G/SCM/N/401/EU/Add.11  
 
25 July 2023 
(23-5073) Page: 1/7 
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 UNION 
Addendum  
The following addendum to the notification of the European Union dated and received on 
14 July 2023 relates to the subsidy programmes of Germany .  
 
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  G/SCM/N/401/EU/Add.11  
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  Contents  
1   JOINT TASK ON "IMPROVING THE REGIONAL ECONOMIC STRUCTURE"  ......................  3 
1.1   Joint Federal Government/Federal State Scheme for the "Improvement of  
Regional Economic Structures" (hereinafter referred to as Joint Task)  ................................ ....... 3 
1.2   REGIONAL AID PROGRAMME (LAND RHEINLAND PFALZ)  ................................ .................  4 
2   REGIONAL PROGRAMMES FOR TRADE, COMMERCE AND INDUSTRY  
FREISTAAT BAYERN  ................................ ................................ ................................ .........  6 
2.1   Directive on the promotion of the Bavarian regional programmes for trade,  
commerce and industry, promulgated by the Bavarian Ministry of Economic Affairs  
and Media, Energy and Technology on June 8th, 2021 (AllMBl S. 376).  ................................ ..... 6 
 
  G/SCM/N/401/EU/Add.11  
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  1  JOINT TASK ON "IMPROVING THE REGIONAL ECONOMIC STRUCTURE " 
1.1  Joint Federal Government/Federal State Scheme for the  "Improvement of Regional 
Economic Structures " (hereinafter referred to as Joint Task)  
1. Title of the subsidy programme  
Joint Federal Government/Federal State Scheme for the "Improvement of Regional Economic 
Structures " (hereinafter referred to as Joint Task).  
2. Period covered by the notification  
January 2021 – December 2027.  
3. Policy objective and/or purpose of the subsidy  
The Joint Task is a regional policy instrument. The primary objective of regional policy is to enable 
structurally weak regions to keep pace wi th the general economic development by balancing 
locational disadvantages, by reducing regional development differences and by strengthening skills 
to manage transformation processes. Regional policy focuses on supporting regional development 
activities wi th a view to 1) levelling out locational disadvantages, 2) securing and raising the levels 
of employment, growth and prosperity and 3) accelerating transformation processes towards a 
climate -neutral and sustainable economy in assisted areas. Assisted areas  are redefined in 
multi-annual intervals based on a regional indicator model in line with regional aid guidelines for 
2022-2027 by the European Commission (regional indicators are unemployment rate, level of 
income, infrastructural development, employment forecast).   
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted)  
On the basis of the federal German Constitution, the Federation (Bund) has, in 1969, passed the 
Federal Act on the Joint Task (Fede ral Law Gazette 1969 part I, p. 1861). The Federal Act on the 
Joint Task was last modified by act of 13 April 2021 (Federal Law Gazette 2021 part I, p. 770). On 
the basis of the Federal Act on the Joint Task, the Federal Government (Bund) and the 16 federa l 
states (Länder)  have, since 1969, commonly conceived the Joint Task Framework. The Joint Task 
Framework sets out the preconditions under which Joint Task subsidies may be granted within the 
(subsidy) framework specified by the European regional aid rules. Bund and Länder regularly update 
the Joint Task Framework. In 2022, Bund and Länder agreed  on changes  to its overall  goals, scope 
of support and support logic as well as implementation methodology. The Joint Task Framework is 
executed by the Länder alone. If a Land decides to grant a subsidy under the terms of the Joint 
Task, the Bund co -finances the funding in the amount of 50% of the funding granted by the Land.  
5. Form of the subsidy  
Investment grants.  
