WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.20 
26 August 2005 
 
 (05-3605) 
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 COMMUNITIES 
 
Addendum  
   The following addendum to the notification of  the European Community relates to subsidy 
programmes of Portugal
. 
 
_______________ 
 
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 PORTUGAL 
 
TABLE OF CONTENTS 
 
Page  
A. PRIME  – INCENTIVES PROGRAMME FOR THE MODERNISATION OF ECONOMIC 
ACTIVITIES ............................................................................................................................... ...3 
1. Title of the Programme ......................................................................................................... ...3 
2. Period covered by the notification...........................................................................................3  
3. Purpose and objectives of the Programme .............................................................................3  
4. Background and Authorit y of the Programme ......................................................................3  
5. Form of the subsidy ............................................................................................................ ......3  
6. Beneficiaries and conditions of th e concession of the subsidy...............................................4  
7. Total and annual amount paid during the years 2003 and 2004 ..........................................4  
8. Duration of the Programme.....................................................................................................5  
9. Statistical data that allow  the evaluation  of possible effects of the subsidies on 
trade .......................................................................................................................... .................5  
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A. PRIME  – INCENTIVES PROGRAMME FOR THE MODERNISATION OF ECONOMIC ACTIVITIES  
1. Title of the Programme 
 PRIME  - Incentives Programme for the Modernisation of Economic activities 
 2. Period covered by the notification 
 The present notification refers  to the years 2003 – 2004. 
 
3. Purpose and objectives of the Programme 
 PRIME was created to: 
 
 - reinforce Companies productivity and comp etitiveness and their participation in the 
global market; 
 - foster potential  Development areas  
 stimulating Portuguese companies to develop their activities in the industrial (building 
construction included), tourism, commercial and services sectors.  
 
4. Background and Authority of the Programme 
 PRIME is financed within the European S upport Framework for the eligible community 
structural interventions for Objective 1 of Structural Funds during the period 2000 –2006. 
 
 The Programme was approved by the European Commission on 11 July 2000 [Commission 
Decision C (2000) 1774 of 11 July 2000].  
  The revision of the Programme was approved by the European Commission on 
23 December 2004 
 
 At national level, PRIME is regul ated by DL 70-B/2000 of 5 May 2000. 
 
5. Form of the subsidy 
The subsidies modalities are: 
 
 - 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. 
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6. Beneficiaries and conditions of the concession of the subsidy 
 Beneficiaries of the Programme are: 
  - companies in the industrial, construction, tourism, trade and services sectors and 
independent inventors; 
 - Central  and local public Administration, Areas and Committees of Tourism, other 
public entities; 
 - Entities of the Scientific and Technological System, Associative Entities and other 
entities with specific competences in the de velopment either of areas of economic 
activity and/or of important territorial intervention; 
 - Companies specialised in the developmen t of the Venture Capital and Guarantee and 
Counter guarantee funds directed exclus ively 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 established. Therefore, in case of positive 
appreciation, the subsidies are approved by the Minister of Economy, and the payments made 
in line with the actual investment process.  
 
7. Total and annual amount paid during the years 2003 and 2004 
Total payments made by Prime:       Thousand Euros 
 
Enterprise 
Stimulation 557.056 116.812 432.863 88.308 1468.544 308.082 
Qualification 
of Human Resources 30.776 7.694 29.018 7.254 90.481 22.620 
Stimulation 
of business Environment 237.738 42.111 124.868 20.085 518.150 93.759 
Technical 
Assistance 6.848 1.712 4.759 1.190 19.602 4. 901 
Total 852.418 168.329 591.508 116.837 2 096.776 429.363 
 
 
Payments, concerning state aids, made to enterprises of Industry Sector  Thousand Euros 
 
Enterprise 
Stimulation 226.940 56.541 192.024 47.794 625.987 156.090 
Qualification 
of Human Resources 8.919 2.230 11.993 2.998 27.872 6.968 
Stimulation 
of business Environment 0 0 0 0 0 0 
Technical 
Assistance 0 0 0 0 0 0 
Total 235.859 58.770 240.016 50.792 653.859 163.058 
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8. Duration of the Programme 
 The duration of the Programme corresponds to the period 2000- 2006. 
 
9. Statistical data that allow  the evaluation of possible effects of the subsidies on trade 
 No statistical data are available to allow the evaluation of possible effects of the subsidies on 
trade. 
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