G/SCM/Q2/EU/41  
2 February 2015  
(15-0691)  Page: 1/4  
Committee on Subsidies and Countervailing Measures  Original: English/French  
 
  SUBSIDIES 
REPLIES TO QUESTIONS POSED BY THE UNITED STATES1 REGARDING THE NEW 
AND FULL NOTIFICATION OF THE EUROPEAN UNION2 
The following communication, dated 20 January 2015, is being circulated at the request of the 
delegation of the United States.  
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 France 
 
Questions regarding notified programs: 
 3.1 Tax credit to promote research 
 
 Please explain whether all "Industrial, commercial and agricultural 
enterprises" are eligible for tax concessions under this program? If there are 
limitations regarding eligibility, please explain what those are, including any 
limitations regarding the size  of eligible enterprises? 
Reply 
 
The tax credit to promote research (CIR) is a general measure applying to enterprises in all 
economic sectors that are engaged in research and development. The rate of the CIR varies 
according to the amount of the investment. 
 
 Did firms in the aerospace sector bene fit from funding under this program 
during the reporting period? 
Reply 
 
Firms in the aeronautical sector engaged in research and development benefit from the CIR as does any other enterprise engaged in R&D. 
 
3.4 Fund for Enterprise Competitiveness  
 Please provide additional information re garding the type of subsidy provided 
under this program, e.g., gran t, loan, tax concession, etc. 
Reply 
 
Aid under the Fund for Enterprise Competitiveness is provided in the form of subsidies, consisting of payments in several tranches under the programme that involve neither compensation nor repayment. 
 
                                               
1 G/SCM/Q2/EU/35. 
2 G/SCM/N/253/EU, G/SCM/N/253/EU/Add.9. G/SCM/Q2/EU/41 
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   What is the specific legal meas ure authorizing this program? 
Reply 
 
The measure is covered by the authorization granted by the European Commission 
on 17 September 2007 under aid number N269/2007, pursuant to Articles 107 and 108 of the 
Treaty on the Functioning of the European Union.  The aid scheme, which has force of law, is the 
national legal basis for the programme, alon g with Decree No. 99-1060 of 16 December 1999 
concerning State subsidies for investment projects. 
 
 For the reporting period, please provid e additional information regarding the 
projects that were supported under this program, including the industry sectors 
that benefited from funding under th e program. Please also indicate if 
enterprises in the aerospace sector bene fit from funding under this program. 
Reply 
 
The measure benefited an R&D programme on information and communications technologies (ICT). 
 
3.5 OSEO Innovation Aid Scheme for Rese arch, Development and Innovation (RDI) 
 
 For the reporting period, please provid e additional information regarding the 
projects that were supported under this program, including the industry sectors 
that benefited from funding under th e program. Please also indicate if 
enterprises in the aerospace sector bene fit from funding under this program. 
Reply 
 
The measure primarily benefits SMEs engaged in high-risk industrial research or experimental 
development. The funded R&D activities have no  direct impact on the market. The measure is 
multisectoral (including the aeronautical sector).  3.6 Industrial Innovation Agency Aid for Industrial Innovation Promotion 
Programmes (PMII) 
 
 Please provide additional information re garding the type of subsidy provided 
under this program, e.g., grant, loan , tax concession, etc., at both the 
experimental development and industrial research stages. 
Reply 
 
The measure is financed by payments in several tranches under the programme that involve neither compensation nor repayment, and by repayable advances.  
 What is the specific legal meas ure authorizing this program? 
Reply 
 
The scheme was authorized on 19 July 2006 by the European Commission (Decision N121/2006) 
pursuant to Articles 107 and 108 of the Treaty on  the Functioning of the European Union. The aid 
scheme constitutes the legal basis applicable in France. 
 
 For the reporting period, please provid e additional information regarding the 
projects that were supported under this program, including the industry sectors 
that benefited from funding under th e program. Please also indicate if 
enterprises in the aerospace sector bene fit from funding under this program. G/SCM/Q2/EU/41 
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  Reply 
 
No new PMII programme was decided in 2011 and 2012, since budget programming for the scheme extended as far as end 2010 and the aid scheme itself, which expired end 2012, was not 
renewed. This is a multisectoral scheme that seeks to support major collaborative 
R&D programmes in the upstream portion of the market.  
 Was this program terminated on 31 December 2012? 
Reply 
 
The programme (PMII) came to an end on 31 December 2012. 
 
3.10 Research for innovation and the su stainable development of air transport 
 
 Please provide additional information re garding the type of projects that are 
funded under this program, includin g whether funding is provided to 
enterprises in the aerospace sector. 
 
 What is the specific legal meas ure authorizing this program? 
Reply 
 
Support for research for innovation and sustainable development of air transport focuses on 
research projects to develop knowledge which impr oves the technological base in order to enhance 
the environmental performance of air transport. 
 
The beneficiaries include research institutions and enterprises, some of which are in the aerospace sector. 
 
The legal basis is the annual finance law an d Decree No. 99-1060 of 16 December 1999 
concerning State subsidies for investment projects.  
Questions regarding programs not included in the notification: 
 
Aid to Research Institutions in the Civil Aviation Sector 
 
 France notified this program in its prior WTO subsidy notifications without any 
indication that it had been terminated. Pl ease indicate if this program is still in 
operation and if so, why it was not notified for the reporting period. 
Reply 
 
Aid to research institutions in the civil aviation sector has been notified by the European Union for 
the years 2011 and 2012 under "Support for institutions engaged in research for the sustainable 
development of air transport".  
Prime d'Aménagement du Territoire (PAT) (Decree 2007/809 of 11 May 2007) 
 
 Publically available information indicate s that funding is available under this 
program for research, development and i nnovation, and is available throughout 
mainland France, covering 25-60% of th e total costs, with higher amounts 
available for high-technology programs. Could France please provide additional 
information regarding this program, or  explain why it does not meet the 
notification requirements under the SCM Agreement? G/SCM/Q2/EU/41 
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  Reply 
 
The land-use management premium (PAT) for research, development and innovation (RDI) is granted for: 
 
-  either RDI projects (leading to the creation of 20 jobs or to eligible research costs 
of at least €7.5 million). Aid levels as a percentage of eligible costs range from 
25 to 60%; or 
 
-  process and organizational innovation programmes (leading to the creation of 20 jobs 
or to eligible research costs of at least €7.5 million). Aid levels as a percentage 
of eligible costs range from 15 to 35%. 
 The PAT is granted pursuant to Decree No. 2007-1029, which expired on 30 June 2014. 
The scheme has not been renewed. 
 
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