WORLD TRADE  
ORGANIZATION  G/SCM/N/95/EEC/Add.4 
15 December 2003 
 (03-6587) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITY 
 
Addendum  
 
 The following addendum to the notification of  the European Community relates to subsidy 
programmes of Finland . 
 
_______________ 
 G/SCM/N/95/EEC/Add.4 
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FINLAND 
 
TABLE OF CONTENTS 
 
Page  
I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES .................................................4 
1. Development Aid for SMEs.................................................................................................... ..4 
2. State Aid for the Internationalization of SMEs......................................................................5 3. Loan Programme for SMEs (Finnvera plc)............................................................................5 
4. Development Loan Programme  for SMEs (Finnvera plc) ....................................................6 
5. Entrepreneur Loan (Finnvera plc)..........................................................................................7 6. Micro-Loan Programme for SMEs (Finnvera plc)................................................................8 7. Micro-Loan Programme for Women Entrepreneurs (Finnvera plc)...................................9 8. Grant for Technical Consulting and Promotion (Åland) ....................................................10 
9. Environment Loan Programme for SMEs (Finnvera plc) ..................................................11 
10. Operational Conditions Aid................................................................................................. ..12 
II. AID FOR RESEARCH AND DEVELOPMENT.................................................................13 1. Aid for Promoting R&D....................................................................................................... ..13 
2. Grant for Research and Development (Åland ) ...................................................................14 
3. GMP Manufacturing Space for Bio-Enterprises (City of Oulu) ........................................15 
III. REGIONAL AID .............................................................................................................. ......16 
1. Investment Aid .............................................................................................................. ..........16 
2. Regional Transport Subsidy .................................................................................................. 17 
3. Accelerated Region al Depreciation .......................................................................................18 
4. Grant for Investments (Åland) ..............................................................................................1 9 
IV. AID IN THE FIELD OF ENERGY ......................................................................................20 
1. Energy Grants ............................................................................................................... ..........20 
2. Aid Measures Connected to Energy Taxat ion, Aid for Environmental Protection ..........21 
3. Grants for the Promotion of Environmental Protection .....................................................22 4. Waste Oil Management Financed by Waste Oil Charges ...................................................22 V. OTHER SUBSIDIES ............................................................................................................. .23 
1. Ice dues Classifica tion Allowance..........................................................................................2 3 
2. Investment Aid for Businesses Pr ocessing Agri-Based Products .......................................24 
3. Aid for Development Projects in the Food Industry............................................................26 4. Temporary State Guarantee for Airlines' Third Party Liabilities Arising Out of 
War Risks ...................................................................................................................... ..........27  G/SCM/N/95/EEC/Add.4 
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 5. State Aid to Cinema and Other Audiovisual Production....................................................28 
6. Tonnage Taxation ............................................................................................................ .......29 
7. Subsidy to Passenger Vessels ................................................................................................ .30 
8. Subsidy to Cargo Vessels.................................................................................................... ....31 
9. Aid in Favour of Composting Plant in Åland.......................................................................32 
10. Training Aid in Åland ...................................................................................................... ......33 
 
Please note:  1 EURO = Fmk 5,94573 G/SCM/N/95/EEC/Add.4 
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 I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES 
1. Development Aid for SMEs 
(a) Title of the subsidy programme. 
 Development aid for SMEs 
 
(b) Period covered by the notification. 
 2001- 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid to SMEs 
 
(d) Background and authority for the subsidy. 
 Development aid can be granted to SMEs for their development projects aimed at improving 
the standard of firm's products or its production management or marketing.  Aid can also be granted to 
have the potential and operating conditions for projected new firm verified. 
 
 The firm is a SME with personnel not exceeding 250 employees with either an annual turnover not exceeding € 40 million or a balance sheet total not exceeding € 27 million and with not more than a quarter of its shares in the hands of a company exceeding such a limit.  The aid is granted 
by the Ministry of Trade and Industry and the Bu siness Departments of the regional Employment and 
Economic Centres (Aid to Business Act 1068/2000). 
 
(e) Form of the subsidy. 
 Grant 
 (f) To whom and how the subsidy is provided. 
 See point 4. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2001 was € 8 million.  The average subsidy per unit in year 2001 was 
€ 27 700.  The actual payments were € 16,2 million.  
 
 In 2002 the granted amount was € 6 million.  The average subsidy per unit in year 2002 was € 14 326.  The actual payments were € 4,5 million.    In 2003, the estimated amount of grants is € 7,0 million. 
 
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Until 31 December 2006.  
  G/SCM/N/95/EEC/Add.4 
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 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
2. State Aid for the Internationalization of SMEs 
(a) Title of the subsidy programme. 
 State aid for the internationalization of SMEs 
 (b) Period covered by the notification. 
 2001 - 02 
 
(c) Policy objective and/or purpose of the subsidy. 
 The subsidy is granted to SMEs for deve lopment of their promotion, marketing and 
internationalization skills.  The purpose of the subs idy is to increase the number of SMEs and the 
growth of the exporting enterprises in Finland.   
(d) Background and authority for the subsidy. 
 Subsidy is granted by the Ministry of Trade and Industry and the Business Departments of the 
regional Employment and Economic Cent res (Aid to Business Act 1068/2000). 
 (e) Form of the subsidy. 
 Grant 
 
(f) To whom and how the subsidy is provided. 
 The State aid for business internationalization is  provided to Finnish SMEs on the application 
to the Ministry of Trade and Industry or to the Business Departments of the regional Employment and Economic Centres. 
 
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The total amount of grants in 2001 w as € 26 million and in 2002 € 28 million.  
  In 2003, the estimated amount of grants is € 29 million. 
 
