandsteelenterprise Corporación delaSiderurgia
Integral (CSI).
A.2 Period covered bythenotification
1January 1996 to31December 1996
A.3 Purpose ofthesubsidy
Tocarry outtheplanned restructuring oftheenterprise under the1993 Community ironand
steelrestructuring plan, which consists ineliminating, byclosing down certain plants, thefollowing
production capacities:
- Pigiron: 2.3million t.
- rawsteel: 1.4million t.
- hot-rolled coil: 2.3million t.
A.4 Authority
- Treaty establishing theEuropean CoalandSteelCommunity, Article 95,paragraphs 1
and2.
- Commission Decision of12April 1994onaidplanned bySpain tothepublic ironand
steelenterprise Corporación delaSiderurgia Integral (CSI) (94/258/ECSC).
A.5 Form ofthesubsidy
Thetotalamount ofthesubsidy isPtas485,150 million, theultimate purpose ofwhich isto
cover theliabilities andsurplus labour costs oftwoironandsteelcompanies intheprocess ofbeing
dissolved: ALTOS HORNOS DEVIZCAYA, S.A.andENSIDESA, aspartoftheplantorestructure
theholding company, CSI,which incorporated other two.
A.6 Towhom andhowthesubsidy isprovided
Thesubsidy ispaidtoA.H.V.-ENSIDESA CAPITAL, S.A., acompany created byliquidating
theother two,A.H.V. andENSIDESA, intheform ofcapital increases, taking overthedebts and
social aid.
A.7 Annual amount ofthesubsidy
Theamount ofthesubsidy for1996 wasPtas109,631 million.G/SCM/N/25/EEC
Page420
A.8. Duration ofthesubsidy
Thesubsidy wastohavebeenprovided inasingle payment duebefore 31December 1992
butwasdelayed.
A.9. Trade effects
Aspointed outinSection 3,plants arebeing closed andthiswillhaveafavourable effect on
trade asaresult oflower production capacity intheEuropean Union.
TheaidistoA.H.V.-ENSIDESA CAPITAL, S.A., acompany established totakeoverthe
liabilities andlabour surpluses ofA.H.V., S.A.andENSIDESA companies. Itundertakes noindustrial
activity and,therefore, hasnoeffect ontrade inironandsteelproducts.
B. AidtoSIDENOR
B.1. Titleofthesubsidy programme
AidbytheSpanish State tothespecial steelenterprise SIDENOR.
B.2. Period covered bythenotification
1January 1996 to31December 1996
B.3. Purpose ofthesubsidy
Tocarry outtheplanned restructuring oftheenterprise under the1993 Community ironand
steelrestructuring plan, which consists ineliminating, byclosing down certain plants, thefollowing
production capacities:
- Rawsteel: 505,000 t.
- hot-rolled angles, shapes andsections: 379,000 t.
B.4. Authority
- Treaty establishing theEuropean CoalandSteelCommunity, Article 95,paragraphs 1
and2.
- Commission Decision of12April 1994 onaidplanned bySpain forthespecial steel
enterprise SIDENOR (94/261/ECSC).
- Decision oftheCouncil ofMinisters of10November 1995.
B.5. Form ofthesubsidy
Thesubsidy isforatotalamount ofPtas87,842 million andtheultimate purpose istocarry
outthefinancial reorganization andtakeovertheliabilities andsurplus labour costs oftwoironand
steelcompanies intheprocess ofbeing dissolved, ACENOR, S.A., andFORJAS YACEROS DE
REINOSA, S.A.(FOARSA), aspartoftheplantorestructure theholding company SIDENOR, which
incorporated, untilprivatization on30November 1995, theother twocompanies.G/SCM/N/25/EEC
Page421
B.6. Towhom andhowthesubsidy isprovided
Upto30November 1995 totheSIDENOR enterprise and,asfrom thatdate, toACENOR,
S.A., acompany formed aftertheabsorption ofFOARSA byACENOR, S.A.
Theaidconsists ofloans forincreases incapital, theassumption ofdebts bytheStateandsocial
aid.
B.7. Annual amount ofthesubsidy
Theamount ofthesubsidy for1996 wasPtas22,570.5 million.
B.8. Duration ofthesubsidy
Thetotalsubsidy wastohavebeenprovided inasingle payment duebefore 31December 1992,
buthasbeendelayed untilcompletion ofthePlan.
B.9. Trade effects
Aspointed outinsection 3,plants arebeing closed andthiswillhaveafavourable effect on
trade asaresult oflower production capacity intheEuropean Union.
TheaidistoACENOR, S.A., acompany established totakeovertheliabilities andlabour
surpluses ofFOARSA. Itundertakes noindustrial activity and,therefore, hasnoeffect ontrade in
ironandsteelproducts.G/SCM/N/25/EEC
Page422
IX.INDUSTRIAL TECHNOLOGY ACTION PLAN (PATI)
1. Titleofthesubsidy programme
Industrial Technology Action Plan(PATI)
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Theobjectiveistopromoteresearchandtechnologicaldevelopmentandtoimprovetheeconomic
andproductionsystem'slevelofcompetitivenessbyincorporatingadvancetechnologiesandstrengthening
thecapacity togenerate them, aswellasR&D toimprove thetechnological content ofproducts and
processes inthebasic andprocessing sectors.
4. Authority
Support forindustrial enterprises andnon-profit-making institutions isprovided inaccordance
withtheEuropean Union policy ofaidfortechnological research anddevelopment. Tothisend,the
PATI wasintroduced under Article 93.3oftheTreaty establishing theEuropean Community.
PATI subsidies (Information andCommunications Technologies Subplans -PEIN; Production
Technologies -PAUTA; Materials Technologies -TECMA; R&D inthePharmaceutical Sector -
FARMA; Biotechnology andChemical Technologies -BTQ; Technological Infrastructure -PIT)are
granted bytheD.G.T.I. under theMinisterial Order of15March 1994, which established theregulations
forgranting PATI aid(BOE of22March 1994).
ThePATI subplan, Support PlanfortheBasic andProcessing Sectors (SBT), isregulated by
theMinisterial Order of16May 1994, which established theregulations forthegranting and
announcement ofsuchaid.
PATI aidisalsogranted forspecial software work andCIM, under theMinisterial Order of
29April 1993 (BOE of12May1993) andincollaboration withDirectorate General XIIIofthe
Commission oftheEuropean Union.
5. Form ofthesubsidy
Non-repayable subsidy, aftertechnical andeconomic proof ofimplementation ofthesubsidized
project. TheSBTsubplan alsoincludes interest subsidies.
6. Towhom andhowthesubsidy isprovided
Public orprivate enterprises andentities, associations ofsuchenterprises ornon-profit making
institutions areeligible.
Theannual announcement ofPATI aidisopentoallpotential beneficiaries whosubmit their
applications forsubsidization ofprojects inthevarious priority technological areas under thedifferent
subplans andspecial actions. Aidisgranted afteranexamination andevaluation ofapplications and
onaproposal byanExpert Assessment Committee oftheMINER. Thesubsidy (afixedamount) cannot
behigher thanthelimits forState aidauthorized bytheEuropean Union.G/SCM/N/25/EEC
Page423
Oneoftherequirements forobtaining thesubsidy isthattherecipient musthavemethiscurrent
taxandsocial security obligations andproduce evidence thattheactivity hasbeencarried out.
7. Annual amount ofthesubsidy
Theamount available forthePATI in1996 wasPtas8,868.7 million.
Theaverage subsidy perproject wasPtas12.6million.
8. Duration ofthesubsidy
ThePATI'speriod ofapplication is1994/1996 andsubsidies aregranted annually forprojects
inthatperiod.
9. Statistical dataonthetrade effects ofthesubsidy
Owing tothenature ofthesubsidy (R&D) itisverydifficult toassess thedirect effects on
foreign trade, especially since thePATI programme ishorizontal incharacter andcovers enterprises
inallindustrial sectors.
Additional note
ThePlansubsidizes R&D projects andistherefore anon-actionable subsidy under Article 8.2
oftheSCM Agreement. Itisnotified under Article 25,having beeninforce in1995.G/SCM/N/25/EEC
Page424
X.INDUSTRIAL TECHNOLOGY DEVELOPMENT CENTRE (CDTI)
1. Titleofthesubsidy programme
Loan programme forR&D
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote technological innovation inSpanish companies bygranting loans atinterest below
themarket rateinorder tofundR&D projects.
4. Authority
Royal Decree 2/1984 of4January 1984
5. Form ofthesubsidy
Lowrateorinterest-free loans forcompany research anddevelopment (R&D) inenterprises.
6. Towhom andhowthesubsidy isprovided
Enterprises engaged inprojects fortechnological development, innovation and/or promotion
inindustry.
7. Amount ofthesubsidy in1996
In1996 financial commitments covering more thanoneyear tofinance technological
development, innovation andpromotion projects were made foranamount ofPtas20,787 million.
In1996, disbursements forcommitments tofinance technological development, innovation
andpromotion projects amounted toPtas17,159 million.
8. Duration ofthesubsidy
Theduration oftheprojects varies, generally from onetothree years. Loans areapproved
forthewhole project period, butpayments aremade aseachtechnical stage iscompleted.
TheCDTI 'sactivity hasnoprescribed time-limits.
9. Statistical dataonthetrade effects ofthesubsidy
Theaidhasnodistorting effects oninternational trade, since itcovers 393projects, and
approximatelythesamenumberofenterprises,77percentofwhichareSMEs(lessthan250employees),
whichsignifiesarathersmallannualaveragepaymentperenterprise(definitelylessthanPtas40million)
andasmalleffectiveannualsubsidyamount(becauseofthesmallCDTIinterestratemarket).Moreover,
CDTI aidisallocated quite evenly among thevarious sectors, andthere isnoconcentration onany
onesector.G/SCM/N/25/EEC
Page425
Additional note
TheCDTI helps companies tofinance R&D projects. Since theaidishorizontal andisnot
confined toenterprises orsectors withpossible access tosuchaid,weconsider thatitcannot beviewed
asspecific (under thespecificity definition inArticle 2oftheAgreement) andthushasvirtually no
effect ontrade.
Furthermore, CDTI aidisofthenon-actionable type,since itis,asalready pointed out,for
research anddevelopment (Agreement, Article 8.2).G/SCM/N/25/EEC
Page426
XI.R&D PLAN FOR THE AERONAUTICAL SECTOR
1. Titleofthesubsidy programme
R&D planfortheaeronautical sector
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Aerospace basic research anddevelopment projects.
4. Authority
Decision oftheGovernment Commission forEconomic Affairs andcooperation agreements
withenterprises.
5. Form ofthesubsidy
Repayable advances
6. Towhom andhowthesubsidy isprovided
Aircraft companies which havesigned acooperation agreement. Therepayable advances are
paidoutannually.
7. Amount ofthesubsidy
Ptas3,982 million.
8. Duration ofthesubsidy
Itisafive-year R&D planandendsin1998.
9. Statistical dataonthetrade effects ofthesubsidy
Since theProgramme covers basicindustrial research, which isfarremoved fromthemarketing
stage, ithasnotrade effects.
Additional note
ThePlan isforbasic research projects andistherefore regarded asaprogramme of
"non-actionable" aidwithin themeaning ofArticle 8.2(a) oftheSCM Agreement. Itisnotified under
Article 25,having beeninforce in1996.G/SCM/N/25/EEC
Page427
XII. AIDUNDER TECHNOLOGICAL PROGRAMMES CONNECTED
WITH THE SEAT MODERNIZATION PLAN (1994-1997)
1. Titleofthesubsidy programme
AidundertechnologicalprogrammesconnectedwiththeSEATModernizationPlan(1994-1997)
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Theaidisintended forinnovation, technological development andtraining projects intheSEAT
company, asubsidiary oftheVolkswagen Group, under aplanthatwillmean a29percentreduction
inSEAT 'scapacity andafivepercentcapacity reduction oftheVWGroup, attheCommunity level.
4. Authority
Commission Decision 96/257/EC, of31October 1995, concerning aidgranted bySpain to
SEAT, amember oftheVWGroup.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Thesubsidy ispayable exclusively totheSEAT company, which must produce evidence to
theSpanish authorities thattheinnovation, technological development andtraining projects havebeen
implemented.
7. Amount ofthesubsidy
Theamount in1996 wasPtas16,703 million.
8. Duration ofthesubsidy
TheModernization Plancovers theperiod 1994-1997 andsubsidies maybegranted intheyears
1995-1998.
9. Statistical dataonthetrade effects ofthesubsidy
Thesubsidy hasnoadverse affects ontrade forSEAT 'scompetitors, since itfulfils the
requirements under theAgreement onSubsidies andCountervailing Measures foraidforthispurpose
(R&D, Article 8.2(a)); furthermore, theModernization Planforwhich theaidisintended involves
reduction of29percentinproduction capacity andof49percentinemployment bytheendofthe
Plan,sothatbytheendof1997SEAT 'stechnical capacity willnotexceed 2,125 unitsperday,compared
with3,000 units perdayattheendof1993.G/SCM/N/25/EEC
Page428
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.5
AUTONOMOUS COMMUNITY OFANDALUSIAG/SCM/N/25/EEC
Page429
1.AIDFOR JOINT AGRI-FOOD RESEARCH AND DEVELOPMENT ACTIVITIES
WITH THE REGIONAL MINISTRY OFAGRICULTURE AND FISHERIES
OFTHE AUTONOMOUS COMMUNITY OFANDALUSIA
1.1 Title
Aidforjointagri-food research anddevelopment activities withtheRegional Ministry of
Agriculture andFisheries oftheAutonomous Community ofAndalusia.
1.2 Period covered bythenotification
1996
1.3 Policy objective and/or purpose ofthesubsidy
(a) Toenhance thecompetitiveness andquality ofAndalusian agriculture andfisheries,
thuscontributing totheconservation ofrenewable resources;
(b) topromote technological change andthemodernization oftheAndalusian agri-food
andfishing sector withdueregard fortheimpact ofsuchtechnological change on
ecosystems;
(c) tostimulate thedevelopment ofruralenvironment management systems bypromoting
localandregional capacities, pluri-activity andcomplementarity ofincome;
(d) tofacilitate training andincorporation ofhuman resources intheAndalusian research
anddevelopment system, fostering theformation ofmulti-disciplinary research teams.
1.4 Background andauthority forthesubsidy
Resolution of9March 1995 regulating thegranting ofaidforjointagri-food research and
development activities withtheRegional Ministry ofAgriculture andFisheries oftheAutonomous
Community ofAndalusia.
1.5 Form ofthesubsidy
Non-repayable subsidy
1.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit;ifthelatter, how
determined)
Thebeneficiariesareprofessionalagrarianorganizations,federationsofagriculturalcooperatives,
non-profit-making institutions, cooperative societies andagri-food enterprises.
Twotypes ofprojects aresubsidized:
Type A:Joint cooperation projects involving oneofthefollowing activities:
- Application andadaptation ofresearch findings totheagri-food sectors;G/SCM/N/25/EEC
Page430
- experimental networks forthedissemination ofagri-food technologies;
- general research, development andtraining.
Type B:Theformation ofjointresearch, technological development andtraining teams.
FortypeAprojects: Non-repayable subsidies uptoamaximum of70percentofthetotal
costoftheproject ifthebeneficiaries areprofessional agrarian organizations andfederations of
agricultural cooperatives, andupto50percentfortheothers. Funds forthepurchase ofequipment
must notexceed 30percentofthetotalsubsidy granted.
FortypeBprojects: Subsidies uptoamaximum ofPtas1,500,000 foreachgroup.
Theonlycosts thatcanbesubsidized inthiscategory arepersonnel andequipment costs, up
toamaximum of30percentforthelatter.
1.7 Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthesubsidy (indicating ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation
Theannual amount budgeted for1996 wasPtas173,550,000.
1.8 Duration ofthesubsidy and/or anyother time limits attached toit,including dateof
inception/commencement
Theperiod 1995-1999
1.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page431
2.AIDTOPROMOTE THE EMPLOYMENT OFWOMEN
2.1 Title
Aidtopromote theemployment ofwomen.
2.2 Period covered bythenotification
Financial year1996
2.3 Policy objective and/or purpose ofthesubsidy
(a) Tofoster thecreation ofstable employment bysubsidizing therecruitment foran
indefinite period ofunemployed women;
(b) anefficientanddirectwayofcreatingemploymentisthepromotionofself-employment,
which, inaddition tocreating jobs, alsoboosts economic activity. Subsidies inthe
formofasubsistence income aregranted inorder tohelptheunemployed persons to
startaproductive activity withaguarantee ofaminimum income, since suchastep
always involves certain expenses attheoutset which arenotimmediately covered by
theincome earned through theactivity itself;
(c) toreduce thefinancial burden ofloans granted forproductive investment.
2.4 Background andauthority forthesubsidy
Order of24April 1995 announcing theprogrammes forthepromotion oftheemployment of
women inAndalusia already established inaDecree. BOJA 68of11May1995.
2.5 Form ofthesubsidy
Non-repayable subsidy
2.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
PROGRAMME 1. OCCUPATIONAL TRAINING FOR WOMEN
Thisprogramme provides exclusively foroccupational training activities andnotforthegranting
ofaid.
PROGRAMME 2. PROFESSIONALTRAININGPROGRAMME FORWOMENAIMED
AT PROVIDING WOMEN WITH STABLE SALARIED
EMPLOYMENT
Beneficiaries: Companieswhichundertaketosigncommitmentstoprovidestableemployment
resulting inanetincrease inthenumber ofpersons employed bythem.G/SCM/N/25/EEC
Page432
Theaidconsists of:
- Subsidies covering training costs prior toemployment;
- subsidies equivalent to75percentofthenormal social security costs paidbythe
employer during thefirstyearofemployment, decreasing to50percentandthento
25percentofsuchcostsduring thesecond andthirdyears ofemployment respectively.
PROGRAMME 3. PROGRAMME FOR OCCUPATIONAL TRAINING AND THE
PROMOTIONOFINDIVIDUALSELF-EMPLOYMENTOFWOMEN
Thisprogramme provides fortwotypes ofactivity:
- Occupational training courses;
- thegranting ofaidtounemployed women whosetupontheirownandwomen
whoarealready self-employed. Thisaidcantaketheform of:
- Subsistence income: Maximum, Ptas750,000;
- technical assistance aid:Uptoamaximum of50percentofthetotalcost;
- subsidization ofinterest onloans andleasing transactions contracted with
financial entities, uptoamaximum of8percentage points andPtas750,000;
- repayable investment subsidies: Intended forthefinancing ofinvestments in
fixedandcurrent assets anddebtrefunding. Theyaregranted onacase-by-case
basis according totheviability andpotential oftheproject andarealways
subject tothenecessary personal guarantees. Themaximum deadline for
reimbursement ofthesubsidy istenyears.
2.7 Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation
Annual amount budgeted: Ptas2,184,382,128.
2.8 Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
Financial year1996
2.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page433
3.AIDFOR THE TECHNOLOGICAL AND CORPORATE MODERNIZATION
OFTHE INDUSTRIAL SECTOR
3.1 Title
Aidforthetechnological andcorporate modernization oftheindustrial sector.
3.2 Period covered bythenotification
1996.
3.3 Policy objective and/or purpose ofthesubsidy
(a) Toprovide incentive forprivate investment directed towards therenewal and
modernization ofproduction machinery andequipment;
(b) toencourage innovation andtechnological development;
(c) toimprove theindustrial quality system;
(d) toprovide Andalusia withinfrastructure andequipment andtopromote theusebySMEs
ofadvanced telecommunications services;
(e) toencourage energy saving;
(f) toincrease industrial safety.
3.4 Background andauthority forthesubsidy
Order of12July1995 regulating anaidprogramme forthetechnological andcorporate
modernization oftheindustrial sector (BOJA 101of18July1995).
3.5 Form ofthesubsidy
Non-repayable subsidy
3.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Thebeneficiaries areSMEs. Thesubsidies aredirected towards financing thefollowing
investments:
- Investment forrenewing andmodernizing production machinery andequipment;
- investment toencourage innovation andtechnological development:
- investment toimprove theindustrial quality system;
- infrastructure, equipment andpromotion oftheusebySMEs ofadvanced
telecommunications services;G/SCM/N/25/EEC
Page434
- equipment andenergy efficiency;
- promotion ofindustrial safety;
- managerial studies andanalysis.
Extent ofaid:
Subsidies areprovided forprojects exceeding Ptas5million. Theamount ofaidmay
notexceed 30percentoftheinvestment, withaceiling ofPtas100million.
With respect tocurrent expenditure, thesubsidy maycover upto75percentofthe
costgenerated, withaceiling ofPtas10million.
3.7 Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budged forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation.
Thetotalbudget isPtas400million.
3.8 Duration ofthesubsidy and/or anyother time-limits attached toit,including dateof
inception/commencement
1995-1997.
3.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page435
4.SUBSIDIES TOIMPROVE THE CONDITIONS OFPROCESSING AND
MARKETING OFAGRICULTURAL PRODUCTS
4.1 Title
Subsidies toimprove theconditions ofprocessing andmarketing ofagricultural products.
4.2 Period covered bythenotification
1996
4.3 Policy objective and/or purpose ofthesubsidy
(a) Toencourage theformation ofagrarian associations fortheconcentration ofsupply
andthejointmarketing ofproduce;
(b) tostimulatethedevelopmentofnewagriculturalindustriesotherthanthefoodindustries;
(c) toraisestandards intheprocessing andmarketing ofagricultural products.
4.4 Background andauthority forthesubsidy
Decree 271/1995 of31October promoting improvements intheconditions inwhich agricultural
andagri-food products arehandled, processed andmarketed (BOJA 155of2December 1995).
Orderof24January1996followingupDecree271/1995of31Octoberpromotingimprovements
intheconditions inwhich agricultural andagri-food products arehandled, processed andmarketed
(BOJA 19of8February 1996).
4.5 Form ofthesubsidy
Non-repayable subsidy
Interest subsidy
Extent ofaid:
- Subsidies: Limit ofsubsidy relative toinvestment subsidized:
Agrarian associations: upto50percent;
other beneficiaries: upto45percent.
- Interest-rate subsidies: uptoeight percentage points.
4.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Thebeneficiaries were:
- Agrarian associations: upto50percent;G/SCM/N/25/EEC
Page436
- other beneficiaries: upto45percent.
Details regarding thesectors andactivities subsidized areprovided inanAnnex totherelevant
legislation. Thefollowing expenditures areexpressly excluded:
(a) Purchases ofoffice equipment, furniture, purchases ofequipment thatcanbewritten
offinoneyearandthelike;
(b) start-up andinitial costs;
(c) VAT andother taxes thatarerecoverable bythebeneficiary;
(d) vehicles thatdonotcorrespond totheactual needs oftheindustrial activity inquestion;
(e) second-hand buildings, unless theyhavebeenunoccupied formore thansixmonths
andbytheirnature areadaptable totheindustrial activity tobesubsidized.
4.7 Total amount
Ptas60,929,968
4.8 Duration ofthesubsidy and/or anyother time-limits attached toit,including dateof
inception/commencement
Indefinite
4.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page437
5.AIDFROM THE ANDALUSIAN PROMOTION INSTITUTE (IFA)
5.1 Title
Aidfrom theAndalusian Promotion Institute (IFA).
5.2 Period covered bythenotification
1996
5.3 Policy objective and/or purpose ofthesubsidy
Regional development
5.4 Background andauthority forthesubsidy
Law3/1987 of13April establishing theAndalusian Promotion Institute (BOJA No.33of
14April 1987).
Decree 122/1987 of6Mayapproving theGeneral Regulations oftheLawontheAndalusian
Promotion Institute (BOJA No.42of18May1987).
5.5 Form ofthesubsidy
Non-repayable subsidies
Equity participation
Repayable loans
Equity loans
Guarantees
Interest subsidies
Rescue aid:Loans atmarket interest rates.
Restructuring aid:anyoftheabove, forpurposes andsubject torequirements tobeestablished.
5.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Preference isgiven toSMEs: withnomore than250employees, withanannual turnover not
exceeding ECU 20million oranoverall balance notexceeding ECU 10million, andinwhich one
ormore enterprises which donotmeettheseconditions donotholdmore than25percentoftheshares
unless theyareStateinvestment companies, venture capital companies or,provided theydonotexercise
control, institutional investors.G/SCM/N/25/EEC
Page438
1. Non-repayable subsidies
Maximum amount: 50percentgross ofthecosts unless otherwise specified:
Thepurpose ofthesubsidy could be:
(a) Studies which assist decision-making bythemanagers ofcompanies andwhich improve
theircompetitiveness;
(b) studies required togiveSMEs easier access toventure capital;
(c) therecruitment ofqualified staffbySMEs;
(d) costtoenterprises ofintroducing Community quality standards;
(e) subsidies forthestudy ofjointenergy generation projects;
(f) technological analysis oftheSMEs;
(g) viable investment forjobcreation orplant modernization provided thatitmaintains
jobsforatleasttwoyears;
(h) operation ofservice centres forcompanies.
2. Equity participation
Extent: TheIFA'sparticipation wasnotlimited inpercentage terms withrespect tothe
company 'scapital. There was,however, a30percentminimum self-financing requirement.
Capital contributions were made tothefollowing categories ofprojects:
- Equity financing ofnewenterprises;
- Equity financing ofexisting enterprises aiming toincrease theircapital withaview
tocarrying outaninvestment project orimproving thefinancial situation ofenterprises
inwhich theIFAisashareholder;
- Equity financing ofexisting enterprises aiming toincrease theircapital inorder tobring
innewshareholders withaviewtostrengthening (ordiversifying) theirequity capital,
including theadmission ofatechnological partner. These investments were linked
toaninvestment.
3. Repayable loans
Extent ofaid:Maximum duration ofaid15years, withamaximum grace period oftwoyears.
Theinterest rateapplied wastheresult ofarebate onthemarket ratenotexceeding 12points.
Types ofproject eligible forsubsidization:
- Financing offixed assets andofcurrent assets directly linked tosuchfixed assets and
toasingle production cycle oftheenterprise;G/SCM/N/25/EEC
Page439
- financing ofcurrent assets andrefinancing ofpartofthedebtwithin theframework
ofaninvestment made overthepasttwoyears atmost.
4. Equity loans
Conditions onwhich thistypeofaidwasgranted:
- Payment wasbased partly onafixed rateandpartly onavariable rate;
- thefixed interest ratewasnever lessthantherateofinflation forecast forthefinancial
yearinquestion;
- thevariable ratewasdetermined onacase-by-case basis foreachproject according
toparameters suchassalesandprofit;
- theloancould beconverted intoequity participation bytheIFAintheenterprise
concerned.
5. Guarantees
TheIFAprovided security forenterprises established inAndalusia which wereunable
tooffersufficientguaranteestothefinancialinstitutions.Securitywasgrantedagainstguarantees
fromtheenterprise. IftheIFAwasrequired tointervene, itclaimed backfromtheenterprise
theamount ithadtopay,ifnecessary through thecourts.
6. Interest subsidies
Thefollowing projects were involved:
- Financing offixed assets andofcurrent assets directly linked tosuchfixed assets and
toasingle production cycle oftheenterprise;
- financing ofcurrent assets andrefinancing ofpartofthedebtwithin theframework
ofaninvestment made overthepasttwoyears atmost;
- leasing;
- bridging loans.
Theconditions governing these loans were:
- Maximum discount: 12percentage points;
- maximum duration oftheloan: seven years, although inspecific caseslinked primarily
toterritorial, sectoral andinnovation criteria, itcanbeextended uptoamaximum
of15years;
- maximum grace period: twoyears;
- maximum percentage oftheinvestment: 70percent.G/SCM/N/25/EEC
Page440
7. Rescue andrestructuring aid
Only enterprises inacrisis situation andmeeting thecriteria ofanSME maybenefit
fromthisaid,saveinthose exceptional cases inwhich itisnecessary toassist enterprises which
donotbelong tothatcategory. TheCommission wasinformed thattheywould benotified
ofsuchassistance onacase-by-case basis.
Forthepurposes ofthisscheme, "crisis" should beunderstood tomean anysituation
offinancial imbalance which seriously threatens thenormal course ofanenterprise 'sactivities
oritssurvival, provided several ofthefollowing parameters apply: diminished profitability
orincreased losses, reduction inturnover, excess stocks, excess production capacity, decreasing
cashflow,growingdebts,increasedfinancialexpenditureandreductioninnetassets.Inextreme
cases, theenterprise mayhavehadtosuspend payments ormaybesubject tobankruptcy
proceedings.
Themaximum overall amount ofthese types ofaidthatcanbegranted bytheIFA
isPtas500million perproject.
Rescue aidconsists incashcontributions intheformofsecured loans orreimbursable
loans atmarket rate; itsamount islimited towhatisnecessary tooperate theenterprise during
theperiod required todrawuprestructuring plans. Itmustbejustified byserious social factors
andmust notresult inanyimbalance intheindustrial situation ofother member States.
Moreover, thistypeofaidconsists asingle operation.
Restructuring aidisdirected towards re-establishing thelong-term viability ofthe
beneficiary enterprises. Itislinked toarealistic andcoherent long-term planaimed atrestoring
thelasting viability oftheenterprise.
Theplanoperates asfollows: thebeneficiary enterprise makes anumber ofconcessions
withrespect toitscompetitors; inthespecific caseofanenterprise shifting fromacrisis sector
toasector which isnotincrisis attheCommunity level(conversion), theplancanfinance
anincrease inproduction inthenewsector aslongastheenterprise hasdisassociated itself
from itsformer sector; thecompany hastoprovide atleast30percentofthefinancing of
theplan; theaidissubject totheimplementation oftheplan; andtheenterprise hastoprovide
theIFAwithperiodic reports sothatitcanmonitor theimplementation oftheplaneffectively.
Restructuring aidisprovided inanumber ofways: itgenerally takestheformofloans,
equity participation, interest subsidies, regular subsidies oranyother formofaidrequired to
ensure thesuccessful completion oftheactions approved asawhole intheplan.
5.7. Subsidy perunit,orincases where thisisnotpossible, thetotalamount orannual amount
budgeted forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious yearorboth) isnotpossible, afullexplanation.
Non-repayable subsidies: Ptas 3,269 million
Equity participation: Ptas 1,046 million
Repayable loans: Ptas 5,032 million
Loans: Ptas 5,032 millionG/SCM/N/25/EEC
Page441
Guarantees: Ptas 3,000 million
Interest subsidies: Ptas 4,804 million
Total: Ptas17,151 million
5.8 Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
Period 1994-1999
5.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page442
6.AIDFOR THE PROMOTION OFCOOPERATIVE ACTIVITIES
6.1 Title
Aidforthepromotion ofcooperative activities.
6.2 Period covered bythenotification
1996
6.3 Policy objective and/or purpose ofthesubsidy
Promotion ofthecooperative movement.
6.4 Background andauthority forthesubsidy
Decree 79/1995 of21March concerning measures forthepromotion ofcooperative activities
(BOJA 70of13May1995).
Order of5May1995following upDecree 79/1995 of21March concerning measures forthe
promotion ofcooperative activities (BOJA 71of16May1995).
6.5 Form ofthesubsidy
Non-repayable subsidies
Interest-rate subsidies
Guarantees
Interest-free subsidies
6.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Andalusian cooperative societies
Labour corporations
Federations and/or associations ofcooperatives andlabour corporations
Local corporations
Natural persons engaged invarious promotional activitiesG/SCM/N/25/EEC
Page443
6.7. Subsidy perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation
Ptas
Support forthemanagerial andproductive structures
ofcooperative societies andlabour corporations 1,351,829,000
Business schools 231,556,000
Promotion ofassociations 60,000,000
Community action 100,000,000
Total budget 1,743,385,000
6.8 Duration ofthesubsidy and/or anyother time limits attached toit,including dateof
inception/commencement
1996
6.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page444
7.AIDTOTHE MALAGA SHALL-FISHING FLEET
7.1 Title
AidtotheMalaga shell-fishing fleet.
