WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.21 
16 November 2011 
 (11-5242) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 
of the GATT 1994 and Article 25 of the Agreement 
on Subsidies and Countervailing Measures 
 
EUROPEAN UNION 
 
Addendum 
 
 
 The following addendum to the notification of  the European Union relates to subsidy 
programmes of Portugal . 
 
_______________ 
  G/SCM/N/220/EEC/Add.21 
Page 2 
 
 
  PORTUGAL 
 
 
TABLE OF CONTENTS 
 
Page  
 
I.  COMPETE – OPERATIONAL PROGRAMME FOR COMPETITIVENESS 
FACTORS ....................................................................................................................... .......... 3 
II.  SIRME – MODERNIZATION AND REVITALIZATION ENTERPRISES 
INCENTIVES SYSTEM .......................................................................................................... 4  
III. PRODERAM - RURAL DEVELOPMENT PROGRAMME FOR MADEIRA ................. 5  
IV.  PRODER - RURAL DEVELOPMENT PROGRAMME FOR MAINLAND 
PORTUGAL ...................................................................................................................... ........ 7 
V.  PRORURAL - RURAL DEVELOPMENT PROGRAMME FOR AZORES ..................... 9  
 
 
  G/SCM/N/220/EEC/Add.21 
 Page 3 
 
 
   
I. COMPETE – OPERATIONAL PROGRAMME FOR COMPETITIVENESS 
FACTORS 
1. Title of the programme 
 
 COMPETE – Operational Programme for Competitiveness Factors. 
 
2. Period covered by the notification 
 
 The present notification refers to the period 2009-2010. 
 3. Policy objective 
  The central objective of the Programme is to stimulate economic growth to levels that will 
produce a sustained recovery of the Portugu ese economy towards real convergence with the 
European Union – based on the competitiveness of  the country and its regions, enterprises and 
geographical areas.  
 At the same time, the following specific objectives were established: 
 
• Qualification of the productive fabric by up grading specialisation profiles and business 
models; 
• Better adjustment of the Portuguese econom y to international markets by increasing 
production for trade or internationalisation; 
• Qualification of the Public Administration system and State action efficiency through 
modernisation of the Public Administration and promotion of a public service culture centred 
on citizens and enterprises; 
• Promotion of an economy grounded on knowle dge and innovation through stimulating 
scientific and technological development and fostering entrepreneurship. 
 
4.  Background and authority of the programme 
 
 COMPETE is financed within the European Co mmunity Support Framework for the eligible 
community structural interventions for objective nº1 of the structural funds during the period 2007-13. The Programme was approved by the European Commission on 5 October 2007. 
 
5.  Form of the subsidy 
 
 The following subsidy modalities are: Non-Re imbursable subsidies (Grants); Reimbursable 
subsidies, that may be substituted by the payment of interests or other expenses of a bank loan of the 
same value; Venture Capital Interventions. 
 
6.  Beneficiary and conditions of the concession of the subsidy 
  The beneficiaries of the Programme are:  
• Companies within the industrial, constructi on, touristic, trade and services sectors and 
independent inventors; 
• Central and Local Public Administration, Ar eas and Committees of Tourism and Other Public 
Entities; G/SCM/N/220/EEC/Add.21 
Page 4 
 
 
  • Entities of the Scientific and Technological System, Associative Entities and other Entities 
with specific competences in the development e ither of Areas of economic activity and/or of 
important territorial intervention; 
• Companies specialised in the development of the Venture Capital and Guarantee and 
Counter-guarantee funds directed exclusively to Micro Companies and SME. 
 
