WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.24 
26 November 2007 
 
 (07-5192) 
Committee on Subsidies and  
Countervailing Measures Original:   Spanish 
 
 
 
SUBSIDIES 
 
Notification Pursuant to Article XVI:1 of the GATT 1994 and  
Article 25 of the Agreement on Subsidies  
and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities relates to subsidy 
programmes of Spain . 
 
_______________ 
 
 G/SCM/N/155/EEC/Add.24 
Page 2  
 
  SPAIN 
 
TABLE OF CONTENTS 
Page  
 
 
I. FISHERIES ...................................................................................................................... .........3  
A. PROMOTION OF AQUACULTURE ..................................................................................................4  
B. MARINE CULTIVATION PLANS .....................................................................................................5  
C. REORGANIZATION AND RENOVATION OF THE FISHING FLEET :  RENOVATION AND 
MODERNIZATION OF THE FISHING FLEET .....................................................................................5  
D. REORGANIZATION AND RENOVATION OF THE FISHING FLEET :  DEFINITIVE STOPPAGE ..............6  
E. REORGANIZATION AND RENOVATION OF THE FISHING FLEET :  SOCIO -ECONOMIC 
MEASURES ............................................................................................................................... ....8 
F. PILOT EXPERIMENTAL FISHING PROJECTS ...................................................................................9  
II. MINING......................................................................................................................... ..........10  
A. DEVELOPMENT OF NON -ENERGY MINING .................................................................................10  
B. AID TO JOB CREATION BUSINESS PROJECTS IN MINING AREAS ..................................................11  
C. AID FOR COAL MINING ..............................................................................................................12  
III. INDUSTRY....................................................................................................................... .......14  
A. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME .............................................................14  
B. TELECOMMUNICATIONS TRAINING PROGRAMME (FORINTEL)...............................................15  
C. TECHNICAL RESEARCH DEVELOPMEN T PROGRAMME FOR THE TEXTILE /CLOTHING 
SECTOR ............................................................................................................................... .......17  
D. FINANCING OF RESEARCH , DEVELOPMENT AND INNOVATION PROJECTS CONDUCTED 
BY ENTERPRISES ........................................................................................................................18  
E. PROGRAMME TO PROMOTE STABLE PUBLIC -PRIVATE COLLABORATION IN RESEARCH , 
DEVELOPMENT AND INNOVATION THROUGH TH E CREATION OF NATIONAL STRATEGIC 
CONSORTIA FOR TECHNICAL RESEARCH (CENIT  PROGRAMME )..............................................19  
F. SUPPORT PROGRAMME FOR SCIENCE AND TECHNOLOGY PARKS ..............................................21  
G. SHIPBUILDING SUBSIDIES ..........................................................................................................22  
H. INTEREST SUBSIDY FOR SHIPBUILDING LOANS .........................................................................23  
I. AID FOR TRAINING SHIPBUILDING WORKERS ............................................................................25  
J. PROGRAMME FOR THE PROMOTION OF RENEWABLE ENERGIES AND ENERGY 
EFFICIENCY ............................................................................................................................... .26 
K. PROGRAMME FOR THE INITIAL TRAINING OF ONLINE WORKERS (INTRO)...............................27  
L. PROGRAMME FOR THE EXTENSION OF BROADBAND ACCESS TO RURAL AND ISOLATED 
AREAS (PEBA) ......................................................................................................................... .29 
IV. SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) ................................................30  
A. ARTE-SME PROGRAMME II ........................................................................................................30  
B. SME  CONSOLIDATION AND COMPETITIVENESS PLAN ...............................................................32  
V. REGIONAL SUBSIDIES.......................................................................................................35  
A. REGIONAL ECONOMIC INCENTIVES SCHEME .............................................................................35  
B. REINDUSTRIALIZATION OF DECLINING INDUSTRIAL AREAS ......................................................36   G/SCM/N/155/EEC/Add.24 
 Page 3 
 
 
  I. FISHERIES 
 2005 AND 2006 BUDGET - DOMESTIC FUNDING COMPONENT IN EU CO-
FINANCED PROGRAMMES 
 
 The information includes a summary of all fisheries programmes together with detailed 
information on each of them. 
  Pursuant to Council Regulation (EC) No 2369/ 2002 of 20 December 2002, amending Council 
Regulation (EC) No 2792/1999 of 17 December  1999, laying down the detailed rules and 
arrangements regarding Community structural assistan ce in the fisheries and aquaculture sector, and 
Royal Decree 3448/2000 of 22 December, establishing th e basic regulations for structural aid in the 
fisheries and aquaculture sector, Royal Decree 235/2002 of 1 March, amending Royal 
Decree 3448/2000, Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid, and Royal Decree 1473/2004 of 18 June, introducing socio-economic measures in the fisheries sector and amending Royal Decree 3448/ 2000, the following aid has been granted: 
 
Promotion of aquaculture
 
 
 2005:  €5.01 million.   2006 (provisional):  €2.60 million. 
 
Marine cultivation plans
 
 
 2005:  €2,400,000.  
 2006:  €2,900,000. 
 
Reorganization and renovation of the fishing fleet
 
 
2005: 
  Definitive stoppage of fishing 
€2.89 million  was spent on a total of 171 projects. 
Renovation and modernization of the fishing fleet 
€5.74  million  was transferred to the Autonomous Communities. 
 Socio-economic measures for reorganization of the fleet 
 €0.28  million  in support was provided to 155 beneficiaries. 
  2006 (provisional):  
 
Definitive stoppage of fishing  
€4.89  million  was spent on 106 projects. 
Renovation and modernization of the fishing fleet 
€6.38  million  was transferred to the Autonomous Communities. 
Socio-economic measures for reorganization of the fleet 
€0.26  million  in support was provided to 111 beneficiaries.  
  Pilot experimental fishing projects 
 
 
 2005:  Average aid to pilot experimental fishing projects:  €110,000 per month for the duration of the scheme. G/SCM/N/155/EEC/Add.24 
Page 4  
 
   2006:  Average aid to pilot experimental fishing projects:  €140,000 per month for the 
duration of the scheme.  A. P
ROMOTION OF AQUACULTURE  
1. Title of the programme  
 
Promotion of aquaculture. 
 2. Period covered by the notification
 
 
 2005 and 2006. 
 3. Policy objective and/or purpose of the subsidy
 
  Promotion and development of tangible inve stment in marine and inland aquaculture. 
 
4. Authority
 
  Royal Decree 3448/2000 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector, and Royal Decree 235/200 2 of 1 March, amending Royal Decree 3448/2000. 
 
5. Form of the subsidy
 
 
Direct aid.1 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Enterprises in the aquaculture sector.  7. Subsidy per unit or total amount of the subsidy
 
  2005:  €5.01 million. 
 
 2006 (provisional):  €2.60 million.  8. Duration of the subsidy
 
 
2000 – 2006.  The programme has therefore ended. 
 9. Statistical data permitting an assessment of the trade effects of the subsidy
 
  The promotion of aquaculture helps to alleviate the fish supply crisis, while reducing pressure on fish stocks, and would thus not appear to have any negative effects on trade. 
                                                     
 
1 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 5 
 
 
  B. M ARINE CULTIVATION PLANS  
1. Title of the programme  
 
 National Marine Cultivation Plans. 
 
2. Period covered by the notification  
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 Development and implementation of Nationa l Marine Cultivation Plans as a means of 
strengthening the balanced development of aquaculture.  4. Authority
 
 
 Law 23/1984 of 25 June, on marine cultivation.  5. Form of the subsidy
 
  Direct aid.
2 
 
6. Beneficiaries  
  Natural and legal persons holding concessions or permits for research into or exploitation of 
mariculture resources. 
 
7. Subsidy per unit or total amount of the subsidy
 
 
2005:   €2,400,000.  
 
2006:  €2,900,000. 
 
