WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.8 
23 December 2009 
 
 (09-6551) 
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 Communities
* relates to subsidy 
programmes of Finland . 
 
_______________ 
 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On  29 November 2009, the WTO received a Verbal No te (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.8 
Page 2  
 
  FINLAND 
 
TABLE OF CONTENTS 
 
 
Page 
 
I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES .................................................4  
1. DEVELOPMENT AID FOR SME S...................................................................................................4  
2. STATE AID FOR THE INTERNATIONALIZATION OF SME S............................................................5  
3. LOAN PROGRAMME FOR SME S (FINNVERA PLC )........................................................................5  
4. DEVELOPMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC ) ..............................................6  
5. ENTREPRENEUR LOAN (FINNVERA PLC ) .....................................................................................7  
6. ENVIRONMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC ) ..............................................8  
7. OPERATIONAL CONDITIONS AID.................................................................................................9  
8. GUARANTEE PROVISION AID....................................................................................................10  
9. RESCUE AND RESTRUCTURING AID TO SMALL AND MEDIUM -SIZED ENTERPRISES ................11  
10. DEVELOPMENT SERVICES FOR SME S.......................................................................................11  
II. AID FOR RESEARCH AND DEVELOPMENT.................................................................12  
11. AID FOR PROMOTING R&D&I ..................................................................................................12  
12. GRANT FOR RESEARCH AND DEVELOPMENT (ÅLAND ).............................................................14  
13. GMP-M ANUFACTURING SPACE FOR BIO-ENTERPRISES ...........................................................15  
III. REGIONAL AID ................................................................................................................... .16 
14. INVESTMENT AID......................................................................................................................16  
15. BUSINESS DEVELOPMENT AID..................................................................................................17  
16. REGIONAL TRANSPORT SUBSIDY ..............................................................................................18  
17. ACCELERATED REGIONAL DEPRECIATION ...............................................................................19  
18. GRANT FOR INVESTMENTS (ÅLAND ).........................................................................................20  
IV. AID IN THE FIELD OF ENERGY ......................................................................................21  
19. ENERGY GRANTS ......................................................................................................................21  
20. AID MEASURES CONNECTED TO ENERGY TAXATION ..............................................................22  
21. DIFFERENTIATED TAX RATE FOR ELECTRICITY CONSUMED BY INDUSTRY .............................23  
22. WASTE OIL MANAGEMENT FINANCED BY WASTE OIL CHARGES ............................................24  
23. AID FOR CHIPPING OF ENERGY WOOD .....................................................................................24  
24. INVESTMENT AID FOR BIOFUEL PLANT (ÅLAND ) .....................................................................25  
  G/SCM/N/186/EEC/Add.8 
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V. OTHER SUBSIDIES ..............................................................................................................26  
25. SUBSIDY TO PASSENGER VESSELS ............................................................................................26  
26. SUBSIDY TO CARGO VESSELS ...................................................................................................27  
27. INNOVATION AID SCHEME FOR THE FINNISH SHIPBUILDING INDUSTRY ..................................28  
28. TRAINING AID IN ÅLAND ...........................................................................................................29  
 G/SCM/N/186/EEC/Add.8 
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I. AID TO SMALL AND MEDIUM-SIZED ENTERPRISES 
1. D
EVELOPMENT AID FOR SME S 
1. Title of the subsidy programme  
  Development aid for SMEs  2. Period covered by the notification
 
 
 2007-2008 (The subsidy programme has expired on 18 June 2007.) 
 3. Policy objective and/or purpose of the subsidy
 
  Aid to SMEs 
 
4. Background and authority for the subsidy
 
  The Legal background:  
 The Act on Government subsidies for the development of SMEs. 
  Development aid can be granted to SMEs for their development projects aimed at improving 
the standard of a firm's products or its production ma nagement or marketing.  Aid can also be granted 
to have the potential and operating cond itions for projected new firm verified. 
 