 The projects submitted by the beneficiaries of each Measure are evaluated according to a 
group of specific selection criteria previously establis hed. Therefore, in case of positive appreciation, 
the subsidies are approved by the Minister of the Economy, and the payments made in line with the 
actual investment process. 
 7.  Total and annual amount paid during the period 2009-2010 
 
  Thousand Euros 
 
Axis Type of Aid Public Expenditure 
(2009-2010) 
Axis 1 – Knowledge and Technological 
Development Non State Aid / 
R&D 70,542 
Axis 2 – Innovation and Renewal of the 
Business Model and Specialization Pattern Regional Aid / 
Minimis 431,590  
Axis 3 – Innovation Financing and Risk 
Sharing Minimis / 
Venture Capital 150,749  
Axis 4 - Efficiency and Quality in Public 
Administration Non State Aid 44,001  
Axis 5 - Networks and Collective Actions for 
Business Development Non State Aid 32,390  
Axis 6 - Technical Assistance Non State Aid 12,196 
Total  741,467 
 
8. Duration of the programme 
 
 The duration of the Programme corresponds to the period 2007-2013. 
 9. Statistical data that allow the evalua tion of the effects of the subsidy on trade 
 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on 
trade. 
 
 However, it should be underlined that a large per centage of the total subsidies is directed to 
SME in activities related with local markets (non tr adable goods), as well as to entities not involved in 
market transactions (e.g. n on profitable organisations). 
  
 
II. SIRME – MODERNIZATION AND REVITALIZATION ENTERPRISES 
INCENTIVES SYSTEM 
1. Title of the programme 
 
 SIRME - Modernization and Revitalization Enterprises Incentives System. 
 
2. Period covered by the notification 
 
 The present notification refers to the period 2009-2010.  G/SCM/N/220/EEC/Add.21 
 Page 5 
 
 
   
3. Policy objective and/or purpose of the subsidy 
 
 This Incentive Programme (SIRME) was created to help small and medium companies to 
reestablishment of the conditions of enterpri se competitiveness, modernization, industrial 
restructuring and also financial consolidation,  using several finance engineering projects like 
companies fusion, acquisition of Values in restructuring process, or just financial support to the 
development of operational and fi nancial restructuring measures. 
 
 This programme has a financial instrument  (FRME - Modernization and Revitalization 
Enterprises Found)   
4. Background and authority of the subsidy / Legislation 
 
 SIRME is totally financed by Portuguese Budge t State, without any kind of European Union 
Funds, and is managed by IAPMEI  – Small and Medium Enterprise s and Innovation Support National 
Institute. The Programme was by the Europ ean Commission under Dossiere State Aid N 8/2000. 
 
 Still at national level, the Programme is re gulated by the Minister Council Resolution n.º 
40/98 of 23 March.  
5. Form of the subsidy and budget expenditure 
 
 Subsidy can be, simultaneously, two different natu res: Stocks (Capital) or simply Loans, but 
in both cases they are totally reimbursed. This  subsidy is followed by a remuneration tax, 
contractually defined with all the partners. 
 
 Expenditure, MEUROS  
 2009 29.23 
 2010 10.05  
6. Beneficiary and conditions of  the concession of the subsidy 
 
 T he beneficiaries of the Programme are mainly companies with financial and structural 
problems, demanding restructuring and emergency fina ncial aid. Despite these kind of problems, the 
FRME intervention only occurs when there is proof  that the company has management capacity, and 
when our assessment of the company's capacity to r ecover is, from an economic and financial point of 
view, a positive one.  
  III. PRODERAM - RURAL DEVELOPMENT PROGRAMME FOR MADEIRA 
1. Title of the programme 
 
 PRODERAM – Rural Developm ent Programme for Madeira 
 
2. Period covered by the notification 
 
 2007-2013. 
 G/SCM/N/220/EEC/Add.21 
Page 6 
 
 
  3. Purpose and objectives of the programme 
 
 - Improving the competitiveness of agri culture and forestry by supporting 
restructuring, development and innovation; 
 - Improving the environment and the countryside by supporting land management; 
 - Improving the quality of life in rural ar eas and encouraging diversification of 
economic activity. 
 4. Background and authority of the programme 
  The PRODERAM is funded by the European  Agricultural Fund for Rural Development 
(EAFRD). The programme was initially approved by  the European Commission on 15 February 2008 
(Commission Decision C (2008) 721), its latest decision dating from 4 March 2010 (Commission 
Decision C (2010) 1167 final).  
 At the national level, the Programme is regulat ed by the Decree-Law n.º 2/2008 of 4 January 
and the D-Law n.º 37-A/2008 of 8 March.  
5. Form of the subsidy 
 
 Support is provided through non-refundable subsidies. 
 
