G/SCM/N/315/EU/Add.11  
 
30 August  2017 
(17-4587) Page: 1/10 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE AG REEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to su bsidy programmes 
of Germany . 
 
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 G/SCM/N/315/EU/Add.11  
 
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  GERMANY  
 
 
TABLE OF CONTENTS  
 
1   GERMAN SHIPYARDS  ................................ ................................ ................................ ... 3 
2   REGIONAL PROGRAMMES IN SUPPORT OF COMMER CE AND INDUSTRY (LAN D 
BAYERN)  ................................ ................................ ................................ ..........................  3 
3   JOINT TASK ON "IMPRO VING THE REGIONAL EC ONOMIC STRUCTURE"  ......................  4 
4   REGIONAL ECONOMIC SU PPORT PROGRAMME (LAN D NORDRHEIN 
WESTFALEN)  ................................ ................................ ................................ ....................  5 
5   REGIONAL IMPROVEMENT  PROGRAMME HESSE  ................................ ..........................  6 
6   REGIONAL AID PROGRAM ME (LAND RHEINLAND P FALZ)  ................................ ............  7 
7   NATIONAL PROGRAMME F OR CIVIL AERONAUTICA L RESEARCH  ................................ . 8 
8   PROGRAMME FOR AERONA UTICAL SUPPLIERS  ................................ ............................  8 
9   INVESTMENT AID TO FI SHING ENTERPRISES  ................................ .............................  9 
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  1  GERMAN SHIPYARDS  
1. Name of the subsidy scheme or ad hoc subsidy  
 
Aid granted for innovation in existing shipbuilding, ship repair or ship conversion yards, provided 
that it relates to the industrial application of innovative products and pr ocesses . 
 
2. Form of the subsidy  
 
Grant (refundable in case of continued successful application).  
 
3. Subsidy per unit  
 
Total amount of assistance provided in 2015: € 10,0 million.  
Total amount of assistance provided in 2016: € 12,3 million.  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
 
Guideline to th e support program "Innovative shipbuil ding secures competitive jobs". 
Date:  2016-03-11. 
 
5. Objective and/or purpose of the subsidy  
 
Certain features make shipbuilding unique and distinguish it from other industries such as small 
production series, the siz e, value and complexity of the units produced as well as the fact that 
prototypes are generally used commercially. As a consequence, shipbuilding is the only sector 
eligible for innovation aid, as an incentive to technological risk taking. (EU Framework of  state aid 
to shipbuilding).  
 
Legal basis: Commitment authorizations in the Federal budget from previous years. Guidelines 
from the Federal Ministry of Economics and Energy.  
 
Modes of payment: 25% gross limited to expenditure on investments, design, engine ering and 
testing activities directly and exclusively related to the innovative part of the project.  
 
6. Duration of subsidy and other time -limits attached to it  
 
The aid for innovation to shipbuilding applies until 31 December 2017.  
 
7. Statistical data p ermitting an assessment of the trade effects of a subsidy  
 
N.A. 
 
2  REGIONAL PROGRAMMES IN SUPPORT OF COMMER CE AND INDUSTRY (LAN D BAYERN)  
1. Name of the subsidy scheme or ad hoc 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 1 July 2014 (AllMBl S. 376).  
 
2. Form of the subsidy  
 
Investment grant.  
Interest rate subsidy (to subsidize loans).  
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  3. Subsidy per unit  
 
Total support (million Euros).  
 2015  2016  
Investment grant  92,3 110,3  
Interest rate subsidy  3,6 2,4 
Assisted investment volume  913,2  963,0  
Number of assisted companies  440 439 
 
4. Background and authority for the subsidy (including identification of t he legislation under 
which it is granted ) 
 
The subsidies are granted by the regional government (Land Bayern). The legal basis is the 
Directive on the promotion of the Bavarian regional programmes for trade, commerce and industry 
("Regional economic suppor t programme, BRF -Land Bayern").  
 
5. 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 t ourism offers; Increasing the economic 
strength of structurally weak areas.  
 
6. Duration of subsidy and other time -limits attached to it  
 
Until 31 December 2018.  
 
7. Statistical data permitting an assessment of the trade effects of a subsidy  
 
Not available . Outside the assisted areas pursuant to the Joint 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 C ommission 
Regulation (EC) No. 651/2014 of 17 June 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).  
 
3  JOINT TASK ON "IMPRO VING THE REGIONAL EC ONOMIC  STRUCTURE"  
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  
 
July 2014 – December 2020 . 
 