 The aid is granted by the Ministry of Trade and Industry and the Business Departments of the regional Employment and Economic Cent res (Aid to Business Act 1068/2000). 
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  See point 4. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount granted in 2007 was MEUR 3.14  
 The amount granted in 2008 was MEUR 0.  (The subsidy programme has expired on 
18 June 2007.)  8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 Until 18 June 2007 
 9. The trade effects of the subsidy
 
  G/SCM/N/186/EEC/Add.8 
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   No effects on international trade. 
 2. S
TATE AID FOR THE INTERNATIONALIZATION OF SME S 
1. Title of the subsidy programme  
 
 State aid for businesses internationalization of SMEs. 
 2. Period covered by the notification
 
  2007-2008 
 
3. Policy objective and/or purpose of the subsidy
 
  The subsidy is granted to SMEs for deve lopment of their promotion, marketing and 
internationalization skills.  The pur pose of the subsidy is to increase the number and growth of the 
exporting SMEs in Finland. 
 4. Background and authority for the subsidy
 
  Ministry of Employment and the Economy (Innovation Department).  
 (Act on Discretionary Government Transfers 688/2001) 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  The State aid for business internationalization is  provided to Finnish SMEs on an application 
to Ministry of Employment and the Economy.  
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The total amount of grants in 2007 was MEUR 17.7  The total amount of grants in 2008 was MEUR 29.5 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  There are no time-limits attached to this programme.  9. The trade effects of the subsidy
 
 
 No effects on international trade.  3. L
OAN PROGRAMME FOR SME S (FINNVERA PLC ) 
1. Title of the subsidy programme  
 
 Loan programme for SMEs (Finnvera plc).  So ft loans for investments and working capital. 
 G/SCM/N/186/EEC/Add.8 
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  2. Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid for SMEs:  access to risky loans on a reasonable interest rate level.  4. Background and authority for the subsidy
 
 
 The authorization to grant these loans is decided annually in the State budget. 
 5. Form of the subsidy
 
  Loans with inadequate collaterals (in comparis on to market terms), interest rate subsidy. 
 
6. To whom and how the subsidy is provided
 
  The subsidy is granted to manufacturing and service enterprises, and the tourism industry by 
Finnvera plc (State-owned specialized financing comp any).  Subsidy element is in availability and in 
interest rate of the loans. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  In 2007 the amount of aid was MEUR 9.6 
 In 2008, the amount of aid was MEUR 16.2 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate.  The subsidy is given during the maturity, which is five to ten years. 
 
9. The trade effects of the subsidy
 
  No effects on international trade.  4. D
EVELOPMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Development loan programme for SMEs (Finnvera  plc).  Soft loans for product development 
and managerial skills.  2. Period covered by the notification
 
 
 2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid for SMEs 
  G/SCM/N/186/EEC/Add.8 
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  4. Background and authority for the subsidy  
  The authorization to grant these loans is decided annually in the State budget.  5. Form of the subsidy
 
 
 Loans with inadequate collaterals (in comparis on to market terms), interest rate subsidy. 
 6. To whom and how the subsidy is provided
 
 
 The subsidy is granted to manufacturing a nd service enterprises and tourism industry by 
Finnvera plc (State-owned specialized financing comp any).  Subsidy element is in availability and in 
interest rate of the loans.  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  In 2007 the amount of aid was MEUR 2.0  In 2008 the amount of aid was MEUR 1.7  8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 Indeterminate.  The subsidy is given all the years to maturity, usually five years. 
 9. The trade effects of the subsidy
 
 
 No effects on international trade. 
 5. E
NTREPRENEUR LOAN (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Start-up loan programme for entrepreneurs (Finnve ra plc).  Soft loans for entrepreneurs when 
establishing an enterprise. 
 2. Period covered by the notification
 
  2007-2008 
 
3. Policy objective and/or purpose of the subsidy
 
  Aid to new enterprises (entrepreneurs)  4. Background and authority for the subsidy
 
 
 The authorization to grant these loans is decided annually in the State budget.  5. Form of the subsidy
 
 
 Loans with inadequate collaterals (in comparis on to market terms), interest rate subsidy. 
 G/SCM/N/186/EEC/Add.8 
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  6. To whom and how the subsidy is provided
 
  The subsidy is provided to persons who st art a new manufacturing, service or tourism 
enterprise.  It is granted by Finnvera plc (Sta te-owned specialized financing company).  Subsidy 
element is in availability and in interest rate of the loans. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  In 2007 the amount of aid was MEUR 5.1 
 In 2008 the amount of aid was MEUR 5.3 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate.  The subsidy is given duri ng the years to maturity, i.e. ten years. 
 
9. The trade effects of the subsidy
 
  No effects on international trade.  6. E
NVIRONMENT LOAN PROGRAMME FOR SME S (FINNVERA PLC ) 
1. Title of the subsidy programme  
  Environment loan programme for SMEs (Finnvera plc).  Soft loans for environmental investments.  
2.  Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid to SMEs:  to promote environment protecti on, energy saving, circulation of raw materials 
etc.  4. Background and authority for the subsidy
 
 
 The authorization to grant these loans is decided annually in the State budget. 
 5. Form of the subsidy
 
  Loans with inadequate collaterals (in comparis on to market terms), interest rate subsidy. 
 