8. Duration of the subsidy  
  Annual.  
9. Statistical data permitting an assessment of the trade effects of the subsidy
 
 The promotion of aquaculture helps to alleviate the fish supply crisis, while reducing pressure on 
fish stocks, and would thus not appear to have any negative effects on trade. 
C. R EORGANIZATION AND RENOVATION OF THE FISHING FLEET :  RENOVATION AND 
MODERNIZATION OF THE FISHING FLEET  
1. Title of the programme  
 
 Renovation and reorganization of fishing vessels. 
                                                      
2 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 6  
 
   
2. Period covered by the notification
 
  Financial years 2005 and 2006.  
3. Policy objective and/or purpose of the subsidy
 
  Promotion of investment in the renovation and m odernization of the fishing fleet with a view 
to improving safety and working conditions in the fisheries sector, inter alia .  The cut-off date for aid 
to shipbuilding was 31 December 2004.  However, su bsidies for the modernization of existing vessels 
continued until 31 December 2006. 
 4. Authority
 
  Royal Decree 3448/2000 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector;  Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2000;  and 
Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid.  5. Form of the subsidy
 
  Non-repayable subsidies.
3 
 
6. Beneficiaries  
  Owners of fishing vessels.  
7. Amount of the subsidy
 
  2005:  €5.74 million.   2006 (provisional):  €6.38 million.  
8. Duration of the subsidy
 
  2000 – 2006.  The programme has therefore ended.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Subsidies granted for temporary and definitiv e stoppage have always exceeded those for 
shipbuilding (until 31 December 2004) and moderniza tion.  They have consequently brought about a 
reduction in the gross registered tonnage (GRT) of  the Spanish fishing fleet and are therefore not 
considered to have had any negative effects on trade. 
 
D. R EORGANIZATION AND RENOVATION OF THE FISHING FLEET :  DEFINITIVE STOPPAGE  
1. Title of the programme  
  Definitive stoppage of fishing  
                                                     
 
3 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 7 
 
 
  2. Period covered by the notification  
  Financial years 2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 Restructuring of the fleet to encourage a co mplete end to fishing by certain vessels.  
Decommissioned fishing vessels that are deleted from the Third List of the Shipping Register and the 
official fishing fleet records may be handed over to  a joint enterprise in a third country, scrapped or 
sunk. 
 
4. Authority  
  Royal Decree 3448/2000 of 22 December ( Boletín Oficial del Estado  (Official Journal) of 
23 December 2000), establishing the basic regulations for structural aid in the fisheries sector. 
 
 Royal Decree 1048/2003 of 1 August, on the regula tion of the fisheries sector and structural 
aid.  5. Form of the subsidy
 
 
 Capital grants.4 
 6. Beneficiaries
 
  The aid is paid directly to shipowners in the fisheries sector. 
 
 The amount granted varies in accordan ce with Table 1 of Annex I to Royal 
Decree 3448/2000.   The amount granted varies in accordan ce with Table 1 of Annex I to Royal 
Decree 1048/2003. 
 
7. Subsidy per unit or total amount of the subsidy
 
  In 2005, €2.89 million was spent on a total of 171 projects. 
 In 2006 (provisional), €4.89 million wa s spent on a total of 106 projects. 
 
8. Duration of the subsidy
 
  The programme covered the period 2000  to 2006 and has therefore ended. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 There are no effects on trade since these paymen ts are made to compensate for the stoppage 
of fishing.  
                                                     
 
4 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 8  
 
  E. R
EORGANIZATION AND RENOVATION OF THE FISHING FLEET :  SOCIO -ECONOMIC MEASURES  
1. Title of the programme  
  Socio-economic measures.  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 To introduce socio-economic measures for fi shermen of boats subject to fisheries 
restructuring measures who fulfil certain criteria.  4. Authority
 
 
 Royal Decree 3448/2001 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector;  Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2002;  and 
Royal Decree 1473/2004 of 18 June, introducing socio-economic measures in the fisheries sector and amending Royal Decree 3448/2000.  
5. Form of the subsidy
 
  Non-repayable subsidy
5 of a percentage of the amount requested.  
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Workers in the fisheries sector.  7. Subsidy per unit or total amount of the subsidy
 
  In 2005, €0.28 million in support was provi ded to 155 beneficiaries.  Fixed amount. 
 
 In 2006 (provisional), €0.26 million in support was provided to 111 beneficiaries.  Fixed 
amount.  8. Duration of the subsidy
 
 
 2000 – 2006.  The programme has therefore ended. 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  The subsidy is not considered to have any negative trade effects since it is intended for 
measures in support of workers in the sector. 
 
                                                     
 
5 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 9 
 
 
  F. P ILOT EXPERIMENTAL FISHING PROJECTS  
1. Title of the programme  
  Pilot experimental fishing projects.  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 Subsidies to the owners of Spanish fishing vessels for participation in pilot projects for 
experimental fishing in external and internationa l waters and waters under the jurisdiction of third 
countries.  According to Council Regulation (EC) No 2792/1999 of 17 December, a pilot 
experimental fishing project means a project carri ed out by an economic operator, a scientific or 
technical body or another competent body to test, in conditions approaching actual conditions in the 
industry, the technical reliability and/or financial viability of an innovative t echnology with a view to 
acquiring and disseminating technical and/or financ ial knowledge of the technology being tested.  
Pilot projects must always comprise scientific monitoring of sufficient intensity and duration to obtain significant results.  They are required to have as their aim the conservation of fishery resources and to implement more selective techniques. 
 
4. Authority
 
  Royal Decree 3448/2000 of 22 December (Official Journal of 23 December 2000), 
establishing the basic regulations for stru ctural aid in the fisheries sector. 
 
5. Form of the subsidy
 
  Non-repayable subsidy
6 of 80 per cent of the maximum subsidizable cost. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Owners of fishing vessels.  7. Subsidy per unit or total amount of the subsidy
 
 
 2005:  Average aid to pilot experimental fishing projects:  €110,000 per month for the 
duration of the scheme.   2006:  Average aid to pilot experimental fishing projects:  €140,000 per month for the duration of the scheme.  
8. Duration of the subsidy
 
  2000 – 2006.  The programme has therefore ended.  
                                                     
 
6 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 10  
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The subsidies are intended for research and experimentation in the fisheries sector and are therefore not considered to have any negative effects on trade.  II. MINING 
A. D
EVELOPMENT OF NON -ENERGY MINING  
1. Title of the programme  
  Development of non-energy mining. 
 
 State Aid Decision N499/2004.  2. Period covered by the notification
 
 
 2005 and 2006. 
 3. Purpose of the subsidy
 
  To develop geological/mining exploration and research in the non-energy mining sector and 
to reduce the environmental impact of non-energy mining activities. 
 
4. Authority
 
  Ministerial Order ITC/1929/2005 of 17 J une (Official Journal of 22 June 2005). 
 
5. Form of the subsidy
 
  Non-repayable subsidy
7 and repayable subsidy.  Non-repa yable subsidy in the case of all 
environmental projects and certain geological/mining research projects.  Repayable subsidy (up to a 
maximum of 70 per cent of the eligible investment) at the request of the applicant, in the case of 
geological/mining research projects geared towards th e opening of new work centres, provided that 
research results are positive, with a repayment period of  five to 10 years, the interest rate being the 
European Central Bank reference rate;  with this type of project, the repayable subsidy becomes a 
non-repayable subsidy where research results are negative.  6. To whom and how the subsidy is provided
 
 
 Enterprises, associations of enterprises or ins titutions which implement projects that meet the 
objectives set forth in point 3 ar e eligible for the subsidy. 
  The subsidies for both environmental projects and geological/mining research projects are available for projects located in any region. 
 
 This aid is contingent upon the applicants me eting their tax and social security obligations, 
and the recipients must produce documents showing th at the subsidized activity has been carried out. 
 
                                                     
 
7 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 11 
 
 
  7. Amount of the subsidy  
  2005:  €5.90 million.   2006:  €6.87 million. 
 
 The maximum aid varies between 20 per cent and 70 per cent of the subsidizable investment 
depending on the kind of project, whether a repayabl e subsidy or a non-repayable subsidy is requested 
and whether or not the enterprise is an SME.  
8. Duration of the subsidy
 
  The programme ended on 31 December 2006.  9. Statistical data on the trade effects of the subsidy
 
 
 The programme has no trade effects because of its small scale compared with the size of the 
sector (annual turnover of around €4,400 million) and th e high number of recipients, i.e. 162 projects 
in 2005 and 154 projects in 2006.  B. A
ID TO JOB CREATION BUSINESS PROJECTS IN MINING AREAS  
1. Title of the programme  
  Aid scheme for job creation business projects that promote alternative development in mining areas.  State Aid Decisions N476/2001 and N476/2006.  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose is to promote regional development through aid for investment projects that help 
to reduce the dependency on coal mining of the areas concerned.  4. Authority
 
 
 Resolution of 21 January 2005 of the Institute for the Restructuring of Coal Mining and the 
Alternative Development of Mining Regions (INRE CA), announcing aid for job creation business 
projects that promote the alternative development of mining areas.   Order ITC/2170/2006 of 4 June, adopting the regulatory basis for aid for job creation business projects that promote the alternative development of mining areas, for 2006. 
 
