G/SCM/N/284/EU/Add.12  
 
1 September 2015  
(15-4364)  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 relates to subsidy programmes 
of Greece . 
 
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 G/SCM/N/284/EU/Add.12 
 
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  1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 
Law 3908: Aid for Private Investment to promote Economic Growth, Entrepreneurship and 
Regional Cohesion (issued on 1 February 2011). 
 2. Period covered by the notification. 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 
 
2013-2014. 
 
3. Policy objective and/or purpose of the subsidy 
 
The purpose of the law 3908 is to promote economic  growth in Greece by introducing investment 
aid schemes to improve entrepreneurship, techno logical development, the competitiveness of 
enterprises and regional cohesion and promote gree n economy, the efficient function of existing 
infrastructures and the deployment of the country's human resources. 
 4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 The aid under the law 3908 shall be provided in accordance with Commission Regulation (EC) No 800/2008 of 6 August 2008 (OJ L 214 of 9 August 2008, page 3), as from time to time in force, 
declaring certain categories of aid compatible with the common market, in application of 
Articles 87 and 88 of the Treaty (General Block Exemption Regulation), and in particular as 
regional aid in accordance with Article 13 of that Regulation. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 1. The following types of aid shall be granted to  investment plans subject to the provisions of 
the law: 
 
a. Tax relief comprising exemption from payment of income tax on pre-tax profits, which 
result, according to tax law, from all the enterprise's activities. The amount of tax relief 
is calculated as a percentage of the value of  the subsidised expenditure of the project or 
the value of the new machinery and other equi pment acquired by leasing and constitutes 
an equivalent untaxed reserve. 
b. A grant comprising a free payment by the State of a sum of money to cover part of the 
subsidised expenditure of the investment plan and calculated as a percentage of that expenditure. 
c. A leasing subsidy comprising payment by the St ate of part of the instalments paid under 
a leasing agreement executed in order to acquire new machinery and other equipment 
and calculated as a percentage of the purchase price and included in the instalments 
paid. The leasing subsidy shall be granted for no longer than seven (7) years. 
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) 
 
Eligible investment plans.  
1. The aid scheme governed by the law shall apply to investment plans in all branches of 
economic activity, subject to the paragraphs below.  
2. The aid scheme governed by the law shall no t apply, in terms of regional aid, to the 
following branches exempted from the scope of the General Block Exemption Regulation. 
 
a. the steel sector, as defined in Article 2(29) of the General Block Exemption Regulation; G/SCM/N/284/EU/Add.12 
 
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  b. the synthetic fibres sector, as defined in Article 2(30) of the General Block Exemption 
Regulation; 
c. the coal sector, as ‘coal' is defined in Regulation (EC) No 1407/2002 of 23 July 2002 on 
State aid to the coal industry; 
d. the shipbuilding sector, as defined in the framework on State aid to shipbuilding 
(2003/C317/06). 
3. Further, the aid scheme of the law shall not apply to the following: 
 
a. investment plans of public corporations and organisations or their subsidiaries in which 
they hold over 49% of the share capital and investment plans of companies in which the 
State or a public law legal person or a first- or second-level local authority holds 
over 49% of the share capital or which are re gularly or occasionally subsidised by them, 
where the subsidy accounts for over 50% of their annual revenue; 
b. undertakings which operate in the form of a society, civil partnership or consortium, 
subject to the provisions of Article 13(1)(d) of the law; 
c. firms in difficulty, as defined in the Community guidelines, from time to time in force, on 
State aid for rescuing and restructuring firms in difficulty (2004/C 244 of 
1 October 2004, p. 2) and the General Block Exemption Regulation (Commission 
Regulation (EC) No 800/2008 of 6 August 2 008, OJ L 214 of 9 August 2008, p.3) for 
small and medium-sized enterprises; 
d. investment plans implemented at the initiative and on behalf of the State by a private 
individual on the basis of a works, franchise or service contract; 
e. investment plans of bodies against which an aid recovery order is pending further to a 
previous decision by the Commission declarin g the aid illegal and incompatible with the 
Common Market; 
f. the following industries and branches of econom ic activity, as defined on the basis of the 
"National Nomenclature of Economic Acti vities – Activity Code Numbers 2008", as 
amended by POL 1086/2009: 
- 35.11.10.09 – Production of electricity from photovoltaic Systems 
- 41 – Construction of buildings - 42 - Civil engineering, with the exception of the construction of coastal and port works and 
 construction works for coastal and port structures  
- 43 - Specialised construction activities - 45 - Wholesale and retail trade and repair of motor vehicles and motorcycles 
- 46 - Wholesale trade, except motor vehicles and motorcycles 
- 47 - Retail trade, except motor vehicles and motorcycles - 56 - Food and beverage service activities 
- 60 - Programming and broadcasting activities 
- 64 - Financial service activities - 65 - Insurance, reinsurance and pension fund ing, except compulsory social security 
- 66 - Activities auxiliary to financial services and insurance activities 
- 68 - Real estate activities 
- 69 - Legal and accounting activities - 70 - Head office activities, consultancy service activities 
- 71 - Architectural and engineering activities an d activities by engineers – technical testing 
and analysis 
- 73 - Advertising and market research 
- 75 – Veterinary activities 
- 77 - Rental and leasing activities - 78 – Employment activities - 79 - Activities of travel agencies, tour organisers and travel reservation services and 
 related activities G/SCM/N/284/EU/Add.12 
 