6. To whom and how the subsidy is provided
 
  The subsidy is granted to manufacturing and service enterprises, and the tourism industry by 
Finnvera plc (State-owned specialized financing comp any).  Subsidy element is in availability of the 
loans and in interest rates. 
  G/SCM/N/186/EEC/Add.8 
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  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  In 2007 the amount of aid was MEUR 2.0  In 2008 the amount of aid was MEUR 2.8 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate.  The subsidy is given all the years to maturity, usually five to ten years. 
 
9. The trade effects of the subsidy
 
 7. O
PERATIONAL CONDITIONS AID 
1.  Title of the subsidy programme  
 
 Operational conditions aid 
 2. Period covered by the notification
 
  2007-2008 (The subsidy programme has expired on 18 June 2007.) 
 
3. Policy objective and/or purpose of the subsidy
 
  Aid to SMEs:  to develop enterprise support services for starting and existing SMEs.  4. Background and authority for the subsidy
 
 
 The aid is granted by the Ministry of Trade and Industry and the Business Departments of the regional Employment and Economic Developmen t Centres (Aid to Business Act 1068/2000). 
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Aid can be granted to public institutions, f oundations, private persons and enterprises.  To 
qualify for aid, a project should create new service activities in the region and should be of essential 
significance for the regions SMEs.  Mainly, aid may be granted for projects associated with 
counselling, research, quality management, marke ting, product development and design services. 
  In exceptional cases aid can be granted to privat e enterprises.  Aid to investments for small 
enterprises is limited to 15 per cent (gross) and 7. 5 per cent (gross) for medium-sized companies. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year).   In 2007, the amount was MEUR 0.9 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  Until 18 June 2007. G/SCM/N/186/EEC/Add.8 
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9. The trade effects of the subsidy
 
  No effects on international trade.  
8. G
UARANTEE PROVISION AID 
1. Title of the subsidy program  
  Guarantee provision aid (XS 32/2004)  
2. Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid to SMEs  4. Background and authority for the subsidy
 
  Finnvera grants guarantee provision aid to the certain guarantees that are granted in eligibility 
area of EU's structural funds.  Decisions are made  by Finnvera Plc.  Budge t of the guarantee provision 
aid is decided regionally on a yearly basis, and ai d is partially financed by the European regional 
development fund.  5. Form of the subsidy
 
 
 Subsidy in guarantee provision  6. To whom and how the subsidy is provided
 
  The subsidy is provided to SMEs with the gua rantee decision as a reduction of provision.  The 
loan is granted from the bank. 
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
 
 2007 - MEUR 1.1 
 2008 - MEUR 1.9  8. Duration of the subsidy and/or any other time-limits attached to it
 
  There are no time-limits attached to this programme. 
 
9. The trade effects of the subsidy
 
  No effects on international trade.   G/SCM/N/186/EEC/Add.8 
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  9. RESCUE AND RESTRUCTURING AID TO SMALL AND MEDIUM -SIZED ENTERPRISES  
1. Title of the subsidy program  
  Rescue and restructuring aid to SMEs (No. 58/2004)  
2. Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid to SMEs  4. Background and authority for the subsidy
 
 
 Rescue and restructuring aid is granted to SMEs in order to turn around enterprises in 
difficulty.  The aid is granted in compliance with the guidelines of the European Commission 
concerning aid for enterprises in difficulty.  5. Form of the subsidy
 
 
 Loan, guarantee, reduction of interest, abatement of debts. 
 6. To whom and how the subsidy is provided
 
  SMEs in difficulty in compliance with  the definition of European Commission. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The total amount of grants in 2007 was MEUR 0.4  The total amount of grants in 2008 was MEUR 1.0 
 
8. Duration of the subsidy and/or any other time-limits attached to it
. 
  The scheme will expire in 2009.  
9. The trade effects of the subsidy
 
  No effects on international trade.  10. D
EVELOPMENT SERVICES FOR SME S 
1. Title of the subsidy programme  
 
 Development Programmes for SMEs  2. Period covered by the notification
 
 
 2007-2008 
 G/SCM/N/186/EEC/Add.8 
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  3. Policy objective and/or purpose of the subsidy
 
  The purpose is to support development of  SMEs business activities and personnel skills. 
 4. Background and authority for the subsidy
 
 
 Development Services for SMEs Act 971/2004  5. Form of the subsidy
 
 
 Price subsidy (the reduction of the participation fee) 
 6. To whom and how the subsidy is provided
 
  The subsidy is targeted to the personnel of SMEs 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  €10.3 million, aid intensity approximately 60 per cent per company in the year 2007. 
 