5. Form of the subsidy
 
  Non-repayable subsidies
8, granted for productive investments and calculated on the basis of 
the investment approved by the authorities. 
                                                      
8 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 12  
 
   
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Aid is granted to enterprises, in genera l SMEs, and to independent entrepreneurs. 
 
 Once approved, the subsidy is notified individua lly to the parties concerned in an individual 
resolution establishing the basic project data (investment, employment, deadlines).   The aid is paid once the corresponding Autonomous Community, acting through the relevant body, has issued a report substantiating full execu tion of the project and fulfilment, within the 
specified periods, of the requirements laid down in  the individual resolution accepted beforehand by 
the beneficiary.  Enterprises may apply to receive  the subsidy in instalments provided that they 
produce evidence that the part of the investment fo r each instalment has been made, together with 
adequate guarantees against failure to complete.  
7. Subsidy per unit or total amount of the subsidy
 
  2005:  €130,220,000 budgeted.    €117.9 million granted. 
  2006:  €123,930,000.  The allocation process is ongoing.  
8. Duration of the subsidy
 
  The current scheme will remain in effect until the end of 2006.  The scheme is being amended 
in 2007 to bring the maximum subsidies available into line with the new regional aid map drawn up 
by the European Commission. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  With regard to the statistical data permitting an assessment of trade effects, it should be noted 
that, since the subsidies take the form of capital for productive investment in disadvantaged regions 
and are authorized by the European Commission, th ey are not regarded as jeopardizing the principle 
of free competition. 
 C. A
ID FOR COAL MINING  
1. Title of the programme  
 
 State aid to the coal industry. 
2. Period covered by the notification  
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 The programme aims to cover the difference between coal mining costs and coal sales revenues.   G/SCM/N/155/EEC/Add.24 
 Page 13 
 
 
  4. Authority  
  Community legislation:   Council Regulation (EC) No 1407/2002 of 23 July 2002 on State aid to the coal industry. 
 
 National legislation:   ORDER ITC/626/2005 of 9 March, announcing and regulating aid to the coal industry for 2005, corresponding to the aid provided for in Artic les 4 and 5.3 of Council Regulation (EC) No 
1407/2002 of 23 July 2002 on State aid to the coal industry. 
  ORDER ITC/1188/2006 of 21 April, establishing the regulatory basis for aid to the coal mining industry for 2006 and 2007, corresponding to th e aid provided for in Articles 4 and 5.3 of 
Council Regulation (EC) No 1407/2002 of 23 July 2002 on State aid to the coal industry. 
 
 ORDER ITC/2002/2006 of 15 June, adopting the regulatory basis for aid for labour costs in the form of pay-offs and aid intended to offset co sts arising from the closure of coal mining company 
production units, for the period 2006-2012.   ROYAL DECREE 808/2006 of 30 June, establishing the aid scheme for labour costs in the 
form of early retirement, intended to cover excep tional costs from rationalization and restructuring 
plans for coal mining company activities.  5. Form of the subsidy
 
 
 In the case of loss coverage, non-repayable subsidies9 are granted to coal mining companies 
the production costs of which exceed their sales re venue.  Aid is regulated by and requires the 
approval of the European Commission.  Costs rela ted to the closure of mining operations are also 
subsidized.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Coal mining companies which sustain operating losses are eligible for this subsidy.  The 
subsidy is payable in twelve instalments.  Ea rly retirement and compensation payments are paid 
directly to the workers.  
7. Subsidy per unit or total amount of the subsidy
 
  Aid to cover losses:   2005: €88,857,090 for State enterprises a nd €296,168,140 for private enterprises. 
 2006: €88,857,090 for State enterprises a nd €296,168,140 for private enterprises. 
 
 Aid for the closure of mining operations and early retirement:   2005: social costs:   €275,000,000;  technical costs:  €20,000,000.  2006: social costs:   €258,000,000;  technical costs:  €42,490,000. 
 
                                                     
 
9 That is to say, grants within the meaning of Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures G/SCM/N/155/EEC/Add.24 
Page 14  
 
   Part of the budget for technical costs may be  transferred to social costs, if necessary. 
 8. Duration of the subsidy
 
  The current scheme will remain in effect un til the end of 2010 when Council Regulation (EC) 
No. 1407/2002 expires. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  With regard to the statistical data permitting an assessment of trade effects, it should be noted 
that Spain imports 20 to 24 million tonnes of coal  per year, in accordance with annual hydrological 
behaviour.  The disappearance of the 12 million tonnes of  coal produced by Spain, equivalent in terms 
of calorific value to seven million tonnes of impor ted coal, would have hardly any impact on the 
global interoceanic trade of 700 million tonnes of coal per year.  III. INDUSTRY 
A. T
ECHNICAL RESEARCH DEVELOPMENT PROGRAMME  
1. Title of the programme  
  Technical Research Development Programme (PROFIT).  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 To contribute to the further and more balan ced development of the still small-scale Spanish 
Science-Technology-Enterprise (CTE) system by means of an aid scheme for research and 
development projects and activities.  4. Authority
 
 
 ORDER PRE/690/2005 of 18 Ma rch 2005 (Official Journal of  19 March 2005), setting out 
the basis, support arrangements and management of technical research development under the 
National Scientific Research, Development a nd Technological Innovation Plan (2004-2007). 
 
 ORDER PRE/402/2006 of 16 February (Official  Journal of 20 February 2006), amending 
ORDER PRE/690/2005 of 18 March.  5. Form of the subsidy
 
  Non-repayable subsidies
10 and interest-free loans. 
 
                                                      
10 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 15 
 
 
  6. Beneficiaries:  to whom and how the subsidy is provided  
  Support is available to enterprises, technol ogy centres, private non-profit-making research 
and development centres, public research and deve lopment centres, other public legal entities and 
groups or associations (temporary business associati ons (UTE), economic interest groups (AIE), non-
profit-making sector associations), as defined in ORDER PRE/690/2005 of 18 March 2005, amended 
by ORDER PRE/402/2006 of 16 February. 
 The PROFIT Programme invites applications for its subsidies on an annual basis.  The 
competitive application process is open to anyone w ho wishes to carry out research and development 
projects or activities in the various technological areas already defined as of interest by the 
programme. 
 7. Subsidy per unit or total amount of the subsidy
 
  In 2005, subsidies amounting to €121.91 m illion and loans amounting to €414.66 million 
were granted. 
  In 2006, subsidies amounting to €179.88 m illion and loans amounting to €395.61 million 
were granted.  8. Duration of the subsidy
 
 
 The PROFIT Programme remains in effect until the end of 2007.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this pr ogramme, which mainly concerns  technological development and 
which is open to enterprises in many industrial and services sectors, together  with the considerable 
number of beneficiaries of the specific projects subm itted (over 4,000 each year), the trade effects of 
the subsidies are minimal, since such aid is distributed over a wide range of economic activities. 
 B. T
ELECOMMUNICATIONS TRAINING PROGRAMME (FORINTEL) 
1. Title of the programme  
  Telecommunications Training Programme (FORINTEL).   State Aid No. XT-14/03. 
 
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 These subsidies aim to ensure the constant adjustment and development of professions and 
job descriptions and the improvement of skills and qualifications in respect both of enterprises and 
staff in the telecommunications/information technology sector and of user sectors.  
 The programme provides aid for general traini ng within the meaning of Article 2(e) of 
Commission Regulation (EC) No. 68/2001.  G/SCM/N/155/EEC/Add.24 
Page 16  
 
   It comprises two activities: 
  Training for telecommunications and new information technology users;  Training for telecommunications and information technology professionals. 
 