7.2 Period covered bythenotification
1996
7.3 Policy objective and/or purpose ofthesubsidy
Fishing
7.4 Background andauthority forthesubsidy
Order of2August 1995 and15November 1995 providing foraidtotheshell-fishing fleet
based intheprovince ofMalaga andaffected bytheprohibition onthecapture ofbivalve molluscs.
7.5 Form ofthesubsidy
Non-repayable subsidy
7.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Thebeneficiaries aretheowners offishing boats registered intheofficial listoffishing vessels
based intheports oftheprovince ofMalaga.
Aidmechanisms orform ofaid:
Non-repayable subsidy: Average amount ofaidforeach vessel inaccordance with
Regulation 3699/93: ECU 32aday
Amount ofaidpermonth: ECU 150,000
Maximum amount fortwomonths: ECU 300,000
7.7 Subsidy perunit
Ptas801,932
7.8 Duration ofthesubsidy and/or anyother time limits attached toit,including dateof
inception/commencement
1996
7.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page445
8.AIDFOR ENTERPRISES SETUPINTHE TECHNOLOGY PARK
OFANDALUSIA INMALAGA
8.1 Title
Aidforenterprises setupintheTechnology ParkofAndalusia inMalaga.
8.2 Period covered bythenotification
1996
8.3 Policy objective and/or purpose ofthesubsidy
Promotion ofresearch anddevelopment inenterprises intheAutonomous Community of
Andalusia.
8.4 Background andauthority forthesubsidy
Order of17May1993setting outadditional conditions regulating theprocedure forproviding
aidtoenterprises established intheTechnology ParkofAndalusia, Malaga.
8.5 Form ofthesubsidy
Non-repayable subsidy
Interest-rate subsidy
8.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, orothers;
through whatmechanism; whether afixed orfluctuating amount perunit;ifthelatter, how
determined).
Enterprises established intheTechnology ParkofAndalusia.
8.7 Subsidy perunit
Ptas5,410,000
8.8 Duration ofthesubsidy and/or anyother time limit attached toit,including dateof
inception/commencement
1992-1996
8.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page446
9.AIDFOR THE PROMOTION OFEMPLOYMENT
9.1 Title
Aidforthepromotion ofemployment.
9.2 Period covered bythenotification
Financial year1996
9.3 Policy objective and/or purpose ofthesubsidy
Promotion ofemployment.
9.4 Background andauthority forthesubsidy
Order of5April 1995following upaDecree andannouncing programmes forthepromotion
ofemployment bytheAutonomous Community ofAndalusia (BOJA 60of20April 1995).
9.5 Form ofthesubsidy
Non-repayable subsidies. Repayable subsidies. Interest-rate subsidies.
9.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, orothers;
through whatmechanism; whether afixed orfluctuating amount perunit;ifthelatter, how
determined)
There follows alistoftheprogrammes forming partoftheaidscheme, including thecosts
thathavebeensubsidized andthebeneficiaries ineachcase.
1. PROGRAMME FORTHEPROMOTIONOFINDEFINITEEMPLOYMENT
FOLLOWING ANAPPRENTICESHIP CONTRACT
Purpose: Promotion ofemployment foranindefinite period oftime through the
transformation ofanapprenticeship contract, provided that:
(a) Theapprenticeship contract wassigned prior to21March 1995;
(b) thetransformation ofthecontract results inanetincrease inthenumber of
permanent staffmembers ascompared withthenumber employed inthework
centre on31December 1994andmaintained untilthedateoftransformation.
Beneficiaries: Public orprivate enterprises andentities, withrespect tothework centres
located inAndalusia.
Type ofaid: Subsidies fortheestablishment ofindefinite employment contracts amounting
totheequivalent of75percentofnormal social security costs paidbythe
employer forthefirstyear, decreasing to50percentand25percentofsuch
costs forthesecond andthirdyears ofthecontract respectively.G/SCM/N/25/EEC
Page447
2. PROGRAMME FORTHEPROMOTION OFSELF-EMPLOYMENT AND
RECRUITMENT.
Thisprogramme covers three forms ofemployment:
2.1 Promotion ofindividual self-employment
Purpose: Promotion ofprojects facilitating theself-employment ofunemployed persons.
Beneficiaries: Unemployed workers.
Type ofaid: *Subsistenceincome:non-repayablesubsidyinnocaseexceedingPtas500,000;
*Technical assistance: non-repayable subsidy uptoamaximum of50percent
ofthecostofthetechnical assistance;
*Interest subsidies: Uptoamaximum of8interest-rate points and
Ptas500,000;
*Repayable subsidies: Thepay-back period varies from casetocasebutin
nocaseexceeds 10years.
2.2 Promotion ofemployment among groups withspecial difficulties
Purpose: Promotion ofemployment among groups withspecial difficulties.
Beneficiaries: Local corporations andnon-profit-making entities.
Type ofaid: Subsidies foraperiod ofsixmonths, theamounts ofwhich aresetforth in
Article 10(e) oftheOrder following uptheDecree.
2.3 Promotion oftheemployment ofsocially disadvantaged groups
Purpose: Tofacilitate therecruitment ofunemployed persons fromgroups whose integration
intothelabour market requires special attention owing totheirparticular psychosocial situation.
Beneficiaries: Local corporations andnon-profit-making entities.
Aid: Subsidies foremployment foraminimum period ofsixmonths, themaximum amount
ofwhich issetforth inArticles 12(d) and2(b)oftheOrder following uptheDecree.
3. PROGRAMMES FOR THE PROMOTION OFEMPLOYMENT FOR
DISABLED PEOPLE
Thisprogramme hastwocomponents:
3.1 Special Employment Centres
Purpose:TosupportthestableemploymentofdisabledpersonsinSpecialEmploymentCentres.
Beneficiaries: Special Employment Centres.G/SCM/N/25/EEC
Page448
Aid:
- Subsidies forthecreation and/or expansion ofSpecial Employment Centres in
accordance withArticle 16oftheOrder;
- subsidies forthemaintenance ofjobsheldbydisabled workers inaccordance with
Article 17oftheOrder.
3.2 Labour integration actions
Purpose: Tofacilitate therecruitment ofunemployed persons witharecognized incapacity
of33percentormore resulting inacorresponding orgreater reduction inworking capacity.
Beneficiaries: Local corporations, non-profit-making enterprises andentities.
Aid: - Participation bythebeneficiaries invocational training courses;
- subsidies foremployment inaccordance withArticle 20(e) oftheOrder;
- subsidies fortheadaptation offixed work stations andtheelimination of
obstacles within buildings, theamount ofwhich mustnotexceed Ptas300,000
or80percentofthecostoftheinvestment.
4. PROGRAMME SOCIALANDLABOURPROMOTIONPROGRAMME SIN
THE URBAN ENVIRONMENT
Purpose: Implementation ofprojects tofacilitate social andprofessional integration,
preferably ofyoung unemployed persons under 30years ofage,through vocational
training and/or participation inworkinvolving thepreservation andrestoration ofurban
areas.
Beneficiaries: Municipalities withmore than20,000 inhabitants.
Aid:Tobeimplemented through cooperation agreements whose basicaimistoprovide
support soastostimulate social andprofessional activities andemployment.
5. PROGRAMME SUPPORT PROGRAMME FOR THE CREATION AND
MAINTENANCE OFEMPLOYMENT
Purpose: Research, promotion anddevelopment oflocalemployment possibilities in
ruralareas through themaintenance oflocalemployment promotion unitsandagents.
Beneficiaries: Local corporations.
Aid: Subsidies tocover theannual costsofmaintaining employment promotion units
ofuptoPtas7.5million, andofPtas3.5million forlocal employment promotion
agents.
9.7 Subsidies perunit,orincases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthesubsidy (indicating ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanationG/SCM/N/25/EEC
Page449
Amount budgeted for1996: Ptas4,726,211,829
9.8 Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
Thesubsidy lastsoneyear.
9.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page450
10.OCCUPATIONAL TRAINING
10.1 Title
Occupational training.
10.2 Period covered bythenotification
1996
10.3 Policy objective and/or purpose ofthesubsidy
Topromote training within SMEs andsocial economy enterprises withaviewtoadapting the
skills oftheirworkers, members andemployees tothetechnological changes andinnovations thathave
taken placeinthefieldofmanagement andproduction andencouraging theirretraining andprofessional
adaptation, thereby enhancing theirjobpossibilities andthestability oftheiremployment.
10.4 Background andauthority forthesubsidy
Orderof31March1995followingupaDecreeandannouncingoccupationaltrainingprogrammes
oftheAutonomous Community ofAndalusia. BOJA No.60of20April 1995.
10.5 Form ofthesubsidy
Non-repayable subsidy
10.6 Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Theultimate beneficiaries arealways theemployees thatparticipate intraining programmes,
especially those belonging tothefollowing categories:
- Unemployed recipients ofunemployment benefits orallowances;
- unemployed persons whoarenotrecipients ofunemployment benefits orallowances
butwhorequire training forintegration intothelabour market;
- workers injobswhose qualifications needtobeupgraded tomeetthecurrent needs
ofthelabour market;
- unemployed persons threatened withexclusion from thelabour market.
While theabove categories aretheultimate beneficiaries ofvocational training programmes,
theenterprises, andinparticular SMEs, aswellastheir associations andfederations, arefreeto
participate intheprogrammes andaregranted, inexchange fortheircooperation, aseries ofsubsidies
tobeestablished lateronthrough specific agreements.
Theaidiscalculated onthebasis oftraining costs.
Thescheme provides forthefinancing ofthefollowing programmes:
1. Occupational andvocational training programmes linked torecruitment commitments;G/SCM/N/25/EEC
Page451
2. training programmes forpersons employed inSMEs andsocial economy enterprises;
3. training programmes inpriority economic sectors andactivities inAndalusia;
4. occupational andvocational training programmes forunemployed persons inspecial
fields forwhich there isademand inthelabour market;
5. occupational andvocational training programmes forgroups threatened withexclusion
from thelabour market;
6. technical assistance programmes fortheimprovement ofoccupational andvocational
training.
10.7 Subsidy perunit,orincases where thisisnotpossible, thetotalamount orannual amount
budgeted forthesubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation
Total amount budgeted: Ptas11,714,856,309
10.8 Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
Financial year1996
10.9 Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nosuchdataisavailable.G/SCM/N/25/EEC
Page452
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.6
AUTONOMOUS COMMUNITY OFTHE BALEARIC ISLANDSG/SCM/N/25/EEC
Page453
DECREE OFTHE AUTONOMOUS GOVERNMENT OFTHE BALEARIC ISLANDS
REGULATING THE GRANTING OFAIDTOTHE INDUSTRIAL, COMMERCIAL
AND SERVICES SECTORS INTHE "ESRAIGUER" OBJECTIVE 2
DEPRESSED INDUSTRIAL AREA
1. Titleofthesubsidy programme, ifrelevant, orbriefdescription oridentification ofthesubsidy
Decree oftheAutonomous Government oftheBalearic Islands regulating thegranting ofaid
totheindustrial, commercial andservices sectors inthe"EsRaiguer" Objective 2depressed industrial
area.
2. Period covered bythenotification
From 1January 1996 to31December 1996.
3. Policy objective and/or purpose ofthesubsidy
Support foremployment andcompetitiveness ofenterprises.
Construction ofamultipurpose building.
Counselling ofenterprises.
External trade promotion.
Promotion ofadvanced services toenterprises.
Recovery ofurban buildings.
Regional development.
Planmanagement.
Training activities.
Counselling andguidance.
4. Background andauthority fortheprogramme (including identification ofthelegislation under
which itisgranted)
Decree 127/1994 of29December regulating thegranting ofaidtotheindustrial, commercial
andservices sectors inthe"EsRaiguer" Objective 2depressed industrial area.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Percentage ofeligible investment.
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Toproduction andmarketing enterprises which havejustified theirinvestment, intheform
ofapercentage thereof.G/SCM/N/25/EEC
Page454
7. Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation should beprovided
Subsidy from thebudget oftheAutonomous Community oftheBalearic Islands amounting
toPtas673,523,762.
Thisaidscheme iscofinanced bytheEU.
8. Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
From 1January 1996 to31December 1996.
9. Statistical datapermitting anassessment ofthetradeeffects ofthesubsidy. Thespecific nature
andscope ofsuchstatistics islefttothejudgement ofthenotifying member. Totheextent possible,
relevant and/or determinable, however, itisdesirable thatsuch information include statistics of
production, consumption, imports andexports ofthesubsidized product(s) orsector(s):
(a) Forthethree most recent years forwhich thestatistics areavailable;
(b) foraprevious representative year, which, where possible andmeaningful, should be
thelatest yearpreceding theintroduction ofthesubsidy orpreceding thelastmajor
change inthesubsidy.
Notrade effects owing totheinsignificant amounts ofaidinvolved andthelarge number of
small enterprises towhich itwasdirected.G/SCM/N/25/EEC
Page455
DECREE OFTHE AUTONOMOUS GOVERNMENT OFTHE BALEARIC ISLANDS
REGULATING THE GRANTING OFAIDFOR THE IMPLEMENTATION OF
THE FONER IIOPERATIONAL PROGRAMME INRURAL AREAS 5BOF
THE BALEARIC ISLANDS
1. Titleofthesubsidy programme, ifrelevant, orbriefdescription oridentification ofthesubsidy
Decree oftheAutonomous Government oftheBalearic Islands regulating thegranting ofaid
fortheimplementationoftheFONERIIOperationalProgrammeinruralareas5BoftheBalearicIslands.
2. Period covered bythenotification
From 1January 1996 to31December 1996.
3. Policy objective and/or purpose ofthesubsidy
Aidforproductive activities andinvestment.
Aidfornon-productive activities andinvestment.
Aidforprofessional training andjobcreation.
4. Background andauthority fortheprogramme (including identification ofthelegislation under
which itisgranted)
Decree 3/95.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Percentage oftheeligible investment.
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Toproduction andmarketing enterprises which havejustified theirinvestment, intheform
ofapercentage thereof.
7. Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation should beprovided
Subsidy from thebudget oftheAutonomous Community oftheBalearic Islands amounting
toPtas70,187,204.
Thisaidscheme iscofinanced bytheEU.
8. Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
From 1January 1995 to31December 1999G/SCM/N/25/EEC
Page456
9. Statistical datapermitting anassessment ofthetradeeffects ofthesubsidy. Thespecific nature
andscope ofsuchstatistics islefttothejudgement ofthenotifying member. Totheextent possible,
relevant and/or determinable, however, itisdesirable thatsuch information include statistics of
production, consumption, imports andexports ofthesubsidized product(s) orsector(s):
(a) Forthethree most recent years forwhich thestatistics areavailable;
(b) foraprevious representative year, which, where possible andmeaningful, should be
thelatest yearpreceding theintroduction ofthesubsidy orpreceding thelastmajor
change inthesubsidy.
Notrade effects owing totheinsignificant amounts ofaidinvolved andthelarge number of
small enterprises towhich itwasdirected.G/SCM/N/25/EEC
Page457
ECONOMIC AIDSCHEME INCONNECTION WITH THE INDUSTRIAL CONVERSION
PLAN, DIRECTED TOWARDS TRAINING AND COUNSELLING ACTIVITIES
1. Titleofthesubsidy programme, ifrelevant, orbriefdescription oridentification ofthesubsidy
Economicaidschemeinconnectionwiththeindustrialconversionplan,directedtowardstraining
andcounselling activities;
Economic aidscheme inconnection withtheindustrial conversion plan,directed towards design
andquality;
Economic aidscheme inconnection withtheindustrial conversion plan, directed towards the
promotion oftrade;
Economic aidscheme inconnection withtheindustrial conversion plan, directed towards
environmental protection andenergy conservation;
Economic aidscheme inconnection withtheindustrial conversion plan, directed towards
innovation andtechnological development.
2. Period covered bythenotification
From 1January 1996 to31December 1996.
3. Policy objective and/or purpose ofthesubsidy
Directed towards training andcounselling activities.
Directed towards design andquality.
Directed towards thepromotion oftrade.
Directed towards environmental protection andenergy conservation.
Directed towards innovation andtechnological development.
4. Background andauthority fortheprogramme (including identification ofthelegislation under
which itisgranted)
Decrees128/1994,129/1994,130/1994,131/1994and132/1994oftheAutonomousGovernment
oftheBalearic Islands.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Percentage oftheeligible investment.
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Toproduction andmarketing enterprises which havejustified theirinvestment, intheform
ofapercentage thereof.G/SCM/N/25/EEC
Page458
7. Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation should beprovided
Subsidy from thebudget oftheAutonomous Community oftheBalearic Islands amounting
toPtas659,240,498.
8. Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
From 1January 1995 to31December 1999.
9. Statistical datapermitting anassessment ofthetradeeffects ofthesubsidy. Thespecific nature
andscope ofsuchstatistics islefttothejudgement ofthenotifying member. Totheextent possible,
relevant and/or determinable, however, itisdesirable thatsuch information include statistics of
production, consumption, imports andexports ofthesubsidized product(s) orsector(s):
(a) Forthethree most recent years forwhich thestatistics areavailable;
(b) foraprevious representative year, which, where possible andmeaningful, should be
thelatest yearpreceding theintroduction ofthesubsidy orpreceding thelastmajor
change inthesubsidy.
Notrade effects owing totheinsignificant amounts ofaidinvolved andthelarge number of
small enterprises towhich itwasdirected.G/SCM/N/25/EEC
Page459
ECONOMIC AIDFOR THE RELOCATION OFINDUSTRIES TOSITES AUTHORIZED
FOR INDUSTRIAL USE, UNDER THE TERMS OFAPPLICATION OFTHE PRIB
1. Titleofthesubsidy programme, ifrelevant, orbriefdescription oridentification ofthesubsidy
Economic aidfortherelocation ofindustries tositesauthorized forindustrial use,under the
terms ofapplication ofthePRIB.
2. Period covered bythenotification
From 1January 1996 to31December 1996.
3. Policy objective and/or purpose ofthesubsidy
Location ofindustries inzones authorized forindustrial use,inaccordance withcurrent town
andcountry planning regulations.
4. Background andauthority fortheprogramme (including identification ofthelegislation under
which itisgranted)
Decree 35/95.
5. Form ofthesubsidy (i.e.grant, loan, taxconcession, etc.)
Percentage oftheeligible investment.
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Toproduction andmarketing enterprises which havejustified theirinvestment, intheform
ofapercentage thereof.
7. Subsidy perunitor,incases where thisisnotpossible, thetotalamount ortheannual amount
budgeted forthatsubsidy (indicating, ifpossible, theaverage subsidy perunitintheprevious
year). Where provision ofperunitsubsidy information (fortheyearcovered bythenotification,
fortheprevious year, orboth) isnotpossible, afullexplanation should beprovided
Subsidy ofPtas68,801,205 in1996.
8. Duration ofthesubsidy and/or anyother time-limit attached toit,including dateof
inception/commencement
From 1January 1995 to31December 1998.
9. Statistical datapermitting anassessment ofthetradeeffects ofthesubsidy. Thespecific nature
andscope ofsuchstatistics islefttothejudgement ofthenotifying Member. Totheextent possible,
relevant and/or determinable, however, itisdesirable thatsuchinformation includes statistics of
production, consumption, imports andexports ofthesubsidized product(s) orsector(s):
(a) Forthethree most recent years forwhich statistics areavailable;
(b) foraprevious representative year, which, where possible andmeaningful, should be
thelatest yearpreceding theintroduction ofthesubsidy orpreceding thelastmajor
change inthesubsidy.G/SCM/N/25/EEC
Page460
Notrade effects owing totheinsignificant amounts ofaidinvolved andthelarge number of
small enterprises towhich itwasdirected.G/SCM/N/25/EEC
Page461
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.7
AUTONOMOUS COMMUNITY OFTHE CANARY ISLANDSG/SCM/N/25/EEC
Page462
1996
AGRICULTURE
STATE AIDNO.587/93
AIDAND LOAN SUBSIDIES FOR INDUSTRIALIZATION AND MARKETING
OFAGRICULTURAL PRODUCTS
1. Title
Aidandloansubsidies forindustrialization andmarketing ofagricultural products.
2. Period
1996 financial year
3. Objectives
Toimprove themarketing andprocessing facilities foragricultural products for:
(a) Construction, expansion orrenovation ofbuildings, plant andequipment;
(b) purchase ofmobile machines orother transport vehicles, where sorequired;
(c) Thefollowing maynotbesubsidized:
Purchase ofland, office supplies orfurniture oritems thatcanbeamortized within
oneyear.
4. Background
ApprovedbytheEuropeanCommissionon31December1993,FileNo.587/93,SG(93)D/21628.
5. Form
Direct subsidy uptoamaximum of30percentoftheapproved budget, withaceiling of
Ptas4million inthecaseofitem(a)above.
Maximum 20percentoftheapproved budget, withaceiling ofPtas2million inthecaseof
item(b).
Anetsubsidy equivalent totheabove mayalsobeobtained.
6. Towhom
Natural orlegalpersons withregistered office andmain business intheCanary Islands.
7. Subsidy
Thetotalamount oftheaidwasPtas70million.G/SCM/N/25/EEC
Page463
8. Duration
Oneyear.
9. Statistical data
Statistical datacannot beprovided for1995, since ashort period oftimehaselapsed andthe
impact oftheaidontheeconomic system isnotknown.G/SCM/N/25/EEC
Page464
1996
AGRICULTURE
STATE AID218/93
SUBSIDIZED INTEREST ONLOANS AND CREDITS TOMEET THE CAPITAL AND
SEASONAL COSTS INCONNECTION WITH AGRICULTURAL PRODUCTS
OFTHE CANARY ISLANDS
1. Title
Subsidized interest onloans andcredits tomeetthecapital andseasonal costs inconnection
withagricultural products oftheCanary Islands.
2. Period
1995/1996 season
3. Objective
Signing ofcooperation agreements withfinancial entities tofinance interest onloans andcredits
forcapital andseasonal costs inconnection withagricultural products oftheCanary Islands.
4. Background
Approved bytheEEC Commission, No.218/93, 25June1993, SG(93)D/10630.
5. Form ofthesubsidy
Through financial entities inasingle payment inthecaseofloans and,inthecaseofinterest,
onexpiry orliquidation ofthecredit.
Thesystem iscalculated bymodules setoutintheannex totheOrder, withaceiling of
Ptas600,000 perpartner orPtas5million percooperative.
6. Towhom
Natural orlegalpersons, withpreference given toagricultural associations.
7. Subsidy
Thetotalamount oftheaidwasPtas140million.
8. Duration
Oneyear
9. Statistical data
Statistical datacannot beprovided for1996, since ashort period oftimehaselapsed andthe
impact oftheaidontheeconomic system isnotknown.G/SCM/N/25/EEC
Page465
1996
AGRICULTURE
STATE AID(EEC) 219/93
IMPROVEMENT OFTHE TECHNICAL AND MANAGERIAL CAPACITY OF
AGRICULTURAL ASSOCIATIONS
1. Title
Improvement ofthetechnical andmanagerial capacity ofagricultural associations.
2. Period
1996
3. Objectives
Toimprove thetechnical andmanagerial capacity ofagricultural associations byproviding
aidfortherecruitment ofpersonnel, studies andaudits, technical assistance, training andestablishment
costs.
4. Background andauthority
TheOrder wasapproved bytheEuropean Commission on25June1993, No.219/93.
5. Form ofthesubsidy
Subsidy uptoamaximum of75percentofsubsidizable measures, depending onthetypeof
aid.
6. Towhom thesubsidy isprovided
Agricultural associations.
7. Subsidy
Annual amount budgeted Ptas20million.
8. Duration
Indefinite.
9. Statistical data
Statistical datacannot beprovided, since theimpact oftheaidontheeconomic system isnot
known.G/SCM/N/25/EEC
Page466
1996
AGRICULTURE
DECREE 108/95, OFAPRIL 1995, OFTHE GOVERNMENT OFTHE CANARY ISLANDS
STRUCTURAL MEASURES TOASSIST THE SECTORS PRODUCING ORNAMENTAL
FLOWERS AND PLANTS, TROPICAL FRUIT AND INTENSIVE
HORTICULTURAL CROPS
1. Title
Structural measures toassist thesectors producing ornamental flowers andplants, tropical fruit
andintensive horticultural crops.
2. Period
1996 financial year
3. Objectives
Toestablish asystem ofaidtofacilitate modernization inthesector ofintensive horticultural
crops, foster theintroduction ofalternative tropical fruittreesonsuitably located farms.
4. Background
Approved byCommission Decision of10November 1995, incompliance withtheterms of
EEC Regulation 2328/91.
5. Form
Thesubsidy maybeinalumpsumoraninterest subsidy onloans, acomplete orpartial subsidy
ofannual repayments oranycombination thereof, provided thetotalamount ofaidisnotmore than
40percentoftheapproved budgeted amount.
Thetotalinvestment isPtas14,580,000 perOTH orPtas29,160,000 perfarm.
6. Towhom
Therecipients arefarmers insmall andmedium enterprises andfarmowners intheAutonomous
Community.
7. Subsidy
Thetotalamount ofaidisPtas182,667,665.
8. Duration ofthesubsidy
Oneyear.
9. Statistical dataG/SCM/N/25/EEC
Page467
Statistical datacannot beprovided for1995, since ashort period oftimehaselapsed andthe
impact oftheaidontheeconomic system isnotknown.G/SCM/N/25/EEC
Page468
1996
AGRICULTURE
STATE AID178/93
AIDFOR IMPROVED AGRICULTURAL PRODUCTION
1. Title
Aidforimproved agricultural production.
2. Period
1996 financial year
3. Objectives
Improved hygiene andplantquality byregistered nurseries; purchase ofnewplants; improved
soilquality andirrigation, aswellasprocesses involving technological innovation onfarms.
4. Background
Approved on14May1993 bytheEuropean Commission, No.178/93.
5. Form
From 40to50percent, depending onthetypeofsubsidy, butmayreach 75percentif
accumulated withother aid.
These measures come under EEC Regulation 2328/91.
6. Towhom andhow
Natural andlegalpersons operating intheAutonomous Community oftheCanary Islands.
7. Total amount
Ptas216,008,322.
8. Duration
Indefinite.
9. Statistical data
Statistical datacannot beprovided for1996, sincetheimpact oftheaidontheeconomic system
isnotknown.G/SCM/N/25/EEC
Page469
1996
AGRICULTURE
DECREE 96/92 OFTHE GOVERNMENT OFTHE CANARY ISLANDS
SYSTEM OFSUBSIDIES FOR COLLECTIVE INVESTMENTS TOIMPROVE FARMS
1. Title
System ofsubsidies forcollective investments toimprove farms.
2. Period
1996 financial year
3. Objectives
Toimprove theliving andworking conditions inrural areas through development ofthe
agricultural infrastructure.
4. Background
ThisDecree comes under EECRegulation 2328/91 andwasapproved bytheCommission on
28July1992, No.C(92)1169.
5. Form ofthesubsidy
Upto50percentoftheinvestment.
6. Towhom
Recipients arefarmers working through associations having atleastfiveparticipants.
7. Amount
Annual budgeted amount isPtas184,882,044.
8. Duration
Oneyear.
9. Statistical data
Statistical datacannot beprovided, since theimpact ofthisaidontheeconomic system isnot
known.G/SCM/N/25/EEC
Page470
1996
AGRICULTURE
SUPPLEMENTARY INDEMNIFICATION INADDITION TOBASIC INDEMNIFICATION
INSPECIFIC DISADVANTAGED AREAS FOR 1996
1. Title
Supplementary indemnification inaddition tobasic indemnification inspecific disadvantaged
areas for1996.
2. Period
1996 financial year
3. Objectives
Toraisethestandard ofliving ofagricultural communities indisadvantaged mountain areas.
4. Background
Establishmentfor1996ofsupplementaryindemnificationinadditiontothebasicindemnification
setbyRoyal Decree 466/1990, of6April, which governs thesupplementary indemnification inspecific
disadvantaged areas, together withRoyal Decree 1318/1992, of30October, onspecial structural or
agricultural measures fortheCanary Islands.
Order of15October 1996 (BOC No.132).
5. Form ofthesubsidy
Theamount ofthesupplementary indemnification foreachfarmissetasapercentage ofthe
basic indemnification inspecific disadvantaged mountain areas:
(a) 100percentforfarms situated inLaGomera, ElHierro andcertain municipalities
ofLaPalma;
(b) upto50percentforfarms situated inthemunicipal areas ofFuerteventura,
Gran Canaria, Lanzarote, LaPalma andTenerife specified intheabove-mentioned
Order.
Themaximum amount ofindemnification perrecipient isPtas100,000.
6. Towhom
Allbeneficiaries listed intheOrder oftheMinistry ofAgriculture, Fisheries andFood of
7March 1996 (BOE of23March 1996).
7. Amount
Theannual amount budgeted isPtas34,283,194.G/SCM/N/25/EEC
Page471
8. Duration
1996
9. Statistical data
Statistical datacannot beprovided since theimpact ofthisaidontheeconomic system isnot
known.G/SCM/N/25/EEC
Page472
1996
AGRICULTURE
DECREE 156/93, OF14MAY, OFTHE GOVERNMENT OFTHE CANARY ISLANDS
IMPROVEMENT OFBANANA-GROWING SECTOR STRUCTURES INTHE
CANARY ISLANDS (PRODUCTION PHASE) UNDER BANANA
OPERATIONAL PROGRAMME II,ASPART OFCOMMUNITY
SUPPORT 1994/99
1. Title
Improvement ofbanana-growing sector structures intheCanary Islands (Production Phase)
under Banana Operational Programme II,aspartofCommunity support 1994/99.
2. Period
1996 financial year
3. Objectives
Toestablish asystem ofaidtofacilitate restructuring ofthebanana-growing sector inthe
Canary Islands andincrease competitiveness, inthecontext ofEECDecision B14/91 andEECCouncil
Regulation 404/93 fortheorganization ofacommon market.
4. Background
EEC Regulation 404/93 andEEC Decision 91/314. Under theterms ofDecree 9/1996 of
26January, theGovernment oftheCanary Islands included allaidtobanana production intheOrder
of21October 1996 (BOC No.159).
5. Form
Thesubsidy maytaketheform ofadirect capital payment ortheequivalent inpayment of
interest onloans, withaceiling of40percentoftheapproved budget.
Thesubsidy percentage allowed mayapply uptoamaximum ofPtas100million ofinvestment
perannum, andperplantation orentity submitting anapplication.
6. Towhom
Therecipients arefarmers andsmall andmedium enterprises withregistered offices inthe
Canary Islands, withtheirmainbusiness andmostoftheirassets intheAutonomous Community and
operating inthebanana-growing sector.
Thesubsidy covers investments for:
(a) Land clearance andpreparation andcroplossorlateharvesting asaresult ofchanges
invarieties orreplanting;G/SCM/N/25/EEC
Page473
(b) newirrigations systems, improvement ofexisting systems, together withwater quality
schemes;
(c) mechanization;
(d) construction ofcropprotection;
(e) facilities andmachines toimprove harvesting andon-farm handling.
7. Subsidy
Annual amount budgeted Ptas222million with75percentfinanced fromtheECbudget and
25percentfrom thebudget oftheAutonomous Community oftheCanary Islands.
8. Duration
1994/1999.
9. Statistical data
Statistical datacannot beprovided for1995, since ashort period oftimehaselapsed andthe
impact oftheaidontheeconomic system isnotknown.
