WORLD TRADE
ORGANIZATIONG/SCM/N/71/EEC/Add.7
18 December 2001
(01-6188)
Committee on Subsidies
and Countervailing MeasuresOriginal:  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 COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Greece .G/SCM/N/71/EEC/Add.7
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GREECE
I. SUBSIDIES TO PRIVATE INVESTMENT FOR THE ECONOMIC AND REGIONAL
DEVELOPMENT OF THE STATE
(a) Title
Law 2601/98 (published in the Official Gazette of the Hellenic Republic of 15 April 1998) on
subsidies to private investment for the economic and regional development of the state.  Law 2601/98
replaces Law 1892/90 as amended and supplemented by Law 2234/94.
(b) Period covered
Law 2601/98 entered into force on the day of its publication in the Official Gazette
(15 April 1998).
(c) Objective/Policy
Article 1 of Law 2601/98 sets out the objective of the law as follows:
• To contribute to regional development
• To contribute to job creation
• To increase competitiveness of business
• To contribute to the restructuring of production sectors
• To contribute to the exploitation of business opportunities in Greece and abroad
• To contribute to the protection of the environment and the savings of energy
(d) Authority
As a general rule the authority responsible for administering the Law is the Central Service of
the Ministry of National Economy.  However, applications for aid investments up to Dr 700 millionare administered locally by the Private Investment Services of the Ministry’s Regional Directorates.
In specific cases the Ministry of Development or other services may be involved.
(e) Form
Aid is granted in the following forms:
(a) grants
(b) interest contributions
(c) leasing payment contributions
(d) tax exemptions
(f) Procedure
Companies from all economic sectors can avail of aid under Law 2601/98 (including physical
persons engaged in business activities).  With regard to the type of aid available, however,
Law 2601/98 distinguishes between two types of bene ficiaries (new and old) depending on the time of
their establishment.  Old beneficiaries (i.e. those established at least five years before the application
for aid is made) can avail only of aid in the form of interest contributions and tax exemptions.  NewG/SCM/N/71/EEC/Add.7
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beneficiaries (i.e. those established within five years of the application for aid) can avail of all of the
above mentioned forms of aid (for the types of aid see answer to previous question).
The aid intensity varies depending on the region of the investment.  For the purposes of
Law 2601/98, Greece is divided into four regions on the basis of their level ofdevelopment/unemployment/geographical position.  Region ‘A’ covers the departments of Attica and
Thessaloniki; investments in these areas are not normally eligible for aid under Law 2601/98 (with
certain exceptions).  In the other region aid intensity varies as follows:
• Region B: 15% (40 per cent for tax exemption)
• Region C: 30% (70 per cent for tax exemption)
• Region D: 40% (100 per cent for tax exemption)
Aid is granted in instalments in proportion to the degree of realisation of the investment in
three distinct phases.  Firstly, 60 per cent of the aid is granted during realisation of the investment in
two separate instalments.  Secondly, 20 per cent of the aid is granted after the conclusion of the
investment, and thirdly, the last 20 per cent is granted after the investment had been put into
operation.
(g) Amount
The total amount of subsidies authorised for 2000, totalled Dr 17,834 billion.
(h) Duration
There is no time limit attached to the application of Law 2601/98.
(i) Statistics
The amount of Dr 19,882.9 billion for 1998 is broken down according to sector of economic
activity, as follows:
Primary Dr 399.8 million
Secondary Dr 13,517.3 billion
Tourism Dr 5,173.8 billion
Services Dr 792.0 million
This allocation per sector has not substantially changed for the calendar year 2000.
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