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 with the general economic development by balancing 
locational dis advantages and by reducing regional development differences. Regional policy 
focuses on supporting regional development activities with a view to raising the levels of 
employment and income in assisted areas. Assisted areas are redefined in multi -annual in tervals 
on the basis of regional indicators (unemployment rate, level of income, infrastructural 
development, employment forecast).  
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  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 (Federal Law Gazette 1969 part I, p. 1861). The Federal Act on the 
Joint Task was last modified by act of 7 September 2007 (Federal Law Gazette 2007 part I, 
p. 2246).  
 
On the basis of the Federal Act on the Joint Task, Bund and 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 gr anted.  
 
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 i n 
commerce and industry are eligible for subsidies under the Joint Task if they take place in an 
assisted area and if they generate additional income in the region so that, in the long run, the 
region's total level of income is raised in a non -insignifican t 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  
 
Generally speaking, budget allocations for the Joint Task decreased sharply over the last two 
decades. In 2016 (2015), a total amount of €302 million (€396 million) was granted by the Joint 
Task 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, i ncluding 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 202 0. 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 Memb er. 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 ) 
 
Regional assistance under the Joint Task is aimed at balancing domestic investment disadvantages 
in structurally weak regions (assisted areas). The Joint Task contributes to raising employment 
and income levels in these regions. In terms of competition, regional assistance under the Joint 
Task is  therefore neutral. It has no effect on competition in international trade.  
 
4  REGIONAL ECONOMIC SU PPORT PROGRAMME (LAN D NORDRHEIN WESTFALE N) 
1. Name of the subsidy scheme or ad hoc subsidy  
 
Regional Economic Support Programme.  
 
2. Form of the subsidy  
 
Grant s towards investment projects of trade and industry and local infrastructure.  G/SCM/N/315/EU/Add.11  
 
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3. Subsidy per unit  
 
The total amount budgeted for 2016: €77,4million . 
Total number of recipients: 334 . 
 
The total amount budgeted for 2015: €80,8million . 
Total number of recipients: 326 . 
 
4. Background and authority for the Subsidy  
 
On the basis of the federal German Constitu tion, the Federation (Bund) has, in 1969, passed the 
Federal Act on the Joint Task (Federal Law Gazette 1969 part I, p. 1861). The Federal Act on the 
Joint Task was last modified by act of 7 September 2007 (Federal Law Gazette 2007 part I, 
p. 2246). On the  basis of the Federal Act on the Joint Task, Bund and 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.  
 
On basis of such Framework th e Regional Economic Support Programme of Nordrhein Westfalen 
was conceived which details the terms and conditions for the subsidies within the Joint Task 
Framework. Subsidies under the terms of the Joint Task and the Regionale Economic Support 
Programme ar e co-financed by the Bund in the amount of 50% of the funding granted by the 
Nordrhein Westfalen.  
 
5. Objective and/or purpose of the subsidy  
 
Improving the regional economic structure and supporting small and medium -sized businesses.  
 
6. Duration of subsi dy and other time -limits attached to it  
 
Not limited.  
 
7. Statistical data permitting an assessment of the trade effects of a subsidy  
 
Given the objectives of the programme, trade effects cannot be assessed.  
 
5  REGIONAL IMPROVEMENT  PROGRAMME HESSE  
1. Title o f the subsidy programme  
 
Programme to improve the economic structure of the Land Hesse . 
 
2  Period covered by the notification  
 
2015, 2016 . 
 
3. Policy objective and/or purpose of the subsidy  
 
Improving the regional economic structure and supporting small a nd med ium sized Enterprises . 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
 
Hessian law on support of small and middle seized ventures . 
Guideline of the Land Hessen on improvement of re gional development  N 520/1996 . 
 
5. Form of the subsidy  
 
Investment grant . 
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  6. To whom and how the subsidy is provided  
 
The subsidy is provided to producers in small and medium -sized enterprises with a fluctuating 
amount . 
 
7. Subsidy per unit  
 
The total amo unt budgeted for 2015: € 0.75 million . 
Total number of recipients: 7 . 
 
The total amount budgeted for 2016 € 0.51 million . 
Total number of recipients: 5 . 
 
8. Duration of subsidy and other time -limits attached to it  
 
Not limited.  
 
9. Statistical data permitt ing an assessment of the trade effects of a subsidy  
 
In 2015 creation of 71 jobs by providing financial assistance to 7 individual promotional cases.  
 
In 2016 creation of 46 jobs by providing financial assistance to 5 individual promotional cases.  
 