Note: Thisprogramme replaces theprogramme "Measures tomodernize banana-growing structures
intheCanary Islands", andwasapproved bytheCommission asnewaidin602/95.G/SCM/N/25/EEC
Page474
1996
FISHERIES
STRUCTURAL AIDTOFISHERIES, AQUACULTURE AND THE PROCESSING AND
MARKETING OFFISH PRODUCTS
1. Title
Structural aidtofisheries, aquaculture andtheprocessing andmarketing offishproducts.
2. Period
1996 financial year
3. Objectives
Construction,modernizationandreconversionofboatsontheThirdListoftheShippingRegister;
development ofaquaculture; definitive andtemporary decommissioning offishing boats; boatfacilities;
marketing andprocessing offishandaquaculture products; promotion andsearch fornewcommercial
outlets.
4. Background
Decree 115/95 of26April andOrder of1August 1996 (annual announcement ofsuchaid)
BOC No.105. Approved bytheEuropean Commission asState aid245/95.
5. Form ofthesubsidy
Themaximum amount ofassistance, together withState andCommunity assistance, cannot
exceed 60percentofthesubsidizable investment.
Theamount ofaidgranted bythevarious national authorities willnotbelessthan5percent
ofthesubsidizable investment.
Inallcases thecontribution bythebeneficiary cannot belessthan40percentofthesubsidizable
investment.
6. Towhom
Itisanessential prerequisite forallapplications foraidthatthenatural orlegalpersons applying
forsuchaidhavetheir registered office andtaxresidence intheAutonomous Community ofthe
Canary Islands.
Shipbuilders orcurrent orprospective owners offishing vessels overfivemetres longbetween
perpendiculars, provided thattheirregistered office andtaxresidence arewithin theAutonomous
Community oftheCanary Islands andthattheyarebased atports within theCommunity.
FirmsowningaquaculturefacilitiessituatedintheAutonomousCommunityoftheCanaryIslands,
andwhich areinpossession ofthemandatory authorization. Inallcasessuchaquaculture establishmentsG/SCM/N/25/EEC
Page475
willhavetoemploy thetechnical andscientific means necessary toadapt anddevelop marine species
inthevarious phases ofcultivation.
Inorder tobeabletoreceive theassistance intended fortheadaptation ofcapacities orfor
thedefinitive decommissioning offishing boats, inaddition totheconditions described inthefirst
paragraph itisstipulated thattheboatmustbemore thantenyears old;havespent atleast75days
fishing during oneofthetwoperiods of12months prior tothedateofapplying fordefinitive
decommissioning, andnothavereceived assistance fromtheEECformodernization andconstruction
during thelastfiveyears inthefirstcaseorfortenyears inthesecond case.
Inorder toobtain aidfortemporary decommissioning, inaddition totheconditions laiddown
inthefirstparagraph fishing boats must alsomeet thefollowing requirements: theymust beequal
toorover12metres inlength; haveengaged infishing, orhavereplaced aboatengaged infishing,
foratleast120daysduring thecalendar yearpreceding thefirstapplication foraid;andprovide proof
ofaperiod ofadditional decommissioning ofbetween 45and150daysinthecaseofboats subject
todecommissioning plans and45and150daysinconsecutive years forother boats.
Aidforportfacilities isavailable tothepublic orprivate owners ofports located within the
Autonomous Community thatundertake investments intended toimprove fishunloading, handling and
storage facilities, tosupport theactivities offishing boats ortoimprove thesafety conditions required
when catching orunloading fish.
Aidfortheprocessing offishandaquaculture products isavailable tothose investing inand
funding thefollowing: therationalization andimprovement oftheprocesses ofhandling, treating,
processing, packaging, storing anddistributing fishandaquaculture products; thetreatment and
processing offishandaquaculture waste products; improvement ofproduct quality; theapplication
oftechnological innovations andthedevelopment ofnewproducts, processes andpackaging, andthe
promotion ofadditional and/or non-industrialized products.
Aidfortechnical expertise isgranted toprofessionals having theirregistered office andtax
residenceintheAutonomousCommunityoftheCanaryIslands,providedthattheiractivitiesaredirected
towards theprotection andconservation oflivefishstocks andthemanagement oftheirsustainable
exploitation inarational andresponsible fashion ineconomic andsocial conditions appropriate tothe
sector, taking intoaccount theeffects ofthemarine ecosystem and,inparticular, theneeds ofproducers
andconsumers.
7. Amount
Theannual amount budgeted isPtas974,025,713.
- Order of1August 1996 (BOC No.105):
Ptas.
- Fleet renovation andmodernization: 74,869,900
- Aquaculture andzonepreparation: 12,976,884
- Processing andmarketing: 57,161,802
Total 145,008,586
- Order of9May1996 (BOC No.66):G/SCM/N/25/EEC
Page476
- Support toEuropean funded programmes (IFOP): 168,000,000
- Modernization andconversion ofthefishing fleet: 57,728,000
Total 225,728,000
- Order of1October 1996 (BOC No.127):
- Subsidies notcofinanced bytheEU: 25,000,000
- Order of16October 1996 (BOC No.134):
- Credit expansion, renovation andfleetmodernization:
- Aquaculture andpreparation:
- Processing andmarketing:
Total 578,289,127
8. Duration
Oneyear
9. Statistical data
Statistical datacannot beprovided since theimpact oftheaidontheeconomic system isnot
known.G/SCM/N/25/EEC
Page477
1996
FISHERIES
MODERNIZATION AND RENOVATION OFTHE FISHING FLEET OFTHE
CANARY ISLANDS AND PROVISION OFRADIOCOMMUNICATION
FACILITIES FOR BOATS ENGAGED ININSHORE FISHING
1. Title
Modernization andrenovation ofthefishing fleetoftheCanary Islands andprovision of
radiocommunication facilities forboats engaged ininshore fishing.
2. Period
1996 financial year
3. Objectives
Topromote theinstallation ofequipment andfacilities andcarry outcertain kinds ofwork
andmodifications onboats ofthefishing fleetoftheCanary Islands, soastobring about definite
improvements inthemodernization andrationalization offishing.
4. Background
Decree 114/95 of25April andOrder of9May1996 (BOC No.66).
5. Form ofthesubsidy
Non-repayable subsidies upto30percentofthecostofthemodifications. Themaximum
amount ofthesubsidies granted under thisDecree cannot exceed Ptas800,000.
Inthecaseofprofessional fishermen working either individually orcollectively andyoung
fishermen whoundertake themodernization orreconversion oftheirboats, thesubsidy maybeincreased
by5percent, although without exceeding thelimitofPtas800,000.
Inthecaseoftheprovision ofcommunication facilities thetotalamount ofthesubsidy may
beupto50percentofthetotalcostofthepurchase andinstallation ofequipment. Innocasemay
thesubsidies received forthispurpose under thisDecree, together withsubsidies thatmaybegranted
byother public authorities, exceed 60percentofthecostofequipment.
6. Towhom
Natural orlegalpersons owning fishing boatsandhaving theirregistered office andtaxresidence
intheCanary Islands andwhose activities arebased ataportintheAutonomous Community ofthe
Canary Islands.
Boats mustberegistered ontheThird ListoftheRegister oftheoperational fishing fleetand
havebeeninservice formore thanfiveyears andlessthan30years. Thiscriterion willnotapply
inthecaseofinvestments intended toimprove safety andworking conditions and/or thecontrol
equipment forfishing operations.G/SCM/N/25/EEC
Page478
Subsidies areavailable toboats engaged innon-industrialized andsardine fishing whose gross
registered tonnage doesnotexceed 250tonnes, except forthelimitations ongross registered tonnage
contained inArticles 2B(c), 2C(b) and2D.
Boat(s) which aretoundergo modifications should havebeenengaged infishing foratleast
120daysduring the12months immediately preceding tothedateofcommencement established in
themodification programme.
7. Amount
Theannual amount budgeted isPtas33million.
8. Duration
Oneyear.
9. Statistical data
Statisticaldatacannotbeprovidedsincetheimpactofthisaidoninternationaltradeisnotknown.G/SCM/N/25/EEC
Page479
1996
INDUSTRY AND TRADE
Order of29March 1995 oftheGovernment oftheCanary Islands
State Aid296/93 and297/93
SUBSIDIES FOR INDUSTRIAL MODERNIZATION ORTECHNOLOGICAL
INNOVATION PROJECTS
1. Titleofthesubsidy programme oridentification
Subsidies forindustrial modernization ortechnological innovation projects.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Subsidies toexisting ornewly established SMEs for:
(a) Technologicalinnovationanddevelopmentprojectsandinvestmentprojectstointroduce
quality systems inindustry;
(b) industrial projects forinvestments innewplant, expansion, modernization and/or
relocation;
(c) industrial support service projects forinvestments innew plant, expansion,
modernization and/or relocation.
Preference willbegiven toimport industries andprojects thatincorporate technology with
aviewtoimproving productivity, quality andcompetitiveness.
4. Background andauthority forthesubsidy
ItcomesunderDecree231/93,of29July,oftheAutonomousCommunityoftheCanaryIslands,
pursuant totheterms established bytheState inLaw50/85 onRegional Incentives.
5. Form ofthesubsidy
Subsidy ofupto50percentofthesubsidizable investment, withaceiling ofPtas75million
perenterprise.
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, etc.)(fixed
orfluctuating amount perunit)
Onjustification oftheinvestment project.
7. Annual amount budgeted: Ptas500million.G/SCM/N/25/EEC
Page480
8. Duration ofthesubsidy
Oneyeartomake theinvestment.
9. Statistical data
Statistical datacannot beprovided for1996, since ashort period oftimehaselapsed andthe
impact oftheaidontheeconomic system isnotknown.G/SCM/N/25/EEC
Page481
1996
INDUSTRY AND TRADE
STATE AID296/93
DIRECT SUBSIDIES TOSMES FOR TECHNOLOGICAL INNOVATION
(ADVANCED TERTIARY SUBSECTOR)
1. Title
Direct subsidies toSMEs fortechnological innovation (advanced tertiary subsector).
2. Period
1996 financial year
3. Objectives
Thepresent Order isintended tosupplement thepolicy ofbusiness promotion, regulating the
direct subsidies toinvestment incomputer equipment andtelecommunications, under thebudgetary
programmes oftheRegional Ministry ofEconomics andFinance, asameans ofpromoting afavourable
climate fortheestablishment ofnewenterprises andtheemergence ofnewbusinessmen, thereby
encouraging atthesametimethemodernization ofexisting firms through subsidies tosmall andmedium
enterprises (SMEs).
4. Background
TheEuropean Commission hasestablished guidelines onStateaidtoSMEs. Thisproject comes
within thedefinition of"soft aid".
Order of28October 1996 published inBOC No.140of6November 1996.
5. Form ofthesubsidy
Thesubsidies granted willtaketheformofanon-repayable contribution totheproposed cost
oftheproject, which willbebased onthecosts ofitsconstituent parts (duodecimal basis).
Thesubsidy cannot exceed 30percentofthetotalapproved costoftheproject, itbeing the
responsibility ofthecompetent authority toassess itsamount inaccordance withtheintrinsic value
oftheproject.
6. Towhom: thebeneficiaries
Small andmedium enterprises (SMEs), which areplanning toundertake investment within
theAutonomous Community oftheCanary Islands; which employ fewer than250workers; whose
annual turnover doesnotexceed ECU 40million; and25percentormore ofwhose capital orequity
doesnotbelong toanother enterprise orisheldjointly byseveral enterprises thatdonotcome within
thedefinition ofaSME orasmall enterprise. Suchenterprises mustalsopursue theirmainactivities
within thisAutonomous Community andholdthemajority oftheirassets there.G/SCM/N/25/EEC
Page482
7. Amount
Theannual amount budgeted isPtas100million. Thesubsidy cannot exceed 30percentof
thetotalapproved costoftheproject, itbeing theresponsibility ofthecompetent authority toassess
itsamount inaccordance withtheintrinsic value oftheproject. Theaverage subsidy perunitwas
22percentoftheapproved investment.
8. Duration
1996
9. Statistical data
Applications
approvedInvestment
approvedLoans
approvedSubsidy granted Average interest-rate
subsidy
158 Ptas100,000,000G/SCM/N/25/EEC
Page483
1996
INDUSTRY AND TRADE
STATE AID297/93
INTEREST-RATE SUBSIDY FOR THE INDUSTRIAL MODERNIZATION OFSMES
1. Title
Interest-rate subsidy fortheindustrial modernization ofSMEs.
2. Period
1996 financial year
3. Objectives
TosupplementthepolicyofbusinesspromotionthroughthedevelopmentofSMEs,byregulating
interest subsidies onbank loans. TheGovernment oftheCanary Islands may(under theterms of
Decree 231/93) subsidize through thecompetent bodies, asageneral rule,upto8percentoftheinterest
onloans granted byfunding agencies thatoperate intheCanary Islands andaresignatories tothe
agreements between theGovernment oftheCanary Islands andthevarious funding agencies mentioned
inthisDecree withaviewtosubsidizing small andmedium enterprises (SMEs).
4. Background
TheEuropean Commission hasestablished guidelines onState aidtoSMEs.
Order of31July1996(approved bytheEuropean Commission asNo.297/93 of9July1993).
5. Form ofthesubsidy
Theinterest rateontheloanmaynotexceed 11percent; theloanmaynotbeformore than
sixyears, with oneortwoyear'sfreeofrepayment; theamount invested maynotexceed
Ptas100million, ofwhich thebeneficiary mustprovide 25percent. Themaximum subsidy is75per
cent, butmaynotfallinhiscasebelow 10percentofthesubsidizable investment.
Once theloanhasbeengranted bythebank orauthorized funding agency, theGovernment
oftheCanary Islands maysubsidize through thevarious competent departments, i.e.itsregional
ministries, asageneral rule,upto8percentoftheratesofinterest ontheloans granted. Consequently,
ifthere hasbeennoprior loanthere canbenosubsidy.
6. Towhom
Small andmedium enterprises (SMEs) which areplanning toundertake investment within the
Autonomous Community oftheCanary Islands; which employ upto250workers; whose annual
turnover doesnotexceed ECU 40million; and25percentormore ofwhose capital orequity does
notbelong toanother enterprise orisheldjointly byseveral enterprises thatdonotcome within the
definition ofaSMEorsmall enterprise. Suchenterprises mustbebased intheAutonomous Community
oftheCanary Islands.G/SCM/N/25/EEC
Page484
Investment projects arefornewcapital investments, relocation, expansion ormodernization.
Inthecaseofnewly established enterprises upto25percentoftheapproved investment canbeused
tofinance stocks andforamaximum repayment period ofthree years.
Projects must involve self-financing bytheenterprise for25percentofthesubsidizable
investment andtheproject mustnothavebegun before theyearinwhich thesubsidy wasrequested.
7. Amount
Theannual budgeted amount isPtas50million.
Themaximum amount ofsubsidizable loans shallnotexceed 75percentoftheamount of
investment, itbeing theresponsibility oftheapplicant toprovide atleast25percentfrom hisown
resources.
8. Duration
Over several years.
9. Statistical data
Number of
applications
approvedSubsidizable
investment approvedLoans approved Subsidy granted Annual average
interest rate
16 Ptas680,631,421 Ptas387,630,792 Ptas50,000,000 5%G/SCM/N/25/EEC
Page485
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.8
AUTONOMOUS COMMUNITY OFCANTABRIAG/SCM/N/25/EEC
Page486
AIDTOPROMOTE FORESTRY INVESTMENT ONFARMS
AND THE DEVELOPMENT AND EXPLOITATION OFFORESTS
INRURAL AREAS
1. Titleofthesubsidy programme oridentification
Aidtopromote forestry investment onfarms andthedevelopment andexploitation offorests
inrural areas.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
- Mitigation ofthenegative effects onfarm incomes ofthechanges envisaged inthe
reform ofcommon market organizations;
- diversification ofemployment forpersons working inagriculture andpromotion of
forestry asanalternative source ofincome;
- forestry restoration involving theplanting offorests inkeeping withthecorresponding
ecosystems;
- tohelpmitigate thegreenhouse effect andrespond totheserious problems oferosion
sufferedbysomeareasofCantabria,andcontributetotheconservationandimprovement
ofthesoil,flora, fauna andwater, andalsoreduce theriskoffire.
4. Background andauthority forthesubsidy
Council Regulation (EEC) of16October 1989. Decree 31/1996 of3April (Official Gazette
ofCantabria of10April 1996).
5. Form ofthesubsidy
Capital subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
Aidfortheafforestation ofagricultural landandtheimprovement offorested areas isavailable
tonatural orlegalpersons owning farms andassociations thereof, aswellastolocalbodies andother
public bodies thatapply, eveniftheydonotownagricultural land.
Beneficiaries ofactivities forforestry development andmanagement inrural areas must be
owners offorest land, whether legal persons under public orprivate law,aslongastheiractivities
arebased intheAutonomous Community ofCantabria.
Theamount oftheaidforafforestation costs isfixed according tothespecies (included in
Annexes 1,2and3oftheRegulation) andinthelightoftheoperating budget, withaceiling perhectare,
depending onwhether theowners areindividuals orgroups.G/SCM/N/25/EEC
Page487
Aidforforestry development andmanagement activities inruralareas consists ofapercentage
oftheamount oftheinvestment, withaceiling, which canvaryaccording totheparticular operation.
7. Annual amount budgeted
Total amount expended from thefunds oftheAutonomous Community: Ptas0.
(Weather conditions intheautumn prevented thefinalization ofwork fortheyear).
Number ofbeneficiaries: lessthan500peryear.
8. Duration ofthesubsidy
1996-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects thatitmight
haveontrade.
AIDFOR THE SPECIFIC PROTECTION OFINDIGENOUS SPECIES
OFCANTABRIA (BOVINES: TUDANCA AND MONCHINA;
AND EQUINES: MONCHINA)
1. Titleofthesubsidy programme oridentification
Aidforthespecific protection ofindigenous species ofCantabria (bovines: Tudanca and
Monchina; andequines: Monchina).
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Theabove-mentioned bovine andequine species areindigenous toCantabria, perfectly adapted
tothemountainous environment, andprovide high-quality meatproducts completely naturally andat
minimum cost. Recently, theregistered numbers ofthese species havebeendecreasing, putting them
indanger ofextinction. Inorder toavoid theriskoftheirdisappearance through massive interbreeding
withspecialized meat-producing species andtopreserve thegenetic stock, itisessential topromote
thereproduction ofpure-bred animals, which requires subsidization oftheincome oflivestock breeders
undertaking thiswork.
4. Background andauthority forthesubsidy
Orderof4May1995(OfficialGazetteofCantabriaof17May1995).ApprovedbyCommission
Decision SG(96)3452 of29March 1996.G/SCM/N/25/EEC
Page488
5. Form ofthesubsidy
Capital subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
ApplicationsmaybemadebyanynaturalorlegalpersonwhoownsalivestockfarminCantabria
andindigenous livestock ofthespecies andbreeds indicated andwhoundertakes tofulfiltheconditions
laiddown intheOrder.
Thebeneficiaries willreceive asingle payment ofPtas20,000 peranimal during itslifetime.
7. Annual amount budgeted
Total amount: Ptas14,200,000
Number ofbeneficiaries: About 200peryear
8. Duration ofthesubsidy
1996-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects thatitmight
haveontrade.
AIDTOLIVESTOCK COMPETITIONS, EXHIBITIONS AND FAIRS
1. Titleofthesubsidy programme oridentification
Aidtolivestock competitions, exhibitions andfairs.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Theorganization oflivestock competitions, exhibitions andfairsisadeeply-rooted custom
andhelpstoraisestandards ofjudgement inassessing theresults obtained through breeding programmes
andother operations carried outbytheRegional Ministry ofLivestock, Agriculture andFisheries in
thefieldofgenetic improvement.
TheEuropean Union, through itsregional operational programme "Rural Development in
Cantabria", included inObjective 1,hasprovided foractivities inthefieldofanimal selection and
breeding.G/SCM/N/25/EEC
Page489
4. Background andauthority forthesubsidy
Order of9August 1996(Official Gazette ofCantabria of19August 1996). Approved bythe
Commission on17September 1996 (SG(96)8123).
5. Form ofthesubsidy
Capital subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
Theaidisavailable tomunicipalities, localbodies andlivestock breeders 'associations engaged
inthebreeding andfarming ofpure-bred animals which promote andorganize livestock competitions,
exhibitions orfairs.
Theamount ofthesubsidy iscalculated according tothecategories ofthecompetition or
exhibition, withaceiling foreachcategory laiddown intheOrder.
7. Annual amount budgeted
Total amount: Ptas2,300,000
Number ofbeneficiaries: 8
8. Duration ofthesubsidy
1996-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects thatitmight
haveontrade.
AIDTOCATTLE FARMS WHICH, ASARESULT OFTHE LIVESTOCK
HEALTH CAMPAIGN, HAVE TOESTABLISH ACORDON SANITAIRE
1. Titleofthesubsidy programme oridentification
Aidtocattle farms which, asaresult ofthelivestock health campaign, havetoestablish acordon
sanitaire .
2. Period covered bythenotification
1996 financial yearG/SCM/N/25/EEC
Page490
3. Policy objective and/or purpose ofthesubsidy
Thelivestock health campaign toeradicate tuberculosis, brucellosis, leucosis andcontagious
bovine perinuemonia iscarried outevery yearincattle farms inCantabria. Inaverysmall number
offarms, there hasbeenahighprevalence ofdiseased animals oranimals testing positive forsome
ofthediseases subject tothehealth programme. Acordon sanitaire hasthentobeestablished by
slaughtering alltheanimals affected resulting inthetemporary cessation ofeconomic activity onthe
farm.
Thisaidisintended toensure thatthetemporary cessation offarming activities hastheleast
possible adverse effect ontheeconomy ofthefamilies concerned and,consequently, toassist inthe
purchase ofreplacement stock.
4. Background andauthority forthesubsidy
Order of19July1996(Official Gazette ofCantabria of2August 1996 and23August 1996).
Approved bytheCommission on25June1996 (SG(96)34301).
5. Form ofthesubsidy
Capital subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
Thebeneficiaries must beowners offarms situated inCantabria thathavebeenaffected by
acullasaresult ofalivestock health campaign.
Theaidconsists ofafixedamount perreplacement animal, inaccordance withtheclassification
laiddown intheOrder.
7. Annual amount budgeted
Total amount expended from thefunds oftheAutonomous Community: Ptas0.
(Implementation oftheOrder: applications under consideration on31December 1996).
Number ofbeneficiaries: lessthan100peryear.
8. Duration ofthesubsidy
1996-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects thatitmight
haveontrade.G/SCM/N/25/EEC
Page491
FINANCIAL AIDTOSMES
1. Titleofthesubsidy programme oridentification
Financial aidtoSMEs
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Tofacilitate access tooutside financing forSMEs located inCantabria soastodecrease the
costofoperations carried outtofinance investment projects.
4. Background andauthority forthesubsidy
Decree 48/1996 of4Juneestablishing financial support measures forSMEs.
Order of26August 1996oftheRegional Ministry ofTourism, Transport andCommunications,
andIndustry approving thegranting offinancial aidtoSMEs.
Thisis"deminimis "aid.
5. Form ofthesubsidy
Interest ratesubsidy forSME-ICO loans taken outbySMEs inorder tofinance investment
projects, under theCollaboration Agreement concluded between theRegional Ministry ofTourism,
Transport andCommunications, andIndustry andtheOfficial Credit Institute (ICO).
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.), (fixed orfluctuating
amount perunit)
Enterprises: SMEs carrying outinvestment projects deemed tobetechnically, economically
andfinancially viable within theAutonomous Community ofCantabria.
Amount: Upto3percentoftheAPRoftheinterest rateforloans withtheceiling laid
down inthe"deminimis "clause inCommunity Directives onStateaidtosmall
andmedium enterprises.
Payment: Through thefinancial entities withwhich theloans havebeentaken out.The
amount oftheaidisuseddirectly todecrease theprincipal oftheloan.
7. Annual amount budgeted
Total amount: Ptas. 23,040,312.
Number ofbeneficiaries: 11G/SCM/N/25/EEC
Page492
8. Duration ofthesubsidy
1995-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects thatitmight
haveontrade.
SUPPORT TOTHE MINING INDUSTRY AND UTILIZATION OF
MINERAL AND/OR THERMAL SUBSIDIES
1. Titleofthesubsidy programme oridentification
Support tothemining industry andutilization ofmineral and/or thermal subsidies.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Topromote activities inthissector, forexample, geological surveys todiscover newraw
materials or,where appropriate, conserve theexisting reserves.
4. Background andauthority forthesubsidy
Decree 40/1996 of17Mayregulating support tothemining regime andutilization ofmineral
and/or thermal waters.
Order of3June1996 oftheRegional Ministry ofTourism, Transport andCommunications,
andIndustry, approving theannouncement ofaidforthemining regime andutilization ofmineral and/or
thermal waters.
Thisis"deminimis "aid.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.), (fixed orfluctuating
amount perunit)
Enterprises: SMEs whose activities areregulated under theLaw onMining andits
Regulations andarecarried outwithin theAutonomous Community of
Cantabria.G/SCM/N/25/EEC
Page493
Amount: 40percentoftheestimated costwiththeceiling laiddown inthe"deminimis "
clause contained inCommunity Directives onStateaidtosmall andmedium
enterprises.
7. Annual amount budgeted
Total amount: Ptas. 49,999,999
Number ofbeneficiaries: 10
8. Duration ofthesubsidy
1995-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects thatitmight
haveontrade.
SUBSIDY TOSMALL-SCALE INDUSTRY
1. Titleofthesubsidy programme oridentification
Subsidy tosmall-scale industry
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Development ofsmall-scale industry asanimportant factor inthesocio-economic development
oftheAutonomous Community because itcreates stable jobswithasmall amount ofinvestment and
helps tocreate future enterprises andindustrial activities.
4. Background andauthority forthesubsidy
Decree 97/1995 of9October oftheRegional Ministry ofTourism, Transport and
Communications, andIndustry. Approved bytheEuropean Commission inaletter of18May1995.
Orderof27February1996oftheRegionalMinistryofTourism,TransportandCommunications,
andIndustry approving andregulating thegranting ofaidtosmall-scale industry.
5. Form ofthesubsidy
Non-repayable subsidyG/SCM/N/25/EEC
Page494
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
Industries, centres, individual craftsmen, associations, entities andother associative bodies.
Units which carry outtheiractivities onanadhocorcomplementary basis arenotdeemed
tobesmall-scale industries orcentres.
Amount: 40percentofthetotalestimated costs.
7. Annual amount budgeted
Total amount: Ptas13,189,992
Number ofbeneficiaries: 25
8. Duration ofthesubsidy
1995-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects itmight have
ontrade.
SUPPORT MEASURES FOR THE PREPARATION AND MARKETING OF
TRADITIONAL FOOD PRODUCTS OFCANTABRIA
1. Titleofthesubsidy programme oridentification
Support measures forthepreparation andmarketing oftraditional foodproducts ofCantabria.
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Itisdifficult fortraditional products ofCantabria, produced bysmall-scale industries witha
lowvolume ofproduction, usually situated indisadvantaged ormountainous areas, totakeadvantage
oftheaidlinesexisting forotherproducts andlarger industries. ThisOrder comes under theoperational
programme "Development oftheRural Environment inCantabria", approved bytheCommission 's
Decision of14December andcovered byEECRegulations 2.081/92 and2.082/92 of14July1992.
4. Background andauthority forthesubsidy
Order of29August 1996 (Official Gazette ofCantabria of11September 1996). Approved
bytheCommission on16September 1996 (SG(96)8121).G/SCM/N/25/EEC
Page495
5. Form ofthesubsidy
Capital subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
Theaidisavailable tonatural orlegalpersons orgroups thereof which make investments or
incur costs eligible forsubsidies.
Theaidconsists ofapercentage oftheinvestment tobemade, withaceiling, bothofwhich
varyaccording totheaction taken.
7. Annual amount budgeted
Total amount: Ptas9,721,777
Number ofbeneficiaries: lessthan50
8. Duration ofthesubsidy
1996-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects itmight have
ontrade.
REGIONAL INCENTIVES FUND
1. Titleofthesubsidy programme oridentification
Regional Incentives Fund
2. Period covered bythenotification
1996 financial year
3. Policy objective and/or purpose ofthesubsidy
Economic promotion anddevelopment oftheRegion byproviding aidtosetup,improve and
expand enterprises andactivities intheindustrial andindustrial support services sectors.
4. Background andauthority forthesubsidy
Decree 19/1995 of22Juneregulating theRegional Incentives Fund.
Approved bytheEuropean Commission inaletter of18May1995, aidNo.351/1995.G/SCM/N/25/EEC
Page496
Order of14March 1996oftheRegional Ministry ofTourism, Transport andCommunications,
andIndustry approving thegranting ofaidunder theRegional Incentives Fund for1996.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters, etc.)(fixed orfluctuating
amount perunit)
Enterprises, labour orcooperative associations, provided thattheyareregarded asSMEs.
Amount: 40percentoftheestimated costs.
7. Annual amount budgeted
Total amount: Ptas478,038,206
Number ofbeneficiaries: 56
8. Duration ofthesubsidy
1995-1999
9. Statistical data
Inviewofthesmall amount ofthesubsidy, itisnotpossible toassess theeffects itmight have
ontrade.G/SCM/N/25/EEC
Page497
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.9
AUTONOMOUS COMMUNITY OFCASTILLA-LA MANCHAG/SCM/N/25/EEC
Page498
AIDTOFINANCE INVESTMENT PROJECTS FOR ADAPTING
AND CREATING ABATTOIRS
1. Title
Aidtofinance investment projects foradapting andcreating abattoirs.
2. Period
1995/1996
3. Policy objective and/or purpose ofthesubsidy
Adaptation toCommunity legislation onlivestock slaughter inmunicipal abattoirs.
4. Authority
AidOrder of13April 1994 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct and/or interest-rate subsidy.
6. Beneficiaries
Theaidisavailable tomunicipalities orgroups ofcitycouncils inCastilla-La Mancha that
invest inbuilding ormodernizing abattoirs orinthepurchase ofadditional equipment forthepurpose
ofadapting abattoirs totherelevant technical health regulations.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas58,573,621
Number ofbeneficiaries: 8
Amount ofthesubsidy perunit: Ptas7,321,703
8. Duration ofthesubsidy
Ended in1995. The1996 payments areforextensions.
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page499
AIDFOR EARLY RETIREMENT INTHE AGRICULTURAL SECTOR
1. Title
Aidforearly retirement intheagricultural sector.
2. Period
1995/1996
3. Policy objective and/or purpose ofthesubsidy
Tosecure ayounger working population intheagricultural sector.
4. Authority
AidOrder of22July1993 oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of8March 1996 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Those whomeettheconditions laiddown inRoyal Decree 1695/95 of20October andcease
working inagriculture.
Workers onfarms whose owners retire earlyandfulfiltherequirements laiddown inArticle 6
oftheRoyal Decree.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas54,365,133
Number ofbeneficiaries: 83
Amount ofthesubsidy perunit: Ptas655,002
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page500
AIDTOFOOD ENTERPRISES TOATTEND AGRI-FOODSTUFFS FAIRS
1. Title
Aidtofoodenterprises toattend agri-foodstuffs fairs.
2. Period
1995/1996
3. Policy objective and/or purpose ofthesubsidy
Topromote marketing andawareness ofagri-foodstuffs through participation infairs.
4. Authority
Decree 1/1996 of16January oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of23May1994 oftheRegional Ministry ofAgriculture andtheEnvironment.