(h) Duration of the subsidy and/or any other time limits attached to it. 
 There are no time limits attached to this programme.   
 (i) The trade effects of the subsidy. 
 No effects on international trade.  
 
3. Loan Programme for SMEs (Finnvera plc) 
 G/SCM/N/95/EEC/Add.4 
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 (a) Title of the subsidy programme. 
 Loan programme for SMEs (Finnvera plc).  Soft loans for investments and working capital. 
 (b) Period covered by the notification. 
 2001 - 02 
 
(c) Policy objective and/or purpose of the subsidy. 
 Aid for SMEs:  access to risky loans on a reasonable interest rate level. 
 (d) Background and authority for the subsidy. 
 The authorization to grant these loans is decided annually in the State budget. 
 (e) Form of the subsidy. 
 Loans with inadequate collaterals (in comparis on to market terms), interest rate subsidy. 
 
(f) To whom and how the subsidy is provided. 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999).  Subsidy el ement is in availability and in interest rate of 
the loans.  
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The net present cost of the programme in 2001 was € 8,5 million, the administrative costs of 
Finnvera plc included.  The aid intensity of lo ans is about 4-5 per cent (calculated on loans). 
 
 In 2002 the amount of aid was € 9,7 million.  
  The average subsidy per unit in year 2002 was € 5.700   In 2003, the estimated amount of aid is € 9,0 million.  
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate. The subsidy is given during years to maturity, which is 5-10 years. 
 (i) The trade effects of the subsidy. 
 No effects on international trade 
 
4. Development Loan Programme for SMEs (Finnvera plc) 
(a) Title of the subsidy programme. 
 Development loan programme for SMEs (Finnve ra plc). Soft loans for product development 
and managerial skills.  G/SCM/N/95/EEC/Add.4 
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(b) Period covered by the notification. 
 2001- 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid for SMEs 
 (d) Background and authority for the subsidy. 
 The authorization to grant these loans is decided annually in the State budget. 
 
(e) Form of the subsidy. 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 (f) To whom and how the subsidy is provided. 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999).  Subsidy el ement is in availability and in interest rate of 
the loans.  (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The net present cost of the programme in 2001 was € 2,8 million, the administrative costs of 
Finnvera plc included. The aid intensity of the lo ans is about 18 per cent (calculated on loans). 
  In 2002 the amount of aid was € 3,1 million.  
 The average subsidy per unit in year 2002 was € 18.500 
  In 2003, the estimated amount of aid is € 3,2 million.  (h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate.  The subsidy is given al l the years to maturity, usually 5 years. 
 
(i) The trade effects of the subsidy. 
 No effects on international trade 
 
5. Entrepreneur Loan (Finnvera plc) 
(a) Title of the subsidy programme. 
 Start-up loan programme for entrepreneurs (Fi nnvera plc). Soft loans for entrepreneurs when 
establishing an enterprise.  G/SCM/N/95/EEC/Add.4 
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 (b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid to new enterprises (entrepreneurs) 
 
(d) Background and authority for the subsidy. 
 The authorization to grant these loans is decided annually in the State budget. 
 (e) Form of the subsidy. 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 (f) To whom and how the subsidy is provided. 
 The subsidy is provided to persons who st art a new manufacturing, service or tourism 
enterprise. It is granted by Finnvera plc (state -owned company that was formed by merging the 
activities of Kera Ltd and the Finnish Guarantee Board on 1 January 1999). Subsidy element is in 
availability and in interest rate of the loans.  (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The net present cost of the programme in 2001 was € 2,5 million, the administrative costs of 
Finnvera plc included. The aid intensity of the lo ans is about 25 per cent (calculated on loans). 
  In 2002 the amount of aid was € 4,5 million.   The average subsidy per unit in year 2002 was € 6.600 
 
 In 2003, the estimated amount of aid is € 4,5 million.  (h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate. The subsidy is given all the years to maturity, i.e. 10 years. 
 
(i) The trade effects of the subsidy. 
 No effects on international trade 
 
6. Micro-Loan Programme for SMEs (Finnvera plc) 
(a) Title of the subsidy programme. 
 Loan programme for SMEs (Finnvera plc). Soft loans for investments and working capital. 
 (b) Period covered by the notification. 
 2001 - 02 
  G/SCM/N/95/EEC/Add.4 
 Page 9 
 
 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid for SMEs: access to risky loans on a reasonable interest rate level. 
 (d) Background and authority for the subsidy. 
 The authorization to grant these loans is decided annually in the State budget. 
 
(e) Form of the subsidy. 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 (f) To whom and how the subsidy is provided. 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999). Subsidy elem ent is in availability and in interest rate of 
the loans.  
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The net present cost of the programme in 2001 was € 4,9 million, the administrative costs of 
Finnvera plc included. The aid intensity of loans is about 17 per cent (calculated on loans).    In 2002 the amount of aid was € 4,5 million. 
 
 The average subsidy per unit in year 2002 was € 3.300   In 2003, the estimated amount of aid is € 5,0 million.  
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate. The subsidy is given during years to maturity, which is 5 years. 
 (i) The trade effects of the subsidy. 
 No effects on international trade 
 7. Micro-Loan Programme for Women Entrepreneurs (Finnvera plc) 
(a) Title of the subsidy programme. 
 Loan programme for SMEs (Finnvera plc). Soft loans for investments and working capital. 
 (b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid for SMEs:  access to risky loans on a reasonable interest rate level. 
 G/SCM/N/95/EEC/Add.4 
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 (d) Background and authority for the subsidy. 
 The authorization to grant these loans is decided annually in the State budget. 
 (e) Form of the subsidy. 
 Loans with inadequate collaterals (in comparison to market terms), interest rate subsidy. 
 