 The programme is co-financed by the European  Social Fund (ESF) within the framework of 
the Operational Programme for Business Initiative and On-Going Training.  4. Authority
 
 
 ORDER ITC/582/2005 of the Ministry of Industry, Tourism and Trade of 4 March, 
establishing the regulatory basis for the Telecommunications Training Programme (Forintel), as amended by Order ITC/544/2006 of 24 February , pursuant to Commission Regulation (EC) 
No. 68/2001 on training aid.  
5. Form of the subsidy
 
  Non-repayable subsidies.
11 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Any non-profit-making public, semi-public or  private organization with its own legal 
personality which habitually provides training services to enterprises.   Organizations the majority of the capital of  which is State-owned and which habitually 
provide training services to enterprises, provided th at they are engaged in activities which are not 
pursued for profit-making purposes. 
  Enterprises, the main activity of which is the provision of training services for the market and 
which have a proven capacity in telecommunica tions and information technology training. 
  Subsidies may reach up to 70 per cent gross of the eligible expenditure (e.g. teaching staff 
costs, running costs, funding of instruments and equipm ent to the extent that they are used exclusively 
for the training project or activity, staff costs of pa rticipants, advisory service costs, travel expenses of 
teaching staff and training beneficiaries), whatever th e type of beneficiary, with the exception of large 
enterprises, in which case subsidies may not exceed 50 per cent.  
7. Subsidy per unit or total amount of the subsidy
 
  In 2005, subsidies amounting to  €23.07 million were granted. 
  In 2006, subsidies amounting to  €16.94 million were granted. 
 
8. Duration of the subsidy
 
  The deadline for submitting subsidy applications was 30 June 2006. 
 
                                                     
 
11 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 17 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Given the nature of this programme and the numerous sectors of activity that it covers, the 
subsidies have no noticeable effects on trade.  
C. T
ECHNICAL RESEARCH DEVELOPMEN T PROGRAMME FOR THE TEXTILE /CLOTHING SECTOR  
1. Title of the programme  
  Technical Research Development Programme for the Textile/Clothing Sector (2005-2007). 
 
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 The primary objectives of this programme are as follows:  to encourage any industrial 
research and technological development programme  that enhances the technological capacity of 
enterprises;  to extend the culture of cooperati on in research and development among enterprises and 
between enterprises and other research bodies;  to  disseminate the results and achievements of 
research and development;  and to encourage coope ration between enterprises in order to acquire 
critical mass and enhance the competitiveness of SMEs in the sector. 
 4. Authority
 
  Order ITC/217/2005 of 4 February (Official Journal of 9 February 2005), setting out the 
basis, support arrangements and management of th e Technical Research De velopment Programme for 
the Textile/Clothing Sector (2005-2007), and the call for subsidy applications for 2005. 
  Order ITC/217/2005 of 4 February (Official Journal of 9 February 2005), setting out the 
basis, support arrangements and management of th e Technical Research De velopment Programme for 
the Textile/Clothing Sector (2005- 2007), as amended by Order ITC/ 194/2006 of 1 February (Official 
Journal of 4 February 2006), and the ca ll for subsidy applications for 2006. 
 5. Form of the subsidy
 
  Subsidies
12 and repayable interest-free loans. 
 
6. Beneficiaries:  to whom and how the subsidy is provided  
  Private enterprises and groups or associations of enterprises in the textile/clothing sector, 
private non-profit-making research centres and other private non-profit-making entities are eligible for the subsidy. 
 
 The programme invites applications for its subsidies on an annual basis.  The competitive 
application process is open to anyone wishi ng to develop a project under the programme. 
 
                                                     
 
12 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 18  
 
   The granting of subsidies is contingent upon the applicants meeting their tax and social 
security obligations.  7. Subsidy per unit or total amount of the subsidy
 
 
 In 2005, subsidies amounting to €4.72 milli on and loans amounting to €14.33 million were 
granted.   In 2006, subsidies amounting to €5.12 milli on and loans amounting to €12.39 million were 
granted. 
 
8. Duration of the subsidy
 
  The programme is in effect until the end of 2007.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The Order establishing the regulatory basi s for the aid scheme (Order ITC/217/2005 of 
4 February) expressly stipulates that "such aid shall no t apply to export-related activities, in particular 
aid that is directly related to the quantities e xported, aid for the establishment and operation of a 
distribution network or aid for other current expendi tures linked to export activities, nor will there be 
any aid that depends on the use of domestic products over imported products".  This aid has therefore 
no impact on trade.  D. F
INANCING OF RESEARCH , DEVELOPMENT AND INNOVATION PROJECTS CONDUCTED BY 
ENTERPRISES  
1. Title of the programme  
  CDTI (Centre for Industrial Technological Development) loans.  2. Period covered by the notification
 
 
2005 and 2006. 
 3. Policy objective and/or purpose of the subsidy
 
  The aim of the subsidy is to help Spanish enterprises increase their technological capacity 
through the financing of business projects in th e areas of technological research, development, 
innovation and promotion.  4. Authority
 
  Royal Decree 1406/1986 of 6 June, approving the Articles of Association of the Centre for 
Industrial Technological Development (CDTI). 
 5. Form of the subsidy
 
  Interest-free loans. 
  G/SCM/N/155/EEC/Add.24 
 Page 19 
 
 
  6. Beneficiaries:  to whom and how the subsidy is provided  
 
The CDTI provides funding for research, de velopment and innovation projects that are 
developed by enterprises and submitted through an ongoing open application process.  Beneficiaries 
must be enterprises legally constituted in Spain. 
 
The amount of the loan granted for each project is  variable and is determined on the basis of 
the overall budget and the type of project involved.  It may not, however, exceed 40 to 60 per cent of 
the budget.  Payment of the loan is continge nt upon the presentation of documents certifying the 
targets met, as established in th e contract with the enterprise. 
 
7. Subsidy per unit or total amount of the subsidy  
  In 2005, disbursements, in the form of in terest-free loans, amounted to €238.53 million. 
 
 In 2006, disbursements, in the form of in terest-free loans, amounted to €310.43 million. 
 In 2005, the average loan granted for each  project was €576 thousand and the total average 
investment was €1,108 thousand.   In 2006, the average loan granted for each  project was €595 thousand and the total average 
investment was €1,127 thousand. 
 
8. Duration of the subsidy
 
 
Duration of the programme:  indefinite. 
 Loans granted by the CDTI fund projects spanning a number of years.  In 2006, the average 
duration of a project was 23 months with a repayment period of seven to nine years. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this pr ogramme, which mainly concerns  technological development and 
which is open to enterprises in many industrial and services sectors, together  with the considerable 
number of beneficiaries of the specific projects submitted (over 800 each year), the trade effects of 
these subsidies are minimal, since the loans are dist ributed over a wide range of economic activities. 
 E. P
ROGRAMME TO PROMOTE STABLE PUBLIC -PRIVATE COLLABORATION IN RESEARCH , 
DEVELOPMENT AND INNOVATION THROUGH THE CREATION OF NATIONAL STRATEGIC 
CONSORTIA FOR TECHNICAL RESEARCH (CENIT  PROGRAMME ) 
1. Title of the programme  
  Programme for National Strategic Consortia for Technical Research (CENIT Programme). 
State Aid Decision N410/2005.  
2. Period covered by the notification
 
 
2005 and 2006. 
 G/SCM/N/155/EEC/Add.24 
Page 20  
 
  3. Policy objective and/or purpose of the subsidy
 
  The aim of the programme is to finance st able public-private collaboration in research, 
development and innovation, in areas of strategic importance to the economy, through the creation of 
national strategic consortia for technical research (CENIT Programme). 
 
4. Authority
 
  ORDER ITC/2759/2005 of 2 August, adopting the regulatory basis for the granting of subsidies intended to promote stable public-pri vate collaboration in research, development and 
innovation, in areas of strategic importance to the economy, through the creation of national strategic 
consortia for technical research (CENIT Progra mme) (Official Journal No. 209 of 1 September 2005). 
  Resolution of 28 October 2005 of the Centre for Industrial Technological 
Development (CDTI), announcing subsidies intended to  promote stable public-private collaboration in 
research, development and innova tion, in areas of strategic importance to the economy, through the 
creation of national strategic consortia for t echnical research (CENIT Programme) (Official 
Journal No. 262 of 2 November 2005).  5. Form of the subsidy
 
 
 Non-repayable subsidies13 granted to finance major integrated projects for strategic industrial 
research which are large in scale and of broad scientific/technical scope.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Support is available to any group of public or private legal pers ons, in the terms established in 
Article 11.3 of the General Law on Subsidies 38/ 2003 of 17 November.  Such groups will be 
governed by the contractual document regulating them.   Groups are required to comprise at least four autonomous firms (two large or medium-sized 
enterprises and two small enterprises) in accordan ce with the European Commission definition. 
 