Order of8February 1996 onimproving processing andmarketing byagri-food enterprises.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Theaidisavailable toenterprises included intheRegister ofAgri-Foodstuff Enterprises based
inCastilla-La Mancha which attend agri-foodstuffs fairs.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas35,092,990
Number ofbeneficiaries: 130
Amount ofthesubsidy perunit: Ptas269,946
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page501
AIDTOPROMOTE IMPROVEMENTS INTHE QUALITY OFSHEEP
AND GOAT BREEDING
1. Title
Aidtopromote improvements inthequality ofsheep andgoatbreeding.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Toimprove thegenetic levels andenhance thequalitative characteristics ofsheep andgoat
breeding.
4. Authority
AidOrder of10January 1995 oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of11January 1996 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Sheep orgoatbreeders intheregion
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas17,539,750
Number ofbeneficiaries: 145
Amount ofthesubsidy perunit: Ptas120,964
8. Duration ofthesubsidy
Annual
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page502
AIDFOR THE IMPROVEMENT OFAGRICULTURAL STRUCTURE
1. Title
Aidfortheimprovement ofagricultural structures
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Toimprove theefficiency ofagricultural structures.
4. Authority
AidOrder of8November 1994oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of12August 1996 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct subsidy and/or interest-rate subsidy.
6. Beneficiaries
Young farmers, farmers 'associations andfarmers whose main occupation isfarming.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas895,123,283
Number ofbeneficiaries: 842
Amount ofthesubsidy perunit: Ptas1,063,092
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page503
AIDTOPROMOTE THE INSTALLATION OFREFRIGERATION
SYSTEMS TOIMPROVE MILK QUALITY
1. Title
Aidtopromote theinstallation ofrefrigeration systems toimprove milkquality.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Maximum reduction ofmicrobial contamination ofmilkfrom sheep orgoatfarms.
4. Authority
AidOrder of10January 1995 oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of11January 1996 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Owners ofsheep- orgoat-milk farms intheRegion, whopossess acurrent breeders 'cardand
aresubject tothehealth plans prescribed bytheDirectorate-General ofAgricultural Production.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas19,052,638
Number ofbeneficiaries: 83
Amount ofthesubsidy perunit: Ptas229,550
8. Duration ofthesubsidy
Fiveyears
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page504
AIDTOAGRICULTURAL ENTERPRISES FOR THE MAINTENANCE OF
AREAS PLANTED WITH BEET
1. Title
Aidtoagricultural enterprises forthemaintenance ofareas planted withbeet.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Compensation forlossofincome.
4. Authority
AidOrder of26January 1993 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct, tocompensate forlossofincome.
6. Beneficiaries
Farmers withholdings inCastilla-La Mancha whogrow beetandsupply industries based in
theRegion.
7. Amount ofthesubsidy (programme hasexpired)
Amount ofthesubsidy budgeted:
Number ofbeneficiaries:
Amount ofthesubsidy perunit:
8. Duration ofthesubsidy
Upto31December 1995
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page505
PROMOTION OFAGRICULTURAL PRODUCTION METHODS COMPATIBLE
WITH ENVIRONMENTAL PROTECTION AND CONSERVATION OF
NATURAL AREAS, APPLICABLE TOIRRIGATION
1. Title
Promotion ofagricultural production methods compatible withenvironmental protection and
conservation ofnatural areas, applicable toirrigation.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Rehabilitation ofaquifers byreducing irrigation.
4. Authority
AidOrder of22December 1993oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of5February 1996oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Compensation forlossofincome
6. Beneficiaries
Farmers whoreduce consumption ofwater forirrigation andutilization offertilizers and
phytosanitary products inaquifers 23and24.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas3,689 million
Number ofbeneficiaries: 2,624
Amount ofthesubsidy perunit: Ptas1,405,869
8. Duration ofthesubsidy
Upto31December 1998
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page506
AIDTOPROMOTE FORESTRY INVESTMENT ONFARMS
1. Title
Aidtopromote forestry investment onfarms.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Reforestation offarmland
4. Authority
AidOrder of13May1993 oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of25April 1996 oftheRegional Ministry ofAgriculture andtheEnvironment.
Council Regulation (EEC) 2082/92 of30June.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Owners offarms, whether natural orlegalpersons, andgroups composed ofowners offarms
carrying outforestry activities ontheirland.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas3,907,600,000
No.ofbeneficiaries: 3,014
Amount ofthesubsidy perunit: Ptas1,296,483
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page507
AIDTOPROMOTE THE AGRI-FOODSTUFFS SECTOR INTHE
CASTILLA-LA MANCHA REGION
1. Title
Aidtopromote theagri-foodstuffs sector intheCastilla-La Mancha region.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Toprovide support forimproving facilities soastoensure better processing quality.
4. Authority
AidOrder of25October 1993oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of8February 1996oftheRegional Ministry ofAgriculture andtheEnvironment.
Royal Decree 1/96of16January 1996.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Existing ornewly-created agri-foodstuffs enterprises which carry outorareabout tocarry out
anyactivities included intheannex totheAidOrder.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas2,386,888,991
Number ofbeneficiaries: 362
Amount ofthesubsidy perunit: Ptas6,593,616
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page508
SUPPORT TOTHE BEE-KEEPING SECTOR THROUGH POLLINATION PREMIUMS
1. Title
Support tothebee-keeping sector through pollination premiums.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote pollination ofcrops, forthesurvival oftheactivity.
4. Authority
AidOrder of17May1993 oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of20February 1996oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct tothebee-keeper
6. Beneficiaries
Farmers whorequest thesupport andmeettheconditions laiddown intheAidOrder.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas144,371,400
Number ofbeneficiaries: 352
Amount ofthesubsidy perunit: Ptas410,146
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page509
MEASURES TOENCOURAGE AND SUPPORT THE PROMOTION OF
NEW TECHNOLOGY INAGRICULTURAL MACHINERY AND EQUIPMENT
1. Title
Measures toencourage andsupport thepromotion ofnewtechnology inagricultural machinery
andequipment.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Support topromote newtechnology inagricultural machinery andequipment.
4. Authority
AidOrder of10September 1993oftheRegional Ministry ofAgriculture andtheEnvironment,
based ontheMinisterial Order of19February 1993.
5. Form ofthesubsidy
Reduced interest rates
6. Beneficiaries
Beneficiaries, whoreceive aidintheform ofasubsidy, include thefollowing:
(a) Agricultural cooperatives andSAT;
(b) groups involved inintegrated agricultural treatment andhealth protection groups for
machinery andequipment usedintheiractivities;
(c) groups withorwithout legalstatus (inaccordance withtheOrder);
(d) legally-established service enterprises carrying outagricultural work.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas80,874,254
Number ofbeneficiaries: 61
Amount ofthesubsidy perunit: Ptas1,325,807
8. Duration ofthesubsidy
IndefiniteG/SCM/N/25/EEC
Page510
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page511
FINANCING RELOCATION OFLIVESTOCK FARMS OUTSIDE URBAN AREAS
1. Title
Financing relocation oflivestock farms outside urban areas.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Torelocate livestock farms outside urban areas soastoavoid theadverse effects onthehealth
andwell-being ofthepopulation.
4. Authority
AidOrder of22January 1993oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of14March 1996 oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct and/or interest-rate subsidy.
6. Beneficiaries
Owners oflivestock farms inurban areas andinpossession ofanapproved breeders 'card.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas269,513,924
Number ofbeneficiaries: 52
Amount ofthesubsidy perunit: Ptas5,182,960
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page512
MEASURES TODEVELOP AND MANAGE WOODLAND INRURAL AREAS
1. Title
Measures todevelop andmanage woodland inrural areas.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Tohelptoconserve forestry resources andensure sustainable utilization.
4. Authority
AidOrder of25November 1994oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Farms withaminimum surface areaof25hectares having anareaofnotlessthan20percent
covered withtrees.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas139,400,000
Number ofbeneficiaries: 181
Amount ofthesubsidy perunit: Ptas770,166
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page513
SUPPLEMENTARY COMPENSATION INDISADVANTAGED AREAS
1. Title
Supplementary compensation indisadvantaged areas.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Tocompensate farmers indisadvantaged areas, whether inmountain orindepopulated zones,
forpermanent natural disadvantages.
4. Authority
AidOrders of9April 1991, 4April 1995 and25March 1996 oftheRegional Ministry of
Agriculture andtheEnvironment.
EEC Regulation No.2328/91.
5. Form ofthesubsidy
Direct
6. Beneficiaries
Farmers andlivestock breeders inthese areas wholiveinthesame oraneighbouring
municipality andearnmore than50percentoftheirincome from agriculture.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas 470,972,154
Number ofbeneficiaries: 23,073
Amount ofthesubsidy perunit: Ptas20,412
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page514
AIDTOFARMERS AND LIVESTOCK BREEDERS FOR THE PURCHASE
OFMEANS OFPRODUCTION
1. Title
Aidtofarmers andlivestock breeders forthepurchase ofmeans ofproduction.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote thepurchase ofmeans ofproduction byfarmers andlivestock breeders.
4. Authority
AidOrder of17January 1994oftheRegional Ministry ofAgriculture andtheEnvironment.
AidOrder of20February 1996oftheRegional Ministry ofAgriculture andtheEnvironment.
5. Form ofthesubsidy
Interest-rate subsidy
6. Beneficiaries
Farmers whoapply andmeettherequirements setoutintheAidOrder.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas5,763,236
Number ofbeneficiaries: 99
Amount ofthesubsidy perunit: Ptas58,215
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page515
GRANTING OFSUBSIDIES FOR THE HOLDING OFTRADE FAIRS
INCASTILLA-LA MANCHA
1. Title
Granting ofsubsidies fortheholding oftrade fairsinCastilla-La Mancha.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
4. Authority
5. Form ofthesubsidy
6. Beneficiaries
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted:
Number ofbeneficiaries:
Amount ofthesubsidy perunit:
8. Duration ofthesubsidy
Abolished byDecree 13/95 oftheRegional Ministry ofIndustry andLabour.
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page516
AIDFOR THE PREPARATION OFTRADE CATALOGUES
1. Title
Aidforthepreparation oftrade catalogues.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
4. Authority
5. Form ofthesubsidy
6. Beneficiaries
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted:
Number ofbeneficiaries:
Amount ofthesubsidy perunit:
8. Duration ofthesubsidy
Abolished byDecree 13/95 oftheRegional Ministry ofIndustry andLabour.
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page517
INCENTIVES FOR BUSINESS INVESTMENT INTHE REGION
1. Title
Incentives forbusiness investment intheregion.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
4. Authority
5. Form ofthesubsidy
6. Beneficiaries
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted:
Number ofbeneficiaries:
Amount ofthesubsidy perunit:
8. Duration ofthesubsidy
Abolished byDecree 13/95 oftheRegional Ministry ofIndustry andLabour.
9. Statistical data
Noeffect onthevolume ofproduction, consumption orforeign trade.G/SCM/N/25/EEC
Page518
DECREE ONCOMPETITIVENESS AND BUSINESS INVESTMENT INCENTIVES
1. Title
Decree oncompetitiveness andbusiness investment incentives.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Tohelpcreate, adapt or,asappropriate, improve theRegion 'seconomic fabric.
4. Authority
Decree 13/95 of28February oftheRegional Ministry ofIndustry andLabour.
5. Form ofthesubsidy
Non-repayable subsidy andreduced interest ratesonloans.
6. Beneficiaries
Industrial andservices enterprises, aswellasgroups ofenterprises, especially SMEs, which
decide tocarry outorarecarrying outactivities inCastilla-La Mancha.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas2,500 million
Number ofbeneficiaries: 1,126
Amount ofthesubsidy perunit: Ptas2,220,249
8. Duration ofthesubsidy
Indefinite
9. Statistical data
AsthisisaidtoSMEs, there islittleeffect onforeign trade.G/SCM/N/25/EEC
Page519
AIDFOR ECONOMIC DIVERSIFICATION INREGIONS WITH
TEXTILES-CLOTHING FACTORIES, UNDER THE RETEX INITIATIVE
1. Title
Aidforeconomic diversification inregions withtextiles-clothing factories, under theRETEX
Initiative.
2. Period
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote investment inthetextiles-clothing sector inCastilla-La Mancha, under the
Community RETEX Initiative.
4. Authority
Order of8February 1995 oftheRegional Ministry ofIndustry andLabour.
5. Form ofthesubsidy
Non-repayable subsidy andreduced interest ratesonloans.
6. Beneficiaries
Existing enterprises, irrespective oftheirlegalstatus, investing fromPtas3to75million, as
wellasassociations ofenterprises thatmeettherequirements oftheAidOrder.
7. Amount ofthesubsidy
Amount ofthesubsidy budgeted: Ptas1,000 million
Number ofbeneficiaries: 89
Amount ofthesubsidy perunit: Ptas11,235,955
8. Duration ofthesubsidy
1994-1997
9. Statistical data
AsthisisaidtoSMEs, there islittleeffect onforeign trade.G/SCM/N/25/EEC
Page520
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.10
AUTONOMOUS COMMUNITY OFCASTILLA-LEONG/SCM/N/25/EEC
Page521
SUBSIDIES IN1996
SMALL DAMS
1. Titleofthesubsidy programme
Small dams
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote theconstruction ofsmall dams toprovide auxiliary irrigation.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of18December 1995
5. Form ofthesubsidy
45percentofthetotalinvestment budget
6. Beneficiaries
Communitiesofirrigationfarmersandotherassociationslegallyestablishedforsimilarpurposes.
7. Amount for1996
Ptas25million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page522
REDUCTION OFPOWER COSTS ONIRRIGATED LAND
1. Titleofthesubsidy programme
Reduction ofpower costs onirrigated land.
Thisprogramme hasexpired.
AIDFOR THE PROMOTION OFALTERNATIVE LIVESTOCK-RAISING
ACTIVITIES INCASTILLA-LEON
1. Titleofthesubsidy programme
Aidforthepromotion ofalternative livestock-raising activities inCastilla-Leon.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Promotion ofcertain small animal farms within theterritory ofCastilla-Leon.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
Subsidies of15to35percent,depending ontheinvestment made, inaccordance withthelimits,
procedures andprinciples established foreachtypeoffarm.
6. Beneficiaries
Natural orlegalpersons whoownexisting orplanned farms andcomply withtheminimum
requirements.
7. Amount for1996
Ptas60million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page523
AIDFOR THE MODERNIZATION OFLARGE-SCALE LIVESTOCK FARMS
1. Titleofthesubsidy programme
Aidforthemodernization oflarge-scale livestock farms.
Thisprogramme hasexpired.
AIDFOR VINEYARD RESTRUCTURING PROGRAMMES INAPPELLATION
OFORIGIN AND LOCAL WINE REGIONS
1. Titleofthesubsidy programme
Aidforvineyard restructuring programmes inAppellation ofOrigin andlocalwineregions.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Restructuring ofvineyards toimprove quality andprofitability.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
25percentoftheinvestment
6. Beneficiaries
Wine-growers intheAppellation ofOrigin areas ofCastilla-Leon
7. Amount for1996
Ptas85million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page524
AIDFOR OWNERS OFSHEEP AND GOAT FARMS
1. Titleofthesubsidy programme
Aidforowners ofsheep andgoatfarms.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toimprove theproduction structure ofCastilla-Leon 'ssheep andgoatfarms.
4. Legislation
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
Activity-specific direct subsidies
6. Beneficiaries
Owners offarms which comply withtherequirements asregards number ofhead, sanitary
conditions, etc.
7. Amount for1996
Ptas40million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
POLLINATION PREMIUM FOR OWNERS OFBEE FARMS INCASTILLA-LEON
1. Titleofthesubsidy programme
Pollination premium forowners ofbeefarms inCastilla-Leon.
2. Period covered bythenotification
1996G/SCM/N/25/EEC
Page525
3. Purpose ofthesubsidy
Assistance intheform ofapollination premium forspecified beefarms inCastilla-Leon.
4. Authority
Orders oftheRegional Ministry ofAgriculture andLivestock of17January 1995 and
8January 1996.
5. Form ofthesubsidy
Fixed amount perhive(Ptas 1,500 forindividual bee-keepers, withalimit of500hives,
Ptas2,000 forassociations ofbee-keepers, limit500hives permember).
6. Beneficiaries
Owners, whether natural persons orassociations, ofbeefarms which comply with the
requirements.
7. Amount for1996
Ptas200million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
AIDFOR THE PROMOTION OFTHE COOPERATIVE MOVEMENT
INCASTILLA-LEON
1. Titleofthesubsidy programme
Aidforthepromotion ofthecooperative movement inCastilla-Leon.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote theassociative andcooperative movements inagriculture.
4. Authority
Order oftheRegional Ministry ofAgriculture of15January 1996G/SCM/N/25/EEC
Page526
5. Form ofthesubsidy
Upto50percentofthetotalcost,withcertain absolute limits, depending ontheactual form.
6. Beneficiaries
Farmers andlivestock breeders belonging tocooperatives, andthecooperatives themselves.
7. Amount for1996
Ptas90million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
REPLACEMENT OFCATTLE SLAUGHTERED UNDER
ANIMAL HEALTH PROGRAMMES
1. Titleofthesubsidy programme
Replacement ofcattle slaughtered under animal health programmes.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tocompensate livestock breeders fortheeconomic lossincurred intransporting cattle todistant
abattoirs.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
Replacement ofanimals slaughtered when over15months old.
6. Beneficiaries
Owners oflivestock farms included intheRegional Ministry 'sAnimal Health Programme.
7. Amount for1996
Ptas10millionG/SCM/N/25/EEC
Page527
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
AIDFOR AGRICULTURAL TRAINING AND RURAL DEVELOPMENT COURSES
1. Titleofthesubsidy programme
Aidforagricultural training andrural development courses.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toencourage vocational training inagricultural enterprises.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of4January 1996
5. Form ofthesubsidy
Various forms: from amounts perstudent perdaytofinancial compensation forenterprises
viagrants foraccommodation, board, travel andlearning materials.
6. Beneficiaries
Institutionswhicharrangeandconduct,andstudentswhoattend,organizedcoursesinagriculture
andvocational training courses.
7. Amount for1996
Ptas200million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page528
AIDFOR COMMUNITIES AND ASSOCIATIONS OFIRRIGATION FARMERS
1. Titleofthesubsidy programme
Aidforcommunities andassociations ofirrigation farmers.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toencourage thesaving ofwater usedforirrigation purposes andtheimprovement ofirrigation
systems.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of18December 1995
5. Form ofthesubsidy
40percentoftheauxiliary investment budget, withaceiling ofPtas8million.
6. Beneficiaries
Communities ofirrigation farmers orotherassociations legally constituted forsimilar purposes.
7. Amounts
Ptas200million
1996: Ptas70million
1997: Ptas130million
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page529
AIDFOR TAKING OUT AGRICULTURAL INSURANCE POLICIES AGAINST
FROST AND HAIL AFFECTING CERTAIN CROPS
1. Titleofthesubsidy programme
Aidfortaking outagricultural insurance policies against frostandhailaffecting certain crops.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tofacilitate access byfarmers tovarious types ofagricultural insurance.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
Subsidy for25percentofthepremium paidbythefarmer.
6. Beneficiaries
Farmers whotakeoutinsurance intheforms andaccording totheterms specified.
7. Amount for1996
Ptas400million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page530
EXCHANGE OFRURAL HOLDINGS
1. Titleofthesubsidy programme
Exchange ofrural holdings.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toencourage anincrease inthesizeofholdings through exchanges.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of18December 1995
5. Form ofthesubsidy
Subsidy for50percentofthecosts ofsolicitor 'sfeesandproperty registration.
6. Beneficiaries
Allowners whoexchange holdings sothatoneofthemincreases thesizeofpartofhisproperty.
7. Amount for1996
Ptas1million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page531
SUPPORT FOR THE INDUSTRIALIZATION AND MARKETING OF
AGRICULTURAL AND FOOD PRODUCTS INCASTILLA-LEON
1. Titleofthesubsidy programme
SupportfortheindustrializationandmarketingofagriculturalandfoodproductsinCastilla-Leon.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
TopromotebalanceddevelopmentoftheagriculturalandfoodindustrysectorsintheAutonomous
Community ofCastilla-Leon.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of15January 1996
5. Form ofthesubsidy
Subsidy for30-75 percentoftheinvestment depending onitspurpose.
6. Beneficiaries
Natural orlegal persons involved intheindustrialization, marketing ortrade promotion of
products ofCastilla-Leon.
7. Amount for1996
Ptas532,600,000
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page532
AIDFOR THE TRANSFER OFHOLDINGS DUE TOEARLY RETIREMENT
1. Titleofthesubsidy programme
Aidforthetransfer ofholdings duetoearly retirement.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote thetransfer oflandasaresult ofearly retirement intheagricultural sector.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of18December 1995
5. Form ofthesubsidy
Subsidy forthetotality ofsolicitor 'sandregistration fees.
6. Beneficiaries
Owners offarms, agricultural workers, members ofcooperatives andother persons whomeet
therequirements.
7. Amount for1996
Ptas2million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page533
RURAL DEVELOPMENT AID
1. Titleofthesubsidy programme
Rural development aid
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Promotion ofalternative solutions tofarming, improvement ofruralinfrastructures, support
forthepromotion andsaleofcraftproducts, andcollective action intherural environment.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of15January 1996
5. Form ofthesubsidy
Percentage ofthecosts, theinvestment, ortheexpenditure, orafixed amount perperson
depending onthepurpose oftheaid.
6. Beneficiaries
Depending onthepurpose oftheaid,thebeneficiaries maybefarms thatdiversify supply,
public orprivate entities which takenewinitiatives andmake significant improvements inthe
infrastructure, non-profit making bodies which support thepromotion andsaleofcraftproducts, etc.
7. Amount for1996
Ptas60million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page534
AIDTOCOMPENSATE FOR THE DAMAGE CAUSED TOCROPS BYFROST
1. Titleofthesubsidy programme
Aidtocompensate forthedamage caused tocrops byfrost.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tocompensate forthedamage caused byfrosttoligneous crops during the1994/95 season
inareas where croplossexceeded 50percentofnormal production.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996.
5. Form ofthesubsidy
Interest-rate subsidy
6. Beneficiaries
Individual wineandfruitgrowers, SATcooperatives orsimilar entities involved infarming.
Wine cooperatives, agricultural andprocessing associations ofother enterprises which process
andmarket grapes forwine.
Fruit growers orsimilar enterprises which market orprocess fruit.
7. Amounts
Ptas175million broken down asfollows:
1996: Ptas50million;
1997: Ptas50million;
1998: Ptas37.5million;
1999: Ptas25million;
2000: Ptas12.5million.
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page535
SUPPORT PLAN FOR THE BEET SECTOR
1. Titleofthesubsidy programme
Support planforthebeetsector
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toadapt thestructures ofbeetfarms inCastilla-Leon tothemarket situation.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
Agricultural income support inpesetas perwork unitandyearofproduction.
Direct aidtoproduction inpesetas/tonne.
6. Beneficiaries
Owners ofbeetfarms
7. Amount for1996
Ptas2,900 million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page536
AIDTOCONVERSION OFHOP VARIETIES
1. Titleofthesubsidy programme
Aidtoconversion ofhopvarieties.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Theintroduction ofaromatic varieties recommended bytheEECinzones where holdings are
amalgamated.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of8January 1996
5. Form ofthesubsidy
Between Ptas50,000 to300,000/hectare according tothecase.
6. Beneficiaries
Groups ofhopsproducers whosubmit aconversion plan.
7. Amount for1996
Ptas10million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page537
AIDTOTHE TRADE PROMOTION OFAGRICULTURAL AND FOOD INDUSTRIES
1. Titleofthesubsidy programme
Aidtothetrade promotion ofagricultural andfoodindustries.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote information campaigns soastomake agricultural andfoodproducts better known.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of15January 1996
5. Form ofthesubsidy
Non-repayable subsidy fortheinvestment made.
6. Beneficiaries
Owners ofsmall andmedium agricultural andfoodindustries which undertake tradepromotion.
7. Amount for1996
Ptas200million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page538
AIDTOENTERPRISES THAT SIGN MAPA-APPROVED CONTRACTS
WITH BREEDERS OFIBERIAN PIGS, CATTLE OFTHE BLACK IBERIAN
AVILA BREED AND GROWERS OFASPARAGUS FOR CANNING AND
OTHER VEGETABLE PRODUCTS FOR FREEZING
1. Titleofthesubsidy programme
Aidtoenterprises thatsignMAPA-approved contracts withbreeders ofIberian pigs, cattle
oftheblack Iberian Avila breed andgrowers ofasparagus forcanning andother vegetable products
forfreezing.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote thesigning ofMAPA-approved contracts withbreeders ofIberian pigs,cattle of
theblack Iberian Avila breed andgrowers ofasparagus forcanning andother vegetable products for
freezing.
4. Authority
Order oftheRegional Ministry ofAgriculture andLivestock of15January 1996
5. Form ofthesubsidy
Interest-rate subsidy
6. Beneficiaries
Industrialists inthesectors mentioned whohavesigned approved contracts withbreeders of
Iberian pigs, Avila cattle andgrowers ofasparagus andother vegetable products.
7. Amount for1996
Ptas35million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page539
SUBSIDIES FOR PROJECTS TOSAVE, REPLACE AND DIVERSIFY
ENERGY, RATIONAL USES OFENERGY AND RENEWABLE ENERGY
1. Titleofthesubsidy programme
Subsidiesforprojectstosave,replaceanddiversifyenergy,rationalusesofenergyandrenewable
energy.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Theexploitation oflocalenergy resources (thermal solar energy, photovoltaic solar energy,
wind energy, small hydroelectricity stations, biomass, passive solar energy), rational useofenergy
(energy savings, replacement ofpetroleum-derived products), promotion ofactivities tomake local
energy resources better known andenhance theiruse.
4. Authority
Order oftheRegional Ministry ofIndustry, Trade andTourism of31January 1996.
5. Form ofthesubsidy
Non-repayable subsidies fortheinvestment made
6. Beneficiaries
Public orprivate enterprises, groups ofenterprises, associations ofowners withjointfreehold,
natural persons andnon-profit making institutions, universities andlocalauthorities.
7. Amount for1996
Ptas150million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page540
INCENTIVES FOR CRAFTSMEN
1. Titleofthesubsidy programme
Incentives forcraftsmen
Thisprogramme hasexpired.
INCENTIVES TOSTART UPAND DEVELOP HIGH-TECH ACTIVITIES
1. Titleofthesubsidy programme
Incentives tostartupanddevelop high-tech activities.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tofacilitate theintroduction ofhigh-tech activities.
4. Authority
Decree 9/91oftheRegional Ministry oftheEconomy andFinance of24January 1991
5. Form ofthesubsidy
Forty percentoftheinvestment fortheparticipating company, 70percentoftheinterest on
aloanequal atmost tothecapital contributed.
6. Beneficiaries
Companies intending toparticipate inanother entity which hasinvested infixed assets giving
risetohigh-tech activities andtheentities themselves intending tocarry outhigh-tech projects.
7. Amount for1996
Ptas140,200,000
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page541
AIDFOR BUSINESS INVESTMENT. TERRITORIAL INCENTIVES
1. Titleofthesubsidy programme
Aidforbusiness investment. Territorial incentives.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toboost theendogenous development potential ofCastilla-Leon inpromotable activities.
4. Authority
Decree 9/91oftheRegional Ministry oftheEconomy andFinance of24January 1991
5. Form ofthesubsidy
Non-repayable subsidy ofbetween 40to50percentoftheapproved investment.
6. Beneficiaries
Enterprises carrying outinvestment projects inCastilla-Leon thatinvolve thecreation ofnew
orexpansion ofexisting establishments.
7. Amount for1996
Ptas1,035,800
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
SUBSIDIES TOPROMOTE INDUSTRIAL QUALITY AND PRODUCTIVITY
1. Titleofsubsidy programme
Subsidies topromote industrial quality andproductivity.
Thisprogramme hasexpired.G/SCM/N/25/EEC
Page542
TECHNOLOGICAL INCENTIVES: INCORPORATION OFTECHNOLOGY
1. Titleofthesubsidy programme
Technological incentives: incorporation oftechnology.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toencourage projects thatincorporate technology.
4. Authority
Order oftheRegional Ministry oftheEconomy andFinance of2March 1990
5. Form ofthesubsidy
Non-repayable subsidies forupto30percentoftheloan, which mayrepresent amaximum
of45percentofthesubsidizable investment.
6. Beneficiaries
Industrial enterprises established inCastilla-Leon.
7. Amount for1996
Ptas931,800,000
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page543
SUBSIDIES THROUGH ADVANCE ORBRIDGING LOANS FOR REGIONAL
AND TERRITORIAL INCENTIVES
1. Titleofthesubsidy programme
Subsidies through advance orbridging loans forregional andterritorial incentives.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tospeed upthepayment ofinvestment subsidies sothattheyareavailable immediately aproject
islaunched.
4. Authority
OrderoftheRegionalMinistryoftheMinistryoftheEconomyandFinanceof8November1989
5. Form ofthesubsidy
Subsidy forupto13percentofthecosts andinterest forloans taken outwithcollaborating
financial entities.
6. Beneficiaries
Enterprises thathavebeengranted investment subsidies.
7. Amount for1996
Ptas645,300,000
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page544
SUBSIDIES FOR INVESTMENT BYSMEs
1. Titleofthesubsidy programme
Subsidies forinvestment bySMEs
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toencourage investment projects inCastilla-Leon innewestablishments, theexpansion,
modernization, rationalization orrestructuring ofexisting establishments which helptopromote business
investment andtodirect them towards previously specified areas within Castilla-Leon.
4. Authority
Agreement of14November 1996 oftheGoverning Council oftheCastilla-Leon Economic
Development Agency.
5. Form ofthesubsidy
Grant
6. Beneficiaries
SMEs, i.e.enterprises thatmeetthefollowing requirements:
- Employ fewer than250workers;
- annual turnover doesnotexceed 40million ECUortheoverall balance doesnotexceed
27million ECU;
- participation byenterprises thatdonotmeetthese conditions doesnotexceed 25per
cent, except inthecaseofpublic investment companies, risk-capital companies or
institutional investments thatdonotexercise control;
- theamount ofsubsidized investment isbetween Ptas15to100million or,inthecase
ofinvestment projects, between Ptas15to300million, provided thatthese areinthe
special action areas;
Thebeneficiaries mustshow thattheyhavepaidtheirtaxandsocial security contributions and
havenooutstanding debts withtheAutonomous Community ofCastilla-Leon. They mustalsoprovide
evidence thattheinvestment thatistheobject ofthesubsidy hasbeenmade.
7. Amount for1996
Ptas205millionG/SCM/N/25/EEC
Page545
8. Duration
Until 31December 1999.
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
SUBSIDIES TOSMES INCASTILLA-LEON TOCARRY OUT ACTION
TOENHANCE COMPETITIVENESS
1. Titleofthesubsidy programme
Subsidies toSMEs inCastilla-Leon tocarry outaction toenhance competitiveness.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toenhance competitiveness byutilizing outside business analysis services andmaking the
investment advised bythelatter.
4. Authority
Decree 169/1996 of27JulyoftheRegional Ministry ofIndustry, Trade andTourism, and
Agreement oftheGoverning Council oftheCastilla-Leon Economic Development Agency of
12June1996.
5. Form ofthesubsidy
Non-repayable subsidy
6. Beneficiaries
SMEs whose activities arecarried outinCastilla-Leon inthefollowing sectors:
(a) Industry;
(b) tourist accommodation;
(c) construction.
SME means anenterprise that:
- Employs fewer than250workers;
- hasanannual turnover notexceeding ECU 40million oranoverall balance not
exceeding ECU 27million ;G/SCM/N/25/EEC
Page546
- participation byenterprises thatdonotmeetthese conditions mustnotexceed 25per
cent, except inthecaseofpublic investment companies, risk-capital companies or
institutional investments thatdonotexercise control.