6. To whom and how the subsidy is provided  
A Joint Task subsidy consists of a non -recurring payment in the form of an investment grant. The 
payment may be granted by the respective "Land" to eligible projects in assisted areas. Projects in 
commerce and industry are eligible for subsidies under the Joint Ta sk if they take place in an assisted 
area and if they contribute to regional development. It requires that the investment is either 
associated with the creation of at least 10% new jobs or that the investment volume is at least 50 % 
higher than the deprecia tion of the business establishment over the last three years, with reliefs for 
R&D intensive firms and investments in climate neutrality and sustainability.  G/SCM/N/401/EU/Add.11  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy  
Generally speaking, budget allocations for the Joint Task decreased sharply over the last 
two decades. In 2022 (2021), a total amount of EUR 334.1 million ( EUR 332.0 million) was allotted 
to the Länder by the Federal Govern ment in order to promote commercial and industrial investments 
in assisted areas.  
8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
Regional assistance under the Joint Task consists of a non -recurring subsidy payment granted to 
eligible projects in assisted areas. The European Commission has authorized the Joint Task assisted 
areas map until 2027. This authorization notwithstanding, the Joint Task is under no time limit.  
9. Statistical data permitting  an assessment of the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to the judgement of the notifying Member. To 
the extent possible, relevant and/or determinable, however, it is desirable that such 
information incl ude statistics of production, consumption, imports and exports of the 
subsidized product(s) or sector(s ) 
Regional assistance under the Joint Task is aimed at balancing domestic investment disadvantages 
in structurally weak regions (assisted areas). The Joi nt Task contributes to securing and raising 
employment, growth and prosperity in these regions as well as accelerating transformation 
processes towards a climate -neutral and sustainable economy. In terms of competition, regional 
assistance under the Joint Task is therefore neutral. It has no effect on competition in international 
trade.  
1.2  REGIONAL AID PROGRAMME (LAND RHEINLAND PFALZ)  
1. Name of the subsidy scheme or ad hoc subsidy  
Regional aid programme of the Land Rheinland Pfalz.  
2. Period covered by the notifica tion 
The period to be covered by the notification should be the most recently completed calendar or fiscal 
year. In the latter case, the start and end dates of the fiscal year should be specified.  
Double budget 2021 & 2022, beginning in 1 January 2021, ending in 31 December 2021 . 
3. Policy objective and/or purpose of the subsidy  
The grants are intended to facilitate the implementation of measures, improve the labor and 
economic structure and strengthe n the regional economic power. The grants should give investment 
incentives to encourage and support the creation and safeguarding of permanent jobs.  
4. Background and authority for the subsidy (including identification of the legislation 
under which it is g ranted ) 
The subsidies are granted by the government of the federal state (Land Rheinland -Pfalz). The legal 
bases are the federal state government's act and administrative regulation.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
Investment grant.  G/SCM/N/401/EU/Add.11  
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  6. To whom and how the subsidy is provided (whether to producers , to exporters, or 
others; through what mechanism; whether a fixed or fluctuating amount per unit; if the 
latter, how determined ) 
Promotion of investments in small and medium sized compani es. For small sized industries with a 
minimum invest of EUR 100.000 up to 20% of the eligible costs, for medium industries with a 
minimum invest of EUR 200.000 up to 10% of the eligible costs. Small sized industries and 
medium  sized industries with a minim um invest of more than EUR 10 million, up to 5% of the eligible 
costs.  
7. Subsidy per unit  
Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year).  
Where provision of per unit subsidy information (for the year covered by the notification, for the 
previous year, or both) is not possible, a full explanation.  
Disbursement in 2022: around EUR 7.4 million  
Disbursemen t in 2021: around EUR 5.1 million  
Disbursement in 2020: around EUR 4.9 million  
8. For the information cited in items 3 to 7 above, the notification does not necessarily 
have to have an independent heading corresponding to each item, and may provide 
informatio n on multiple items in one heading (e.g. provide information on items 3 and 
4 under one heading). In this case, the notification must clearly specify what items are 
covered by which heading  
As for points 3 to 7, there are no overlaps.  
9. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/ commencement  
Unlimited.  
10. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to the judgemen t of the notifying Member. To 
the extent possible, relevant and/or determinable, however, it is desirable that such 
information include statistics of production, consumption, imports and exports of the 
subsidized product(s) or sector(s ) 
a. for the three most recent years for which statistics are available:  
in 2022: creation of 73 jobs by providing financial assistance to 17 individual promotional cases;  
in 2020: creation of 102 jobs by providing financial assistance to 26 individual promotional cases;  
in 2020:  creation of 61 jobs by providing financial assistance to 17 individual promotional cases . 
b. for a previous representative year, which, where possible and meaningful, should be 
the latest year preceding the introduction of the subsidy or preceding the last m ajor 
change in the subsidy.  
Not applicable.  G/SCM/N/401/EU/Add.11  
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  2  REGIONAL PROGRAMMES FOR TRADE, COMMERCE AND INDUSTRY FREISTAAT BAYERN  
2.1  Directive on the promotion of the Bavarian regional programmes for trade, commerce 
and industry, promulgated by the Bavarian Ministry of Econo mic Affairs and Media, Energy 
and Technology on June 8th, 2021 (AllMBl S. 376).  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
Directive on the promotion of the Bavarian regional programmes for trade, commerce and industry, 
promulgated by the Bavarian Ministry of Economic Affairs and Media, Energy and Technology on 
June 8th, 2021 (AllMBl S. 376).  
2. Period covered  by the notification. The period to be covered by the notification should 
be the most r ecently completed calendar or fiscal year. In the latter case, the start and 
end dates of the fiscal year should be specified  
July 2021 – June 2024 (most recently completed calendar year: 2022)  
3. Policy objective  and/or purpose of the subsidy  
Aid to finance investments in trade, industry and tourism to create and secure jobs and training 
places in assisted areas.  
Objective: improving regional economic structures and tourism offers; increasing the economic 
strengt h of structurally weak areas.  
4. Background and authority  for the subsidy (including identification of the legislation 
under which it is granted ) 
The subsidies are granted by the regional government (Land Bayern). The legal basis is the Directive 
on the promo tion of the Bavarian regional programmes for trade, commerce and industry ("Regional 
economic support programme, BRF -Land Bayern").  
5. Form of the subsidy  (i.e., grant, loan, tax concession, etc .) 
Investment grant.  
Interest rate subsidy (to subsidize loans).  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or 
others; through what mechanism; whether a fixed or fluctuating amount per unit; if the 
latter, how determined)  
This subsidies consist of a non -recurring payment in the form of  an investment grant. The payment 
may be granted to eligible projects in assisted areas. Projects in commerce and industry are eligible 
for subsidies if they take place in an assisted area and if they generate additional income in the 
region so that, in th e long run, the region's total level of income is raised in a non -insignificant 
manner (so called "primary effect").  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted  for that subsidy (indicating, if p ossible, the average subsidy per unit 
in the previous year). Where provision of per unit subsidy information (for the year 
covered by the notification, for the previous year, or both) is not possible, a full 
explanation  G/SCM/N/401/EU/Add.11  
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   2021 (in million Euro)  2022 (in million. Euro)  
Investment grant  126.1 117.0 
Interest rate subsidy  0.9 1.0 
Assisted investment volume  1,028.10 891.5 
Number of assisted companies  463 388 
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
July 1st, 2014 – June 30th, 2024.  
9. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to the judgement of the notifying Member. To 
the extent possibl e, relevant and/or determinable, however, it is desirable that such 
information include statistics of production, consumption, imports and exports of the 
subsidized product(s) or sector(s)  
(a) for the three most recent years for which statistics are available;   
(b) for a previous representative year, which, where possible and meaningful, should be 
the latest year preceding the introduction of the subsidy or preceding the last major 
change in the subsidy.  
Not available. Outside the assisted areas pursuant to the Joi nt Federal Government/Laender.  
Scheme for the Improvement of Regional Economic Structures, support is restricted to small and 
medium -sized enterprises (SMEs) within the meaning of articles 1 -12 and 17 of the Commission 
Regulation (EC) No. 651/2014 of 17 J une 2014 declaring certain categories of aid compatible 
with the common market in application of Articles 107 and 108 of the Treaty (EC L 187 dated 
26 June 2014).  
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