 The relevant participation in the project of at  least two research bodies is also required.  Their 
participation must, in all cases, be formalized by means of a subcontract with one or more of the 
enterprises belonging to the group.  
 Projects must have an average annual budget of between €5 and 10 million.  The maximum 
intensity allowed is 50 per cent of the eligible costs of the project.   Beneficiaries may receive the subsidy in in stalments, as provided in the annexes to the 
decision granting the support, once evidence has be en furnished that the activities corresponding to 
each instalment have been carried out. 
 7. Subsidy per unit or total amount of the subsidy
 
  No disbursements were made in 2005.  In 2006, subsidies amountin g to €200 million were 
approved. 
 
                                                     
 
13 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 21 
 
 
  8. Duration of the subsidy  
  The subsidies approved by the CDTI finance pr ojects with a normal duration of four years. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this programme, whic h seeks to encourage stable public-private 
collaboration in the field of innovation and to fina nce major projects geared towards planned research 
in technological areas of the future and with possi ble international ramifications, with a view to 
generating fresh knowledge which c ould prove useful in the development of new products, processes 
or services or for technological integration, the trad e effects of these subsidies are minimal, given the 
distribution of the subsidies over a wide range of  economic activities, the considerable number of 
beneficiaries (178 enterprises and 210 research centres have made use of the programme), and the marked pre-competitive nature of the projects, wh ich distances them considerably from the market. 
 
F. S
UPPORT PROGRAMME FOR SCIENCE AND TECHNOLOGY PARKS  
 1. Title of the programme
 
  Support programme for science and technology parks.  State Aid Decision N91/2004.  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 To contribute to the further and more balan ced development of the still small-scale Spanish 
Science-Technology-Enterprise (CTE) system, by  means of an aid scheme for research and 
development projects and activities, in par ticular through science and technology parks. 
 4. Authority
 
 
 2005.   Order ECI/1385/2005 of 9 May (Official Journal of 18 May), establishing the regulatory basis 
for the granting of aid under the National Research , Development and Innovation Plan (2004-2007) to 
research and development projects conduc ted in science and technology parks. 
  2006.   Order ECI/396/2006 of 13 February (Offici al Journal of 18 February), amending 
Order ECI/1385/2005 of 9 May. 
 
 Community framework for State aid for research and development (96/C 45/06).  5. Form of the subsidy
 
 
 Repayable loans and subsidies.14 
                                                      
14 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
Page 22  
 
   
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Support is available to entities which promot e science and technology parks, as defined by 
Order ECI/1385/2005 of 9 May, amended by Orde r ECI/396/2006 of 13 February.  Enterprises, 
technology centres, non-profit-making bodies and pub lic legal entities which are established in the 
parks and which are engaged in research, de velopment and innovation activities will also be 
considered beneficiaries in the case of coopera tion projects which are coordinated and therefore 
presented by the park promoter.  
7. Subsidy per unit or total amount of the subsidy
 
  In 2005, subsidies amounting to €1.2 milli on and loans amounting to €213.9 million were 
granted.  
 In 2006, subsidies amounting to €1.46 milli on and loans amounting to €331.47 million were 
granted.  8. Duration of the subsidy
 
  The National Plans will remain in effect for four years, until 2008. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme for the promotion of science and technology parks, the 
trade effects of the subsidies depend on the exte nt of applied research involved in the activities 
conducted.  Such effects are, however, minimal. 
 G. S
HIPBUILDING SUBSIDIES  
1. Title of the programme  
  Shipbuilding subsidies.  State Aid Decision N757/2000. 
 
2. Period covered by the notification
 
  2005 and 2006.  
3. Purpose of the subsidy
 
  The fundamental aim of Community and national policy is to ensure that the shipbuilding sector remains competitive, in view of the difficult market situation and the need to encourage yards 
to make the necessary changes to improve competitiveness.  
4. Authority
 
  Article 9 of Royal Decree 442/1994 of 11 March,  on shipbuilding subsidies and financing, as 
subsequently amended by Royal Decrees 1395/ 1995, 1562/1997, 2600/1998, 3452/2000, 1274/2003 
and 59/2005. 
 
 These subsidies are granted from 1 Janua ry 2004 to 31 December 2006 under Council 
Regulation (EC) No. 659/1999 of 22 March 1999, layi ng down detailed rules for the application of 
Article 93 of the EC Treaty;  Council Regulation (EC) No. 1177/2002 of 27 June 2002, concerning a  G/SCM/N/155/EEC/Add.24 
 Page 23 
 
 
  temporary defensive mechanism to shipbuildi ng, and the amending Council Regulation (EC) 
No. 502/2004 of 11 March 2004;  and primarily un der the Framework on State aid to shipbuilding 
(2003/C 317/06).  5. Form of the subsidy
 
 
 Non-repayable subsidy.15 
 6. To whom and how the subsidy is provided
 
 
 The subsidy is paid to shipyards which build  metal hull vessels of over 100 gross registered 
tonnes on building contracts dated prior to 31 D ecember 2003 and which deliver the vessels no later 
than three years after signing the contract, with the exception of fishing vessels after 19 October 1997. 
  The subsidy is provided once the construction or  conversion contract ha s come into effect.  
Payments are made as the ship is built or convert ed, subject to provision being made in the annual 
budget, which means that payments are considerably delayed.  7. Amount of the subsidy
 
  2005  €314,394.07. 
 
 2006  €62,949.79.  8. Duration of the subsidy
 
 
 The period of application of the programme is the same as that provided for in the Framework 
on State aid to shipbuilding (2003/C 317/06) (Offici al Journal of the European Communities, DOCE, 
of 30 December 2003).  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The European Union's share of the world ship building market fell from 29 per cent in 2000 to 
8  per cent in 2003, increasing in 2004 and 2005 to 12 per cent and 16 per cent respectively, whilst the 
market shares of Korea and Japan rose from 21 pe r cent and 31 per cent respectively in 2000 to 22 per 
cent and 35 per cent respectively in 2005.  Conse quently, these subsidies have not increased the EU's 
share of the global market. 
 
H. I NTEREST SUBSIDY FOR SHIPBUILDING LOANS  
1. Title of the programme  
  Interest subsidy for shipbuilding loans.  
 State Aid Decision N811/A/2002. 
 2. Period covered by the notification
 
  2005 and 2006. 
                                                     
 
15 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 24  
 
   
3. Purpose of the subsidy
 
  To allow shipowners contracting vessels from Spanish shipyards to obtain funding under the 
conditions set forth in the OECD Arrangement on Guidelines for Officially Supported Export Credits 
and the Sector Understanding on Export Credits for Ships in Annex I thereto. 
 4. Authority
 
  Articles 11 to 14 of Royal Decree 442/1994 of  11 March, as amended by Royal Decrees 
1395/1995 of 4 August;  1562/1997 of 10 October;   2600/1998 of 4 December;  3452/2000 of 
22 December;  1274/2003 of 10 October;  and 59/ 2005 of 21 January.  Royal Decree 1511/2005 of 
19 December, bringing the regulations on aid to shipbuilding into line with the General Law on 
Subsidies 38/2003 of 17 November.  
 Community Framework on State aid to shipbuilding (2003/C 317/06, extended pursuant to 
Commission communication 2006/C 260/03). 
5. Form of the subsidy
 
  Interest subsidy.  The subsidy has a ceiling of 300 basic points for contracts signed prior to 31 December 2000 and a ceiling of 100 basic points for later contracts. 
 
6. To whom and how the subsidy is provided
 
  The interest subsidy is paid to financial en tities which grant loans to shipowners or third 
parties to finance the construction or conversion of vessels. 
 
 The subsidy is paid throughout the term of the loan (maximum 12 years), on the same date as 
that on which interest accrues and subject to provision being made in the annual budget. 
 7. Amount of the subsidy
 
 
 Interest subsidies for shipbuilding loans in 2003 and 2004 were as follows: 
  2005 €39,444.42 thousand.   2006 €145,660.80 thousand. 
 