(f) To whom and how the subsidy is provided. 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999). Subsidy elem ent is in availability and in interest rate of 
the loans. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The net present cost of the programme in 2001 was € 2,8 million, the administrative costs of 
Finnvera plc included. The aid intensity of loans is about 17 per cent (calculated on loans). 
  In 2002 the amount of aid was € 2,9 million.   The average subsidy per unit in year 2002 was € 3.050  
 In 2003, the estimated amount of aid is € 3,0 million. 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate. The subsidy is given during years to maturity, which is 5 years. 
 
(i) The trade effects of the subsidy. 
 No effects on international trade. 
 
8. Grant for Technical Consulting and Promotion (Åland) 
(a) Title of the subsidy programme. 
 Grant for technical consul ting and promotion (Åland ). 
 
(b) Period covered by the notification. 
2001 - 02. 
 (c) Policy objective and /or purpose of the subsidy. 
Aid to SMEs. 
 (d) Background and authority for the subsidy. 
The annual budget of the Government of Åland. 
  G/SCM/N/95/EEC/Add.4 
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 (e) Form of the subsidy. 
Grant. 
 (f) To whom and how the subsidy is provided. 
 The aid is provided to SMEs, companies. Th e subsidy is granted by the Government of 
Åland. 
 (g) The total amount or the annual amount budgeted fo r the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year). 
The total amount of grants in 2001 was € 105 000. 
 
The amount of grants in 2002 was € 131.600. 
  Amount budgeted for 2003 is € 670.000.  
(h) Duration of the subsidy and/or any other time limits attached to it. 
Indeterminate. 
 (i) The trade effects of the subsidy. 
No effects on international trade. 
 9. Environment Loan Programme for SMEs (Finnvera plc) 
(a) Title of the subsidy programme. 
 Environment loan programme for SMEs (Finnvera plc). Soft loans for environmental 
investments.  
(b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid to SMEs: to promote environment protection,  energy saving, circulation of raw materials 
etc. 
 
(d) Background and authority for the subsidy. 
 The authorization to grant these loans is decided annually in the State budget. 
 (e) Form of the subsidy 
 Loans with inadequate collaterals (in comparis on to market terms), interest rate subsidy. 
 G/SCM/N/95/EEC/Add.4 
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 (f) To whom and how the subsidy is provided 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (state-owned company that was formed  by merging the activities of Kera Ltd and the 
Finnish Guarantee Board on 1 January 1999). Subsidy element is in availability of the loans and in 
interest rates. 
 
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The net present cost of the programme in 2001 was € 3,8 million, the administrative costs of 
Finnvera plc included. The aid intensity of loans is about 19 per cent (calculated on loans). 
 
 In 2002 the amount of aid was € 3,2 million.   The average subsidy per unit in year 2002 was € 35.000  
 In 2003, the estimated amount of aid is € 3,0 million. 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate.  The subsidy is given all the years to maturity, usually 5-10 years. 
 (i) The trade effects of the subsidy. 
No effects on international trade. 
 
10. Operational Conditions Aid 
(a) Title of the subsidy programme. 
 Operational conditions aid 
 
(b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid to SMEs:  to develop enterprise support services for starting and existing SMEs. 
 
(d) Background and authority for the subsidy. 
 The aid is granted by the Ministry of Trade and Industry and the Business Departments of the 
regional Employment and Economic Developmen t Centres (Aid to Business Act 1068/2000). 
 
(e) Form of the subsidy 
 Grant 
  G/SCM/N/95/EEC/Add.4 
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 (f) To whom and how the subsidy is provided 
 Aid can be granted to public institutions, founda tions, private persons and enterprises.  To qualify 
for aid, a project should create new service activitie s in the region and should be of essential significance 
for the regions SMEs.  Mainly, aid may be granted fo r projects associated with counselling, research, 
quality management, marketing, product development and design services. 
 
 In exceptional cases aid can be granted to priv ate enterprises. Aid to investments for small 
enterprises is limited to 15 per cent (gross) and 7, 5 per cent (gross) for medium-sized companies. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2001 was € 13,4 million.  The actual payments were € 10,4 million.   
  In 2002 was € 5,5 million. The aver age subsidy per unit was € 53,290. 
 
 In 2003, the estimated amount of grants is € 6 million. 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate 
 (i) The trade effects of the subsidy. 
 No effects on international trade 
 
II. AID FOR RESEARCH AND DEVELOPMENT 
1. Aid for Promoting R&D 
(a) Title of the subsidy programme. 
 Aid for promoting R&D 
 (b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Aid for research and development 
 (d) Background and authority for the subsidy. 
 Legal basis: Council of State decision on 17 J une 1998 on general terms of grants and soft 
loans for R&D. 
 
(e) Form of the subsidy. 
 Grant, soft loan and capital loan 
 G/SCM/N/95/EEC/Add.4 
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 (f) To whom and how the subsidy is provided. 
 The subsidy is provided for enterprises on the basis of applications. The normal maximum aid 
intensity is 50 per cent for industrial research and 25 per cent for pre-competitive development 
activity. These maximum levels can be raised up to 75 per cent in industrial research and up to 50 per cent in pre-competitive development activity. 
 
 The subsidy is granted by the National Technology Agency (TEKES).  (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 In 2001, the paid amount of grants was € 133 million, for loans € 39 million and for capital 
loans € 28 million. The average subsidy per project in year 2001 was about € 180.000.    In 2002  the paid amount of grants was € 138 million, for loans € 36 million and for capital 
loans € 35 million. The average subsidy per project in year 2002 was about € 194.000.  
 
 In 2003, the estimated amount of   
• grants is € 153.687.000 
• loans and capital loans is € 71.890.000 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 The subsidy programme will be in force till 31 August 2003. 
 
