G/SCM/N/253/EU/Add.21  
 
30 August 2013  
(13-4610)  Page: 1/12  
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 relates to subsidy programmes 
of Portugal . 
 
_______________ 
 
  
 G/SCM/N/253/EU/Add.21 
 
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  PORTUGAL 
 
TABLE OF CONTENTS 
 
1   PRODER - RURAL DEVELOPMENT PR OGRAMME FOR MAINLA ND PORTUGAL ................ 3  
2   PRODERAM - RURAL DEVELOPMENT PROGRAMME FOR MADEIRA................................ 6  
3   PRORURAL - RURAL DEVELOPM ENT PROGRAMME FOR AZORES .................................. 8  
4   SIRME – MODERNIZATION AND REVITALIZATION ENTERPRISES INCENTIVES 
SYSTEM ........................................................................................................................ .. 11 
 G/SCM/N/253/EU/Add.21 
 
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  1  PRODER - RURAL DEVELOPMENT PR OGRAMME FOR MAINLAND PORTUGAL 
1. Title of the Programme 
 
PRODER – Rural Development Programme for Mainland Portugal. 
 
2. Period covered by the notification 
 
2007-2013. 
 3. Purpose and objectives of the Programme 
 
There are three sub-programmes plus a fourth tran sversal sub-programme relating to innovation 
and capacity building.  
 The design of Sub-programme 1 "Promoting co mpetitiveness" was subject to selectivity, 
demand and efficiency principles. Management will ensure permanent performance 
monitoring and evaluation. Simplification and better adjustment to farming and enterprise 
activity, as well as their investment and financing needs were also taken into account. As 
regards selectivity in the allocation of resources, this principle is inherent in the identification of strategic chains of Fruit and Vegetables, Fl owers, Olive oil, Wine, Forestry and Quality 
products. 
 Sub-programme 2 will focus on support for the maintenance of activities in less favoured 
and mountain regions, organic farming and integrated production and targeted measures in 
the forestry sector. The creation of Integrated Territorial Interventions (ITI) aims at 
ensuring consistency in the application of the different policy instruments on the same 
territory, according to the central conservation objectives defined. 
 Sub-programme 3 intends to promote rural ar eas and gives preference to LEADER, by 
means of actions promoted within the framework of local development strategies and 
through agents specifically organised to this effect. 
 Sub-programme 4 intends to foster qualifications and organisation of human resources. As a 
result of the complementarity of this Sub-programme with the ESF, the volume of financial 
resources made available by the EAFRD does not reflect the strategic importance of this 
development vector. 
4. Background and Authority of the Programme 
 
The PRODER is funded by the European Agricult ural Fund for Rural Development (EAFRD). The 
programme was initially approved by the European Commission on 4 December 2007 (Commission 
Decision C (2007) 6159), its latest decision dating from 28 March 2012 (Commission 
Decision C (2012) 2071 final).  At the national level, the Programme is regulated by the Decree-Law n.º 2/2008 of 4 January and 
the D-Law n.º 37-A/2008 of 8 March. 
 5. Form of the subsidy 
 Support is provided through non-refundable subsidies.  
6. Beneficiary and conditions of the concession of the subsidy 
 
The beneficiaries of the Programme are:  
 Farmers, individuals or legal persons exercising  an agricultural activity;  enterprises and 
producers' organisations, processing & marketing SME enterprises that process & market agricultural products; 
 Young farmers under the first setting up regime; G/SCM/N/253/EU/Add.21 
 
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   Forest producers/owners or their associations; 
 Municipalities or their associations; 
 Public administration bodies; 
 Public interest institutions; 
 Micro-enterprises, within the meaning of Commission Recommendation 2003/361/EC. 
Enterprises included in the SIC (Standard Industrial Classification of economic activities) related to fishing and its products and tourism and leisure activities are excluded; 
 Private partnerships; Public-private partnerships where the public share is not the majority 
share; PSSI and NGOs. 
Requests for assistance submitted by the beneficiaries under each measure are evaluated 
according to a group of specific, previously established selection criteria. Therefore, in case of 
positive evaluation, the subsidies are approved, an d the payments made in line with the actual 
investment process.  
7. Total and annual amount paid  during the period 2011-2012 
 