8. Duration of the subsidy
 
  The period of application of the programme  ends on 31 December 2008, in accordance with 
the Community Framework on State aid to shipbuilding (2003/C 317/06, extended pursuant to Commission communication 2006/C 260/03). 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The European Union's share of the world ship building market fell from 29 per cent in 2000 to 
eight per cent in 2003, increasing in 2004 and 2005 to  12 per cent and 16 per cent respectively, whilst 
the market shares of Korea and Japan rose from 21 per cent and 31 per cent respectively in 2000 to 
22 per cent and 35 per cent respectively in 2005.  Consequently, these subsidies have not increased 
the EU's share of the global market.   G/SCM/N/155/EEC/Add.24 
 Page 25 
 
 
  I. A ID FOR TRAINING SHIPBUILDING WORKERS  
1. Title of the programme  
  Aid for training shipbuilding workers.  State Aid No. XT-7/03.  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 These subsidies are aimed at upgrading, thro ugh on-going training, the qualifications of 
shipbuilding workers.  The objective is to enhan ce the skills and personal development of workers 
employed in enterprises in this sector, the majority of which are SMEs. 
4. Authority  
 
 Resolution CN.4.02 F.S.E. of 8 May 2001 of th e General Directorate of Technology Policy of 
the Ministry of Science and Technology (now the Mi nistry of Industry, Tourism and Trade), and the 
Shipbuilding Sector Management Circular of 30 May 2001.   Commission Regulation (EC) No. 68/2001 on State aid to training. 
 
5. Form of the subsidy
 
  Non-repayable subsidy.
16 
 
6. Beneficiaries:  to whom and how the subsidy is provided  
  The following are eligible for aid under this programme:   Enterprises or groups of enterprises in the shipbu ilding and auxiliary industrial sectors, with 
the exception of enterprises engaged in production in th e field of coal and steel, within the meaning of 
Articles 80 and 81 of the Treaty establishing the European Coal and Steel Community; 
  Public, semi-public or private organizations w ith their own legal personality which habitually 
provide training services to enterprises.  
 The final recipients of the aid provided by this programme are workers employed by 
enterprises in the Spanish shipbuilding industry, wh ich encompasses both shipyards and the auxiliary 
enterprises that contribute to the sh ip design and construction process. 
 7. Subsidy per unit or total amount of the subsidy
 
 
 In 2005, subsidies amounting to  €15.8 million were granted. 
  In 2006, subsidies amounting to €9.4 million were granted.  
                                                     
 
16 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 26  
 
  8. Duration of the subsidy
 
  The programme was in effect until 2006.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the aim of this aid programme is to tr ain shipbuilding workers, the subsidies are not 
considered to have any effects on trade.  10. Duration of the aid scheme
 
 
 The programme remained in effect until 31 December 2006.  11. Trade effects
 
 
 Activities which are eligible for aid fall into the research and development categories defined 
in the Community framework for State aid for res earch and development and are not closer to the 
market than pre-competitive development.  The European Commission itself has concluded that such 
subsidies do not affect trade and that they are compatible with the Eu ropean single market. 
 J. P
ROGRAMME FOR THE PROMOTION OF RENEWABLE ENERGIES AND ENERGY EFFICIENCY  
1. Title of the programme  
  Renewable energy and energy efficiency support schemes:   State Aid Decision N188/2005, which integrates and standardizes the aid schemes provided 
for under Decisions N459/2001, N460/2001 (in turn amended by N339/2004) and N198/2002, 
granting aid in favour of thermal solar energy, in  favour of photovoltaic solar energy and for the 
financing of renewable energy sources and energy efficiency.  2. Period covered by the notification
 
 
Until 31 December 2010. 
3. Policy objective and/or purpose of the subsidy  
  This programme is a scheme supporting energy  saving and renewable energy projects which 
embrace new concepts not present in the context of  previous programmes, such as investment in 
district energy services, energy efficiency in water transport and treatment, replacement of diesel oil 
by LPG, natural gas or hydrogen in urban transpor t, energy recovery from waste, production of 
biofuels, and use of geothermal, tid al and wave energy and fuel cells. 
 4. Authority
 
 
 The legal basis for the scheme is the Official Credit Institute  (ICO) – Institute for Energy 
Diversification and Saving (IDAE) Financing Ag reement for the promotion of investment in 
renewable energies and energy efficiency.   This programme integrates the three aid schem es existing to date (in favour of solar and 
photovoltaic energy, renewable energy sources and energy efficiency) and authorized by the 
Commission for each period.   G/SCM/N/155/EEC/Add.24 
 Page 27 
 
 
   The scheme is in compliance with environmental directives. 
 5. Form of the subsidy
 
  Non-repayable subsidy
17 for projects relating to thermal solar energy, photovoltaic solar 
energy and other renewable energies and energy effi ciency, with facilitated access to investment for 
areas where project implementation is difficult.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Aid is directly available to natural and le gal persons from the public and private sectors who 
invest in eligible programmes through the provision of new fixed assets, plant and equipment located 
in Spain.  There are no restrictions on the origin of these assets, plant or equipment. 
 7. Subsidy per unit or total amount of the subsidy
 
 
 In 2005, subsidies amounting to  €12.8 million were granted. 
  In 2006, subsidies amounting to  €47.3 million were granted. 
 8. Duration of the subsidy
 
 
 The programme will remain in effect until 2010.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 The impact on public and private investments under the programme is in line with European 
environmental policies;  the effect of these subsid ies on trade, in particular on enterprise trading 
activities, is therefore minimal.  K. P
ROGRAMME FOR THE INITIAL TRAINING OF ONLINE WORKERS (INTRO) 
1. Title of the programme  
 
Programme for the Initial Training of Online Workers (INTRO). 
 State Aid No. XT-44/2005. 
 2. Period covered by the notification
 
 
 2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
  The INTRO Programme, which was launched in  2005, seeks to enhance competitiveness by 
supporting the development of business projects wh ich provide employee training in the field of 
telecommunications and the information society.  Th e aim is to familiarize employees with the use of 
new technologies through the provision of equipment a nd systems which afford access to the Internet 
and information services extending beyond the boundaries of the enterprises in question. 
                                                     
 
17 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 28  
 
   
 The programme is co-financed by the European  Social Fund (ESF) within the framework of 
the Operational Programme for Business Initiative and On-Going Training.  4. Authority
 
 
 Order ITC/2406/2005 of the Ministry of Industr y, Tourism and Trade of 20 July, announcing 
and establishing the regulatory basis for subsidies and repayable loans geared towards business plans 
and the training of employees in information soci ety technologies.  Programme for the Initial Training 
of Online Workers (INTRO). 
 Order ITC/2406/2005 of 20 July, as amended by  Order ITC/636/2006 of 6 March, and the 
Resolution of 9 March 2006 announcing support measures under the said Orders. 
 5. Form of the subsidy
 
 
 Non-repayable subsidies18 and interest-free loans. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
• Public and private enterprises, i.e. any lega l person, duly constitut ed at the time of 
submitting a subsidy application, whose main  activity is the production of goods and 
services for the market. 
 
• Other legal persons liable to company tax. 
  Gross aid intensity may not exceed 70 per cent of  the eligible expenditure, with the exception 
of large enterprises, for which gross aid intensity may not exceed 50 per cent.  In the event of the 
project being developed by an SME in one of the re gions referred to in Article 87.3(a) or 87.3(c) of 
the Treaty establishing the European Community, this percentage will increase by 10 or 5 percentage 
points respectively.  7. Aid per unit or total amount of the subsidy
 
 
 Subsidies totalling €1,804,081 and loans tota lling €2,717,123 were gr anted, payable in 
three instalments:  
• In 2005, subsidy payments totalling €500, 033 and loans amounting to €2,717,123 
were granted. 
 
• In 2006, subsidy payments totalling €1, 312,471 and loans amounting to €3,856,421 
were granted. 
 
8. Duration of the subsidy
 
  The deadline for submitting subsidy applications was 16 April 2006.  
                                                     
 
18 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
 Page 29 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Given the nature of this programme and the numerous sectors of activity that it covers, the 
subsidies have no noticeable effects on trade.  
L. P
ROGRAMME FOR THE EXTENSION OF BROADBAND ACCESS TO RURAL AND ISOLATED AREAS 
(PEBA) 
1. Title of the programme  
 
Programme for the Extension of Broadband A ccess to Rural and Isolated Areas (PEBA). 
 