(i) The trade effects of the subsidy. 
 No effects on international trade. 
 
2. Grant for Research and Development (Åland ) 
(a) Title of the subsidy programme. 
Grant for research and development (Åland ). 
 (b) Period covered by the notification. 
2001 - 02. 
 
(c) Policy objective and /or purpose of the subsidy. 
Aid to SMEs for research and development. 
 (d) Background and authority for the subsidy. 
The annual budget of the Government of Åland. 
 
(e) Form of the subsidy. 
Grant. 
  G/SCM/N/95/EEC/Add.4 
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 (f) To whom and how the subsidy is provided. 
The aid is provided to companies and orga nizations. The subsidy is granted by the 
Government of Åland. 
 (g) The total amount or the annual amount budgeted fo r the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year). 
The annual amount of grants in 2001 was € 140,333.  
  The annual amount of grants in 2002 was € 33.219,99.  
 Amount budgeted for 2003 is € 260.000. 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
Indeterminate. 
 
(i) The trade effects of the subsidy. 
 No effects on international trade. 
 
3. GMP Manufacturing Space for Bio-Enterprises (City of Oulu) 
(a) Title of the subsidy programme. 
 GMP (Good Manufacturing Practice) manufacturing space for bio-enterprises 
 
(b) Period covered by the notification. 
 2002 
 (c) Policy objective and/or purpose of the subsidy. 
 The promotion of SMEs' pilot production. The pu rpose of the project is to create operational 
conditions in the region of Oulu for enterprises (“bio-enterprises”) manufa cturing bio-technology 
products of well-being and health.   (d) Background and authority for the subsidy. 
 The GMP- operational environment will be rent ed for payment to SMEs' pilot production.   
 
 Authority: City of Oulu.  (e) Form of the subsidy. 
 Rent support 
 
(f) To whom and how the subsidy is provided. 
 The rent support will be provided to the ente rprises using the GMP- operational environment. 
 G/SCM/N/95/EEC/Add.4 
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 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2002 was € 0,385 million. 
  In 2003, the estimated amount of grants is € 0,567 million. 
 
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Until 30 April 2007 
 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
III. REGIONAL AID 
1. Investment Aid 
(a) Title of the subsidy programme. 
 Investment aid 
 (b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Regional aid 
 (d) Background and authority for the subsidy. 
 Investment aid can be granted to firms towa rd fixed assets needed for business operations and 
for making alterations or improvements to such fixed assets. 
 
 The aid is granted by the Ministry of Trade and Industry and the Business Departments of the regional Employment and Economic Developmen t Centres (Aid to Business Act 1068/2000). 
 (e) Form of the subsidy. 
 Grant 
 
(f) To whom and how the subsidy is provided. 
 Investment aid can be granted to firms in the regional development area. In other parts of 
Finland, investment aid can be  granted only to small businesses. 
 
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2001 was € 44,9 million. 
  G/SCM/N/95/EEC/Add.4 
 Page 17 
 
 
  The amount granted in 2002 was € 42,9 milli on. The actual payments were € 36,3 million. 
The average subsidy per unit in year 2002 was € 31 336.   In 2003, the estimated amount of grants is € 45 million.  
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Until 31 December 2006.   
 (i) The trade effects of the subsidy. 
 No effects on international trade 
 2. Regional Transport Subsidy 
(a) Title of the subsidy programme. 
Regional transport subsidy 
 
(b) Period covered by the notification. 
2001- 02 
 (c) Policy objective and/or purpose of the subsidy. 
Regional aid (SMEs) 
 
(d) Background and authority for the subsidy. 
 Transport of goods in Finland, which start from regions, which have less than 12.5 inhabitants 
per km
2:  Lapland, Ostrobothnia, Kainuu, North Kare lia and South Savo, are eligible for subsidy 
(Act 954/1981 as changed by Act 613/1996).  
Ministry of Trade and I ndustry (Industries Department) grants the aid. 
 (e) Form of the subsidy. 
Grant paid semi-annually on basis of applications and evidence. 
 (f) To whom and how the subsidy is provided. 
 The subsidy can be granted for transports starting from the place of processing of products, 
which have been processed by small or medium-s ized companies within Lapland, Ostrobothnia, 
Kainuu, North Karelia and South Savo.  Transpor t subsidy can be granted for carriage of the 
following products:  Food and drinks, earths and stone, wood and wood pro ducts, products of the 
paper industry, products of the me tal industry, machinery and appara tus and products of the chemical 
industry. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
The actual payments in 2001 were € 3,73 million (FIM 22.2 million).  
 G/SCM/N/95/EEC/Add.4 
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 In 2002 payments were € 3,7 million.  
 In 2003, the estimated amount of grants is € 3,7 million.  
 (h) Duration of the subsidy and/or any other time limits attached to it.  
Until 31 December 2003. 
 (i) The trade effects of the subsidy.  
No effects on international trade 
 
3. Accelerated Regional Depreciation 
(a) Title of the subsidy programme. 
 Depreciation allowance in development areas for SMEs 
 (b) Period covered by the notification. 
 2001- 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Regional aid for SMEs 
 (d) Background and authority for the subsidy. 
 Legal basis: Act 1262/1993 as amended by acts 1736/1995, 32/1998, 1215/1998, 964/2000 
and 901/2001.  The responsible authority is the Ministry of Finance.  (e) Form of the subsidy. 
 Tax benefit (accelerated depreciation). 
 