 Thousand Euros 
Axis Public Expenditure FEADER National Expenditure 
(1) = (2)+(3) (2) (3) 
Axis 1 – Improving the 
competitiveness of the agricultural and forestry sector 660,271 525,913 134,358 
Axis 2 – Improving the 
environment and the countryside 518,613 429,246 89,367 
Axis 3 – The quality of life in 
rural areas and diversification of the rural economy 23,556 21,079 2,477 
Axis 4 – Leader 131,744 109,016 22,728 
Technical Assistance 13,533 10,755 2,778 
Total 1,347,717 1,096,009 251,708 
 Fonte: AG PRODER 
 G/SCM/N/253/EU/Add.21 
 
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   Thousand Euros 
Axis Public Expenditure FEADER National Expenditure 
(1) = (2)+(3) (2) (3) 
De minimis Regulation (CE) 
n°1998/2006 75,834.74 63,746.87 12,087.87 
Commission Regulation (EC) 
n°70/2001 as amended by Commission Regulation (EC) n°364/2004 0.00 0.00 0.00 
Commission Regulation (EC) 
n°800/2008 of 6 August 140,825.54 111,434.11 29,391.43 
State Aid n° 169/2010 114,141.13 94,222.60 19,918.53 
State Aid n° 252/2010 22,696.77 20,364.20 2,332.56 
Use of the temporary 
Community framework on state aid measures designed to support funding during the current financia l and economic 
crisis – State Aid n°13/2009 – approved for Portugal by the Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty – Cases where the Commission raises no objections n°2009/C 37/01 of 14/02/2009. 0.00 0.00 0.00 
Other (requiring no specific 
notification) 954,239.11 773,662.34 180,576.77 
Total State Aid 1,307,737.28 1,063,430.12 244,307.16 
Total non State Aid 39,980.24 32,579.37 7,400.87 
Total 1,347,717.52 1,096,009.50 251,708.03 
 Fonte: AG PRODER 
 
8. Duration of the Programme 
 
2007-2013. 
 
9. Statistical data that allow the evaluation of the effects of the subsidy on trade 
 
No statistical data is available to allow the evaluation of possible effects of the subsidies on trade. 
 G/SCM/N/253/EU/Add.21 
 
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  However, it should be underlined that a large percentage of the total subsidies is directed to SME 
in activities related with local markets (non-tradable goods), as well as to entities not involved in market transactions (e.g. non-profitable organisations).  
2  PRODERAM - RURAL DEVELOPMENT PROGRAMME FOR MADEIRA 
1. Title of the Programme 
 
PRODERAM – Rural Development Programme for Madeira. 
 2. Period covered by the notification 
 
2007-2013. 
 3. Purpose and objectives of the Programme 
 -  Improving the competitiveness of agricultur e and forestry by supporting restructuring, 
development and innovation; 
 
-  Improving the environment and the countryside by supporting land management;  -  Improving the quality of life in rural areas and encouraging diversification of economic activity. 
 
4. Background and Authority of the Programme 
 
The PRODERAM is funded by the European Agricu ltural Fund for Rural Development (EAFRD). The 
programme was initially approved by the European Commission on 15 February 2008 (Commission Decision C (2008) 721), its latest decision dating from 21 December 2011 (Commission Decision 
C (2011) 9784 final). 
 At the national level, the Programme is regulated by the Decree-Law n°2/2008 of 4 January and the D-Law n° 37-A/2008 of 8 March. 
 
5. Form of the subsidy 
 
Support is provided through non-refundable subsidies. 
 6. Beneficiary and conditions of the concession of the subsidy 
 The beneficiaries of the Programme are:   Farmers, individuals or legal persons exercising  an agricultural activity;  enterprises and 
producers' organisations, processing & marketing SME enterprises that process & market 
agricultural products; 
 Young farmers under the first setting up regime; 
 Forest producers/owners or their associations; 
 Municipalities or their associations; 
 Public administration bodies; 
 Public interest institutions; 
 Micro-enterprises, within the meaning of Commission Recommendation 2003/361/EC. 
Enterprises included in the SIC (Standard Industrial Classification of economic activities) related to fishing and its products and tourism and leisure activities are excluded; 
 Private partnerships; Public-private partnerships where the public share is not the majority 
share; PSSI and NGOs. G/SCM/N/253/EU/Add.21 
 