Thebeneficiariesmustshowthattheyhavepaidtheirtaxandsocialsecuritycontributions
andhavenooutstanding debts withtheAutonomous Community ofCastilla-Leon. They must
alsoprovide evidence thattheinvestment thatistheobject ofthesubsidy hasbeenmade.
7. Amount for1996
Ptas240million
8. Duration
1996-1997
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
SUBSIDIES TOCRAFTSMEN AND WORKSHOPS INCASTILLA-LEON FOR
THE ECONOMIC PROMOTION OFTHIS SECTOR
1. Title
Subsidies tocraftsmen andworkshops inCastilla-Leon fortheeconomic promotion ofthis
sector.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toenhancethecompetitivenessofthecraftssectorandthuscontributetowardsitsfullintegration
inthecurrent business structure bysubsidizing projects involving investment inCastilla-Leon innew
workshops,theexpansionandmodernizationofthosealreadyexisting,andcarryingoutactiontopromote
thisactivity andcontribute towards improving theproduction structure, themarketing orfurther
professional training asawayofpromoting theeconomy ofthecrafts sector.
4. Authority
Decree 145/1996 oftheRegional Ministry ofIndustry, Trade andTourism, andAgreement
oftheGoverning Council oftheCastilla-Leon Economic Development Agency of19June1996.
5. Form ofthesubsidy
Non-repayable subsidyG/SCM/N/25/EEC
Page547
6. Beneficiaries
Beneficiaries arecraftsmen andcraftworkshops thatmeettherequirements tobeconsidered
asmall enterprise:
- Employ lessthan50people;
- annual turnover doesnotexceed ECU 7million ortotalnetassets donotexceed
ECU 5million;
- participation byenterprises thatdonotmeetthese conditions doesnotexceed 25per
cent, except inthecaseofpublic investment companies, riskcapital companies or
institutional investments thatdonotexercise control.
Theprojects must meetthefollowing conditions:
- Theinvestment orthecostseligible forsubsidies mustnothavebeenimplemented prior
tothedateofpublication ofthisannouncement;
- theymust betechnically, economically andfinancially viable;
- thebeneficiaries must havepaidtheirtaxandsocial security contributions.
7. Amount for1996
Ptas60million havebeenbudgeted.
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
AIDTOIMPROVE TECHNOLOGICAL CAPACITY AND INNOVATION
INTHE INDUSTRIAL SECTO
1. Title
Aidtoimprove technological capacity andinnovation intheindustrial sector
2. Period covered bythenotification
1996G/SCM/N/25/EEC
Page548
3. Purpose ofthesubsidy
Tosubsidize training activities related toanyofthefollowing technological sectors:
- Information technology;
- manufacturing technology;
- materials technology;
- environmental technology.
4. Authority
Decree 223/1995 of26October oftheRegional Ministry ofIndustry, Trade andTourism,
andAgreement oftheGoverning Council oftheCastilla-Leon Economic Development Agency.
5. Form ofthesubsidy
Non-repayable subsidy
6. Beneficiaries
BeneficiariesmustbeenterprisescarryingouttheirindustrialactivitiesinCastilla-Leon,meaning
enterprises carrying outactivities forobtaining, repairing, maintaining, processing orre-utilizing
industrial products, packaging andwrapping, aswellastheutilization, recovery andelimination of
residues orby-products, irrespective ofthenature oftheresources andtechnical processes used.
Thebeneficiariesmustprovideevidencethattheactivityeligibleforsubsidieshasbeenundertaken
andupon application mayreceive inadvance 50percentofthesubsidy.
7. Amount for1996
Ptas 248,800,000
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page549
SUBSIDIES FOR INDUSTRIAL SMES INCASTILLA-LEON INORDER TO
UNDERTAKE ACTIVITIES TOENHANCE QUALITY
1. Title
SubsidiesforindustrialSMEsinCastilla-Leoninordertoundertakeactivitiestoenhancequality.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Aidtocarry outactivities related totheinstallation ofquality processes inindustrial SMEs
inCastilla-Leon inorder toenhance theircompetitiveness ondomestic markets.
4. Authority
Decree 87/1996 of28March oftheRegional Ministry ofIndustry, Trade andTourism, and
Agreement of12April oftheGoverning Council oftheCastilla-Leon Economic Development Agency.
5. Form ofthesubsidy
Non-repayable subsidy
6. Beneficiaries
Beneficiaries must beindustrial SMEs, meaning enterprises that:
- Employ fewer than250workers;
- haveanannual turnover notexceeding ECU40million oroverall balance notexceeding
ECU 27million;
- participation byenterprises thatdonotmeetthese conditions mustnotexceed 25per
cent, except inthecaseofpublic investment enterprises, riskcapital companies or
institutional investments thatdonotexercise control.
Thebeneficiaries mustshow thattheyhavepaidtheirtaxandsocial security contributions and
havenooutstanding debts withtheAutonomous Community ofCastilla-Leon. They mustalsoprovide
evidence thattheactivity thatistheobject ofthesubsidy hasbeenimplemented.
7. Amount for1996
Ptas100million
8. Duration
AnnualG/SCM/N/25/EEC
Page550
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
FINANCIAL AIDTOSUBSIDIZE INTEREST RATES FOR CREDIT
OPERATIONS BYSMES
1. Titleofthesubsidy programme
Financial aidtosubsidize interest ratesforcredit operations bySMEs.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toreduce theinterest rateforloanandfinancial leasing operations bySMEs forthepurpose
ofinvestment.
4. Authority
Decree 39/96 of22February oftheAutonomous Community ofCastilla-Leon, andAgreements
oftheGoverning Council oftheCastilla-Leon Economic Development Agency dated 19April and
7October 1996.
5. Form ofthesubsidy
Interest-rate subsidy
6. Beneficiaries
Thebeneficiaries areSMEs whose main commercial establishments areinCastilla-Leon.
7. Amount for1996
Ptas540,500,000
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page551
FINANCIAL AIDTOSUBSIDIZE INTEREST RATES FOR CREDIT
OPERATIONS BYSMES
1. Titleofthesubsidy programme
Financial aidtosubsidize interest ratesforcredit operations bySMEs.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toreduce theinterest rateforloanandfinancial leasing operations bySMEs forthepurpose
offinancial restructuring.
4. Authority
Decree 39/96 of22February oftheAutonomous Community ofCastilla-Leon, andAgreements
oftheGoverning Council oftheCastilla-Leon Economic Development Agency dated 19April and
7October 1996.
5. Form ofthesubsidy
Interest-rate subsidy
6. Beneficiaries
Thebeneficiaries areSMEs whose main commercial establishments areinCastilla-Leon.
7. Amount for1996
Ptas48,500,000
8. Duration
Several years
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page552
AIDTOCOMMERCIAL SMES FOR THE PURCHASE OFCOMPUTER EQUIPMENT
1. Titleofthesubsidy programme
Aidtocommercial SMEs forthepurchase ofcomputer equipment.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tofacilitate theinstallation and/or expansion ofcomputer systems incommercial SMEs in
theregion soastopromote better management.
4. Authority
Decree 86/96 of28March oftheAutonomous Community ofCastilla-Leon, andAgreement
of12April 1996 oftheGoverning Council oftheCastilla-Leon Economic Development Agency.
5. Form ofthesubsidy
Non-repayable subsidy
6. Beneficiaries
ThebeneficiariesareSMEscarryingouttheiractivitiesinCastilla-Leonwhichmeetthefollowing
requirements:
- Employ fewer than250workers;
- annual turnover doesnotexceed ECU40million ortheoverall balance doesnotexceed
ECU 27million;
- participation byenterprises thatdonotmeetthese conditions doesnotexceed 25per
cent, except inthecaseofpublic investment companies, risk-capital companies or
institutional investments thatdonotexercise control;
Thebeneficiaries mustshow thattheyhavepaidtheirtaxandsocial security contributions and
havenooutstanding debts withtheAutonomous Community ofCastilla-Leon. They mustalsoprovide
evidence thattheaction thatistheobject ofthesubsidy hasbeenimplemented.
7. Amount for1996
Ptas40million
8. Duration
AnnualG/SCM/N/25/EEC
Page553
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.
SUBSIDIES FOR TRADE PROMOTION ACTIVITIES
1. Titleofthesubsidy programme
Subsidies fortrade promotion activities
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote promotion activities byenterprises inCastilla-Leon andtoenhance awareness and
distribution oftheirproducts bysubsidizing thefollowing activities: publishing catalogues, attending
fairsandcompetitions, taking partinexhibitions andsimilar activities.
4. Authority
Order of30January 1996 oftheRegional Ministry ofIndustry, Trade andTourism
5. Form ofthesubsidy
Non-repayable subsidy subject toproof oftheactivity subsidized.
6. Beneficiaries
SMEs producing anddistributing products, chambers ofcommerce andindustry, associations
oftraders orbusiness persons.
7. Amount for1996
Ptas121,700,000
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page554
SUBSIDIES FOR INVESTMENT INMODERNIZING THE COMMERCIAL SECTOR
INTHE AUTONOMOUS COMMUNITY OFCASTILLA AND LEON
1. Titleofthesubsidy programme
Subsidies forinvestment inmodernizing thecommercial sector intheAutonomous Community
ofCastilla andLeon.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tocontribute towards thedevelopment ofcommercial activities inareas requiring urban and
commercial renewal.
4. Authority
Orders oftheRegional Ministry ofIndustry, Trade andTourism of12December 1995 and
30January 1996.
5. Form ofthesubsidy
Non-repayable subsidy fortheinvestment made.
6. Beneficiaries
Thebeneficiaries arepurely commercial SMEs.
7. Amount for1996
Ptas166million
8. Duration
Annual
9. Statistical data
Thestatistical dataavailable donotreflect thetrade effects ofthissubsidy.G/SCM/N/25/EEC
Page555
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.11
AUTONOMOUS COMMUNITY OFCATALONIAG/SCM/N/25/EEC
Page556
AIDUNDER TECHNOLOGICAL PROGRAMMES CONNECTED
WITH THE SEAT MODERNIZATION PLAN
1. Titleofthesubsidy programme
AidundertechnologicalprogrammesconnectedwiththeSEATModernizationPlan(1994-1997).
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Theaidisintended forinnovation, technological development andtraining projects intheSEAT
company, asubsidiary oftheVolkswagen Group, under aplanthatwillmean a29percentreduction
inSEAT 'scapacity andafivepercentcapacity reduction oftheVWGroup, attheCommunity level.
4. Authority
CommissionDecision96/257/ECof31October1995concerningaidgrantedbySpaintoSEAT,
amember oftheVWGroup.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Thesubsidy ispayable exclusively totheSEAT company, which must produce evidence to
theSpanish authorities thattheinnovation, technological development andtraining projects havebeen
implemented.
7. Amount ofthesubsidy
Theamount for1996 wasPtas4,000 million.
8. Duration ofthesubsidy
TheModernization Planisfortheperiod 1994-1997 andsubsidies maybegranted intheyears
1995-1998.
9. Statistical dataonthetrade effects ofthesubsidy
Thesubsidy hasnoadverse effects ontrade forSEAT 'scompetitors, since itfulfils the
requirements under theAgreement onSubsidies andCountervailing Measures foraidforthispurpose
(R&D, Article 8.2(a)); furthermore, theModernization Planforwhich theaidisintended involves
reductions of29percentinproduction capacity and49percentinemployment bytheendofthePlan,
sothatbytheendof1997 SEAT 'stechnical capacity willnotexceed 2,125 unitsperday,compared
with3,000 units perdayattheendof1993.G/SCM/N/25/EEC
Page557
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.12
AUTONOMOUS COMMUNITY OFEXTREMADURAG/SCM/N/25/EEC
Page558
PREFERENTIAL PROGRAMME OFTECHNICAL ASSISTANCE TO
COOPERATIVES AND LABOUR CORPORATIONS
1. Title
Preferential programme oftechnical assistance tocooperatives andlabour corporations.
2. Period
1January to31December 1996
3. Policy objective andpurpose ofthesubsidy
Non-repayable subsidies tolabour cooperatives orcommunity farming cooperatives, orlabour
corporations, groups, unions orfederations thereof, andagricultural cooperatives oragricultural
processing associations which require means orqualified personnel tocover their management,
administration ormarketing needs.
4. Authority
Presidential Decree 27/1993 of26July(amended byPresidential Decrees 4/1995 of3February
and31/1995 of22November) regulating thePreferential Programme ofaidandsubsidies fortechnical
assistance tocooperatives andlabour corporations.
5. Form ofthesubsidy
Thesubsidy takes theformofagrant, contingent uponcompliance withcertain requirements.
6. Beneficiaries ofthesubsidy
Labourcooperativesorcommunityfarmingcooperatives,orlabourcorporations,groups,unions
orfederations thereof, andagricultural cooperatives oragricultural processing associations areeligible.
7. Subsidy perunit
(a) Technical assistance:
- Maximum amount ofthesubsidy: 50percentofthecostoftheactivity.
- Maximum amount: Ptas1million.
(b) Recruitment oftechnical personnel:
- Maximum amount ofthesubsidy: Ptas3million (twoyears).
8. Duration ofthesubsidy, time-limits
Ifthetechnical personnel arerecruited foranindefinite period, thepostmustbekeptformore
thanthree years. There arenotime-limits fortheothers.G/SCM/N/25/EEC
Page559
9. Statistical datafor1996
- Applications approved 7
- Amount ofapproved subsidy Ptas31,762,511
NON-REPAYABLE SUBSIDY TOPROMOTE PRODUCTIVE INVESTMENT
BYSMES INEXTREMADURA
1. Title
Non-repayable subsidy topromote productive investment bySMEs inExtremadura.
2. Period
1996
3. Purpose ofthesubsidy
Topromotethecreationofnewenterprisesandexpandormodernizeexistingones,inproduction
sectors.
4. Background andauthority
FEDER Extremadura Operational Programme 1994-1999.
Decree 74/1993 of8June; Decree 52/95 of16May; Decree 108/96 of2July.
5. Form ofthesubsidy
Non-repayable subsidy, percentage oftheinvestment made.
6. Beneficiaries ofthesubsidy
Thesubsidy ispaiddirect totheinvesting enterprise, when itprovides proof thattheproject
hasbeencompleted. Theamount iscalculated asapercentage oftheactual investment made.
7. Annual amount
Amount budgeted: Ptas994,930,000
8. Duration ofthesubsidy
Thesubsidy isgranted foreachspecific investment programme andispaidonproof of
completion.
Once thesubsidy isgranted, oneyearisgiven toimplement theproject.
Applications maybesubmitted throughout theyear.G/SCM/N/25/EEC
Page560
9. Statistical data
Thetrade effects arenotknown.
SUBSIDIZED INTEREST ONLOANS ORLEASING OPERATIONS
FOR SMES INEXTREMADURA
1. Title
Subsidized interest onloans orleasing operations forSMEs inExtremadura.
2. Period
1996
3. Purpose ofthesubsidy
Toreduce thecostoffinancing forenterprises implementing investment projects infixed or
current assets.
4. Background andauthority
Budget Lawfor1995, Law7/94of16December;
Decree 11/1994 of8February;
Decree 90/1994 of14June.
5. Form ofthesubsidy
Subsidized interest, interest ratepoints, onnegotiated loans.
6. Beneficiaries ofthesubsidy
Thesubsidy ispaiddirectly totheenterprise taking outtheloan. Theamount iscalculated
ontheprincipal oftheloans. Payments aremade quarterly.
7. Annual amount
Total amount: Ptas689,463,000
8. Duration ofthesubsidy
Asubsidy isgranted fortheduration oftheloan, withaseven-year maximum. Payment of
thesubsidy starts when proof isfurnished thattheinvestment hasbeenmade. Applications forsubsidies
maybemade throughout theyear.
9. Statistical data
Thetrade effects arenotknown.G/SCM/N/25/EEC
Page561
AIDPROGRAMME TOIMPROVE THE QUALITY OFIBERIAN PIG
PRODUCTION INTHE AUTONOMOUS COMMUNITY OFEXTREMADURA
1. Title
Aidprogramme toimprove thequality ofIberian pigproduction intheAutonomous Community
ofExtremadura.
2. Period
1996
3. Policy objective andpurpose ofthesubsidy
Theobjective oftheprogramme istoenhance thequality ofIberian pigproduction in
Extremadura byintroducing asystem ofincentives tomark andidentify animals forthe"Dehesa de
Extremadura" appellation oforigin inthe1994/1995 season.
Theaidconsists ofasubsidy forregistration andthepurpose istocover thecostofregistering,
marking, following-up andchecking thesaidanimals.
4. Authority
Decree 51/1996 and3/1195 of24January onpromoting thequality ofIberian pigproduction
intheAutonomous Community ofExtremadura.
5. Form ofthesubsidy
Thesubsidy takes theformofagrant, contingent uponcompliance withcertain requirements.
6. Beneficiaries ofthesubsidy
Livestock farms intheFarm Register oftheRegional Ministry ofAgriculture andTrade and
inthe"Dehesa deExtremadura" Appellation ofOrigin Register areeligible.
7. Subsidy perunit
- Maximum number ofeligible animals perapplicant: 200
- Maximum amount ofsubsidy peranimal: Ptas5,000
8. Duration ofthesubsidy
Annual
9. Statistical datafor1996
* Applications approved: 62
* Total amount ofsubsidies paid: Ptas22,056,000G/SCM/N/25/EEC
Page562
SYSTEM OFAIDTOIMPROVE MARKETING CONDITIONS FOR
AGRI-FOOD PRODUCTS
1. Title
System ofaidtoimprove marketing conditions foragri-food products.
2. Period
1996
3. Policy objective andpurpose ofthesubsidy
Improved marketing ofagri-food products produced inExtremadura.
Thesubsidy maycover specific percentages ofthestart-up andoperating costs inthefirst
three years, uptocertain limits.
Itcannot cover partofthecostofmarket surveys, promotion campaigns, orthecreation and
dissemination ofmarks.
4. Authority
Decree 4/1992, of28January regulating thesystem ofaidtoimprove marketing conditions.
5. Form ofthesubsidy
Ittakes theform ofagrant.
6. Beneficiaries ofthesubsidy
Theaidisavailable toassociations ofenterprises withtheirownlegal status which market
products oftheirassociate enterprises, provided theyfulfil certain conditions.
7. Subsidy perunit
- Maximum amount ofsubsidy: 60percent(1styearcosts);
40percent(2ndyearcosts);
20percent(3rdyearcosts).
- Subsidy ceiling: Ptas8million (1styear);
Ptas5million (2ndyear);
Ptas3million (3rdyear).
8. Duration, time-limits
NoneG/SCM/N/25/EEC
Page563
9. Statistical datafor1996
Applications approved: 3
Total amount ofsubsidies granted: Ptas39,406,000
AIDTOTHE CREATION AND OPERATION OFCATTLE, SHEEP AND
GOAT HEALTH PROTECTION GROUPS INEXTREMADURA
1. Title
Aidtothecreation andoperation ofCattle, Sheep andGoat Health Protection Groups in
Extremadura.
2. Period
1996
3. Policy objective andpurpose ofthesubsidy
Toenhance health protection inlivestock farms through thecollective formulation and
implementationofpreventiveprogrammesandcampaignsagainstanimaldiseasesandtoimprovehygiene
conditions, soastoraiseproductivity andquality levels.
4. Authority
Decree 12/1994 of8February regulating thecreation andoperation ofCattle, Sheep andGoat
Health Protection Groups.
5. Form ofthesubsidy
Grant
6. Beneficiaries ofthesubsidy
Health Protection Groups (ADS) maybeestablished byallbreeders onlivestock farms inthe
territory oftheAutonomous Community ofExtremadura whoundertake toobserve theGroups 'statutes
andthecurrent animal health standards.
7. Subsidy perunit
Subsidy equivalent to50percentofthetotalhealth programme costsubmitted andapproved,
including thefeesoftheveterinarian incharge.
8. Duration, time-limits
IndefiniteG/SCM/N/25/EEC
Page564
9. Statistical datafor1996
No.ofbeneficiaries: 42
Total amount ofaid: Ptas172,965,261
AIDFOR THE REGULATION, SELECTION AND PROMOTION OFTHE MAIN
INDIGENOUS BREEDS INEXTREMADURA
1. Title
Aidfortheregulation, selection andpromotion ofthemainindigenous breeds inExtremadura.
2. Period
1996
3. Policy objective andpurpose ofthesubsidy
Toimprove theregulation, selection andpromotion ofthemain indigenous breeds in
Extremadura, (principally Merino sheep andIberian pigs).
Thesubsidy isfor:
- Management andverification oftherecords oftheHerd Book;
- creation ofbreed evaluation andpreservation schemes andselection programmes;
- participation incattle auctions.
4. Authority
Decree 111/1992 of6October regulating theAidProgramme fortheregulation, selection and
promotion ofthemain indigenous breeds inExtremadura.
5. Form ofthesubsidy
Subsidy forupto50percentoftheapproved budget forthefirsttwolines, andaquantitative
limitforthethirdline.
6. Beneficiaries ofthesubsidy
Breeders 'Associations responsible fortheHerd Books forthefirsttwolinesofaidand,for
participation inauctions, breeders purchasing breeding animals.
Thesubsidy preferably applies tothemainindigenous breeds inExtremadura, withHerdBooks
andBreeders 'Associations responsible forthem.G/SCM/N/25/EEC
Page565
7. Subsidy perunit
Aidceilings:
Ptas10,000/bull;
Ptas5,000/cow.
8. Duration, time-limits
Annual
9. Statistical datafor1996
No.ofbeneficiaries: 198
Total amount ofaid: Ptas68,364,442
SUBSIDIES FOR TAKING OUT CHERRY, TOBACCO, RICE AND
TOMATO INSURANCE POLICIES INEXTREMADURA
1. Title
Subsidies fortaking outcherry, tobacco, riceandtomato insurance policies inExtremadura.
2. Period
1996
3. Policy objective andpurpose ofthesubsidy
Toobtain sufficient cover toguarantee minimum income inthevarious districts ofExtremadura.
4. Authority
Decree 163/1995 of3October providing subsidies fortaking outcherry, tobacco, riceand
tomato insurance policies inExtremadura.
5. Form ofthesubsidy
Subsidy forupto25percentofthecostofinsurance.
6. Beneficiaries ofthesubsidy
Farmers intheAutonomous Community ofExtremadura.
7. Subsidy perunit
25percentofthecostofinsurance.G/SCM/N/25/EEC
Page566
8. Duration, time-limits
Annual
9. Statistical datafor1996
No.ofbeneficiaries: -
Total amount ofaid: Ptas324,357,342
OPERATIONS AND BENEFITS OFINTEGRATED PLANT
TREATMENT GROUPS (ATRIAS)
1. Title
Operations andbenefits ofIntegrated Plant Treatment Groups (ATRIAS).
2. Period
1996
3. Policy objective andpurpose ofthesubsidy
Todevelop andapply techniques forintegrated plant treatment, training experts.
4. Authority
Decree3/1994,of25JanuaryregulatingtheoperationsandbenefitsofIntegratedPlantTreatment
Groups (ATRIAS), amended byDecree 184/95.
5. Form ofthesubsidy
Grant
6. Beneficiaries ofthesubsidy
Integrated PlantTreatment Groups (ATRIAS), dulyestablished ontheproposal oftheRegional
Ministry ofAgriculture andTrade andapproved bytheState Ministry ofAgriculture, Fisheries and
Food, which havecompleted atleastthefirstyearoftheirprogramme.
7. Subsidy perunit
Amount ofsubsidy: Ptas250,000 permonth pertechnician hired.
Maximum subsidy: Ptas2.4million perannum pertechnician hired.
8. Duration, time-limits
1996G/SCM/N/25/EEC
Page567
9. Statistical datafor1996
No.ofbeneficiaries: 9
Total amount ofaid: Ptas65,975,510G/SCM/N/25/EEC
Page568
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.13
AUTONOMOUS COMMUNITY OFGALICIAG/SCM/N/25/EEC
Page569
PROGRAMME FOR THE VOLUNTARY AND PERMANENT ABANDONMENT
OFMILK PRODUCTION
1. Titleofthesubsidy programme
Programme forthevoluntary andpermanent abandonment ofmilkproduction.
2. Period covered bythenotification
Thesubsidy willendin2002.
3. Policy objective and/or purpose ofthesubsidy
Thepurpose istorestructure dairy farms, freeing reference quantities ofmilk under the
abandonment scheme, soastobuild upareserve thatwillsubsequently bedistributed among farms
thatneeditinorder toexpand.
4. Background andauthority forthesubsidy
Council Regulation (EEC) 3950/92 of28December establishing anadditional taxinthemilk
anddairy products sector.
Royal Decree 154/1996 laying down aplanforvoluntary andpermanent abandonment ofmilk
production.
5. Form ofthesubsidy
Non-repayable subsidy intheform ofseven annual instalments.
6. Beneficiaries andtypeofsubsidy
Theaidisavailable todairy farmers whohavebeenallocated areference quantity anddecide
toabandon milkproduction ontheirfarms totally anddefinitively.
Theamount ofthecompensation perkg.ofmilkispaidoverseven consecutive years in
proportion tothefarm'sreference quantity forsaletobuyers anddirect sales.
Theaidisautomatically granted iftheapplicants meettherequirements laiddown intheRoyal
Decree andthebudgetary appropriation issufficient.
7. Subsidy perunit
Theamount ofcompensation perkg.ofmilkinproportion tothereference quantity allocated
toeachfarmisasfollows:
(a) Quota >35,000 kg: Ptas40/kg.;
(b) Quota <35,000 kg: Ptas45/kg.G/SCM/N/25/EEC
Page570
8. Duration ofthesubsidy
Thebeneficiaries willreceive theaidoverseven years, starting in1996.
9. Statistical data
Year Number offarms Milk production
abandoned
(inkg.)Average abandonment
perfarm
(inkg.)Annual subsidy
(inPtas)
1996 575 8,587,051 14,934 51,777,324
INCENTIVES AND SUPPORT FOR THE PROMOTION OFNEW
TECHNOLOGIES FOR AGRICULTURAL MACHINERY AND EQUIPMENT
1. Titleofthesubsidy programme
Incentives andsupport forthepromotion ofnewtechnologies foragricultural machinery and
equipment.
2. Period covered bythenotification
Theaidscheme willremain ineffect until1999.
3. Policy objective and/or purpose ofthesubsidy
Thepurpose istopropose investment inmachinery tobeusedjointly andenergy savings.
4. Background andauthority forthesubsidy
Order oftheMinistry ofAgriculture, Fisheries andFood of19February 1993 onincentives
andsupport forthepromotion ofnewtechnologies foragricultural machinery andequipment.
Order oftheRegional Ministry ofAgriculture, Livestock andWoodlands of23April 1996
onincentives andsupport forthepromotion ofnewtechnologies foragricultural machinery and
equipment.
5. Form ofthesubsidy
Non-repayable subsidy
6. Beneficiaries andtypeofsubsidy
Theaidisavailable toassociations, whether theyarelegalpersons (Agricultural Processing
Cooperatives (SATs), cooperatives, Integrated Plant Treatment Groups (ATRIAS)), orinformal
associations comprising aminimum number offourfarmers whose mainoccupation mustbefarming
andwhoutilize themachinery solely ontheirownfarms, except inthecaseofjointlabour cooperatives.G/SCM/N/25/EEC
Page571
Theamount ofthegrant isapercentage oftheinvestment made andvaries according tothe
siteofthefarmandthetypeofassociation.
Theaidisgranted automatically iftheapplicants meettherequirements laiddown intheOrder
andthebudgetary appropriation isavailable.
7. Subsidy perunit
There isaceiling ontheamount ofthesubsidy perapplication:
Ptas5million forassociations thatarelegalpersons;
Ptas1million forinformal associations.
In1996, 147applications were made covering 3,500 farmers andinvolving atotalsubsidy
ofPtas91.2million. Informal groups submitted 76.8percentoftheapplications.
8. Duration ofthesubsidy
TheRegional Ministry ofAgriculture, Livestock andWoodlands publishes anorder annually
toregulate thesesubsidies, establishing technical innovation plans formachinery eligible forsubsidies,
andfixestheannual budgetary appropriation.
9. Statistical data
Itisdifficult tomake areliable assessment oftheeffects ofthemeasure onthestatistics of
machinery existing intheAutonomous Community because themeasure 'spurpose isnottoincrease
thetotalamount ofagricultural machinery intheCommunity buttopromote thepurchase andjoint
useofmachinery which, ifacquired individually, would jeopardize theprofitability oftheinvestment
because aminimum number ofhours ofusewould notbeachieved.
Theaidscheme aimstoincorporate modern production techniques.
Machinery generally usedinagriculture isnotsubsidized.
Thetechnical innovation plans for1996 were thefollowing:
I. Planfortherational mechanization ofproduction anduseoffodder;
II. plantorationalize theuseofmanure, slurry andsludge forsoilfertilization;
III. plantopromote theuseofmachinery andequipment thatconstitute atechnological
innovation.
PlanIhasbeenthemostimportant andreceived 82.2percentofthetotalsubsidy approved.
Machinery included inPlanIIIreceived 10.5percentofthesubsidy. Lastly, theremaining 7.3per
centwenttoPlanII.
Thepercentage ofthesubsidy allocated toPlanIisincreasing eachyear.G/SCM/N/25/EEC
Page572
AIDFOR THE DEVELOPMENT OFHEALTH PROTECTION
PROGRAMMES FOR CROPS
1. Titleofthesubsidy programme
Aidforthedevelopment ofhealth protection programmes forcrops.
2. Period covered bythenotification
Until theendof1999
3. Policy objective and/or purpose ofthesubsidy
Technical training offarmers through therecruitment ofaspecialist tofollow upthe
implementation ofahealth protection programme forcrops under theexisting regulations on
environmental conservation.
Thepurchaseofmachineryandmeansthatentailanimprovementinthetechniquesforcombating
pathogens soastoobtain plants withalowtoxic residue content.
4. Background andauthority forthesubsidy
Order oftheRegional Ministry ofAgriculture, Livestock andWoodlands establishing aidfor
thehealth protection programme forcrops, published annually intheOfficial Gazette ofGalicia
(authorized bytheEuropean Commission inNo.508/95-S.G. (95)D/16323).
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Theaidisavailable tocooperatives. Agricultural Processing Cooperatives (SATs), orlegally-
established groups, andconsists ofavariable percentage according tothetypeofinvestment envisaged
intheprogramme.
7. Subsidy perunit
TheOrder provides forthehiring ofservices toestablish andfollow upaphytopathological
programme withamaximum amount ofuptoPtas1million forbothservices.
Aidforthepurchase ofmachinery andmeans thatentail technical improvements: thesubsidy
forequipment ranges uptoamaximum of75percentofinvestment formachinery, andthemaximum
ceiling is40percent,although thisisrestricted to35percentinzones thatarenotless-favoured within
themeaning ofEEC Directive 75/268.
Total aidgranted in1996under theaforementioned headings forthehiring oftechnical services
amounted toPtas29,438,620 for58applicants, representing anaverage aidpergroup ofPtas507,562
and100percentoftheoverall cost.G/SCM/N/25/EEC
Page573
Under theheading ofpurchase ofmachinery andequipment, totalaidgranted amounted to
Ptas12,614,526 outofabudget ofPtas37,167,136 submitted by52applicants, representing average
aidofPtas242,587 perapplicant andanaverage of33.94 percentofthebudget submitted by
associations.
8. Duration ofthesubsidy
Thesubsidy isgranted forannual programmes tobeimplemented bygroups, inthiscasefor
1996.