(f) To whom and how the subsidy is provided. 
 The subsidy is granted in the national developm ent areas I and II.  Eligible sectors for this aid 
are manufacturing, hotel and lodging services for their investments in buildings and machinery. From 1998 onwards this aid has been granted only to small and medium-sized enterprises and sensitive 
sectors of agriculture, synthetic fibres, the automob ile industry, steel and shipbuilding has not been 
included. The maximum depreciation rate is increased by 50 per cent (for machinery from 25 per cent 
to 37,5 per cent and for industrial buildings from 7 per cent to 10,5 per cent).   (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2001 was € 2,7 million. The average subsidy per unit in year 2001 was 
€ 28 500.    In 2002 was approximately € 2 million.  In 2003, the estimated amount of grants is € 2 million.   G/SCM/N/95/EEC/Add.4 
 Page 19 
 
 
  Maximum possible aid intensity that, accordi ng to the rules and conditions on which the 
subsidy is granted, can be obtained in favour of any one project is 2 per cent. 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 The subsidy applies to investment s made during 2003 at the latest.  
 
(i) The trade effects of the subsidy. 
 No effects on international trade. 
 
4. Grant for Investments (Åland) 
(a) Title of the subsidy programme. 
Grant for investments (Åland). 
 (b) Period covered by the notification. 
2001 - 02. 
 
(c) Policy objective and /or purpose of the subsidy. 
Regional aid (investments in equipment and buildings). 
 (d) Background and authority for the subsidy. 
Company Aid Act of Åland (ÅFS 46/89). 
 
(e) Form of the subsidy. 
Grant. 
 (f) To whom and how the subsidy is provided. 
The aid is provided to SMEs. The subsidy is granted by the Government of Åland. 
 (g) The total amount or the annual amount budgeted fo r the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year). 
 The annual amount of grants in 2001 was € 618 000. 
 
 The annual amount of grants in 2002 was € 670.522,42. 
  Amount budgeted for 2003 is € 0 for this specific subsidy programme.    € 2,325,000 have been budgeted for the na tional co-financing of Åland’s Objective 2-
programme.  
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Until 31 December 2006. 
 G/SCM/N/95/EEC/Add.4 
Page 20  
 
 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
IV. AID IN THE FIELD OF ENERGY 
1. Energy Grants 
(a) Title of the subsidy programme. 
 Energy grants 
 (b) Period covered by the notification. 
 2001 - 02 
 
(c) Policy objective and/or purpose of the subsidy. 
 Promotion of energy conservation, energy efficiency and the use of renewable energy; 
reduction of negative environmental impacts asso ciated with energy production and usage and 
contribution to energy security and diversity of energy supply. 
 
(d) Background and authority for the subsidy. 
 Legal basis: Decision of the Council of Stat e on the general conditions for awarding energy 
grants (29/1999) and since year 2002 Decree of th e Council of State on the general conditions for 
awarding energy grants (625/2002)  
(e) Form of the subsidy. 
 Grant 
 (f) To whom and how the subsidy is provided. 
 Subsidies can be granted to enterprises and communities on a case-by-case consideration. 
Subsidies are granted by the Ministry of Trade and Industry (Energy Department) on application and 
they are paid according to the progress of the project.  (g) The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The total amount of the commitments for energy  grants was € 21 million in the 2001 budget. 
The average subsidy per unit in year 2001 was € 76 000.  
 
 In 2002 was € 33 million.   
 
 The average subsidy per unit in year 2002 was € 103,000.  
 
 In 2003, the estimated amount of grants is € 33 million.    G/SCM/N/95/EEC/Add.4 
 Page 21 
 
 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 The duration of the subsidy programme is five  years (valid to the end of year 2007). The 
programme commenced in its present form in 1999.   (i) The trade effects of the subsidy. 
 No effects on international trade 
 
2. Aid Measures Connected to Energy Taxation, Aid for Environmental Protection 
(a) Title of the subsidy programme. 
 Aid measures connected to energy taxation 
 
(b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 The general aim of the programme is environmenta l.  The purpose is i.e. to promote the use of 
renewable energy.  (d) Background and authority for the subsidy. 
 Legal basis: Act 1260/1996. 
 
(e) Form of the subsidy. 
 Grant 
 (f) To whom and how the subsidy is provided. 
 The aid is granted for plants producing electri city from wood and wood-based fuels, for small 
power plants, for wind power as well as for electricity produced from the waste gas of metallurgic 
processes. The aid is equal to the electricity tax (€ 0,0069 per kWh for wind power and € 0.0042 per 
kWh for others).  (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount of aid in 2001 was € 35 million.  In 2002 the estimated amount of aid is 
€ 35 million and in 2003 € 38 million.  
 
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate 
 
(i) The trade effects of the subsidy. 
 No effects on international trade 
 G/SCM/N/95/EEC/Add.4 
Page 22  
 
 3. Grants for the Promotion of Environmental Protection 
(a) Title of the subsidy programme. 
 Grants for the promotion of environmental protection 
 (b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Environmental protection 
 
(d) Background and authority for the subsidy. 
 The regional Environmental Centre takes decisions on grants within its allocated 
appropriation and taking into account its budget. The Ministry of the Environment may decide on 
grants if these are of national importance or for other special reason.  
(e) Form of the subsidy. 
 Grant 
 (f) To whom and how the subsidy is provided. 
 The subsidy can be provided to enterprises, lo cal authorities, joint municipal boards and other 
corporations for development, experimenta tion and investment projects, which promote 
environmental protection. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount of the commitments of grants for the promotion of environmental protection was 
€ 3,9 million in 2001.  
 
 In 2002 was € 3,68 million.    In 2003, the estimated amount of grants is € 3 million.   
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate 
 (i) The trade effects of the subsidy. 
 No effects on international trade 
 4. Waste Oil Management Financed by Waste Oil Charges 
(a) Title of the subsidy programme. 
 Waste oil management financed by waste oil charges  G/SCM/N/95/EEC/Add.4 
 Page 23 
 
 
  
(b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Environmental protection 
 (d) Background and authority for the subsidy. 
 The Ministry of the Environment is the responsible authority. 
 