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  - 80 - Security and investigation activities 
- 81 – Provision of services to buildings and outdoor spaces - 84 - Public administration and defence – compulsory social security - 85 - Education 
- 86 - Human health activities 
- 88 - Social work activities without accommodation - 90 - Creative activities, arts and entertainment 
- 92 - Gambling and betting activities 
- 93 - Sporting activities and recreational and leisure activities - 94 - Organisations [membership] activities - 96 - Other personal service activities 
- 97 - Activities of households as employers of domestic personnel 
- 98 - Private households activities concerning the production of non distinct goods- and   services- for own use 
- 99 - Activities of extraterritorial organisations and bodies 
 
g. investments to: 
(g)a  establish, extend or modernise hotel facilities. This does not include investments to 
establish, extend or modernise an integrated form of hotel facility belonging to or being upgraded to at least the three-star category, or investments in health tourism. Also excluded are investments to convert traditional or listed buildings into hotel 
facilities of at least the three-star category, and investments to modernise hotel 
facilities that operate in traditional or listed buildings belonging to or being upgraded to at least the three-star category; 
 
(g)b  modernise an integrated form of hotel facility within six years of the date on which the 
facility opened or the date on which the decision was issued to complete an 
investment to modernise the facility. The six-year period from when the facility 
referred to in this subparagraph opened sha ll also include the period during which the 
facility operated as rented rooms or apartments, when it is about hotel facilities that resulted from the obligatory conversion of a rented rooms or apartments facility; 
 
(g)c  erect, extend or modernise self-cater ing accommodation, rented rooms and rented 
furnished apartments, regardless of category. 
 
Assessment criteria.  
1. Every investment plan shall be evaluated in accordance with the following criteria and shall 
be rejected if it fails to satisfy them:  
a. Compliance of the application for aid and the investment plan with the terms and 
conditions of the law and the regulatory decisions issued in application hereof; 
b. Solvency of the investment vehicle, which is ascertained on the basis of the following: 
(b)a  The fact that it has no outstanding tax or social security liabilities;  
(b)b The fact that it has not been disqualified under previous development laws or 
Community programmes over the last ten years;  
(b)c  Confirmation that it has not been declared bankrupt or filed for bankruptcy and; 
(b)d  Confirmation that it has not been placed in administration or filed to be placed in 
administration; 
 
c. The ability of the investment body to provide equity to cover its own contribution to the 
investment, as substantiated from the value of its deposits or the value of its movable 
assets or from its most recent financial statements available. 
Evaluation criteria. 
 
1. very investment plan that satisfies the requirements of Article 9 of the law shall be evaluated and graded on the basis of the following criteria: 
 G/SCM/N/284/EU/Add.12 
 
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  a. Investment body evaluation criteria. 
(a)a. Characteristics of the body (legal form, number of employees). 
(a)b Experience of the shareholders and ad ministration (holding of shareholders and 
executives in a business entity). 
(a)c  Experience of the company (period of actual trading on the market). 
(a)d  Professional specialism of human re sources following implementation of the 
investment (documented professional background). 
(a)e  Own contribution to the total cost or subsidised cost of the investment plan 
(percentage of own contribution). 
 
b. Criteria relating to the viability and performance of the investment plan and the 
investment body. 
(b)a  Financial analysis of the investment (investment inputs and outputs/internal rate of 
return). 
(b)b  Financial analysis of the vehicle (loan repayment indicator, profitability indicator and 
efficiency indicator). 
(b)c  Prospects for the industry (growing, stagnant, declining). 
 
c. Criteria relating to technological development, innovation and new products and 
services. 
(c)a  Application of advanced technology and innovation (expenditure on know-how, 
research and development, product design and marketing, quality assurance and 
control systems, certification and patenting). 
(c)b  Development of new products and activities. 
(c)c  Application of clean technologies and waste management. 
(c)d  Amount of added value. 
 