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Requests for assistance submitted by the beneficiaries under each measure are evaluated according to a group of specific, previously established selection criteria.  
Therefore, in case of positive evaluation, the subsidies are approved, and the payments made in 
line with the actual investment process.  
7. Total and annual amount paid  during the period 2011-2012 
 
 Thousand Euros 
Axis Public Expenditure FEADER National Expenditure 
(1) = (2)+(3) (2) (3) 
Axis 1 – Improving the 
competitiveness of the agricultural and forestry sector 32,828 30,209 2,619 
Axis 2 – Improving the 
environment and the countryside 17,985 16,818 1,167 
Axis 3 – The quality of life in 
rural areas and diversification of the rural economy 2,379 2,209 170 
Axis 4 – Leader 1,704 1,607 97 
Technical Assistance 1,016 906 110 
Total 55,912 51,749 4,163 
 Fonte: AG PRODERAM G/SCM/N/253/EU/Add.21 
 
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 Thousand Euros 
Axis Public Expenditure FEADER National Expenditure 
(1) = (2)+(3) (2) (3) 
De minimis Regulation (CE) 
n°1998/2006 1,734 1,607 127 
Commission Regulation (EC) 
n°70/2001 as amended by 
Commission Regulation (EC) 
n°364/2004 164 144 20 
Use of the temporary 
Community framework on state aid measures designed to support funding during the current financia l and economic 
crisis – State Aid n°13/2009 – approved for Portugal by the Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty – Cases where the Commission raises no objections n°2009/C 37/01 of 
14/02/2009    
Total State Aid 52,998 49,092 3,906 
Total non State Aid 1,016 906 110 
Total 55,912 51,749 4,163 
 Fonte: AG PRODERAM 
 
8. Duration of the Programme 
 2007-2013.  
9. Statistical data that allow the evaluation of the effects of the subsidy on trade 
 
No statistical data is available to allow the evaluation of possible effects of the subsidies on trade. 
 
However, it should be underlined that a large percentage of the total subsidies is directed to SME in activities related with local markets (non-tradable goods), as well as to entities not involved in market transactions (e.g. non-profitable organisations). 
 
3  PRORURAL - RURAL DEVELOPMENT PROGRAMME FOR AZORES 
1. Title of the Programme 
 
PRORURAL – Rural Development Programme for Azores.  
2. Period covered by the notification 
 
2007-2013. G/SCM/N/253/EU/Add.21 
 
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3. Purpose and objectives of the Programme 
 -  Improving the competitiveness of agricultur e and forestry by supporting restructuring, 
development and innovation; 
 -  Improving the environment and the countryside by supporting land management; 
 
-  Improving the quality of life in rural areas and encouraging diversification of economic activity.  4. Background and Authority of the Programme 
 The PRORURAL is funded by the European Agricultural Fund for Rural Development (EAFRD). The programme was initially approved by the European Commission on 4 December 2007 (Commission 
Decision C (2007) 6162), its latest decision dating from 13 January 2011. 
 At the national level, the Programme is regulated by the Decree-Law n° 2/2008 of 4 January and 
the D-Law n° 37-A/2008 of 8 March. 
 5. Form of the subsidy 
 
Support is provided through non-refundable subsidies. 
 6. Beneficiary and conditions of the concession of the subsidy 
 The beneficiaries of the Programme are:  
 Farmers, individuals or legal persons exercising  an agricultural activity;  enterprises and 
producers' organisations, processing & marketing SME enterprises that process & market agricultural products; 
 Young farmers under the first setting up regime; 
 Forest producers/owners or their associations; 
 Municipalities or their associations; 
 Public administration bodies; 
 Public interest institutions; 
 Micro-enterprises, within the meaning of Commission Recommendation 2003/361/EC. 
Enterprises included in the SIC (Standard Industrial Classification of economic activities) 
related to fishing and its products and tourism and leisure activities are excluded; 
 Private partnerships; Public-private partnerships where the public share is not the majority 
share; PSSI and NGOs. 
Requests for assistance submitted by the beneficiaries under each measure are evaluated 
according to a group of specific, previously established selection criteria. Therefore, in case of 
positive evaluation, the subsidies are approved, an d the payments made in line with the actual 
investment process. 
 G/SCM/N/253/EU/Add.21 
 