6  REGIONA L AID PROGRAMME (LAN D RHEINLAND PFALZ)  
1. Name of the subsidy scheme or ad hoc subsidy  
 
Regional aid programme of the Land Rheinland Pfalz.  
 
2. Form of the subsidy  
 
Investment grant.  
 
3. Subsidy per unit  
 
Up to 10% for medium sized industries, 20% for smal l sized industries.  
Disbursement in 2015: €5.052 million  
Disbursement in 2016: €1.307 million  
 
4. Background and authority for the subsidy  
 
The subsidies are granted by the government of the federal state (Land Rheinland -Pfalz). The legal 
bases are the fed eral state government's act and administrative regulation.  
 
5. Objective and/or purpose of the subsidy  
 
Promotion of investment in small and medium sized industries.  
 
6. Duration of subsidy and other time -limits attached to it  
 
Unlimited.  
 
7. Statistical d ata permitting an assessment of the trade effects of a subsidy  
 
In 2015: no new cases because the regional aid programme was interrupted (only disbursement of 
formerly approved cases).  
 
In 2016: creation of 228 jobs by providing financial assistance to 24 individual promotional cases.  
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  7  NATIONAL PROGRAMME F OR CIVIL AERONAUTICA L RESEARCH  
1. Title of the subsidy programme  
 
National programme for civil aeronautical research and technology.  
 
2. Period covered by the notification  
 
2015, 2016.  
 
3. Policy objective  and/or purpose of the subsidy  
 
The programme's intention is to contribute to strengthening innovative medium and long term 
research and technology in one of the most important key technologies with spin off effects to 
other sectors. The programme aim is p art of the Federal government's research and technology 
policy.  
 
The priorities of the programme are encouraging sustainable research in the fields: low pollutant 
and safe aircrafts of the next generation, low noise all weather helicopters, efficient and 
ecologically friendly engines in line with the ecological goals of the ACARE Vision 2020 and 
Flightpath 2050.  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
 
The subsidies are granted by the Federal government. The legal basis are the Federal 
government's act.  
 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc. ) 
 
Non repayable grants.  
 
6. To whom and how the subsidy is provided  
 
Subsidies are provided to producing enterprises, universities and research institutes for research 
and development expenditures. Grants for basic r esearch cover up to 100% , grants for indust rial 
research up to 50% of research and development expenditures.  
 
7. Subsidy per unit, or in cases where this is n ot 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 pr evious year, or both) is not possible, a full explanation  
 
Total annual amount budgeted for the subsidy:  
 
2015: 123.425 million € . 
2016: 136.922 million €.  
 
8  PROGRAMME FOR AERONA UTICAL SUPPLIERS  
1. Title of the subsidy programme  
 
Programme for aeronautical suppliers.  
 
2. Period covered by the notification  
 
2015, 2016.  
 
3. Policy objective and/or purpose of the subsidy  
 
The programme aims at encouraging research and development of components for an 
environmentally friendly, safe and efficient aviation system.  G/SCM/N/315/EU/Add.11  
 
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it i s granted ) 
 
The subsidies are granted by the Federal government. The legal basis are the Federal 
government's act.  
 
5. Form of the subsidy (i.e. grant, loan, tax concession, etc. ) 
 
Repayable loans.  
 
6. To whom and how the subsidy is provided  
 
Subsidies are provided to producing enterprises. The enterprises are granted repayable loans of 
maximum 33% of the development costs, ¾ of the loan is repayable subject to the performance of 
the developed component (i.e. sale numbers). The loans are grante d by the KfW on behalf of the 
Federal government.  
 
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). Wh ere 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  
 
Total annual amount budgeted for the subsidy:  
 
2015: 5.526 million €.  
2016: 0 million €.  
 
9  INVESTME NT AID TO FISHING EN TERPRISES  
1. Title of the subsidy programme  
 
European Fisheries Fund . 
 
2. Period covered by the notification  
 
2015, 2016 . 
 
3. Policy objective and/or purpose of the subsidy  
 
Detailed rules and conditions for contribution in the fisherie s sector, for the programming 
period  2007-2013, were adopted in Council regulation (EC) No 1198/2006.  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted ) 
 
EC Regulation No 1198/2006 national co-financing . 
 
5. Form of the subsidy  
 
Grant . 
 
6. Subsidy per unit (national contribution ) 
 
2015: 12.965.937 EUR for 40 projects . 
2016: 0 EUR.  
 
7. To whom the subsidy is provided  
 
Enterprises of the fishery sector . 
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  8. Duration of subsidy and other time -limits attached to it  
 
2007 -2013. 
 
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