d. Criteria relating to the contribution of the investment to the economy and to regional 
development. 
(d)a  Increase in employment, especially the creation of new permanent employment jobs 
following the implementation of the investment.  
(d)b  Location of the investment.  
(d)c  Contribution of the investment to environmental protection and savings in terms of 
energy and natural resources.  
(d)d  Competitiveness of the goods and services  on the international market, especially the 
company's export performance.  
(d)e  Value of the investment plan and source of equity.  
(d)f  Creation of partnerships/networking (clusters). 
 Aid rates  
1. In order to set the regional aid rates: 
 
a. The country shall be divided into three incentive zones (A, B, C), on the basis of the level 
of growth compared with the national average. 
Incentive zone A, which shall include the Prefec ture of Attica and the Prefecture of Viotia. 
Incentive zone B, which shall include the prefectures in which the per capita GDP is 
greater than 75% of the national average. 
Incentive zone C, which shall include the prefectures in which the per capita GDP is less than 75% of the national average, the re gion of Eastern Macedonia and Thrace, the 
islands in the regions of the North and South Aegean and the Ionian Islands, the islands 
belonging administratively to prefectures of the mainland, and the border prefectures of 
Greece. 
b. Undertakings shall be divided into large, medium-sized, small and micro enterprises in 
accordance with the relevant EU classification (Commission Regulation (EC) 
No 800/2008 of 6 August 2008, Annex I, OJ L 214 of 9 August 2008, p. 38).  G/SCM/N/284/EU/Add.12 
 
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  2. The percentage of aid for each investme n t  p l a n  s h a l l  d e p e n d  o n  t h e  s i z e  o f  t h e  
investment body and the prefecture in whic h it is implemented, but shall not exceed 
50% of the subsidised cost of the invest ment plan. The aid percentages have been 
defined, for the initial application of the law, on the basis of the per capita gross 
domestic product (GDP) of each prefecture in 2007, compared with the average per 
capita GDP of Greece in that year3. In particular, the aid rates for each incentive zone are as follows:  
 
a. In zone A: 15% for large enterprises, 20%  for medium-sized enterprises and 25% for 
small and micro enterprises.  
b. In zone B: 30% for large enterprises, 35%  for medium-sized enterprises and 40% for 
small and micro enterprises.  
c. In zone C: 40% for large enterprises, 45% for medium-sized enterprises and 50% for 
small and micro enterprises.  
d. The limits laid down in the Regional State Aid Map 2007-2013 approved by the 
European Commission (2006/C 286/04 of 23 November 2006) shall also be complied with in all instances. 
The maximum rates for zones A, B and C shall be subject to the limits in the Regional State 
Aid Map and, if a prefecture is entitled on the basis of all three zones to a higher percentage 
of aid in one category (large, medium-sized, small enterprise) than that permitted in the Regional State Aid Map, as amended, then the aid shall be capped at the limits adopted in 
the map. 
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 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 
 
Based on Law 3908: The percentage of aid for each investment plan shall depend on the size of 
the investment body and the prefecture in which it is implemented, but shall not exceed 50% of 
the subsidised cost of the investment plan. The ai d percentages have been defined, for the initial 
application of the law, on the basis of the pe r capita gross domestic product (GDP) of each 
prefecture in 2007, compared with the average per capita GDP of Greece in that year. 
 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 information 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 
 Independent heading corresponding to each item is used.  
9. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement 
 Start date for implementation of investment plans - Nature of Incentive. 
 (a) Implementation of the investment plan shall st art on publication of the decision approving the 
aid in the Government Gazette. Implementation of the investment plan may start prior to 
publication of the decision approving the aid in the Government Gazette, at the investor's sole responsibility, following submission of an aid app lication to the competent departments, so that it 
can be documented that the aid applied for is an  incentive to implement the investment plan. If 
implementation of the investment plan starts be fore the above application is filed, the entire 
investment plan shall be rejected.  
Duration of the Implementation is not specified in the law but in the Minister's signed approval for 
each specific project. Duration of the Implementa tion can be extended. Finalising the investment 
plan there is a monitoring procedure followed by the Payment of the aid. G/SCM/N/284/EU/Add.12 
 
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  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 judgement 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; 
b. for a previous representative year, which, where possible and meaningful, should be the 
latest year preceding the introduction of th e subsidy or preceding the last major change 
in the subsidy. 
There are no statistical data available to monito r the trade effects of the subsidy. There is a 
Minister's decision to start keeping records for investment plans that are finalised but this does not 
include data such as production, consumption, imports and exports.  
 
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