G/SCM/Q2/EU/77  
 
26 July 2022  
(22-5689) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
ADDITIONAL QUESTIONS POSED BY THE UNITED STATES REGARDING  
THE NEW AND FULL NOTIFICATION OF THE EUROPEAN UNION1 
The following communication, dated and received on 2 6 July 2022, is being circulated at the request 
of the delegation of the United States . 
 
_______________  
The United States appreciates the European Union 's 2021 subsidy notification and poses the 
following additional questions regarding programs contained i n the notification.  
Question 1  
European Regional Development Fund  
When describing the forms of assistance provided, the notification states that grants provided are 
used for the development of endogenous potential by measures which support regional and local 
development. Please describe what is meant by "endogenous poten tial"? How, and using what 
specific measures, does this program achieve the goal of developing endogenous potential at the 
regional and local levels?  
Question 2  
Connecting Europe Facility (in the field of energy) (2014 -2020)  
Connecting Europe Facility EU Financing Programme (in the field of transport) (Regulation 
EU 1316/2013)  
For the two programs above, in response to whom and how the subsidy is provided, it is simply 
stated that "Others " are the recipients of these subsidies. Please clarify and provide greater details 
on which entities and/or sectors are eligible for this subs idy. In addition, please provide information 
on how this subsidy is provided to its recipients.  
Question 3  
Research on Coal and Steel (Research Fund for Coal and Steel (RFCS)  
The notification claims that demonstration projects "aim at constructing and/or operating an 
industrial -scale installation or a significant part of an industrial -scale installation." Given global 
overcapacity in the steel industry, how does the EU ensure that these projects do not lead to an 
overall capacity increase in the steel sect or? 
 
1 G/SCM/N/372/EU  G/SCM/Q2/EU/77  
 
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  Question 4 
Additional Programs Not Notified: Publicly available information indicates that the 
European Union (EU) maintains other subsidy programs, such as those described below, 
that may meet the criteria for notification under Article 25 of the Subsidies Agreement .  
Please explain why the following programs have not been notified. Will the EU notify these subsidies 
in sufficient detail that satisfies the informational requirements of Article 25.3 of the 
SCM Agreement?  
European Fund for Strategic Investments (EFSI)  
The Secretariat Report on EU 's latest Trade Policy Review (TPR) (WT/TPR/S/395/Rev.1)2 states that 
the EFSI has up to EUR 315 billion in funds available and has "already supported more than 
750,000  jobs, with the figure set to rise to 1.4 million jobs by 2 020."3 The plan is aimed at boosting 
long-term economic growth and competitiveness in the EU in areas such as infrastructure, research 
and innovation, education, health, information and communications technology and others.4  
InvestEU  
InvestEU aims to su pports sustainable investment, innovation, and job creation in Europe. It aims 
to provide more than €372 billion in additional investment over the period 2021 -27. The programme 
supports four main policy areas, including 1) Sustainable infrastructure 2) Res earch, innovation and 
digitalization, 3) SMEs, and 4) Social investment and skills.5 
Innovation Fund  
The Innovation Fund is one of the world 's largest programmes for the demonstration of innovative 
low-carbon technologies.6 Accounting firm Ernest Young describes the programme as "being used to 
support floating wind farms, carbon capture mechanisms and energy storage, all of which could help 
make sectors such as cement and steelmaking more sustainable."7 The Fund will provid e around 
EUR 10 billion of support over 2020 -2030.8  
 
2 WT/TPR/S/395/Rev.1 ( 7 July 2020), Trade Policy Review Report by the Secretariat: European  Union  
("TPR/395 ") 
3 TPR/395, page 23, paragraph 1.28 and page 217, paragraph 4.202.  
4 "European fund for strategic investments (EFSI) ", European Council, 5 March 2020, 
https://www.consilium.europa.eu/en/policies/investment -plan/strategic -investments -fund/  (accessed on 
13 July 2022).  
5 "What is the InvestEU Programme? " European Union, https://investeu.europa.eu/what -investeu -
programme_en  (accessed on 13 July 2022).  
6 "Innovation Fund. " European Commission, https://ec.europa.eu/clima/eu -action/funding -climate -
action/innovation -fund_en  (accessed on 12 July 2022).    
7 Smith, Brian. "How Europe, India and Africa are incentivizing foreign investment. " Ernest Young, 
29 July 2021, https://www.ey.com/en_fi/tax/how -europe -india-and-africa -are-incentivizing -foreign -
investment (accessed on 12 July 2022).  
8 "Discover the Innovation Fund, one of the world 's largest funding programmes, with EUR 10 billion 
funding. " Cl erens, https://www.euinnovationfund.eu/ (accessed 14 July 2022).  G/SCM/Q2/EU/77  
 
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  Just Transition Fund (JTF)  
The JTF is a "financial instrument within the Cohesion Policy which aims to provide support to 
territories facing serious socio -economic challenges arising from the transition  towards climate 
neutrality." The fund provides grants to Member States in territories expected to be the most 
negatively impacted by the green transition. For eligible territories, the JTF provides benefits such 
as investments in Small and Medium -sized En terprises, creation of new firms, research and 
innovation incentives, environmental rehabilitation, clean energy, up - and reskilling of workers, job -
search assistance, and the transformation of existing carbon -intensive installations. The JTF has an 
overal l budget of EUR 17.5 billion for 2021 -2027.9  
 
__________  
 
9 Kolodziejski, Marek. "Just Tran sition Fund. " European Parliament, March 2022, 
https://www.europarl.europa.eu/factsheets/en/sheet/214/just -transition -fund (accessed on 
12 July 2022).