(e) Form of the subsidy. 
 Grant 
 (f) To whom and how the subsidy is provided. 
 The subsidy can be provided to enterprises,  which have made a contract on waste oil 
management with The Ministry of Environment. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount of aid in 2001 was € 2,35 million.  
 
 The average subsidy per unit in year 2001 was € 2,35 million.  
 
 In 2002 was € 1,87 million.   
  In 2003, the estimated amount of grants is € 1,62 million. 
 
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Indeterminate 
 (i) The trade effects of the subsidy. 
 No effects on international trade 
 
V. OTHER SUBSIDIES 
1. Ice dues Classification Allowance 
(a) Title of the subsidy programme. 
 Ice dues classification allowance. 
 
(b) Period covered by the notification. 
 2001 - 02 
 G/SCM/N/95/EEC/Add.4 
Page 24  
 
 (c) Policy objective and/or purpose of the subsidy. 
 To support the necessary transport capacity fo r foreign trade taking into account the Finnish 
climate and other natural circumstances.  (d) Background and authority for the subsidy. 
 Legal basis: Act 433/1981, section 6 as amended by acts 1543/1992, 1258/1996 and 
1060/1999. The responsible authority is the Ministry of Finance.  (e) Form of the subsidy. 
 Tax allowance. 
 
(f) To whom and how the subsidy is provided. 
 The subsidy applies to ship orders made dur ing 1994 - 2000. The shipowner can deduct 3 per 
cent of the acquisition costs of the ship from the ta xable income. The allowance is granted in the tax 
year when the ship has been taken into use and in the following year.  
 
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2001 was €  0,9 million.  The average subsidy per unit in year 2001 
was EUR 30 000.   
 In 2002 was approximately € 0,5 million. 
  In 2003, the estimated amount of grants is € 0,1 million.  (h) Duration of the subsidy and/or any other time limits attached to it. 
 Until 31 December 2006.  
 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
2. Investment Aid for Businesses Pr ocessing Agri-Based Products 
(a) Title of the subsidy programme: 
 Investment aid programme related to pr ocessing and marketing agricultural products 
(Aid No. N 59/2000).  (b) Period covered by the notification 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy 
 The aim of the investment aid for processing and marketing of agricultural products is to 
improve the long-term competitiveness of SMEs in particular and to promote their  G/SCM/N/95/EEC/Add.4 
 Page 25 
 
 
 internationalization. The aid is granted for projects of enterprises concerning processing and 
marketing of agricultural products lis ted in Annex I to the EC Treaty, in which the aid is expected to 
have a considerable impact on:  
(1) improvement of the enterprise’s competitiven ess e.g. regarding the technical standard 
of its products and production; 
(2) raising of the level of productivity;  or 
(3) promotion of the enterprise’s internationalization. 
(d) Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted) 
 In the Budget, national funds are annually allocated for the Aid Programme concerning 
processing and marketing agricultural products (which  includes both investment aid and development 
aid, N 59/2000). The aid is based on the Aid to  Business Act (1068/2000) of 15 December 2000 and 
on the Government Decree on investment aid and development aid for the processing and marketing 
of agricultural products (1201/2000) of 21 December  2000. The aid is granted by the Ministry of 
Trade and Industry and the regional T&E Centres. 
 (e) Form of the subsidy 
 Grant. 
 (f) To whom and how the subsidy is provided:  
 Investment aid for processing and marketing of agricultural products shall be granted to 
enterprises as stated in point 3 above.   The basis for investment aid may be expend iture incurred by construction, acquisition and 
improvement of premise as well as by purchases of new machinery and equipment. 
 
 The aid granted may be no more than 10 per cen t to 40 per cent of the eligible expenditure, 
depending on the assisted area and the size of the enterprise concerned.  (g) The total amount or the annual amount budgeted for the subsidy 
 Investment aid granted in 2001 was € 3,907,360 and in 2002 € 2,407,630. 
 
 The average subsidy per unit in 2001 was € 84,942 and in 2002 € 68,789.  (h) Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement. 
 The programme entered into force on 1 January 2001, and will be in force till 31 December 
2006.  (i) The trade effects of the subsidy 
 No effect on international trade. 
 G/SCM/N/95/EEC/Add.4 
Page 26  
 
 3. Aid for Development Projects in the Food Industry 
(a) Title of the subsidy programme: 
 
 Development aid programme for SMEs related to processing and marketing of agricultural products (Aid No. N 59/2000). 
 
(b) Period covered by the notification 
 2001– 02  
 (c) Policy objective and/or purpose of the subsidy 
 The aim of the development aid for processing and marketing of agricultural products is to 
improve the long-term competitiveness of SMEs and to  promote their internationalization. The aid is 
granted for projects of SMEs concerning processing a nd marketing of agricultural products listed in 
Annex I to the EC Treaty, which are expected to improve the standard of the products and production 
methods of enterprises and their business manageme nt and marketing skills, thereby promoting their 
internationalization. Besides these, development ai d may be granted for examining the conditions for 
establishment and operation of enterprises.   A small and medium-sized enterprise refers to an SME that has fewer than 250 employees and a maximum annual turnover of € 40 million, or a balance sheet total of € 27 million and no more 
than one quarter of the SME’s shares are owne d by a company larger than the SME itself. 
 