6. Beneficiary and conditions of  the concession of the subsidy 
 
 The beneficiaries of the Programme are: 
 
• Farmers, individuals or legal persons exerci sing an agricultural activity;  enterprises and 
producers' organisations, processing & marketi ng SME enterprises that process & market 
agricultural products; 
• Young farmers under the first setting up regime; 
• Forest producers/owners or their associations; 
• Municipalities or their associations; 
• Public administration bodies; 
• Public interest institutions; 
• Micro-enterprises, within the meaning of Commission Recommendation 2003/361/EC. 
Enterprises included in the SIC (Standard Industrial Classification of economic activities) 
related to fishing and its products and to urism and leisure activities are excluded; 
• Private partnerships; Public-pri vate partnerships where the public share is not the majority 
share; PSSI and NGOs. 
  Requests for assistance submitted by the beneficiaries under each measure are evaluated 
according to a group of specific, previously established selection criteria. 
 
 Therefore, in case of positive evaluation, the subsidies are approved, and the payments made 
in line with the actual investment process.  
7. Total and annual amount paid during the period 2009-2010 
 
 - 
 
8. Duration of the Programme 
 
 2007-2013.  G/SCM/N/220/EEC/Add.21 
 Page 7 
 
 
   
9. Statistical data that allow the evalua tion of the effects of the subsidy on trade 
 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on 
trade. 
 
 However, it should be underlined that a large per centage of the total subsidies is directed to 
SME in activities related with local markets (non tr adable goods), as well as to entities not involved in 
market transactions (e.g. n on profitable organisations). 
 
 
IV. PRODER - RURAL DEVELOPMENT PROGRAMME FOR MAINLAND 
PORTUGAL 
1. Title of the programme 
 
 PRODER – Rural Development Programme for Mainland Portugal 
 2. Period covered by the notification 
  2007-2013.  
3. Purpose and objectives of the programme 
 
 There are three sub-programmes plus a four th transversal sub programme relating to 
innovation and capacity building. 
 
 The design of Sub-programme 1 "Promoting competitiveness" was subject to selectivity, 
demand and efficiency principles. Management will ensure permanent performance monitoring and evaluation. Simplification and better adjustment to farming and enterprise activity, as well as their 
investment and financing needs were also taken in to account. As regards selectivity in the allocation 
of resources, this principle is inherent in the identif ication of strategic chains of Fruit and Vegetables, 
Flowers, Olive oil, Wine, Forestry and Quality products.  
 
 Sub-programme 2 will focus on support for the maintenance of activities in less favoured and 
mountain regions, organic farming and integrated production and targeted m easures in the forestry 
sector. The creation of Integrated Territorial Interv entions (ITI) aims at ensuring consistency in the 
application of the different policy instruments on the same territory, according to the central 
conservation objectives defined. 
 
 Sub programme 3 intends to promote rural ar eas and gives preference to LEADER, by means 
of actions promoted within the framework of local development strategies and through agents 
specifically organised to this effect. 
 
 Sub-programme 4 intends to foster qualificati ons and organisation of human resources. As a 
result of the complementarity of this Sub-programme  with the ESF, the volume of financial resources 
made available by the EAFRD does not reflect the st rategic importance of this development vector. 
 
4. Background and authority of the programme 
 
 The PRODER is funded by the European Agricultural Fund for Rural Development 
(EAFRD). The programme was initially approved by the European Commission on 4 December 2007 G/SCM/N/220/EEC/Add.21 
Page 8 
 
 
  (Commission Decision C (2007) 6159), its latest decision dating from 17 December 2010 
(Commission Decision C (2010) 9360 final). 
  At the national level, the Programme is regulat ed by the Decree-Law n.º 2/2008 of 4 January 
and the D-Law n.º 37-A/2008 of 8 March. 
 
5. Form of the subsidy 
 
 Support is provided through non-refundable subsidies. 
 