2. Period covered by the notification  
 
2005 and 2006. 
 
3. Policy objective and/or purpose of the subsidy  
  This programme forms part of  the national broadband strategy  communicated to the European 
Commission in the framework of the coordinatio n mechanisms established under the eEurope Action 
Plan 2005.  
 The ultimate aim of the Programme for the Extension of Broadband Access to Rural and 
Isolated Areas is to achieve full coverage of na tional territory and make broadband available to all 
users, irrespective of the type of technology used in  each instance, and to achieve the highest effective 
penetration rate within the shortest possible time-frame. 
 
4. Authority
 
  Order ITC/701/2005 of 17 March, published in the Official Journal of 22 March 2005, setting 
out the basis, support arrangements and management  and opening the call for applications for the 
Programme for the Extension of Broadba nd Access to Rural and Isolated Areas. 
 
5. Form of the subsidy
 
  Repayable interest-free loans and non-repayable subsidies.
19 
 6. To whom and how the subsidy is provided
 
 
 Aid is directly available to electronic comm unication network operators and service providers 
on an individual basis or as part of any kind of corporate group, provided that it has its own legal personality.  Pursuant to the Commission Recomme ndation of 6 May 2003 concerning the definition 
of micro, small and medium-sized enterprises (Official Journal of the European Union, L 124 of 20 May 2003), large and medium-sized enterprises are not eligible for aid during the restructuring 
period and must obtain individual authorization from the Commission. 
  Indirect beneficiaries are applicants for broadband services in programme areas.  
                                                     
 
19 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 30  
 
   The programme was launched by means of an  open competitive application process published 
in the Official Journal.  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
 In 2005, investments to a value of €12, 016,422.74 were made under the programme, while 
€1,038,301.74 was granted in subsidies and €2,425,056.14 in loans.   In 2006, investments to a value of €28, 967,257.02 were made under the programme, while 
€2,694,467.18 was granted in subsidies and €4,041,972.50 in loans. 
 
8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement  
 
 The programme covers the period 2005-2008. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 No data are currently available on the effect of the programme on trade in the areas covered.  
This is because the emphasis during the initial stag es was on building up the necessary infrastructure 
and it is still too soon for the programme to ha ve had any significant impact on the demand for 
telecommunications services or on economic activity in these regions.  
IV. SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) 
A. A
RTE-SME PROGRAMME II  
1. Title of the programme  
  ARTE/SME Programme II (part of the "Information Society" Operational Programme).  
2. Period covered by the notification
 
  2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the programme is to help f und advanced telecommunication services projects 
of common interest to small and medium-sized en terprises, through the use of the Internet and 
electronic commerce.  4. Authority
 
 
 Order of the Ministry of Science and Technol ogy of 8 February 2001 (Official Journal of 
22 February 2001).   Commission Regulation (EC) No 69/2001 of  12 January 2001 on the application of 
Articles 87 and 88 of the EC Treaty to de minimis  aid. 
  G/SCM/N/155/EEC/Add.24 
 Page 31 
 
 
  5. Form of the subsidy  
  Non-repayable subsidy.
20 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Only legally established non-profit-making public  or private entities the purpose of which is 
to provide support services to small and medium-siz ed enterprises are eligible for the subsidy. 
  Zones classified as Objective 1 under the Eu ropean Regional Development Fund (ERDF) are 
priority zones for action. 
  The aid is contingent upon applicants meeti ng their tax and social security obligations.  
Recipients must also produce documents showing that  the subsidized activity has been carried out and 
that the relevant costs have been paid. 
 
7. Subsidy per unit or total amount of the subsidy
 
  Subsidies paid in 2005:  €10.80 million.   Subsidies paid in 2006:  €3.01 million. 
 
 Around 70 per cent of this amount was used to acquire computer equipment (hardware and software), to develop customized software and to purchase telecommunications terminals (modems, 
PCs) for use by small and medium-sized enterpri ses.  The remainder was used for communications 
costs and costs relating to feasibility studies,  as well as to promote the use of advanced 
telecommunications services and to provide technical assistance. 
 8. Duration of the subsidy
 
  The ARTE-SME Programme II lasted for five years, remaining in effect until 30 June 2006 
for the submission of new projects.  Nevertheless, subsidized projects may finance costs relating to 
the programme until 31 December 2008, in accordance with the Commission Decision of 
13 December 2001 concerning support from the Eur opean Regional Development Fund (ERDF) for 
an operational programme for Spain under the "I nformation Society" Operational Programme, 
Article 5 of which states that the deadline for expenditure is set at 31 December 2008.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  This aid regime has no trade effects owing to its small scale in comparison with the scale of trade and the large number of small and medium-siz ed enterprises that have indirectly benefited from 
it, given that the programme is multi-sectoral.  In a number of SME sectors the programme has nevertheless had the effect of increasing technol ogical development in telecommunications and the 
use of electronic commerce. 
 
                                                     
 
20 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 32  
 
  B. SME
 CONSOLIDATION AND COMPETITIVENESS PLAN  
1. Title of the aid programme  
  SME Consolidation and Competitiveness Plan.  
2. Period covered by the notification
 
  2005-2006.  3. Policy objective and/or purpose of the subsidy
 
 
The SME Consolidation and Competitiveness Plan provides for a series of support measures 
and development activities for small and medium -sized enterprises (SMEs), with a view to 
strengthening entrepreneurship a nd enhancing competitiveness.  Such measures include the following: 
3.1. Information society  
 
 The subsidies provided for in this regard ar e intended to support projects designed to ensure 
that SMEs are fully integrated into  the information society through: 
 
(a) The improvement of production, marketi ng, information and management processes 
in SMEs, incorporating information and communications technologies. 
 
(b) Support for the installation and use of data-transmission services (electronic 
commerce, telecommuting, portals, etc.). 
 3.2. Innovation in business methods
 
 
 This measure is designed to promote and sup port projects that seek the incorporation of a 
culture of innovation through design, the introd uction of quality systems, cooperation between 
enterprises, innovation in manage ment and organizational processes in SMEs, by means of the 
following categories of support:  
 3.2.1 Design
 
  Projects to be used to incorporate, include or  apply design technology in SMEs are eligible to 
receive support.  
 Support is to be used to finance projects designed to: 
 
(a) Improve new or existing products and/or services.  The design of products with a 
short life-cycle (of less than one year) is excluded, with the exception of products 
which involve a new line of activity for the enterprise. 
 
 Improve the marketing, promotion and communication of products and services, 
design of corporate identity, development of trademarks, packing and packaging, 
electronic design, spatial design and aspects of communication. 
 
(b) Improve design management in SMEs, situation analysis, design audits and the 
incorporation of more effec tive design management methods. 
  G/SCM/N/155/EEC/Add.24 
 Page 33 
 
 
   3.2.2 Cooperation networks between enterprises  
  The aim is to promote and strengthen networks  between enterprises with a view to assisting 
SMEs to acquire the means to adapt to the leve l of competition required in the global marketplace. 
 
 Support is to be used to finance projects designed to: 
 
(a) Identify possible groups of related enterprises and their collective needs. 
 
(b) Carry out feasibility studies of possibl e measures, together with their possible 
implementation, with a view to improving the competitive position of certain groups. 
 
(c) Implement joint measures to secure coopera tion agreements between enterprises, with 
a view to improving their competitive position. 
 
 3.2.3 Quality systems
 
  The support is to be used to finance project s designed to introduce environmental quality and 
regeneration systems in SMEs.  Such projects should:  
(a) Develop standardization processes for th e various non-industrial business sectors; 
 
(b) Design and introduce quality control systems for SMEs in the commercial, 
construction and services sectors, through situation analysis and advice on the 
installation of such systems, which will enab le them, in the short term, to acquire a 
quality certificate issued by an approved certification authority. 
 
SMEs will be entitled to this support either  on an individual basis or through projects 
submitted by intermediate bodies for a group of enterprises.  For individual enterprises, the project will be considered  complete when the enterprise provides 
proof that it has initiated the certification process. 
 
 3.2.4 Process innovation:  management and organization in SMEs
 
  The support is to be used to finance projects designed to:   (a) Provide technical support to help enterprises carry out situation analyses, incorporate 
innovatory processes and introduce innova tive management and organizational 
methods. 
 