(d) Background and authority for the subsidy (inclu ding identification of the legislation under 
which it is granted). 
 In the Budget, national funds are annually allocated for the Aid Programme concerning 
processing and marketing agricultural products (which  includes both investment aid and development 
aid, N 59/2000). The aid is based on the Aid to  Business Act (1068/2000) of 15 December 2000 and 
on the Government Decree on investment aid and development aid for the processing and marketing 
of agricultural products (1201/2000) of 21 December  2000. The aid is granted by the Ministry of 
Trade and Industry and the regional T&E Centres.   (e) Form of the subsidy. 
 Grant. 
 (f) To whom and how the subsidy is provided:  
 Development aid for processing and marketing of  agricultural products shall be granted to 
enterprises as stated in point 3 above. 
 
 The basis for development aid may be expenditure  incurred by the use of external experts and 
services, machinery and equipment needed for de velopment of products and production processes, 
raw material and participation in an exhibition organised abroad. In projects developing products and 
production processes, the aid granted may be no more  than 35 per cent to 45 per cent and in other 
development projects no more than 50 per cent of the eligible expenditure. 
  G/SCM/N/95/EEC/Add.4 
 Page 27 
 
 
 (g) The total amount or the annual amount budgeted for the subsidy 
 Development aid granted in 2001 was € 250,685, and in 2002 € 38,438.  The average subsidy 
per unit in 2001 was € 27,853 and in 2002 € 9,609.   (h) Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement. 
 The programme entered into force on 1 January 2001, and will be in force till 31 December 
2006.  (i) The trade effects of the subsidy 
 The development aid has no effect on international trade.  
 
4. Temporary State Guarantee for Airlines' Third Party Liabilities Arising Out of War 
Risks 
(a) Title of the subsidy programme. 
 Temporary state guarantee for airlines’ third party liabilities arising out of war risks. 
 (b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Safeguarding international commercial airline activity after 11 September terrorist attacks. 
 (d) Background and authority for the subsidy. 
 Ministry of Finance. 
 
(e) Form of the subsidy. 
 No subsidy provided, instead a fee was charge d for the guarantee in line with EU policy. 
 (f) To whom and how the subsidy is provided. 
 All Finnish airlines were eligible for the gua rantee, initially 15 carriers sought and were 
awarded coverage, the number of companies gra dually declined and the whole arrangement was 
discontinued on 31 October 2002.  
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in:   
 
 2001 was € million no aid granted    2002 was € million  no aid granted  G/SCM/N/95/EEC/Add.4 
Page 28  
 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Guarantee arrangement was kept valid du ring 25 September 2001 – 31 October 2002. 
 (i) Effects on Trade 
 No effects on international trade. 
 
5. State Aid to Cinema and Other Audiovisual Production 
(a) Title of the subsidy programme 
 State aid to cinema and ot her audiovisual production.  
 
(b) Period covered by the notification 
 2002.  
 (c) Policy objective and/or purpose of the subsidy 
 To promote diversity, the quality of films and audiovisual culture in Finland and to develop 
the infrastructure of production companies. 
 (d) Background and authority for the subsidy 
 State aid is governed by the Film Promotion Act (28/2000) and the Film Promotion Decree. 
The Act determines the general principles underlying Stat e aid to cinema.  According to the Act, the 
Ministry of Education and Culture can allocate funds from the State budget for the production and 
distribution of films and other audiovisual pr ogrammes, and for the promotion of culture.  
  The Act provides that the aid is allocated by the Finnish Film Foundation and the National 
Council for Cinema. These institutions have devi sed guidelines for the purpose. According to the 
guidelines for film production support, no kind of suppor t can be granted (1) to television companies 
or to companies in which a television company holds a stake of 15 per cent or more;  (2) to a State, 
municipal or church authority or institution; (3 ) to a company in which the State has a majority 
holding;  or (4) to any organization or institution comparable to the above. Nor can support be granted 
for a production that is intended for the marketing of a product, a range of products or services, or 
anything comparable to these.  
(e) Form of the subsidy 
 Grant.  
 (f) To whom and how the subsidy is provided 
 The main target groups are production companies,  but also organizations and individuals may 
apply. There are no specifications as to the nationalit y of the persons or companies that can apply for 
support. Production companies holding rights to a fi lm in Finland are eligible for support. The 
recipient has to apply for the support according to the support guidelines (see point 4).  
  G/SCM/N/95/EEC/Add.4 
 Page 29 
 
 
 (g) The total amount or the annual amount budgeted fo r the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year) 
 The amount granted in 2002 was € 11.013 million.  
  The average subsidy per unit in 2002 was € 540 687.
*  
 
 In 2003, the estimated amount of grants is € 11.263  million.  
 (h) Duration of the subsidy and/or any other time limits attached to it 
  Until 31 December 2004. 
 
(i) The trade effects of the subsidy 
 No effects on international trade. 
 
6. Tonnage Taxation 
(a) Title of the subsidy programme. 
 Tonnage Taxation 
 (b) Period covered by the notification. 
 2002 
 
(c) Policy objective and/or purpose of the subsidy. 
 The purpose of the scheme is to ensure th e competitiveness of Finnish shipping companies 
and to discourage outflagging of Finnish ships.  (d) Background and authority for the subsidy. 
 A company fulfilling the requirements (qualifyi ng company) may opt fo r tonnage taxation for 
a tonnage tax period of 10 years.  The income de rived from activities falling within the scope of the 
aid (qualifying activities) is not subject to income taxation. 
 
 Instead of income tax the company is charge d a low tonnage tax based on the net tonnage of 
its vessels on a yearly basis. Tonnage taxation is  carried out annually concurrently with income 
taxation.  
 
 Normal income tax is imposed in respect of  income derived from business activities of the 
company other than those subject to the tonnage  tax (non-qualifying activities). Expenses related to 
income derived from qualifying activities are not deductible in income taxation.  
 