6. Beneficiary and conditions of  the concession of the subsidy 
 
 The beneficiaries of the Programme are: 
 
• Farmers, individuals or legal persons exerci sing an agricultural activity;  enterprises and 
producers' organisations, processing & marketi ng SME enterprises that process & market 
agricultural products; 
• Young farmers under the first setting up regime; 
• Forest producers/owners or their associations; 
• Municipalities or their associations; 
• Public administration bodies; 
• Public interest institutions; 
• Micro-enterprises, within the meaning of Commission Recommendation 2003/361/EC. 
Enterprises included in the SIC (Standard Industrial Classification of economic activities) 
related to fishing and its products and to urism and leisure activities are excluded;  
• Private partnerships; Public-pri vate partnerships where the public share is not the majority 
share; PSSI and NGOs 
  Requests for assistance submitted by the beneficiaries under each measure are evaluated 
according to a group of specific, previously established selection criteria. 
  Therefore, in case of positive evaluation, the subsidies are approved, and the payments made 
in line with the actual investment process. 
 7. Total and annual amount paid during the period 2009-2010 
  -  
8. Duration of the programme 
 
 2007-2013. 
 
9. Statistical data that allow the evalua tion of the effects of the subsidy on trade 
 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on 
trade. 
 
 However, it should be underlined that a large per centage of the total subsidies is directed to 
SME in activities related with local markets (non tr adable goods), as well as to entities not involved in 
market transactions (e.g. n on profitable organisations). 
   G/SCM/N/220/EEC/Add.21 
 Page 9 
 
 
  V. PRORURAL - RURAL DEVELOPMENT PROGRAMME FOR AZORES 
1. Title of the programme 
 
 PRORURAL – Rural Developm ent Programme for Azores 
 
2. Period covered by the notification 
  2007-2013.  
3. Purpose and objectives of the programme 
 
 - Improving the competitiveness of agri culture and forestry by supporting 
restructuring, development and innovation; 
 - Improving the environment and the countryside by supporting land management;  - Improving the quality of life in rural ar eas and encouraging diversification of 
economic activity. 
 4. Background and authority of the programme 
  The PRORURAL is funded by the European  Agricultural Fund for Rural Development 
(EAFRD). The Programme was initially approved by  the European Commission on 4 December 2007 
(Commission Decision C (2007) 6162), its latest  decision dating from 2 March 2010 (Commission 
Decision C (2010) 1224).  
 At the national level, the Programme is regulat ed by the Decree-Law n.º 2/2008 of 4 January 
and the D-Law n.º 37-A/2008 of 8 March. 
 
5. Form of the subsidy 
 
 Support is provided through non-refundable subsidies. 
 6. Beneficiary and conditions of  the concession of the subsidy 
 
 The beneficiaries of the Programme are:  
• Farmers, individuals or legal persons exerci sing an agricultural activity;  enterprises and 
producers' organisations, processing & marketi ng SME enterprises that process & market 
agricultural products; 
• Young farmers under the first setting up regime; 
• Forest producers/owners or their associations; 
• Municipalities or their associations; 
• Public administration bodies; 
• Public interest institutions; 
• Micro-enterprises, within the meaning of Commission Recommendation 2003/361/EC. 
Enterprises included in the SIC (Standard Industrial Classification of economic activities) related to fishing and its products and to urism and leisure activities are excluded; 
• Private partnerships; Public-pri vate partnerships where the public share is not the majority 
share; PSSI and NGOs 
 
 Requests for assistance submitted by the beneficiaries under each measure are evaluated 
according to a group of specific, previously established selection criteria. G/SCM/N/220/EEC/Add.21 
Page 10 
 
 
   Therefore, in case of positive evaluation, the subsidies are approved, and the payments made 
in line with the actual investment process. 
 7. Total and annual amount paid during the period 2009-2010 
  - 
 
8. Duration of the Programme 
 
 2007-2013. 
 9. Statistical data that allow the evalua tion of the effects of the subsidy on trade 
 
 No statistical data is available to allow the evaluation of possible effects of the subsidies on 
trade. 
 
 However, it should be underlined that a large per centage of the total subsidies is directed to 
SME in activities related with local markets (non tr adable goods), as well as to entities not involved in 
market transactions (e.g. n on profitable organisations). 
 
 
 
__________