(b) Provide advice on the introduction of new technologies. 
 4. Authority
 
 
 Royal Decree 582/2001 of 1 June 2001 (Official Journal of 2 June 2001). 
 5. Form of the subsidy
 
 
 Non-repayable subsidies.21 
                                                      
21 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures.  G/SCM/N/155/EEC/Add.24 
Page 34  
 
   
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Small and medium-sized enterprises and inte rmediate bodies are eligible for this aid. 
 
 Intermediate bodies are deemed to be: 
  (a) Any non-profit-making public, semi-public or private organization with its own legal 
personality which habitually provid es business support services to SMEs. 
 
 (b) Any entity the majority of the capital of  which is State-owned and which habitually 
provides business services to SMEs, provided that it is engaged in projects consistent with the above-mentioned measures and that it does not pursue these projects for 
profit-making purposes. 
 
 Enterprises which comply with the requi rements laid down in the Commission 
Recommendation of 6 May 2003 concerning the defi nition of micro, small and medium-sized 
enterprises (Official Journal of the European Unio n of 20 May 2003) shall be considered small and 
medium-sized enterprises.   Before receiving this subsidy, beneficiaries mu st show that they have complied with their tax 
and social security obligations. 
  They must also show that the subsidi zed activity has actually been carried out. 
 7. Amount of the subsidy
 
 
 The budgets for 2005 and 2006 were €61,992,370 and €63,232,210, respectively.  The funds are allocated according to the territorial scope laid down in Article 86 of Law No. 47/2003, the 
General Budget Law, and expenditure commitments may be ac quired up to 31 December of the 
budget year following the year in which the funds were  released.  Subsidies are granted on the basis of 
the technical and economic-financial viability of th e projects, with maximum aid limits of up to 
100 per cent of subsidizable expend iture for intermediate bodies and up to 50 per cent of the cost of 
external collaboration for enterprises.   When investment aid is granted directly to SMEs, aid intensity is 7.5 per cent (medium-sized 
enterprises) or 15 per cent (small enterprises).  When  enterprises are located in assisted areas, aid 
intensity corresponds to the appli cable regional aid ceiling, plus 15 or 10 gross percentage points, 
depending on whether the area in question comes unde r Article 87.3(a) or 87.3(b) of the EC Treaty, 
with a subsidy limit of €10,000.  The 50 per cent limit may be exceeded for external collaboration 
under the de minimis  regime and for a subsidy amount not exceeding €13,000. 
 8. Duration of the subsidy
 
 
 The programme covers the period 2001-2006.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 In view of the objective of this subsidy progr amme, there appear to be no significant trade 
effects.   G/SCM/N/155/EEC/Add.24 
 Page 35 
 
 
  V. REGIONAL SUBSIDIES 
A. R EGIONAL ECONOMIC INCENTIVES SCHEME  
1. Title of the programme  
  Regional Economic Incentives Scheme. 
 
2. Period covered by the notification
 
  2005 and 2006.  
3. Policy objective and/or purpose of the subsidy
 
 
The purpose is to promote economic development in the most disadvantaged areas.  The 
objective of regional incentives is to foster bus iness activity and to encourage firms to locate 
themselves in previously determined areas, so as to reduce economic disparities in Spanish territory, 
secure a more equitable spread of economic activ ity and strengthen the potential for internally 
generated development in  the different regions. 
 4. Authority
 
  A mandate under Article 40.1 of the Spanish C onstitution, which lays down the obligation for 
authorities to foster favourable conditions for a more equitable distribution of regional income.  
Similarly, Article 138 thereof provides that the St ate shall establish a suitable and fair economic 
balance between different parts of Spanish territory.   The legislative basis is: 
 
 Law 50/85 of 27 December, on regional economic incentives to remedy inter-regional economic imbalances.   The Regulation adopted by Royal Decree 1535/ 1987 of 11 December, as amended by Royal 
Decree 897/1991 of 14 July, Royal Decree 302/1993 of 26 February, Royal Decree 2315/1993 of 
29 December, and Royal Decree 78/1997 of 24 January. 
  The regional incentives scheme was approved by a European Commission Decision communicated to the Spanish Government in a letter dated 1 June 1987.  
 Pursuant to this authorization, 13 Royal Decrees delimiting the economic promotion areas 
were promulgated, with successive amendments so as to adapt them to the successive authorizations 
of the European Commission with regard to the distribution of regional subsidies within Spain. 
5. Form of the subsidy
 
 
Non-repayable subsidies22, granted to productive investment s and calculated as a variable 
percentage, depending on the project, of the investment approved by the authorities. 
 
                                                      
22 That is to say, grants within the meaning of  Article 25.3(i) of the Agreement on Subsidies and 
Countervailing Measures. G/SCM/N/155/EEC/Add.24 
Page 36  
 
  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
Subsidies are granted to private enterprises. 
 
Once approved, the subsidy is notified individuall y to the parties concerned in an individual 
resolution establishing the basic project data, including  the name of the recipient enterprise that has 
applied for it.  
The aid is paid once the corresponding Au tonomous Community has issued a report 
substantiating full execution of the project and fu lfilment, within the specified periods, of the 
conditions required in the individua l resolution, accepted beforehand by the beneficiary.  Enterprises 
may apply to receive the subsidy in instalments pr ovided that they produce evidence that the part of 
the investment for each instalment has been made, together with adequate guarantees against failure to 
complete.  
7. Subsidy per unit or total amount of the subsidy
 
  Total amount of the subsidy:   2005:  €273,224,911.  
 2006:  €282,564,541. 
 8. Duration of the subsidy
 
  The scheme will continue as long as the reason fo r introducing it, namely the imbalance in 
regional development, persists. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  With regard to the statistical data permitting an assessment of trade effects, it should be noted 
that, since the subsidies take the form of capital for productive investment in disadvantaged regions 
and are authorized by the European Commission, th ey are not regarded as jeopardizing the principle 
of free competition.  B. R
EINDUSTRIALIZATION OF DECLINING INDUSTRIAL AREAS  
1. Title of the subsidy programme  
 
 Regional investment aid scheme to promote th e conversion of declining industrial areas in 
certain assisted regions (re industrialization measures). 
  State Aid Decision N101/2005. 
2. Period covered by the notification
 
 
 2005 and 2006.  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the scheme is to encourage re gional development through the promotion of 
reindustrialization measures for declining industrial areas in assisted regions according to the regional 
aid map approved by the EU for Spain for the pe riod 2000-2006.  Industrially depressed areas are  G/SCM/N/155/EEC/Add.24 
 Page 37 
 
 
  characterized by a significant loss of productive and employment capacity in both the public and the 
private sector.  4. Authority
 
 
 The Spanish regional aid map for the peri od 2000-2006, establishing the regions where 
regional development aid may be considered compa tible with the common market in accordance with 
the derogation provided for in Article 87.3(a) of  the EC Treaty, as approved by the European 
Commission.  
 Order ITC 1014/2005 establishing the regulatory basis for reindustrialization aid. 
  General Secretariat of Industry Resolu tions of 25 April 2005 and 10 February 2006 
publishing the corresponding application procedures for this aid programme for 2005 and 2006. 
 
5. Form of the subsidy
 
  Aid is granted in the form of interest-free loans.  Such loans span a maximum period of 
15 years and may not exceed 70 per cent of the financeable budget.  The maximum repayment period is five years.  
6. To whom and how the subsidy is provided
 
  Industrial enterprises investing in assisted re gions, although exceptions apply in sectors with 
specific regulations.  In order to apply for aid under this scheme, the beneficiary must fulfil certain 
requirements, one of which is that at least 25 per ce nt of the total of the investment project must be 
financed by the beneficiary using its own equivalent non-subsidized resources. 
 7. Total amount budgeted
 
  In the financial year 2005, interest-free loans amounting to €84,029 thousand.  
 In the financial year 2006, interest-free loans amounting to €166,436 thousand. 
 8. Duration of the subsidy
 
  The programme remained in effect until 31 December 2006. 
 
9. Effects on trade
 
  Given that the supported activities are aimed at financing investments that create alternative 
employment in other enterprises or in depressed sectors, the subsidies are generally granted to newly established enterprises or activities which are th erefore small in scale and widely dispersed. 
Consequently, such subsidies have virtually no trade effects. 
 
__________