 The tax subsidy only concerns non-distributed profits. When the company distributes profits the "avoir fiscal" system is applied to ensure that  distributed profits are subject to taxation in 
accordance with the normal rate for company taxation, i.e. 29 per cent. 
  Tonnage taxation is administered by the Tax Office for Major Corporations. 
                                                     
 
* The average subsidy per unit is based on the support for full length film production only. G/SCM/N/95/EEC/Add.4 
Page 30  
 
  
 The legal basis for the scheme is the Tonnage Tax Act. The tax regime has been approved by 
the commission as a State aid on 16 October 2002. The Tonnage Tax Act entered into force on 20 November 2002.  
   
(e) Form of the subsidy. 
 Tax relief 
 (f) To whom and how the subsidy is provided. 
 Upon application, the scheme would be applie d to resident limited companies, which are 
factually managed from Finland, which are engage d in the transport of cargo or passengers with 
vessels subject to tonnage tax (qualifying ships), which conduct their business from Finland, and 
which are liable to tax in Finland for their busin ess. There are special requirements concerning the 
minimum share of qualifying ships owned by the company itself and the maximum share of vessels 
chartered in with crew included. 
 
 How the subsidy is provided:  see point 4. 
  
(g) The total amount or the annual amount budgeted for the subsidy.  
 The amount initially budgeted for 2002 was € 17 million. As no companies have applied for 
the regime so far, the regime has no budgetary effect s for 2002. The situation seems to be the same in 
2003.  
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Unlimited. Opting to pay tax on tonnage will be effective for a period of ten years. On expiry 
of this period it will be possible to opt for a new period of ten years.  
 
(i) The trade effects of the subsidy. 
 No effects on international trade. 
 
7. Subsidy to Passenger Vessels 
(a) Title of the subsidy programme. 
 Subsidy to passenger vessels 
 (b) Period covered by the notification. 
 2002 
 
(c) Policy objective and/or purpose of the subsidy. 
 To safeguard the competitiveness of the Finni sh passenger vessels in international trade. 
 (d) Background and authority for the subsidy. 
 Ministry of Transport and Communications Finland / Finnish Mari time Administration. 
  G/SCM/N/95/EEC/Add.4 
 Page 31 
 
 
 (e) Form of the subsidy. 
 Grant 
 (f) To whom and how the subsidy is provided. 
 The Finnish shipowner  shall be supported by th e State by 97 per cent to the tax on the marine 
work income of Finnish seafarers working on  board Finnish passenger vessels.  Law (1707/1 991) 
 
(g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2002 was € 12,849 million.  The average subsidy per unit in year 2002 
was € 3212/seafarer (1.1.-30.6.2002). 
  In 2003, the estimated amount of grants is € 27,682 million.  (h) Duration of the subsidy and/or any other time limits attached to it. 
 Indefinite 
 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
8. Subsidy to Cargo Vessels 
(a) Title of the subsidy programme. 
 Act on the List of Merchant Vessels in  International Trade.  Law (1707/1991) 
 (b) Period covered by the notification. 
 2001-02 
 (c) Policy objective and/or purpose of the subsidy. 
 To safeguard the competitiveness of the Fi nnish Cargo vessels in international trade. 
 (d) Background and authority for the subsidy. 
 Ministry of Transport and Communications Finland / Finnish Mari time Administration. 
 (e) Form of the subsidy. 
 Grant 
 
(f) To whom and how the subsidy is provided. 
 The Finnish shipowner  shall be supported by the State by an amount corresponding to the tax 
withheld, the social security and other mandatory in surance contribution paid by the employer on the 
seaman's income.  Law (1707/1991)  G/SCM/N/95/EEC/Add.4 
Page 32  
 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2001 was € 38,725 million.  The average subsidy per unit in year 2001 
was € 16837/seafarer  
 In 2002 was € 40,681 million.  The av erage subsidy per unit in year 2002 was 
€ 17818/seafarer   In 2003, the estimated amount of grants is € 39,861 million.  
(h) Duration of the subsidy and/or any other time limits attached to it. 
 Indefinite 
 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
9. Aid in Favour of Composting Plant in Åland 
(a) Title of the subsidy programme. 
 Aid in favour of composting plant in Åland  
 (b) Period covered by the notification. 
 2002 
 (c) Policy objective and/or purpose of the subsidy. 
 Environmental objectives.  
 
(d) Background and authority for the subsidy. 
 The annual budget of the Government of Åland. 
 (e) Form of the subsidy. 
 Grant.  
 
(f) To whom and how the subsidy is provided. 
 To the building of a composting plant. 
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted in 2002 was € 0. 
  In 2003, the budgeted amount is € 100 000.  
  G/SCM/N/95/EEC/Add.4 
 Page 33 
 
 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Linked in time to the building of a composting plant. 
 (i) The trade effects of the subsidy. 
 No effects on international trade. 
 
10. Training Aid in Åland 
(a) Title of the subsidy programme. 
 Training aid in Åland 
 
(b) Period covered by the notification. 
 2001 - 02 
 (c) Policy objective and/or purpose of the subsidy. 
 Main objective is to increase the training of employees.  
 
(d) Background and authority for the subsidy. 
 The annual budget of the Government of Åland. 
 (e) Form of the subsidy. 
 Grant.  
 
(f) To whom and how the subsidy is provided. 
 Granted to specific companies applying for a grant.   
 (g) The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year). 
 The amount granted: 
  In 2001 was € 32.883,31.   In 2002 was € 51.903,64. 
 
 In 2003, the amount of grants budgeted is € 219.000. 
 (h) Duration of the subsidy and/or any other time limits attached to it. 
 Until the end of 2006 
 
(i) The trade effects of the subsidy. 
 No effects on international trade. 
__________