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  7. Total and annual amount paid  during the period 2011-2012 
 
 Thousand Euros 
Axis Public Expenditure FEADER National Expenditure 
(1) = (2)+(3) (2) (3) 
Axis 1 – Improving the 
competitiveness of the agricultural and forestry sector 68,642 58,746 9,896 
Axis 2 – Improving the 
environment and the countryside 39,996 33,997 5,999 
Axis 3 – The quality of life in 
rural areas and diversification of the rural economy 791 672 119 
Axis 4 – Leader 4,841 4,115 726 
Technical Assistance 473 402 71 
Total 114,743 97,932 16,812 
 Fonte: AG PRORURAL G/SCM/N/253/EU/Add.21 
 
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 Thousand Euros 
Axis Public Expenditure FEADER National Expenditure 
(1) = (2)+(3) (2) (3) 
De minimis Regulation (CE) 
n°1998/2006 3,620 3,075 543 
Commission Regulation (EC) 
n°70/2001 as amended by Commission Regulation (EC) n°364/2004    
Use of the temporary 
Community framework on state aid measures designed to support funding during the current financia l and economic 
crisis - State Aid n°13/2009 – approved for Portugal by the Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty – Cases where the Commission raises no objections n°2009/C 37/01 of 14/02/2009.    
Total State Aid 3,620 3,075 543 
Total non State Aid 111,123 94,857 16,269 
Total 114,743 97,932 16,812 
 Fonte: AG PRORURAL 
 
8. Duration of the Programme 
 
2007-2013. 
 9. Statistical data that allow the evaluation of the effects of the subsidy on trade 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on trade.  
However, it should be underlined that a large percentage of the total subsidies is directed to SME 
in activities related with local markets (non-tradable goods), as well as to entities not involved in market transactions (e.g. non-profitable organisations).  
4  SIRME – MODERNIZATION AND REVITALIZATION ENTERPRISES INCENTIVES SYSTEM 
1. Title of the Programme 
 
SIRME – Modernization and Revitalization Enterprises Incentives System. 
 2. Period covered by the notification 
 The present notification refers to the period 2011-2012. G/SCM/N/253/EU/Add.21 
 
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3. Policy objective and/or purpose of the subsidy 
 This Incentive Program (SIRME) was created to help small and medium companies to 
reestablishment of the conditions of enterprise competitiveness, modernizations, industrial 
restructuring and also financial consolidation, using several finance engineering projects, like companies fusion, acquisitions of Values in restructuring process, or just financial support to the 
development of operational and financial restructuring measures. This program has a financial 
instrument (FRME – Modernization and Revi talization Enterprises Fund, SGPS, SA.) 
 4. Background and authority of the subsidy 
 SIRME is totally financed by Portuguese Budget St ate, without any kind of European Union Funds, 
and he is managed by IAPMEI – Innovation and Competitiveness Agency. The program is also 
regulated by European Commission under Dossier State Aid N8/2000. 
 5. Form of the subsidy 
 Subsidy can assume, simultaneously, two different natures: Stocks (Capital) or simply Loans, but in both cases they are totally reimbursed. This  subsidy is followed by a remuneration tax, 
contractually defined with all the partners. 
 
6. Beneficiary and conditions of the concession of the subsidy 
 
The beneficiaries of the Program are, mainly, companies with financial and structural problems, 
demanding restructuring and emergency financial aid. However, the FRME intervention only occurred when there is evidence management capacity and demonstrates to a situation adequate 
economic-financier. 
 7. Annual amount budgeted for that subsidy 
 
 Thousand Euros 
YEAR EXPENDITURE 
2011 600 
2012 600 
 Fonte: IAPMEI 
 8. Duration of the subsidy 
 The contracts made between Portuguese State and Enterprises, are negotiated with an average 
period of six years but, if they are renegotiated  by Company request, may be extended for another 
two years, that is, a maximum length of stay of eight years. 
 
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