9. Statistical data
Formachinery andequipment, theaverage subsidy was33.4percent.
VINEYARD RESTRUCTURING INGALICIA
1. Titleofthesubsidy programme
Vineyard restructuring inGalicia.
2. Period covered bythenotification
Theaidscheme willremain ineffect until1999.
3. Policy objective and/or purpose ofthesubsidy
Thepurpose ofthesubsidy scheme istoimprove thequality ofvineyards anddirect cultivation
towards low-producing varieties thatyieldquality wines, without marketing problems, eliminating more
productive varieties thatarenoteasily accepted inmarkets.
4. Background andauthority forthesubsidy
Title: Order of18April 1996 regulating aidforvineyard restructuring inGalicia. State
AidNo.183/96 oftheAutonomous Community ofGalicia.
5. Form ofthesubsidy
Non-repayable subsidy
6. Beneficiaries andtypeofsubsidy
Theaidisavailable tofarmers whowishtoreplace non-premium varieties bynative orpremium
varieties ortorenew theiroldvineyards.
Theamount ofthesubsidy isapercentage oftheinvestment made andvaries from22to30per
centaccording tothesiteofthevineyard andthetypeofowner.
Thesubsidy isgranted automatically ifapplicants meettherequirements laiddown intheOrder
andifthebudgetary appropriation isavailable.G/SCM/N/25/EEC
Page574
7. Subsidy perunit
Themaximum areaeligible forasubsidy is2hectares, andtheminimum is500m2.
Investment/AWU =Ptas11,145,000;
Investment/vineyard =Ptas22,290,000.
In1996, 94farmers, accounting foranareaof34hectares, benefited fromtheaidandatotal
ofPtas20.4million insubsidies, anaverage ofPtas217,000 perfarmer and600,000 Ptas/hectare.
8. Duration ofthesubsidy
TheOrder regulating thesubsidies specifies thebudget available.
9. Statistical data
Grapes formaking wine. Summary ofproduction andusein1992 byprovince.
Province Total area(in
hectares)Production (T.M.) Useofproduction (T.M.)
Consumed fresh Production of
wine
LaCoruña
Lugo
Orense
Pontevedra1,747
2,440
12,011
11,60412,545
13,598
45,000
79,541---
---
---
15912,545
13,598
45,000
79,382
Galicia 27,802 150,684 159 150,525
Theeffect ofthelineonareaandvolume ofproduction isnotsignificant, although it
contributes todecreasing production asthere isnonewplantation.
Thenumber ofhectares restructured haslittleimpact onthetotalareaofvineyards intheregion
butisimportant inenhancing thequality ofproduction.
Theintroduction oftheproposed varieties isaimed atimproving thequality oftheproduct
while atthesame timedecreasing production.
SUPPORT MEASURES FOR GROUPS AND ENTITIES TOIMPROVE THE
EFFICIENCY OFAGRICULTURAL PRODUCTION SYSTEMS
1. Titleofthesubsidy programme
Support measures forgroups andentities toimprove theefficiency ofagricultural production
systems.
2. Period covered bythenotification
Until theendof1999G/SCM/N/25/EEC
Page575
3. Policy objective and/or purpose ofthesubsidy
- Technical training offarmers through therecruitment oftechnical stafftocarry out
managementprogrammes,managementoffarmsandingeneralactivitieswhosepurpose
istodevelop farms;
- tomake structural improvements tofarms;
- toimprove thequality ofagricultural production onthefarms.
4. Background andauthority forthesubsidy
Order oftheRegional Ministry ofAgriculture, Livestock andWoodlands establishing support
measures forgroups andentities toimprove theefficiency ofagricultural production systems, published
annually intheOfficial Gazette ofGalicia. Order authorized bytheEuropean Commission No.429/95.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Thesubsidy isavailable tolegally-established groups andentities andconsists ofavariable
percentage inaccordance withthetypeofinvestment envisaged intheimprovement programme
submitted.
7. Subsidy perunit
TheOrder provides forthehiring ofservices toimplement management programmes, manage
farms andother activities whose purpose istodevelop farms. Themaximum amount ofthesubsidy
is70percentofthecostofthecontract, which decreases toamaximum of60percentwhen thesubsidy
forthehiring oftechnical staffexceeds aperiod ofthree years.
In1996, thetotalaidgranted forcarrying outprogrammes toimprove theefficiency of
agricultural production amounted toPtas98,311,146 foratotalof50groups oflivestock breeders
inwhich 72technicians worked. Forbeefcattle, 4,232 farms with96,746 headofcattle werecovered.
Theaverage aidpergroup wasPtas1,972,942.
Themilkquality programmes directly concern thefarms andthelivestock ontheonehand
andaction forthemaintenance ofpasture andthepurchase ofgoods andservices ontheother. Atotal
ofPtas3,396,000 wasinvested intheformer category, covering 85cooperatives andgroups, with
anaverage ofPtas693,805 andtherenovation of23,856 milking parlours.
AtotalofPtas61,886,844 wasinvested inthesecond category, covering 86entities withan
average ofPtas719,614 perentity.
8. Duration ofthesubsidy
Thesubsidy isgranted forannual programmes tobecarried outbyeachgroup.G/SCM/N/25/EEC
Page576
AIDFOR THE CREATION, MODERNIZATION, EXPANSION AND
TECHNOLOGICAL INNOVATION OFAQUACULTURE INSTALLATIONS
1. Titleofthesubsidy programme
Aidforthecreation, modernization, expansion andtechnological innovation ofaquaculture
installations.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Objective: toencourage andpromote theshellfishery andaquaculture sector inorder to:
(a) Achieve asustained balance between resources andtheirexploitation; and
(b) enhance thecompetitiveness ofexploitation structures andthedevelopment
ofeconomically viable enterprises inthissector.
Purpose: topromote investment withaviewto:
(a) Setting upnewmarine cultivation establishments;
(b) technological innovation intheareaofaquaculture;
(c) themodernization orpurchase ofinstallations; and
(d) equipping marine coastal zones.
4. Background andauthority forthesubsidy
(a) Council Regulation (EEC) No.3699/93 of21December 1993, which laysdown thecriteria
andarrangements regarding Community structural assistance inthefisheries andaquaculture
sector andtheprocessing andmarketing ofitsproducts (Official Gazette No.L3461/1 of
31December 1993).
(b) Royal Decree 798/1995 of19May1995 defining thecriteria andarrangements regarding
structural assistance inthefisheries andaquaculture sector andthemarketing, processing and
promotion ofitsproducts (Official Gazette No.154of29June1995).
(c) Decree 278/1994 oftheAutonomous Community ofGalicia of8September establishing the
structural assistance programme inthefisheries andaquaculture sector andtheprocessing and
marketing ofitsproducts (Official Gazette ofGalicia No.181of19September 1994).
(d) Order oftheRegional Ministry ofFisheries, Shell fishery andAquaculture, Autonomous
Community ofGalicia of25January 1995 laying down rules forthegranting ofaidforthe
creation, modernization, expansion andtechnological innovation ofaquaculture installations
(Official Gazette ofGalicia No.27of8February 1995).G/SCM/N/25/EEC
Page577
5. Form ofthesubsidy
Capital transfer, through cofinancing fromEuropean Union, StateandAutonomous Community
funds.
6. Towhom andhowthesubsidy isprovided
Theaidisavailable tonatural orlegalpersons owning marine cultivation establishments and
marine cultivation auxiliaries, whose purpose isproduction, situated intheAutonomous Community
ofGalicia andpossessing thenecessary administrative authorization.
Theaidispaidupon submission ofproof thattheinvestment hasbeenmade according tothe
budgetary provisions inforce.
Fiftypercentofthesubsidy maybepaidaftertheperson concerned hasinvested 50percent
oftheamount forthefinancial yearinquestion andsecurity hasbeenprovided forthetotalamount
ofthesubsidy.
Inthelatter case, theremaining 50percentispaidafterthewhole sumhasbeeninvested.
Themaximum percentage oftheaidcomprising bothnational andCommunity participation
maynotexceed 60percentoftheinvestment eligible forsubsidies.
Theamount oftheaidgranted bythevarious national government departments maynotbe
lessthan5percentoftheinvestment eligible foraid.
Inallcases, thebeneficiary 'sparticipation mustnotbelessthan40percentoftheinvestment
eligible forsubsidies.
7. Subsidy perunit
In1995, thesubsidy perunitwasthatsetoutinAnnex I.
8. Duration ofthesubsidy
Financial resources under theprogramme arefortheperiod 1January 1995 to
31December 1999.
Activities approved inDecember 1994are,however, included pursuant toRegulation (EEC)
Nos. 4028/86 and4042/89.
Thetime-limit forcalculating costs is31December 2001.
Persons benefiting from thesubsidy haveaperiod ofonetofouryears inwhich tomake the
investment according tothetypeofinvestment approved.
9. Statistical data
Aquaculture production statistics for1996, byspecies, areshown inAnnex II.
TheCentre concerned isnotresponsible forstatistics onconsumption, imports andexports,
sothese arenotattached.G/SCM/N/25/EEC
Page578
STRUCTURAL ASSISTANCE PROGRAMME INTHE FISHERIES AND
AQUACULTURE SECTOR, AND THE PROCESSING AND MARKETING
OFITSPRODUCTS
1. Titleofthesubsidy programme
Structural assistance programme inthefisheries andaquaculture sector, andtheprocessing
andmarketing ofitsproducts.
Description:
(a) Adjustment ofcapacity, decommissioning offishing boats:
- Cessation ofallfishing activity bymeans ofscrapping, sinking, permanent usefor
decorative purposes ordefinitive exportation ofboats.
(b) Renovation andmodernization ofthefishing fleet:
- Building ofnewboats;
- restructuring andmodernization involving enhanced technology, energy savings,
significant improvements inthecharacteristics ofboats orconversion tomore selective
fishing methods;
- installation ofauxiliary detection, navigational orfishing equipment involving updated
technology oranimprovement innavigation oroperational conditions;
- purchase offishing equipment andgearwhere achange infishing grounds ormethods
isimposed bytheGovernment;
- installationofsystemsfortheprocessing,conservationandhandlingofcatchesonboard;
- work toimprove theliving, hygiene andhealth andsafety conditions onboard;
- other work toenhance thecompetitiveness oftheoperational structures andthe
development ofeconomically profitable enterprises.
(c) Handling, processing, conservation andtreatment offisheries, shellfishery andaquaculture
products:
- Building andpurchase ofpremises andinstallations, provided thatthese areneeded
forexploitation;
- equipping anddeveloping landtobeusedforsetting uporexpanding theseindustries;
- building and/or purchase ofnewimmovable assets tobeused forprocessing or
marketing, provided thatthese areneeded forexploitation;
- purchase ofinternal transport components;G/SCM/N/25/EEC
Page579
- purchase ofspecial external transport components, provided thattheiradaptation or
usebytheenterprise necessitates special construction orcoachwork;
- anyother elements entitled toreceive aidinaccordance withCommunity regulations
under theconditions laiddown therein.
2. Purpose oftheaidscheme
Sectoral: Fisheries, shellfishery andaquaculture sector.
3. Type ofsubsidy granted
Thesubsidies aregranted forthepurchase ofassets (building, modernization ofboats,
establishment ofnewprocessing industries, adaptation ofindustries already existing, etc.), aswellas
compensation forthedecommissioning ofboats andthesubsequent reduction infishing activities.
4. Form ofthesubsidy
Thefinancial aidisintheformofanon-repayable subsidy, subject tocertain conditions laid
down ineachregulation.
5. Beneficiaries
Shipowners, owners ofboats orthose seeking tobecome boatowners, enterprises owning
farms orenterprises setting upnewfarms, owners ofmarine cultivation establishments, possessing
thenecessary administrative authorization andhaving their registered andfiscal domicile inthe
Autonomous Community ofGalicia.
Theaidisgranted aftertheinvestment hasbeenmade, andinsome cases partial payments
aremade according totheamount andcriteria laiddown (specified percentage oftheinvestment paid
inadvance, partial certification, etc.).
6. Types ofbeneficiary
Thebeneficiaries areinthefisheries, shellfishery andaquaculture sector.
In1996, 87cases related totheadjustment ofcapacity, decommissioning offishing boats, 154
torenovation andmodernization ofthefishing fleet, and108tohandling, processing, conservation
andtreatment offishing, shellfishery andaquaculture products.
7. Calculation andamount ofthesubsidy
Theextent ofCommunity participation (A),participation bytheauthorities (national, regional
andother) inthemember State concerned (B)and,where appropriate, participation byprivate
beneficiaries (C)complies withthefollowing requirements expressed asapercentage ofthecostseligible
forsubsidies:G/SCM/N/25/EEC
Page580
(a) Investment inenterprises:
- Group 1:Building andmodernization ofboats, aquaculture:
A=<50%
B=>5%
C=>40%
- Group 2:Other investment andmeasures involving financial participation by
private beneficiaries:
A=<50%
B=>5%
C=>25%
(b) Other measures, measures financed without private participation:
50%=<A=<75%
B=>25%
Themaximum eligible costs arespecified inthescales andlevels ofparticipation laiddown
inAnnex IVtoCouncil Regulation (EEC) No.3699/93 of21December 1993, which defines thecriteria
andconditions forstructural intervention bytheCommunity inthefisheries andagriculture sector and
theprocessing andmarketing ofitsproducts, asamended byRegulations 1624/95 and965/96.
8. Duration
Theduration isspecified intheFishery Guidance Finance Instrument (IFOP) 1994-1999.
9. Competence
Thesubsidies covered inthisquestionnaire arealladministered bytheAutonomous Community
ofGalicia.
10. Statistical data
(a) Itisnotpossible forthemoment tospecify theamount ofthesubsidy perunitbecause allthe
datareferring totheprogramme arebeing processed.
Approximate totalamount
1. Adjustment ofcapacity, decommissioning offishing boats: Ptas3,300 million;
2. Renovation andmodernization ofthefishing fleet: Ptas4,400 million;
3. Handling, processing, conservation andtreatment offisheries, shellfishery andaquaculture
products: Ptas5,100 million;
(b) Thestatistical dataarebased onindicators ofimpact andasthese havebeenamended onthe
instructions oftheEuropean Commission thedataarecurrently being prepared.G/SCM/N/25/EEC
Page581
COOPERATION AMONG ENTERPRISES
1. Titleofthesubsidy programme
Cooperation among enterprises
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Topromote thedevelopment ofjointbusiness efforts among twoormore enterprises which,
withaviewtomutual advantage andsynergy, decide tocollaborate inorder todiminish theriskand
share costs.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of24July1996 onaidtocooperation among enterprises.
5. Form ofthesubsidy
Non-repayable subsidies forupto75percentofthecostsandexpenditure incurred inconcluding
agreements orcontracts forcooperation among businesses, uptoamaximum ofPtas16million. By
project, irrespective ofthenumber ofbusinesses involved.
6. Towhom andhowthesubsidy isprovided
Beneficiaries: enterprises orgroups ofenterprises withtheirownlegalstatus thathavethe
major partoftheiractivities orsome activities intheAutonomous Community ofGalicia provided
thatthese activities areeligible forsubsidies.
7. Amount ofthesubsidy
Ptas100million
8. Duration ofthesubsidy
Foraslongasbudgetary appropriation isavailable.
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page582
SHARES INTHE STOCK OFTRADING COMPANIES
1. Titleofthesubsidy programme
Shares inthestock oftrading companies
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Tofacilitate shareholdings byworkers, bycompanies inother firms working inthesame or
acomplementary sector, andtopromote theconsolidation ofshares inorder toenhance theeffective
management capacity ofthebusiness, especially inmatters ofsuccession infamily firms.
4. Authority
Decree 255/1996 of14Juneestablishing anaidscheme foracquiring shares incompany stock.
Order of29July1996 announcing aidforacquiring shares incompany stock.
5. Form ofthesubsidy
Forms:
- Non-repayablesubsidiesandinterest-ratesubsidiesforloansforthepurchaseofminority
holdings byemployees;
- subsidized loans forthepurchase ofmajority holdings byemployees;
- subsidized loans toallow companies toraise capital soastoobtain acompetitive
advantage;
- interest-rate subsidies forloanstobuildupmajority shareholdings, especially inmatters
ofsuccession infamily enterprises.
Non-repayable subsidies mayamount toamaximum of25percentoftheamount paidby
employees toincrease thecapital, withamaximum capital subscription ofPtas500,000. Interest-rate
subsidies maycover upto4or5percentage points depending ontheprogramme concerned.
6. Towhom andhowthesubsidy isprovided
Beneficiaries: Employees orpartners infirms thatmeet certain conditions orcompanies
subscribing tothecapital ofothercompanies inthesamesector oracomplementary sector. Thisdepends
ontheprogramme concerned.
7. Amount ofthesubsidy
Ptas100millionG/SCM/N/25/EEC
Page583
8. Duration ofthesubsidy
Foraslongasbudgetary appropriation isavailable.
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.
RECRUITMENT OFEXPERTS
1. Titleofthesubsidy programme
Recruitment ofexperts
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Thepurpose istofacilitate recruitment bySMEs ofhighly-qualified managerial ortechnical
staffwhose knowledge andexperience isneeded forthefirm'sprojects oractivities.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of24July1996 onaidfortherecruitment ofexperts.
5. Form ofthesubsidy
Non-repayable subsidies forupto75percentofthecostofrecruitment, uptoamaximum
ofPtas16million.
Theminimum recruitment period eligible forsubsidies isthree months andthemaximum is
twoyears, irrespective ofthetypeofcontract.
6. Towhom andhowthesubsidy isprovided
Beneficiaries: SMEs withtheirregistered office inGalicia ortheirmajor centre ofactivity
intheAutonomous Community ofGalicia provided thattheiractivities areeligible forsubsidies.
7. Amount ofthesubsidy
Ptas100million
8. Duration ofthesubsidy
Foraslongasthebudgetary appropriation isavailable.G/SCM/N/25/EEC
Page584
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.
AGREEMENT ONFINANCIAL SUPPORT TOSMES FOR GALICIAN
ECONOMIC PROMOTION INSTITUTE (IGAPE) -OFFICIAL CREDIT
INSTITUTE (ICO) -FINANCIAL ENTITIES INVESTMENT LOANS
1. Titleofthesubsidy programme
Agreement onfinancial support toSMEs forGalician Economic Promotion Institute (IGAPE) -
Official Credit Institute (ICO) -financial entities investment loans.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toestablish subsidized linesoffinancing forinvestment projects involving theinstallation,
expansion orrenovation ofassets acquired from thirdparties thathaveadirect impact onthefirm's
production capacity orproductivity.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Decision of1996publishing theterms oftheagreement onfinancial support toinvestment by
SMEs, financed bytheGalician Economic Promotion Institute (IGAPE), theOfficial Credit Institute
(ICO), andfinancial entities.
5. Form ofthesubsidy
Interest-rate subsidy
Subsidization period: thefirstseven years.
Financing: 70percentoftheinvestment eligible forsubsidies.
6. Towhom andhowthesubsidy isprovided
Firms thataredeemed tobeSMEs according tothedefinition established bytheEuropean
Union andwhose activities arerelated tothefollowing activities eligible forsubsidies:
- Mining industries;
- processing andmarketing industries;G/SCM/N/25/EEC
Page585
- establishment ofsupply networks;
- technical research, innovation andtechnological development, standardization and
approval;
- tourism industries;
- transport industries;
- commercial industries;
- industrial support services;
- electronic, robotics, telecommunications, etc.;
- manufacture ofcapital goods;
- fisheries-related industries.
7. Amount ofthesubsidy
Ptas600million
8. Duration ofthesubsidy
Time-limit forsubmitting applications tothefinancial entity: 15October 1997.
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.
GALICIAN PROMOTION INSTITUTE (IGAPE) -FINANCIAL ENTITIES
AGREEMENT ONFINANCIAL SUPPORT TOSMES
1. Titleofthesubsidy programme
Galician Promotion Institute (IGAPE) -financial entities Agreement onfinancial support to
SMEs
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toestablish subsidized linesoffinancing forinvestment projects involving theinstallation,
expansion orrenovation ofassets acquired from thirdparties thathaveadirect impact onthefirm's
production capacity orproductivity.G/SCM/N/25/EEC
Page586
Aidtorestructuring withtheobjective ofrestoring thefirm'sviability andfinancial balance,
itdoesnotinanywayimply support foranincrease inthefirm'sproduction capacity.
1. Restructuring ofliabilities. Theobjective istosubsidize long-term loans tobeusedtopay
offshort-term financial liabilities (firms thathadbeenrestructured inprevious years arenoteligible
forthisprogramme).
2. Increase ofcapital. Theobjective istosubsidize loans tofinance participation inincreases
inthecapital oftrading companies (increases incapital cannot besubsidized iftheissuing firmhas
decreased itsregistered capital inprevious years unless thisdecrease wasusedtocompensate forlosses).
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Decision of1996publishing theterms oftheagreement onfinancial support toinvestment by
SMEs, financed bytheGalician Economic Promotion Institute (IGAPE), theOfficial Credit Institute
(ICO), andfinancial entities.
5. Form ofthesubsidy
Forinvestment:
Interest-rate subsidy;
Subsidization period: thefirstseven years;
Financing: 70percentoftheinvestment eligible forsubsidies.
6. Towhom andhowthesubsidy isprovided
Firms thataredeemed tobeSMEs according tothedefinition established bytheEuropean
Union andwhose activities arerelated tothefollowing activities eligible forsubsidies:
- Mining industries;
- processing andmarketing industries;
- establishment ofsupply networks;
- technical research, innovation andtechnological development, standardization and
approval;
- tourism industries;
- transport industries;
- commercial industries;
- industrial support services;G/SCM/N/25/EEC
Page587
- electronic, robotics, telecommunications, etc.;
- manufacture ofcapital goods;
- fisheries-related industries.
7. Amount ofthesubsidy
Ptas4,000 million
8. Duration ofthesubsidy
Time-limit forsubmitting applications tothefinancial entity: 15October 1997.
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.
AGREEMENT ONINVESTMENT INSMES THROUGH FINANCIAL LEASING
CONTRACTS WITH THE GALICIAN ECONOMIC PROMOTION
INSTITUTE (IGAPE) -OFFICIAL CREDIT INSTITUTE (ICO) -CREDIT ENTITIES
1. Titleofthesubsidy programme
AgreementoninvestmentinsmesthroughfinancialleasingcontractswiththeGalicianEconomic
Promotion Institute (IGAPE) -Official Credit Institute (ICO) -credit entities.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Interest-rate subsidy forfinancial leasing contracts.
Tofinanceprojectsfornewinvestmentintheinstallation,expansionorrenewalofassetsacquired
from thirdparties.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Decision of1996publishing theterms oftheagreement onfinancial support toinvestment by
SMEs through financial leasing contracts withIGAPE, theICOandfinancial entities.G/SCM/N/25/EEC
Page588
5. Form ofthesubsidy
Type ofleasing:
Property leasing: buildings
Leasing offixtures: machinery andtechnical installations, tools, furnishings andoffice ordata
processing equipment, internal transport components and,inthecaseoftransport companies, external
transport components aswell. Data processing applications must notexceed 20percentofthe
investment.
Minimum amount ofinvestment: Ptas10million.
Theamount thatcanbesubsidized maynotexceed 95percentoftheinvestment eligible for
subsidies.
6. Towhom andhowthesubsidy isprovided
Firms thataredeemed tobeSMEs according tothedefinition established bytheEuropean
Union andwhose activities arerelated tothefollowing activities eligible forsubsidies:
- Mining industries;
- processing andmarketing industries;
- establishment ofsupply networks;
- technical research, innovation andtechnological development, standardization and
approval;
- tourism industries;
- transport industries;
- commercial industries;
- industrial support services;
- electronics, robotics, telecommunications, etc.;
- manufacture ofcapital goods;
- fisheries-related industries.
7. Amount ofthesubsidy
Ptas200million
8. Duration ofthesubsidy
Time-limit forsubmitting applications tothefinancing entity: 15October 1997.G/SCM/N/25/EEC
Page589
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.
LANZA PROGRAMME
1. Titleofthesubsidy programme
Lanza programme
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Promotion ofbusiness activities.
Promotion ofinnovative initiatives.
Training indrawing upandimplementing business plans.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995.
5. Form ofthesubsidy
Training indrawing upandimplementing business plans.
6. Towhom andhowthesubsidy isprovided
Young entrepreneurs withinnovative ideas.
7. Amount ofthesubsidy
Ptas60million.
8. Duration ofthesubsidy
1996
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page590
AIDTOIMPROVE THE COMPETITIVENESS OFBUSINESSES (PIMEGA PLAN)
1. Titleofthesubsidy programme
Aidtoimprove thecompetitiveness ofbusinesses (PIMEGA plan).
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Support fortheimplementation ofindustrial research anddevelopment projects inGalicia.
Support fortherecruitment ofexperts.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially approved pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of1996 establishing anaidprogramme toimprove thecompetitiveness ofbusinesses.
5. Form ofthesubsidy
Twotypes ofnon-repayable subsidies
6. Towhom andhowthesubsidy isprovided
Theaidisavailable toindividual entrepreneurs, companies, associations, groups ofcompanies
andpublic andprivate entities carrying outactivities covered byArticle 4ofDecree 309/1995 of
23November,havingtheirmajorcentreofactivitiesorsomeactivitiesinGalicia,whichsubmitindustrial
development projects thataffect their business procedures andareaimed atimproving their
competitiveness inaccordance withthebusiness strategy.
7. Amount ofthesubsidy
Ptas180million
8. Duration ofthesubsidy
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page591
GRANTS FOR WORK EXPERIENCE
1. Titleofthesubsidy programme
Grants forwork experience
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Asubsidy ofPtas1.5million isavailable toSMEs inGalicia fortherecruitment ofaperson
whohasrecently graduated andindirectly gives these persons theopportunity offinding theirfirst
job.
Work experience foroneyear.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially approved pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of22October 1996 announcing IGAPE grants forwork experience.
5. Form ofthesubsidy
Themaximum amount ofthegrant isPtas1.5million.
6. Towhom andhowthesubsidy isprovided
Thenumberofgrantsis100,80ofwhichareformainlyindustrialSMEsand20forassociations,
federations andconfederations involved inbusiness activities.
7. Amount ofthesubsidy
Ptas90.4million
8. Duration ofthesubsidy
Applicationsmustbemadewithin15daysfollowingpublicationintheOfficialGazetteofGalicia.
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page592
PROMOTION GRANTS
1. Titleofthesubsidy programme
Promotion grants
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
These grants areprovided insupport ofIGAPE 'sobjectives forthepromotion andattraction
ofinvestment fortheexternal expansion ofGalician enterprises andallow therecipients tocomplete
theirtraining, carryoutmarket surveys, encourage newopportunities andinvestigate further possibilities
forinternational cooperation.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially approved pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of17October 1996 announcing 20IGAPE external promotion grants.
5. Form ofthesubsidy
Eachgrantamounts toPtas1.4million andcanbeincreased byafurther Ptas500,000 according
tothecountry targeted.
6. Towhom andhowthesubsidy isprovided
20grants areavailable andaresubject toaseries ofselection testsandatraining course.
7. Amount ofthesubsidy
Ptas50million
8. Duration ofthesubsidy
Applications maybemade upto30November 1996.
9. Statistical dataonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page593
RESEARCH GRANTS ININNOVATION AND SERVICES CENTRES
1. Titleofthesubsidy programme
Research grants ininnovation andservices centres.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Aspartofitsactivities insupport oftechnological innovation, IGAPE hastechnological centres
specializing intechnology applicable toGalician businesses. Thegrants areawarded fortheseprojects.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of30October 1996announcing IGAPE grants forcarrying outresearch anddevelopment
projects inwhich thetechnological research andservices centres (CIS) areinvolved.
5. Towhom andhowthesubsidy isprovided
Thegrant isforaperiod ofsixmonths, which maybeextended forupto18months. The
amount ofeachgrant isPtas750,000 andifthegrant isextended thisamount isincreased inproportion
totheperiod oftheextension.
6. Towhom andhowthesubsidy isprovided
Thequalificationsrequiredforthistypeofgrantmustbeintechnicalsubjects,bothforuniversity
graduates andforsecond-level professional training.
7. Amount ofthesubsidy
Ptas25million
8. Duration ofthesubsidy
Applications maybemade within 15daysfollowing publication oftheOrder intheOfficial
Gazette ofGalicia.
9. Statistical dateonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page594
RESEARCH AND DEVELOPMENT GRANTS
1. Titleofthesubsidy programme
Research anddevelopment grants
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Thepurpose istoprovide support forR&D projects carried outbyfirms andtofacilitate the
technical training ofyoung university graduates bygiving themdirect contact withtheworld ofwork.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Order of30October 1996announcing IGAPE grants forcarrying outresearch anddevelopment
projects.
5. Towhom andhowthesubsidy isprovided
Thegrant isforaperiod of12months, which maybeextended forafurther sixmonths.
6. Towhom andhowthesubsidy isprovided
IGAPE awards tengrants amounting toPtas1.5million andifthegrant isextended thisamount
isincreased inproportion totheperiod oftheextension.
7. Amount ofthesubsidy
Ptas25million
8. Duration ofthesubsidy
Applications maybemade within 15daysfollowing publication oftheOrder intheOfficial
Gazette ofGalicia.
9. Statistical dateonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page595
GRANTS UNDER THE INTEGRAL PLAN FOR THE IMPROVEMENT
OFGALICIAN BUSINESSES (PIMEGA)
1. Titleofthesubsidy programme
Grants under theIntegral PlanfortheImprovement ofGalician Businesses (PIMEGA).
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
These grants areavailable under theIntegral PlanfortheImprovement ofGalician Businesses
fortheimplementation ofdevelopment plans, thestudy ofalternatives fordiversification orinternational
market surveys.
4. Authority
Decree 309/1995 of23November onincentives fortheeconomic development andpromotion
ofbusiness activities intheAutonomous Community ofGalicia, officially authorized pursuant toan
Agreement withtheEuropean Commission (State AidNo.21/95, SG(95) 10-433 of31July1995).
Orderof10October1996announcinggrantsforspecialprojectsunderthePIMEGAprogramme
ofIGAPE.
5. Form ofthesubsidy
Thegrant isawarded forsixmonths.
6. Towhom andhowthesubsidy isprovided
Themaximum amount ofthegrant isPtas750,000
7. Amount ofthesubsidy
Ptas40million
8. Duration ofthesubsidy
Applications maybemade within 15daysfollowing publication oftheOrder intheOfficial
Gazette ofGalicia.
9. Statistical dateonthetrade effects ofthesubsidy
Inviewofthenature ofthisaidprogramme, there isnoeffect ontrade.G/SCM/N/25/EEC
Page596
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.14
AUTONOMOUS COMMUNITY OFLARIOJAG/SCM/N/25/EEC
Page597
PROMOTION OFINVESTMENT AND MODERNIZATION BYSMES IN
AREAS OFINDUSTRIAL DECLINE
1. Titleofthesubsidy programme orbriefdescription oridentification ofthesubsidy
Promotion ofinvestment andmodernization bySMEs inareas ofindustrial decline.
2. Period covered bythenotification
1996 financial year
3. Objective orpurpose ofthesubsidy
Topromote thedevelopment ofareas inindustrial decline, asdetermined intheCommunity
Regional Policy.
4. Authority forthesubsidy
Regulatory Order: Aidtotheindustrial, tradeandservices sectors inareasinindustrial decline.
Dateofpublication intheOfficial Gazette ofLaRioja: 14May1994.
5. Form ofthesubsidy
Subsidy forinvestment
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided forspecific business investment projects.
7. Total annual amount
Thetotalannual amount isPtas340,186,200 (50percentiscontributed bytheFEDER).
8. Duration ofthesubsidy
TheOrder regulating theaidisforanindefinite period, butalways applies inthecontext of
theLaRioja Operative Programme forObjective No.2(1994-1996).
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Number ofprojects: 70.Investment generated: Ptas3,133,470,514. Jobs: 186.G/SCM/N/25/EEC
Page598
PROMOTION OFINVESTMENT AND MODERNIZATION
BYSMEs INRURAL AREAS
1. Titleofthesubsidy programme orbriefdescription oridentification ofthesubsidy
Promotion ofinvestment andmodernization bySMEs inrural areas.
2. Period covered bythenotification
1996 financial year
3. Objective orpurpose ofthesubsidy
Topromote development inruralareas inLaRioja, asdetermined intheCommunity Regional
Policy.
4. Authority forthesubsidy
Regulatory Order: Aidtotheindustrial, trade andservices sectors inrural areas. Dateof
publication intheOfficial Gazette ofLaRioja: 14May1994.
5. Form ofthesubsidy
Subsidy forinvestment
6. Towhom andhowthesubsidy isprovided
Thesubsidy isprovided forspecific business investment projects.
7. Total annual amount
Thetotalannual amount isPtas538,488,267 (50percentiscontributed bytheFEDER).
8. Duration ofthesubsidy
TheOrder regulating theaidisforanindefinite period, butalways applies inthecontext of
theLaRioja Operative Programme forObjective No.5(b)(1994-1999).
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Number ofprojects: 95.Investment generated: Ptas6,313.6 million. Jobs: 345.G/SCM/N/25/EEC
Page599
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.15
AUTONOMOUS COMMUNITY OFMADRIDG/SCM/N/25/EEC
Page600
ECONOMIC AIDTOSMEs TOCREATE JOBS
1. Titleofthesubsidy programme
Economic aidtoSMEs tocreate jobs.
Itisatwo-line system ofaid:
- Financial aidfornewbusiness initiatives;
- jobcreation projects.
2. Period covered bythenotification
1995
3. Objective orpurpose ofthesubsidy
Topromote investment bySMEs thatcreates jobs.
4. Authority
Order 726/94, 27May
5. Form ofthesubsidy
Direct subsidy andinterest-rate subsidy forloans orfinancial leasing.
6. Towhom andhowthesubsidy isprovided
Thebeneficiaries ofeachkindofaidareSMEs orindividual employers investing infixedassets
andrelated working capital andcreating atleastonepermanent full-time contract ofemployment.
They havetokeepupthepostandthesubsidized investment foratleasttwoyears.
7. Amount anddefinition ofthesubsidies
Financial aid:
- Theapplicant must startaloanorfinancial leasing operation withafinancial body
which hasacooperation agreement withtheAutonomous Community ofMadrid. The
application must beaccompanied byastatement ofthefinancial body'sintentions.
- Thesubsidy granted istheequivalent offourinterest-rate points.
- Theceiling is70percentofthecomputable investment forloans forfixed assets and
100percentforfinancial leasing, excluding financial charges.
- After thesubsidy hasbeenapproved, evidence ofinvestment andlabour contracts must
beprovided before payment canbemade. Thesubsidy order specifies theamount,
thedocuments required forpayment andasevidence, andthemaximum period for
submission.G/SCM/N/25/EEC
Page601
- Thesubsidy iscalculated inaccordance withtheterms ofOrder 1861/1988 of26August
oftheRegional Ministry ofFinance.
Jobcreation projects:
- Thesubsidy iscalculated interms ofthepermanent jobscreated andtheinvestment
made, sothattheamount willbethearithmetical average ofthetwofactors, namely
theinvestment andthenumber ofjobs.
- Theinvestment factor iscalculated byapplying thefollowing percentages tothe
computable investment (sumofthenetinvestment infixedassets andworking capital):
(i) 7.5percent forenterprises with more than 50workers andupto
Ptas2,770 million annual turnover;
(ii) 15percentforenterprises with50orfewer workers andnotmore than
Ptas692million annual turnover;
(iii) bothpercentages areincreased by5percentiftheenterprise isinobjective
zones 2and5B.
- Thejobfactor istheresult ofadding thefollowing amounts foreachpermanent full-time
contract ofemployment:
(i) Disabled persons, IMIbeneficiaries, persons unemployed formorethanayear,
first-time jobseekers under 30years ofage,women under 26years ofage,
women inunder-represented jobs=Ptas420,000;
(ii) other contracts =Ptas350,000.
- Theresulting subsidy maybeincreased by10percentatthediscretion ofthe
Directorate-General inthecaseoflabour-intensive projects, social projects and/or
projects involving skilled labour.
8. Duration ofthesubsidy
1994-1995
9. Statistical data
(a) Jobcreation programmes:
- Number ofprojects approved: 123;
- subsidies provided (total amount): Ptas212,137,699;
- investment generated: Ptas1,651,490,437;
- jobscreated: 412.G/SCM/N/25/EEC
Page602
(b) Financial aidtonewbusiness initiatives:
- Number ofprojects approved: 12;
- subsidies provided (total amount): Ptas13,611,829;
- investment generated: Ptas224,350,573;
- jobscreated: 18.
(c) Total:
- Number ofprojects approved: 135;
- subsidies provided (total amount): Ptas225,749,528;
- investment generated: Ptas1,875,841,010;
- jobscreated: 430.
SYSTEM OFAIDFOR INDIGENOUS BREEDS AND
BREEDERS 'ASSOCIATIONS
1. Titleofthesubsidy programme
System ofaidforindigenous breeds andbreeders 'associations
2. Period ofthenotification
1996
3. Object orpurpose ofthesubsidy
Conservation ofindigenous breeds orgroups ofbreeds which arenowindanger ofextinction
orinmarked decline, therehabilitation ofincome-generating breeds, improvement oftheproductivity
oflivestock farms toobtain quality natural products andcontribute tothedevelopment ofthesocial
fabric ofrural areas, protection oftheenvironment andofrural areas.
4. Authority
Order 342/95 of15March oftheRegional Ministry oftheEconomy onaidtoindigenous breeds
andbreeders 'associations. Itisbased onArticle 50.3oftheGovernment andAdministration Law
andontransfers inregard toanimal production andhealth setoutinRoyal Decree 3297/1983 of
2November.
5. Form ofthesubsidy
Direct subsidyG/SCM/N/25/EEC
Page603
6. Towhom andhowthesubsidy isprovided
Thefollowing areeligible foraid:
- Legally constituted, non-profit-making associations defined inthisOrder registered
withandrecognized bytheDirectorate-General ofAgriculture andFood ofthe
Autonomous Community ofMadrid, which undertake toimplement theprogrammes
forwhich theyhavebeenestablished;
- natural orlegal persons, forming associations forindigenous breeds, withfarms of
sufficient size,intheAutonomous Community ofMadrid, withanimals included in
thevarious records oftheHerd Books, andengaged inrehabilitation and/or selection
programmes andimprovement byofftake control;
- natural orlegalpersons, withfarms intheAutonomous Community ofMadrid, rearing
theindigenous breeds covered bythisOrder.
Thefollowing costs areeligible forsubsidies:
(a) Establishment, operating, administrative andinfrastructural costs forprogramme
development andimplementation;
(b) personnel training costs forprogramme implementation;
(c) costs oforganization andattendance atagricultural fairs;
(d) subsidies perunit,ascovered bythisOrder, forcattle inthevarious records ofthe
Herd Books;
(e) subsidy perunitofcattle ofindigenous breeds covered bythisOrder thatarerecorded
intherelevant Herd Books andpurchased forgenetic enhancement.
Amount oftheaid:
Theannual aidisupto70percentofthecostseligible forsubsidies, withthefollowing ceilings:
Ptas2.5millionforassociationsestablishedfortheconservation,rehabilitationandimprovement
ofindigenous breeds indanger ofextinction; Ptas5million forassociations ofpurebreeds
engaged inofficially approved offtake control programmes; Ptas1.5million forassociations
fortherehabilitation andprotection ofother species. Under theprocedures established, the
aidiscutbyatleast20percenteachyearincomparison withthepreceding year.
Ifthevarious associations fortheconservation ofindigenous breeds declared tobeindanger
ofextinction combine toimplement jointprogrammes, theaidceiling isPtas5million.
7. Subsidy perunitorproject in1996
Conservation ofindigenous breeds, especially those indanger ofextinction:
- Farms: 111
- Units ofcattle: 3,929
- Total investment: Ptas18,798,000G/SCM/N/25/EEC
Page604
Average subsidies unit/year:
- Perfarm: Ptas169,351
- Perunitofcattle: Ptas4,784
Associations forindigenous breeds indanger ofextinction, established primarily tokeepthe
Herd Book andimplement conservation andimprovement measures:
- Associations: 2
- Farms: 48
- Units ofcattle: 8,430
- Total investment: budgeted amount: Ptas2.5million
amount effectively recorded: Ptas2.5million
8. Duration ofthesubsidy
Order 342/95 waspublished on24March 1995 andentered intoforce onthatdate.
Thesubsidies aretobeprovided forfiveyears andareannual incharacter.
9. Statistical data
- Number ofprojects approved: 113
- Overall subsidy provided: Ptas23,798,000
- Investment generated: None
- Jobscreated:
- Three keepers ofHerdBooks ofassociations forbreeds indanger ofextinction
orofspecial interest;
- maintenance oftheruralpopulation bymeans ofbreeds using existing plant
cover, in159farms mostly inobjective zone5b.
Thefollowing should benoted concerning theother aidprogrammes in1996:
- Aidprogramme222/96tocompaniesforcarryingoutresearchanddevelopmentprojects
wasauthorized bytheEuropean Commission inaletter of26June1996. Duetothe
latereceipt ofthisletter, however, itwasnotpossible togrant theaidsothescheme
willbeimplemented in1997.
- Theother programmes havenotbeennotified because the"deminimis "ruleapplies
or,theyconcern aidtolocalauthorities, thetourism ortransport sectors.G/SCM/N/25/EEC
Page605
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.16
AUTONOMOUS COMMUNITY OFMURCIAG/SCM/N/25/EEC
Page606
AIDTOIMPROVE CONDITIONS FOR THE PROCESSING AND
MARKETING OFAGRICULTURAL PRODUCTS
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Aidtoimprove conditions fortheprocessing andmarketing ofagricultural products.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Toassist theagri-food processing andmarketing sector toinvest inorder toimprove the
conditions forprocessing andmarketing soastoadapt production systems toacompetitive framework.
4. Background andauthority forthesubsidy
TitleIoftheOrder of22February 1989 oftheRegional Ministry ofAgriculture, Livestock
andFisheries (Official Gazette oftheRegion ofMurcia No.53of4March 1989). Repealed on
21August 1996.
Order of1August 1996oftheRegional Ministry oftheEnvironment, Agriculture andWater
Resources regulating aidforinvestment toimprove conditions fortheprocessing andmarketing of
agricultural products (Official Gazette oftheRegion ofMurcia of20August 1996).
5. Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct subsidyG/SCM/N/25/EEC
Page607
6. Towhom andhowthesubsidy isprovided (producers, exporters ...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Thebeneficiaries areagri-food enterprises inthefollowing sectors:
Meat Cereals
Wine andalcohol Olive oil
Dairy products Processed fruitandvegetables
Eggs andpoultry Seeds
Various animals Fresh fruitandvegetables, flowers andplants, dried
vegetables andpotatoes
Theaidconsists ofasubsidy forinvestment inthefollowing percentages andforthefollowing
beneficiaries:
Upto30percent: OPFHs, OPCs andAPAS;
upto27.5percent: cooperatives andmarketing SATs;
upto25percent: other cases;
afurther 10percentmaybeadded tothese percentages forenterprises setupforthefirsttime
inzones declared tobedisadvantaged agricultural zones.
7. Amount oftheaid
Total amount granted in1996: Ptas241,279,919;
totalamount budgeted for1996: Ptas422,391,000.
8. Duration ofthesubsidy
Annual
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisaidisusedtofinance investment infixed assets, ithasnoeffect oninternational trade.G/SCM/N/25/EEC
Page608
AIDTOCOUNCILS REGULATING GENERIC AND SPECIFIC
DENOMINATIONS OFORIGIN
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
AidtoCouncils regulating generic andspecific denominations oforigin.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Support fortheestablishment andoperation ofCouncils regulating generic andspecific
denominations oforigin intheRegion ofMurcia, through economic aidforthecostsofsetting upthe
Councils andsupport fortheirproper functioning, providing aidforthefinancing oftheiractivities.
4. Background andauthority forthesubsidy
Order of22February 1989 oftheRegional Ministry ofAgriculture, Livestock andFisheries
(Official Gazette oftheRegion ofMurcia of4March);
Order of6June1994oftheRegional Ministry ofAgriculture, Livestock andFisheries (Official
Gazette oftheRegion ofMurcia of17June);
Order of27March oftheRegional Ministry ofAgriculture, Livestock andFisheries (Official
Gazette oftheRegion ofMurcia of5April).
5. Form ofthesubsidy (direct subsidy loan, interest rate-subsidy, etc.)
Direct subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters ...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
ToCouncils regulating generic andspecific denominations oforigin intheRegion ofMurcia.
Inthecaseofsupport forthesetting upofRegulatory Councils, operating costsaresubsidized
intheformoffiveconsecutive annual payments during thefirstseven years oftheCouncil 'soperation.
Thepercentages are100,80,60,40and20percentforthefirst,second, third, fourth andfifthannual
instalments respectively. There isaceiling ofPtas4million forthefirstannual instalment and
Ptas3million fortheothers.
Inthecaseofaidfortheactual activities ofRegulatory Councils, upto50percentofthecost
ofsupport activities under theprogramme ofaction approved bytheCouncil areeligible forsubsidies,
withaceiling ofPtas7million perbeneficiary andnotexceeding 12percentoftheoverall costs of
carrying outthese activities.G/SCM/N/25/EEC
Page609
7. Amount oftheaid
Total aidgranted during 1996: Ptas6,525,474*;
totalamount budgeted for1996: Ptas11,416,000 (Chapter IV).
_______________*Ptas3million under Chapter IV;
Ptas3,525,474 under Chapter VII.
8. Duration ofthesubsidy
Annual subsidy fortheactivities oftheRegulatory Councils andfiveyears forsupport forsetting
upCouncils.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisaidisusedtofinance theoperating costs oftheRegulatory Councils, ithasnoeffect
oninternational trade.
AIDTOASSOCIATIONS FOR THE MARKETING AND PROCESSING
OFAGRICULTURAL PRODUCTS
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Aidtoassociations forthemarketing andprocessing ofagricultural products.
Membership ofagricultural associations.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote themarketing andprocessing ofagricultural products under associative schemes.
Aidtoencourage farmers whose farms aresituated intheRegion ofMurcia tojoinfirst-level agricultural
cooperatives, organizations offruitandvegetable producers, organizations andassociations ofproducers
ofcitrus fruits.
4. Background andauthority forthesubsidy
Decree 55/96 of17July(Official Gazette oftheRegion ofMurcia of26July).
5. Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct subsidy orinterest-rate subsidy according tothecase.G/SCM/N/25/EEC
Page610
6. Towhom andhowthesubsidy isprovided (producers, exporters ...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Thebeneficiaries ofthisaidareassociations andowners offarms belonging tofirst-level
agricultural cooperatives, OPFHs, OPCs orAPAs having atleast15members.
Inthecaseofdirect payment toamember seeking membership ofanassociative body, the
subsidy ispaidtotheassociation which thentransfers ittothemember.
Thesubsidy covers upto35percentoftheamounts paidbynewly-joined members. Inthe
caseofagricultural entities marketing livestock, thesubsidy maybeupto45percent. There isaceiling
ofPtas300,000. Ifthemember joining isanATP, themaximum limitisPtas400,000.
Ifamember seeking tojoinanassociative body requests aloan, theaidgoesdirectly tothe
member intheform ofaninterest-rate subsidy.
Inthiscase, theaidconsists ofasubsidy covering sixinterest-rate points forloans witha
maximum repayment period ofsixyears. Itispaidinalump sumupon joining theassociative body
andcovers thetotalamount oftheinterest duefortheduration oftheloan. Themaximum amount
which anymember mayobtain forjoining inthiswayisPtas300,000, unless themember isanATP,
inwhich casethere isaceiling ofPtas400,000.
These subsidies comply iftheydonotexceed 50percentofthepayment.
7. Amount ofthesubsidy
Total amount granted in1996: Ptas28,263,932 (Chapter VII);
totalamount budgeted for1996: Ptas51,372,000 (Chapter VII).
8. Duration ofthesubsidy
Annual
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisaidisusedtofinance theincorporation ofnewmembers incooperative bodies, ithas
noeffect oninternational trade.G/SCM/N/25/EEC
Page611
AIDTOASSOCIATIVE ENTITIES FOR THE MARKETING AND
PROCESSING OFAGRICULTURAL PRODUCTS
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Aidtoassociative entities forthemarketing andprocessing ofagricultural products.
Improvement ofmanagement andadministration.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote themarketing andprocessing ofagricultural products under associative schemes.
Tosubsidize thecostsincurred forauditing, business plans, viability plans, drawing upprojects,
suspending works andpurchasing office equipment.
4. Background andauthority forthesubsidy
Decree 55/1996 of17July(Official Gazette oftheRegion ofMurcia of26July).
5. Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct subsidy
6. Towhom andhowthesubsidy isprovided (producers, exporters,...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined).
Thebeneficiaries ofthese subsidies areagricultural Cooperatives, OPFHs, OPCs andAPAs
thathaverequested theaidandhaveaminimum of15members.
Theaidconsists ofasubsidy forupto50percentofthecostsincurred. Inthecaseofentities
thathaveaturnover notexceeding Ptas100million andhavebeeninoperation forlessthanfiveyears,
thepercentage risesto75percent. Theceiling perassociative entity andyearisPtas4million.
7. Amount ofthesubsidy
Total amount granted in1996: Ptas23,669,192*;
totalamount budgeted for1996: Ptas39,956,000.
___________________*Ptas10,403,844 under Chapter IV.
Ptas13,265,348 under Chapter VII.G/SCM/N/25/EEC
Page612
8.Duration ofthesubsidy
Annual
9.Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisaidisusedtoimprove management andadministration, ithasnoeffect oninternational
trade.
AIDTOASSOCIATIVE ENTITIES FOR THE MARKETING AND
PROCESSING OFAGRICULTURAL PRODUCTS
1.Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Aidtoassociative entities forthemarketing andprocessing ofagricultural products.
Credit tobeusedforfixed assets.
2.Period covered bythenotification
1996
3.Policy objective and/or purpose ofthesubsidy
Topromote themarketing andprocessing ofagricultural products under associative schemes.
Tosubsidize theinterest paidbythebeneficiaries oftheaidforloans andcredit taken outtofinance
investment thathasalready beenmade infixed assets.
4.Background andauthority forthesubsidy
Decree 55/1996 of17July(Official Gazette oftheRegion ofMurcia of26July).
5.Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct subsidy
6.Towhom andhowthesubsidy isprovided (producers, exporters,...,through what mechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined).
Thebeneficiaries ofthisaidareagricultural cooperatives whose economic activity isthemarketing
ofagricultural products, OPFHs, OPCs andAPAs, withatleast15members andhaving accepted
members inthetwoyears prior tosubmitting theapplication foraid.
Theaidconsists ofasubsidy covering uptosixinterest-rate points forloans taken outinthefive
years preceding theapplication foraidforthepurpose ofacquiring fixed assets. Theceiling isPtas
3million andmaynotexceed 75percentifcombined withother aidforthesame investment.G/SCM/N/25/EEC
Page613
7.Amount ofthesubsidy
Total amount granted in1996: Ptas8,493,276 (Chapter VII);
totalamount budgeted for1996: Ptas17,124,000 (Chapter VII).
8.Duration ofthesubsidy
Annual
9.Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisaidisforthepurpose ofacquiring fixed assets, ithasnoeffect oninternational trade.
AIDTOASSOCIATIVE ENTITIES FOR THE MARKETING AND
PROCESSING OFAGRICULTURAL PRODUCTS
1.Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Aidtoassociative entities forthemarketing andprocessing ofagricultural products.
Aidagricultural cooperative federations andunions.
2.Period covered bythenotification
1996
3.Policy objective and/or purpose ofthesubsidy
Topromote themarketing andprocessing ofagricultural products under associative schemes.
Tosupport theactivities ofagricultural cooperative federations andunions soastopromote the
cooperative formula andmake itbetter known.
4.Background andauthority forthesubsidy
Decree 55/1996 of17July(Official Gazette oftheRegion ofMurcia of26July).
5.Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct subsidy
6.Towhom andhowthesubsidy isprovided (producers, exporters,...,through what mechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined).
Thebeneficiaries ofthisaidarecooperative federations andunions.
Theaidconsists ofasubsidy forupto100percentofeligible costswithaceiling ofPtas12million.G/SCM/N/25/EEC
Page614
7.Amount ofthesubsidy
Total amount granted in1996: Ptas18,000,448 (Chapter IV);
totalamount budgeted for1996: Ptas28,540,000 (Chapter IV).
8.Duration ofthesubsidy
Annual
9.Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisaidisforthepurpose ofsupporting activities topromote thecooperative formula, ithas
noeffect oninternational trade.
FINANCIAL SUPPORT TORURAL CREDITS AND AGRICULTURAL INSURANCE
1.Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Financial support torural credits andagricultural insurance.
2.Period covered bythenotification
1January to31December 1996
3.Policy objective and/or purpose ofthesubsidy
Financial support fortaking outagricultural insurance policies.
4.Background andauthority forthesubsidy
OrderoftheRegionalMinistryoftheEnvironment,AgricultureandWaterResourcesof28February
1996 regulating aidforthecostofpremiums foragricultural insurance covered under thecombined
national agricultural insurance planfor1996, andlinesforcattle inthe1995 plan.
5.Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct subsidy
6.Towhom andhowthesubsidy isprovided (producers, exporters, ...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Farmers andbreeders
Through policies
Variable quantity, percentage applied according totheministerial subsidy through theState
Agricultural Insurance Entity (ENESA).G/SCM/N/25/EEC
Page615
7.Amount ofthesubsidy
Thissubsidy amounts to20percentofthesubsidy granted byENESA forinsurance covering
thegeneric riskofhail(insurance thatmaycover other types ofriskinaddition tohail,butnotthe
riskoffrost).
Ifcombined insurance istaken out,thebasis fordetermining thissubsidy is35percentofthe
amount ofthesubsidy granted byENESA.
Total amount granted in1996: Ptas45,549,367;
totalamount budgeted for1996: Ptas45,678,269.
8.Duration ofthesubsidy
Annual
9.Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisisfinancial aidforthepurpose oftaking outagricultural insurance, ithasnoeffect on
international trade.
EMPLOYMENT PROMOTION PROGRAMMES FOR THE REGION
OFMURCIA FOR 1996
1.Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Employment Promotion Programmes fortheRegion ofMurcia for1996.
2.Period covered bythenotification
1996
3.Policy objective and/or purpose ofthesubsidy
Tocreate jobsintheRegion ofMurcia.
4.Background andauthority forthesubsidy
Order regulating Employment Promotion Programmes.
5.Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct andnon-repayable subsidies.
6.Towhom andhowthesubsidy isprovided (producers, exporters,...,through what mechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Tosmall andmedium enterprises; beneficiaries: 355.G/SCM/N/25/EEC
Page616
7.Amount oftheaid
Total amount granted in1996: Ptas464,636,000;
totalamount budgeted for1996: Ptas479,298,000.
8. Duration ofthesubsidy
Annual 1996
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nostatistical datacompiled.
VOCATIONAL TRAINING PROGRAMMES INTHE REGION OFMURCIA
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Vocational Training Programmes intheRegion ofMurcia.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote vocational training intheRegion ofMurcia.
4. Background andauthority forthesubsidy
Order regulating Vocational Training Programmes.
5. Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct andnon-repayable direct subsidies.
6. Towhom andhowthesubsidy isprovided (producers, exporters,...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Tosmall andmedium enterprises fortraining.
7. Amount oftheaid
Total amount granted in1996: Ptas84,446,000;
totalamount budgeted for1996: Ptas100,000,000.
8. Duration ofthesubsidy
Annual 1996G/SCM/N/25/EEC
Page617
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nostatistical datacompiled.
LOCAL DEVELOPMENT PROGRAMMES
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Local Development Programmes.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote localdevelopment.
4. Background andauthority forthesubsidy
Order regulating Social Economy andLocal Development Programmes.
5. Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct andnon-repayable subsidies.
6. Towhom andhowthesubsidy isprovided (producers, exporters,...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Local authorities benefiting: 12.
7. Amount oftheaid
Total amount granted in1996: Ptas33,838,000;
totalamount budgeted for1996: Ptas67,000,000.
8. Duration ofthesubsidy
Annual 1996
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nostatistical datacompiled.G/SCM/N/25/EEC
Page618
PROGRAMMES TOPROMOTE EMPLOYMENT INTHE SOCIAL ECONOMY
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Programmes topromote Employment intheSocial Economy.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote theimprovement ofthesocial economy.
4. Background andauthority forthesubsidy
Order regulating Social Economy andLocal Development Programmes.
5. Form ofthesubsidy (direct subsidy, loan, interest rate-subsidy, etc.)
Non-repayable subsidies.
6. Towhom andhowthesubsidy isprovided (producers, exporters,...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Cooperatives andlabour corporations; beneficiaries: 52.
7. Amount oftheaid
Total amount granted in1996: Ptas622,634,000;
totalamount budgeted for1996: Ptas640,996,000.
8. Duration ofthesubsidy
Annual 1996
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nostatistical datacompiled.G/SCM/N/25/EEC
Page619
EMPLOYMENT PROMOTION PROGRAMMES FOR YOUNG PEOPLE, 1996
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Employment Promotion Programmes forYoung People, 1996.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote employment ofyoung people intheregion.
4. Background andauthority forthesubsidy
Order regulating Employment Promotion Programmes forYoung People, 1996.
5. Form ofthesubsidy (direct subsidy, loan, interest ratesubsidy, etc.)
Direct andnon-repayable subsidies.
6. Towhom andhowthesubsidy isprovided (producers, exporters,...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined).
Tosmall andmedium enterprises; beneficiaries: 185.
7. Amount oftheaid
Total amount granted in1996: Ptas141,200,000;
totalamount budgeted for1996: Ptas237,247,000.
8. Duration ofthesubsidy
Annual 1996
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nostatistical datacompiled.G/SCM/N/25/EEC
Page620
INCENTIVES TOGENERAL ELECTRIC PLASTICS DEESPAÑA S.C.A. FOR 1996
1. Titleofthesubsidy programme (orbriefdescription ofthesubsidy)
Incentives toGeneral Electric Plastics deEspaña S.C.A. for1996.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Economic incentives forestablishing industries indisadvantaged regions.
4. Background andauthority forthesubsidy
Regional incentives legislation (Law 50/1985).
5. Form ofthesubsidy (direct subsidy, loan, interest-rate subsidy, etc.)
Direct andnon-repayable subsidies.
6. Towhom andhowthesubsidy isprovided (producers, exporters,...,through whatmechanism;
whether afixed orfluctuating amount perunit; ifthelatter, howdetermined)
Tothecompany concerned.
7. Amount oftheaid
Total amount granted in1996: Ptas257,000,000;
totalamount budgeted for1996: Ptas257,000,000.
8. Duration ofthesubsidy
Several years
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Nostatistical datacompiled.G/SCM/N/25/EEC
Page621
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.17
AUTONOMOUS COMMUNITY OFNAVARRAG/SCM/N/25/EEC
Page622
AIDTOEARLY RETIREMENT INTHE AGRICULTURAL SECTOR
1. Titleoftheprogramme
Aidtoearly retirement intheagricultural sector.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Toprovide anincome forfarmowners close toretirement age(between 55and65years of
age)whodecide tostopfarming andarereplaced byother farmers whocanimprove theeconomic
viability oftheremaining agricultural holding.
4. Authority fortheprogramme
Autonomous Decree 301/1993 of1October;
Autonomous Decree 158/1994 of5September;
Autonomous Order of9January 1995;
Correction oferrors intheAutonomous Order of9January 1995;
Autonomous Decree 248/1996 of17June.
5. Form ofthesubsidy
- Lump sumretirement grant;
- annual compensation upto65years ofage;
- annual allowance perhectare forrestructuring uptotheageof65.
6. Beneficiaries
Farmers whomeet theconditions laiddown inCouncil Regulation (EEC) No.2079/92 of
30June1992 andinAutonomous Decree 301/93 of1October.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas185.4 million;
- Average amount perfarmer: Ptas1.2million;
- average amount perworker orfamily member: Ptas405,000.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page623
DISASTER-RELIEF AID
1. Titleoftheprogramme
Diaster-relief aid.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Aidtooffset thelossofagricultural assets orlivestock provided thattheriskisnotcovered
under agricultural insurance plans ineffect inNavarra.
4. Authority fortheprogramme
Autonomous Decree Law133/1991 of4April;
Autonomous Law18/1992 of28December;
Autonomous Decree 19/1993 of18January;
Autonomous Decree 51/1996 of22January.
5. Form ofthesubsidy
Subsidy covering 4to8interest ratepoints forloans ofamaximum duration of20years.
6. Beneficiaries
Farmers,livestockbreedersorownersofruralsmallholdingsprovidedthatthepropertydamaged
isinNavarra.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas50.3million;
- Average amount perbeneficiary: Ptas45,400.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page624
AIDTOCOOPERATIVES FOR JOINT USEOFMACHINERY
1. Titleoftheprogramme
Aidtocooperatives forjointuseofmachinery.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote theestablishment ofcooperatives forthejointuseandpurchase ofagricultural
machinery.
4. Legal basis oftheprogramme
Autonomous Decree 351/1993 of22November;
Autonomous Decree 423/1995 of25September;
Autonomous Order of23October 1995.
5. Form ofthesubsidy
Non-repayable subsidy of35percentoftheinvestment (17.5 percentforreplacement
machinery).
6. Beneficiaries
Cooperatives forthejointuseofagricultural machinery (CUMAS) thatmeettherequirements
laiddown inAutonomous Decree 351/93.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas93.6million;
- Average amount perbeneficiary: Ptas3.3million.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page625
IMPROVEMENT OFTHE EFFICIENCY OFFARMS
1. Titleoftheprogramme
Improvement oftheefficiency offarms.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Aidtoinvestment indevelopment plans forfarms, aidtoyoung farmers insetting upfarms,
introduction toaccounting, aidtoservices groups, aidtoprofessional training, aidtocollective
investment.
4. Authority fortheprogramme
Autonomous Decree Law133/1991 of4April;
Autonomous Law2/1992 of10March;
Autonomous Decree of297/1992 of28September;
Autonomous Law13/1993 of30December;
Autonomous Decree 26/1994 of24January;
Autonomous Law6/1994 of31May;
Autonomous Decree 121/1994 of20June;
Autonomous Decree 157/1994 of5September;
Autonomous Order of2May1995.
5. Form ofthesubsidy
Direct subsidy intheform ofnon-repayable capital andinterest-rate subsidies forloans.
Maximum capital subsidy of25percentandinterest-rate subsidy covering 4to8interest rate
points, thatthefinalinterest ratefortheloanisnotlessthan3percent.
6. Beneficiaries
Farms thatmeetthecriteria laiddown inRegulation (EEC) No.2328/91, aswellasthegeneral
requirements specified inAutonomous Decree 297/92.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas1,182.5 million;
- Average perbeneficiary (development plans): Ptas1.5million.
8. Duration ofthesubsidy
IndefiniteG/SCM/N/25/EEC
Page626
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.
COMPENSATORY ALLOWANCE INDISADVANTAGED
AREAS OFNAVARRA
1. Titleoftheprogramme
Compensatory allowance indisadvantaged areas ofNavarra.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Thisisdirect aidtocomplement andsustain agricultural income forthepurpose ofcompensating
farms inless-favoured areas either because theyaremountain areas (inaccordance withArticle 3,
paragraph 3,ofDirective 75/268/EEC) orbecause theareasuffers fromdepopulation (inaccordance
withArticle 3,paragraph 4,ofthesame Directive).
4. Authority fortheprogramme
Autonomous Decree 198/1986 of7August;
Autonomous Decree 148/1991 of11April;
Autonomous Decree 27/1995 of6February;
Autonomous Decree 29/1995 of6February;
Autonomous Decree 133/1996 of4March.
5. Form ofthesubsidy
Non-repayable subsidy inanamount fixedannually, taking intoaccount therelevant provisions
established bytheEuropean Union inRegulation (EEC) No.2328/91 (Title III).
6. Beneficiaries
Owners offarms situated inmountain areas orareas less-favoured asaresult ofdepopulation,
whose main occupation isagriculture andwhose farms cover areas ofatleasttwohectares andhave
atleasttwoheadofheavy livestock ortheirequivalent.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas273.9 million;
average amount perbeneficiary: Ptas80,200.G/SCM/N/25/EEC
Page627
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.
SUBSIDIES FOR INVESTMENT FOR INDUSTRIALIZATION AND MARKETING
INTHE AGRI-FOODSTUFFS SECTOR
1. Titleoftheprogramme
Subsidies forinvestment forindustrialization andmarketing intheagri-foodstuffs sector.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Establishment ofaseries ofmeasures topromote investment andemployment.
4. Authority fortheprogramme
Autonomous Decree 79/1995 of27March;
Autonomous Order of3August 1995;
Autonomous Decree 8/1996 of8January.
5. Form ofthesubsidy
Incertain cases, non-repayable subsidies (uptoamaximum of20percentofinvestment).
Non-repayable subsidies uptoPtas500,000 foreachnewjobcreated.
Subsidized interest ratesforloans toenterprises bycredit entities.
TheaidmustnotexceedtheceilingprescribedinCouncilRegulation(EEC)866/90of29March.
6. Beneficiaries
Agri-foodstuffs enterprises thatundertake toinvest infixed assets inNavarra forthepurpose
ofincreasing production orimproving quality provided thatthefixed assets arenotsimply toreplace
existing assets.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas1,061.2 million;
- Average amount perbeneficiary: Ptas11.7million.G/SCM/N/25/EEC
Page628
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.
AIDFOR THE ACQUISITION AND CONVERSION OFBUILDINGS AND
MACHINERY FOR PROCESSING AND MARKETING
1. Titleoftheprogramme
Aidfortheacquisition andconversion ofbuildings andmachinery forprocessing andmarketing.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Investment intheacquisition, modernization andconversion ofbuildings andmachinery for
thestorage andprocessing ofagricultural products andthetreatment, processing andmarketing of
theseproducts, aswellasinvestment inthecapital ofexisting ornewly-created processing enterprises,
marketing networks oroutlets.
4. Authority fortheprogramme
Autonomous Decree Law133/1991 of4April;
Autonomous Law2/1992 of16March;
Autonomous Decree 297/1992 of28September;
Autonomous Law13/1993 of30December;
Autonomous Law6/1994 of31May;
Autonomous Decree 121/1994 of20June;
Autonomous Decree 581/1995 of4December.
5. Form ofthesubsidy
Capital subsidy notexceeding 35percentoftheeligible investment oritsequivalent inthe
form ofasubsidy covering 4-8interest-rate points forloans orcredits granted forthefinancing of
thisinvestment overaperiod notexceeding 15years (theloans orcredits concerned willbeatafinal
interest rateof3percent).
Thisaidshallnotexceed thelimits setdown inRegulation (EEC) No.866/91.
6. Beneficiaries
Groups offarmers orlivestock breeders organized incooperatives, SAToranyother legal
formofassociation, provided thatatleast50percentoftheregistered capital andthemajority ofseats
ondecision-making bodies belong topersons whose main occupation isfarming.G/SCM/N/25/EEC
Page629
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas489.3 million;
- Average amount perbeneficiary: Ptas10.4million.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.
COMPENSATION FOR COMPULSORY SLAUGHTER
1. Titleoftheprogramme
Compensation forcompulsory slaughter.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Compensation forthecompulsory slaughter oflivestock asaresult ofthehealth campaigns
against tuberculosis, brucellosis, leucosis, andperipneumonia incattle andbrucellosis insheep and
goats.
4. Authority fortheprogramme
Autonomous Decree 92/1985 of8May;
Autonomous Decree 145/1986 of23May;
Autonomous Decree 121/1987 of29May;
Autonomous Order of12September 1994.
5. Form ofthesubsidy
Compensation.
6. Beneficiaries
Owners ofslaughtered livestock residing inNavarra.G/SCM/N/25/EEC
Page630
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas29.7million;
- Cows UptoPtas60,000 perhead;
Dairy breed sheep Ptas7,000 perhead;
Slaughter sheep Ptas6,000 perhead.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.
AIDTOHEALTH PROTECTION GROUPS
1. Titleoftheprogramme
Aidtohealth protection groups.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Toimplement thecompulsory health programme intheNavarra swine census.
4. Authority fortheprogramme
Autonomous Decree 226/1984 of2November;
Autonomous Order of1June1992;
Autonomous Order of22November 1993.
5. Form ofthesubsidy
Subsidies forapproved health programmes.
6. Beneficiaries
Health protection groups
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas95million.G/SCM/N/25/EEC
Page631
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.
AIDTOAFFORESTATION AND FORESTRY IMPROVEMENTS
1. Titleoftheprogramme
Aidtoafforestation andforestry improvements.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Afforestation andwork toimprove forests, particularly theregeneration ofwoodland.
4. Authority fortheprogramme
Autonomous Law13/1990 of31December.
5. Form ofthesubsidy
Direct capital subsidy.
6. Beneficiaries
Owners ofwoodlands orforests.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas180.9 million;
- Theaverage amount perbeneficiary ranges from50percentto90percentaccording
towhether ornotthewoodland isclassified.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page632
AIDTOFORESTRY MEASURES INAGRICULTURE
1. Titleoftheprogramme
Aidtoforestry measures inagriculture.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Afforestation, worktoimprove forests andcompensation forlossofincome asanaccompanying
measure totheCommunity 'sagricultural policy.
4. Authority fortheprogramme
Autonomous Decree 31/1994 of31January;
Autonomous Order of18April 1994;
Autonomous Decree 156/1994 of5September;
Autonomous Order of27February 1995;
Autonomous Decree 221/1996 of20May;
Autonomous Order of1July1996;
Autonomous Order of9December 1996.
5. Form ofthesubsidy
Direct capital subsidy.
6. Beneficiaries
Farmers
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas45.4million (for20years);
Average amount perbeneficiary: Ptas300,000 (for20years).
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page633
AIDTOSMALL-SCALE AGRI-FOOD ENTERPRISES
1. Titleoftheprogramme
Aidtosmall-scale agri-food enterprises.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Support andincentives forsmall-scale agri-food industries inorder todiversify andsupplement
theincome offamilies inrural areas.
4. Authority fortheprogramme
Autonomous Decree 103/94 of23May;
Autonomous Order of19December 1994;
Autonomous Decree 581/1995 of4December.
5. Form ofthesubsidy
Direct subsidy forupto30percentoftheinvestment eligible (35percentinmountain areas).
6. Beneficiaries
Enterprises (natural orlegal persons) involved inhandling, preparing orprocessing that
guarantees theconsumer aspecial finalproduct ofpremium quality andcharacteristics produced by
traditional methods insmall-scale industries.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas28.2million;
average amount perbeneficiary: Ptas3.1million.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page634
AIDFOR THE RESTRUCTURING AND ENHANCEMENT OFTHE
COMPETITIVENESS OFAGRICULTURAL COOPERATIVES
1. Titleoftheprogramme
Aidfortherestructuring andenhancement ofthecompetitiveness ofagricultural cooperatives.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Support forthemodernization ofagricultural cooperatives through:
- Aidforthemerger ortakeover ofagricultural marketing cooperatives;
- aidfortheadmission ofnewmembers;
- aidtoimprove commercial management.
4. Authority fortheprogramme
Autonomous Decree 228/94 of14November;
Autonomous Order of13March 1995.
5. Form ofthesubsidy
Non-repayable subsidy.
6. Beneficiaries
Agricultural cooperatives.
7. Total amount granted in1996. Average subsidy perunit
Financial year1996, paidout: Ptas15million;
average amount perbeneficiary: Ptas2.1million.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page635
AIDTOTECHNOLOGICAL RESEARCH AND DEVELOPMENT
1. Titleoftheprogramme
Aidtotechnological research anddevelopment.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Toimprove thecompetitiveness ofenterprises byincorporating technology intheirproducts
andprocesses.
4. Authority fortheprogramme
Autonomous Decree 2/1982 of16September.
5. Form ofthesubsidy
Interest-free loans toberepaid inseven years withatwo-year grace period, notexceeding
50percentoftheresearch anddevelopment costs.
6. Beneficiaries
Industrial enterprises based inNavarra.
7. Total amount granted in1996. Average subsidy perunit
In1996, Ptas742.2 million werepaidoutfor48projects. Theaverage amount perproject
istherefore Ptas15.46 million.
8. Duration ofthesubsidy
Indefinite
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page636
INVESTMENT AND EMPLOYMENT AID
1. Titleoftheprogramme
Investment andemployment aid.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote thecreation ofnewindustries andthemodernization ofexisting ones.
4. Authority fortheprogramme
Regulation of23June1982 onshort-term measures onindustrial policy andthepromotion
ofinvestment andemployment.
Autonomous Decree of24January 1986regulating interest-rate subsidies forloanoperations.
5. Form ofthesubsidy
- Subsidy notexceeding 20percentoftheinvestment;
- subsidy ofPtas500,000 perjobcreated;
- subsidy covering 3to5interest ratepoints.
6. Beneficiaries
Manufacturingindustry.ActivitiesindivisionsCandDoftheCNAE.93.Interest-ratesubsidies
forindustrial SMEs employing lessthan250withownresources notexceeding Ptas500million.
7. Total amount granted in1996. Average subsidy perunit
Subsidy perinvestment Ptas4,706.2 million No.ofbeneficiaries: 120
Employment subsidies Ptas99million No.ofbeneficiaries: 50
Interest ratesubsidies Ptas272million No.ofbeneficiaries: 80
8. Duration ofthesubsidy
There isnotime-limit.
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page637
REORGANIZATION AND REVIVAL OFENTERPRISES INCRISIS
1. Titleoftheprogramme
Reorganization andrevival ofenterprises incrisis.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Support forenterprises thatarefacing acrisis situation andareattempting toimplement plans
forreorganization andrevival thathavepreviously beenreviewed andcompared.
4. Authority fortheprogramme
Autonomous Law1/1985 of4March.
5. Form ofthesubsidy
- Subsidies forreorganization andrestructuring;
- advances repayable without interest;
- subsidized interest ratesforloans;
- security forobtaining loans.
6. Beneficiaries
Enterprises based inNavarra.
7. Total amount granted in1996. Average subsidy perunit(inthousands ofpesetas)
Heading Amount paidin1996
Non-repayable subsidies 47,701
Advances repayable without interest 50,000
Interest-rate subsidies 161,730
Agreed security 155,000
8. Duration ofthesubsidy
There isnotime-limit.
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page638
AIDTOANTI-POLLUTION INVESTMENT
1. Titleoftheprogramme
Aidtoanti-pollution investment.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Toprevent environmental pollution caused bypolluting activities thatmustbeadapted tothe
environmental regulations inforce.
4. Authority fortheprogramme
Autonomous Decree 4/1982 of16September approving theregulations onaidtoanti-pollution
investment (Official Journal ofNavarra, 8October 1982).
5. Form ofthesubsidy
Thesubsidy covers upto30percentofinvestment inmeasures toremedy industrial pollution.
6. Beneficiaries
Enterprises based inNavarra thatneedtotakecorrective measures toprevent pollution ofwater
andtheenvironment.
7. Total amount granted in1996. Average subsidy perunit
Amount budgeted: Ptas165,000,000;
amount granted: Ptas62,813,006.
8. Duration ofthesubsidy
There isnotime-limit.
9. Statistical data
Currently notavailable, buttheprogramme isnotconsidered tohaveanyeffects onforeign
trade.G/SCM/N/25/EEC
Page639
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.18
AUTONOMOUS COMMUNITY OFVALENCIAG/SCM/N/25/EEC
Page640
AIDTOTHE AGRICULTURAL COOPERATIVE SYSTEM INVALENCIA
1. Titleofthesubsidy programme
Aidtotheagricultural cooperative system inValencia.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
(a) Restructuring ofcooperative societies soastoprovide them withproduction and
distribution structures whose economic scaleallows themtorespond totechnological
change andtothegradual concentration ofeconomic agents participating inthemarket;
(b) topromote cooperative societies 'activities andsectors withlittleornocooperative
development;
(c) reform ofthefinancial structure attheenterprise level.
4. Background andauthority forthesubsidy
Order of20April 1995oftheRegional Ministry ofAgriculture, Fisheries andFood approving
thenewregulatory bases foraidtotheagricultural cooperative system inValencia.
5. Form ofthesubsidy
Non-repayable subsidy, interest-rate subsidy.
6. Towhom andhowthesubsidy isprovided
- Cooperatives ofanytype;
- cooperative consortiums;
- organizations representative oftheagricultural cooperative system inValencia.
7. Subsidy perunit
Subsidies
Total (inPtas)No.of
beneficiariesAverage subsidy
(inPtas)
Investment subsidies 79,175,314 36 2,199,600
Subsidies forrestructuring
costs 22,788,430 28 813,872
Subsidies forfinancial costs 217,517,550 67 3,245,530
8. Duration ofthesubsidy (inception/commencement)
1995-2000
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidyG/SCM/N/25/EEC
Page641
AIDFOR THE TEMPORARY CESSATION OFACTIVITY
BYTHE FISHING FLEET
1. Titleofthesubsidy programme
Aidforthetemporary cessation ofactivity bythefishing fleet.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Topromote theplanned cessation ofactivity bythefishing fleetinValencia inorder torestock
thefishing grounds.
4. Background andauthority forthesubsidy
Order oftheRegional Ministry ofAgriculture, Fisheries andFood of2February 1995(DOGV
No.2431 of19January 1995) establishing aidforthetemporary cessation ofactivity bythefleet.
5. Form ofthesubsidy
Premium inECUs/day according totonnage percessation ofactivity.
6. Towhom andhowthesubsidy isprovided
Theaidisgranted tonatural andlegalpersons owning fishing boats based intheAutonomous
Community ofValencia. Thepremium ispaidonceonlyinalump sum.
7. Subsidy perunit
Average subsidy ofPtas1,349,000.
8. Duration ofthesubsidy (inception/commencement)
Theaidscheme doesnothaveanytime-limit.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
There arenotradeeffects astheaidisnotaimed atincreasing production butatreducing catches.G/SCM/N/25/EEC
Page642
AIDTOTHE FISHING AND AQUACULTURE SECTOR
1. Titleofthesubsidy programme
Aidtothefishing andaquaculture sector.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Establishment ofalineofaidtopermit thestandardization ofcriteria andactasanincentive
toprivate initiative fortheimplementation ofmodernization andadaptation projects inthefishing sector
thatarenotsubsidized through Community funds andregulations.
4. Background andauthority forthesubsidy
OrderoftheRegionalMinistryofAgriculture,FisheriesandFood,of6November1991(DOGV
No.1668of21November 1991) establishing aidtothefishing andaquaculture sector intheAutonomous
Community ofValencia.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted tonatural andlegalpersons exploiting fishing resources andresident
intheAutonomous Community ofValencia. Thesubsidy ispaidaftertheinvestment hasbeenmade
andverified.
7. Subsidy perunit
Average subsidy ofPtas254,000
8. Duration ofthesubsidy (inception/commencement)
Indefinite duration since 1991
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Thisaidisaimed atmodernizing exploitation activities andnotatincreasing production.G/SCM/N/25/EEC
Page643
AIDTOINVESTMENT INPREFERENTIAL FARMS
1. Titleofthesubsidy programme
Aidtoinvestment inpreferential farms.
2. Period covered bythenotification
1995 and1996
3. Policy objective and/or purpose ofthesubsidy
Toreplace traditional irrigation systems bynewsystems thatconserve water forirrigation or
make more rational useofthewater.
Changing overtoother varieties offruitandcitrus fruits asaresult ofphytosanitary orquality
improvements intheproducts.
Other improvements intheinfrastructure orequipment offarms.
Helping farms tobecome large enough tomake them economically viable.
Promoting jointcultivation byagricultural associations.
4. Background andauthority forthesubsidy
Decree 31/1994 of8February oftheGovernment ofValencia defining andestablishing the
legal regime forpreferential farms intheAutonomous Community ofValencia, asamended by
Decree 20/1995 of24January.
Order of25April 1994oftheRegional Ministry ofAgriculture, Fisheries andFoodestablishing
theminimum andmaximum sizeofpreferential farms fordifferent agricultural andlivestock uses.
Order of4April 1995oftheRegional Ministry ofAgriculture, Fisheries andFood providing
foraidtoinvestment inthedevelopment plans ofpreferential farms.
Order of2July1996oftheRegional Ministry ofAgriculture andtheEnvironment providing
foraidtoinvestment inpreferential farms.
5. Form ofthesubsidy
Non-repayable subsidies andinterest-rate subsidies
6. Towhom andhowthesubsidy isprovided
Thesubsidy isgranted toowners offarms. Itispaidupon presentation ofacertificate that
theinvestment hasbeenmade issued bythetechnical staffoftheRegional Ministry ofAgriculture.G/SCM/N/25/EEC
Page644
7. Subsidy perunit
- 1995: Ptas195,904/Ha.
- 1996: Ptas121,919/Ha.
8. Duration ofthesubsidy (inception/commencement)
1995-2000
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
1995 1996
No.ofbeneficiaries: 259 75
Total subsidy granted: Ptas101,174,662 Ptas13,114,856
Crops andproduction
concerned:Citrus fruits: 424.32 Ha
Vegetables: 20.79 Ha
Fruit: 71.34 HaCitrus fruits: 75.43 Ha
Vegetables: -
Fruit: 32.14 Ha
AIDTOFORD ESPAÑA S.A.(ZETEC-SE MOTOR), PROJECTS 11TO13
1. Titleofthesubsidy programme
AidtoFord España S.A.(ZETEC-SE motor), projects 11to13.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Projects 11and11bis:energy savings andenvironmental protection;
Project 12:research anddevelopment, innovation andregional development;
Project 13:training ofstaffandmaintaining jobs, regional development (improving the
professional levelofworkers intheregion).
4. Background andauthority forthesubsidy
Projects11and11bis:Law82/1980of30Decemberonenergysavingsanddevelopmentorders.
Projects12and13:PublicFinanceLawoftheAutonomousCommunityofValencia(Legislative
Decree oftheValencian Government of26June1991).G/SCM/N/25/EEC
Page645
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided
Thebeneficiary isFord España S.A.
Thesubsidy ispaidaftertheinvestment hasbeenmade and/or theactivities eligible forsubsidies
havebeencarried out,according tothebudget available.
7. Subsidy perunit
Thisisanadhocsubsidy sothere isnosubsidy perunit.
Nosubsidy under projects 11,11bisand12waspaidin1996.
Under project 13:Ptas182,628,781 tofinance training, whose totalcostwasPtas365,257,563.
8. Duration ofthesubsidy (inception/commencement)
1926-2003
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Thepurpose ofthesubsidy paidtodatehasbeentoimprove theprofessional levelofworkers
intheregion byproviding support fortheprofessional training ofworkers atFordEspaña S.A.and
consequently itisnotdeemed tohaveanyeffect oninternational trade.G/SCM/N/25/EEC
Page646
NOTIFICATION OFSUBSIDIES
AUTONOMOUS ADMINISTRATIONS
ANNEX No.19
AUTONOMOUS COMMUNITY OFTHE BASQUE COUNTRYG/SCM/N/25/EEC
Page647
EXTENSION OFTHE PROGRAMME OFFINANCIAL
AIDTOINVESTMENT (AFI-96)
1. Titleofthesubsidy programme
Extension oftheprogramme offinancial aidtoinvestment (AFI-96).
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Toaidinvestment bySMEs bygiving them access tofinancing sources onacceptable terms
incomparison withcompetitors intheCommunity andtofacilitate long-term financing atmoderate
interest rates.
4. Authority forthesubsidy
Decree 95/1994, of22February regulating theprogramme offinancial aidtoinvestment in
theindustrial sector.
Order of23February 1994 oftheRegional Minister ofIndustry andEnergy implementing
Decree 95/1994 of22February regulating theprogramme offinancial aidtoinvestment intheindustrial
sector.
Order of30March 1995 oftheRegional Minister ofIndustry, Agriculture andFisheries,
amending theOrder implementing Decree 95/1994 of22February regulating theprogramme offinancial
aidtoinvestment intheindustrial sector.
5. Form ofthesubsidy
Interest-rate subsidy forloans under theagreement signed withfinancial entities.
6. Towhom andhowthesubsidy isprovided
Thesubsidy isavailable tothefollowing:
- Industrial SMEs andSMEs providing technical services toindustrial enterprises.
Thebeneficiary must show thatitsinvestment project meets thefollowing requirements:
- Theproject must betechnically, economically andfinancially viable;
- 30percentoftheinvestment must beself-financed bytheenterprise;
- there isaminimum admissible amount ofinvestment ofPtas10million;
- theinvestment ismade byenterprises which employ atleastthreeworkers foraminimum
ofthree years asaresult ofincreasing investment.G/SCM/N/25/EEC
Page648
Inorder tobenefit from thissubsidy, thebeneficiary must show thatithaspaiditstaxand
social security contributions.
Itmust alsoprovide evidence thattheinvestment intheproject hasbeenmade andthatthe
financial operation hasbeencarried outaccording totheterms laiddown intheagreement signed with
thefinancial entities.
7. Amount ofthesubsidy
Ptas975million
8. Duration ofthesubsidy
Thisaidprogramme remains ineffect aslongasthere aresufficient funds forthesubsidies.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Theaccounts arecurrently being closed andaCNAES tablewillbesentsubsequently, showing
thatthesubsidy affects allindustrial sectors andtechnical services toindustrial enterprises.
PROGRAMME TOIMPROVE TECHNOLOGICAL CAPACITY AND
INNOVATION INTHE INDUSTRIAL SECTOR INTHE AUTONOMOUS
COMMUNITY OFTHE BASQUE COUNTRY (PGTI PROGRAMME)
1. Titleofthesubsidy programme ortheadhocsubsidy
Programme toimprove technological capacity andinnovation intheindustrial sector inthe
Autonomous Community oftheBasque Country (PGTI programme).
2. Period covered bythenotification
1996 financial year
3. Policy objective andpurpose ofthesubsidy
Theaidscheme isofthehorizontal typeandtheobjective istoencourage R&D intheindustrial
sector andinallied services.
4. Authority forthesubsidy
Decree 97/1994, of22February ontheimprovement oftechnological capacity andinnovation
intheindustrial sector oftheAutonomous Community oftheBasque Country (published intheOfficial
Gazette oftheBasque Country, No39of25February 1994).
Orderof8March1996oftheRegionalMinisterofIndustry,AgricultureandFisheries,extending
until1996 thetime-limit forapplications foraidregulated bytheOrder of23February 1994 ofthe
Regional Minister ofIndustry andEnergy implementing Decree 97/1994 of22February (published
intheOfficial Gazette oftheBasque Country, No.64of29March 1996).G/SCM/N/25/EEC
Page649
5. Form ofthesubsidy
Theaidunder thisprogramme isintheform ofanon-repayable subsidy.
6. Beneficiaries
Mainly SMEs: industrial orservices enterprises ornon-profit-making bodies cooperating with
technological centres oruniversity departments orwhich havetheirownR&D centres. Annual or
half-yearly payment.
7. Subsidy perunitortotalamount
Total volume ofaid1996: Ptas2,384,226,977.
Average subsidy perunit: Ptas10,102,657.
Number ofbeneficiary enterprises: 236.
8. Duration ofthesubsidy
Theaidrelates exclusively tothepartoftheprojects carried outduring the1996calendar year.
Theperiodforsubmittingapplicationsendedon30Aprilandproofofactiontakenwassubmitted
by31January 1997.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthisprogramme mainly concerns theindustrial sector andallied services, nodataonits
effect ontrade areavailable.
EKIMEN PROGRAMME, ECONOMIC AIDTOINVESTMENT IN
INDUSTRIAL PRODUCTION THAT CREATES JOBS
1. Titleofthesubsidy programme
Ekimen Programme, economic aidtoinvestment inindustrial production thatcreates jobs.
2. Period covered bythenotification
1996-1998
3. Purpose ofthesubsidy
ThepurposeoftheEkimenProgrammeistopromoteandencourageindustrialinvestmentprojects
tobecarried outintheAutonomous Community oftheBasque Country thatleadtothecreation of
alarge number ofjobs.G/SCM/N/25/EEC
Page650
4. Authority forthesubsidy
Decree 289/1996 of17December regulating theEkimen Programme ofeconomic aidto
investment inproduction thatcreates jobs.
5. Form ofthesubsidy
Non-repayable subsidy andinterest-rate subsidy forfinancial operations.
6. Towhom andhowthesubsidy isprovided
Thisaidisavailable toindustrial mining and/or processing companies orcompanies providing
technical services totheformer, whose investment projects receiving aidaresituated intheterritory
oftheAutonomous Community oftheBasque Country.
Entities thatbelong totheinstitutional administration oftheAutonomous Community, including
public companies andsubsidiary technological research bodies, arenoteligible asbeneficiaries.
Thesubsidy ispaidfollowing fulfilment oftherequirements laiddown intheprogramme by
thecompany concerned, including theinvestment andjobcreation, bymeans oftherelevant decision
ongranting thesubsidy.
Projects eligible toreceive economic aidarethose which havemetthefollowing requirements
overamaximum period ofthree years:
(a) Theprojects haveledtothecreation ofatleast30jobsandaminimum eligible investment
ofPtas360million;
(b) thecompanies 'ownresources, excluding subsidies, mustrepresent atleast30percent
ofthetotalnetassets. Thisrequirement mustbemetandproof provided attheendof
thesecond financial yearfollowing thecommencement oftheinvestment project and
inthefinancial yearinwhich theproject isdefinitively terminated;
(c) theinvestment andthejobcreation must bemade byasingle legal entity and,for
companies thathavevarious production sites, atasingle production site,unless itcan
satisfactorily beproved thatitisasingle investment project;
(d) inanyevent, theprojects eligible foraidmust substantiate theirtechnical, economic
andfinancial viability.
Thebeneficiary must alsoprove thatithaspaiditstaxandsocial security contributions.
7. Amount ofthesubsidy
Ptas20,000 million
8. Duration ofthesubsidy
Forthepurposes ofsubmitting applications, thisaidprogramme willbeineffect during the
period 1996-1998.G/SCM/N/25/EEC
Page651
Astheprojects mustbeimplemented within amaximum period ofthree years from thedate
ofapproval oftheaid,thetotalinvestment andthepayment oftherelevant subsidies maybeextended
untilthefinancial year2001.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Theprogramme concerns promotion ofprojects todevelop processing industries and/or their
related technical services which leadtolarge-scale jobcreation andwillthusbeasubstantial incentive
forindustrial activities intheBasque Country andconsequently economic activity intheAutonomous
Community oftheBasque Country.
SUPPORT FOR RESEARCH AND INNOVATION INTHE AGRICULTURAL,
AGRI-FOOD AND FISHERIES SECTORS INTHE AUTONOMOUS
COMMUNITY OFTHE BASQUE COUNTRY
1. Titleofthesubsidy programme
Support forresearch andinnovation intheagricultural, agri-food andfisheries sectors inthe
Autonomous Community oftheBasque Country.
2. Period covered bythenotification
1996
3. Purpose ofthesubsidy
Aidunder thebudget oftheAutonomous Community oftheBasque Country topromote and
technological andexperimental development activities andprojects intheagricultural, agri-food and
fisheries sectors.
4. Authority forthesubsidy
Decree 367/1995 of11Julyonsupport measures forresearch andinnovation intheagricultural,
agri-food andfisheries sectors intheAutonomous Community oftheBasque Country.
Order of21May1996 establishing theformalities forproviding theaid.
5. Form ofthesubsidy
Non-repayable aid
6. Beneficiaries
Direct financial aidto:
- Agricultural, agri-food orfisheries enterprises withtheirownR&D centres;
- agricultural, agri-food orfisheries enterprises, alone oringroups, when theycooperate
withR&D centres.G/SCM/N/25/EEC
Page652
7. Subsidy perunitortotalamount
Basic research: upto50percent, withaceiling ofPtas8million;
Applied research: upto25percent, withaceiling ofPtas8million.
Thisaidmaybeincreased by10percentinthecaseofSMEs.
8. Duration ofthesubsidy
Annual programme
9. Statistical data
Expenditure scheduled for1996: Ptas20million.
Actual payments for1996: Ptas19,960,000.G/SCM/N/25/EEC
Page653
NOTIFICATION OFSUBSIDIES TOTHE WTO
AUTONOMOUS ADMINISTRATIONS
ANNEX No.20
PRINCIPALITY OFASTURIASG/SCM/N/25/EEC
Page654
PROGRAMMES FOR ENERGY SAVING AND USE
OFRENEWAL ENERGY
1. Titleofthesubsidy programme
Programmes forenergy saving anduseofrenewal energy.
2. Period covered bythenotification
1996
3. Policy objective and/or purpose ofthesubsidy
Theobjectives oftheplanarethefollowing: topromote energy efficiency inindustry, transport
andpublic buildings; toencourage theuseofrenewable energy, suchaswindandsolarenergy (thermal
andphotovoltaic); tomake useofthebiomass andwaste (urban, industrial, forestry andagricultural)
andgeometry.
Theforegoing inaccordance withtheobjectives inLaw82/80 onenergy conservation, which
isthebasis fortheplan.
4. Background andauthority forthesubsidy
TheaforementionedLaw82/80onenergyconservationandtheDecisionoftheRegionalMinistry
oftheEconomy of12February 1996(Official Gazette ofthePrincipality ofAsturias of29March 1996)
approving theregulatory bases forgranting subsidies under thisprogramme.
5. Form ofthesubsidy
Non-repayable subsidy
6. Towhom andhowthesubsidy isprovided (whether toproducers, toexporters, orothers;
through whatmechanism; whether afixed orfluctuating amount perunit; ifthelatter, how
determined)
Thesubsidies areavailable tothefollowing:
- Public orprivate enterprises;
- groups ofpublic orprivate enterprises;
- condominiums;
- non-profit making institutions;
- localauthorities;
- natural persons carrying outactivities covered bytheplan.G/SCM/N/25/EEC
Page655
Inorder toreceive asubsidy, thebeneficiary mustshow thatithaspaiditstaxandsocial security
contributions. Itmustalsoprovide evidence thattheactivity covered bythesubsidy hasbeencarried
out.
7. Amount ofthesubsidy
In1996: Ptas160million.
8. Duration ofthesubsidy and/or anyother time-limits attached toit,including dateofthe
inception/commencement
Thisaidprogramme willremain ineffect during 1996 andwillbethesubject ofanew
announcement insubsequent years.
9. Statistical datapermitting anassessment ofthetrade effects ofthesubsidy
Asthissubsidy isaimed atfinalusers ofenergy, thisquestion isnotrelevant.