 €10.3 million, aid intensity approximately 60 per cent per company in the year 2008. 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate 
 
9. The trade effects of the subsidy
 
  No effects on international trade.  
II. AID FOR RESEARCH AND DEVELOPMENT 
11. A
ID FOR PROMOTING R&D&I 
1. Title of the subsidy programme  
  Aid for promoting R&D  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid for research and development 
 4. Background and authority for the subsidy
 
  Legal basis: 
 
 (1) Council of State decision on 27 May 2004 on  general terms of grants and soft loans 
for R&D (435/2004);  in force until 6 May 2008;  G/SCM/N/186/EEC/Add.8 
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 (2) Council of State decision on 30 April 2008 on financing of research, development 
and innovation activities (298/2008);  in force from 7 May 2008. 
 5. Form of the subsidy
 
 
 Grants and soft loan  6. To whom and how the subsidy is provided
 
 
 (1) The subsidy is provided for enterprise s on the basis of applications.  The normal 
maximum aid intensity is 50 per cent for basi c and industrial research and 25 per cent 
for pre-competitive development activity.  These maximum levels can be raised up to 
65 per cent in basic and industrial research and up to 40 per cent in pre-competitive 
development activity. (Council of State Decision 435/2004). 
 
 (2) The subsidy is provided for enterprise s on the basis of applications.  The normal 
maximum aid intensity is 100 per cent for b asic research, 50 per cent for industrial 
research and 25 per cent for experimental research.  These maximum levels can be raised up to 75 per cent in industrial research and experimental research.  (Council of State Decision 298/2008). 
 
 The subsidy is granted by the Finnish Agency for Technology and Innovation (Tekes).  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
 
 In 2007, the commitment amount of grants were:   - For R&D&I activities MEUR 202.3;   - for young innovative enterprises MEUR 0; 
 
 - SME for innovation advisory and support services MEUR 0.   The commitment amount of loans MEUR 80.6 (aid element MEUR 22.1).  
 In 2008, the commitment amount of grants were: 
 
• For R&D&I activities MEUR 202.99; 
• for young innovative enterprises MEUR 5.37; 
• SME for Innovation advisory an d support services MEUR 3.28. 
 The commitment amount of loans MEUR 85 (aid element MEUR 24.33). 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 The new subsidy programme will be in force until 31 December 2013. 
 G/SCM/N/186/EEC/Add.8 
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  9. The trade effects of the subsidy
 
  No effects on international trade.  12. G
RANT FOR RESEARCH AND DEVELOPMENT (ÅLAND ) 
1. Title of the subsidy programme  
  Grant for research and development (Åland).  2. Period covered by the notification
 
 
 2007-2008  3. Policy objective and /or purpose of the subsidy
 
 
 Aid to SMEs for research and development. 
 4. Background and authority for the subsidy
 
  The annual budget of the Government of Åland.  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 The aid is provided to companies and orga nizations.  The subsidy is granted by the 
Government of Åland.  7. The total amount or the annual amount budgeted for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year ) 
 
 The annual amount of grants in 2007 was MEUR 0.08  The annual amount of grants in 2008 was MEUR 0.02  8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 Indeterminate  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  No effects on international trade. 
  G/SCM/N/186/EEC/Add.8 
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  13. GMP-M ANUFACTURING SPACE FOR BIO-ENTERPRISES  
1. Title of the subsidy programme  
  GMP (Good Manufacturing Practice) manufacturing space for bio-enterprises  
2. Period covered by the notification
 
  2007-2008 (The subsidy programme has expired on 30 April 2007.) 
 3. Policy objective and/or purpose of the subsidy
 
 
 The promotion of SMEs pilot production.  The purpose of the project is to create operational 
conditions in the region of Oulu for enterpri ses ("bio-enterprises") manufacturing bio-technology 
products of well-being and health.  
4. Background and authority for the subsidy
 
  The GMP-operational environment will be rent ed for payment to SMEs pilot production. 
  Authority:  City of Oulu.  
5. Form of the subsidy
 
  Rent support  6. To whom and how the subsidy is provided
 
 
 The rent support will be provided to the en terprises using the GMP-operational environment. 
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
 
 The amount granted in 2007 was MEUR 0.6 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Until 30 April 2007 
 
9. The trade effects of the subsidy
. 
  No effects on international trade.  G/SCM/N/186/EEC/Add.8 
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  III. REGIONAL AID 
14. I
NVESTMENT AID 
1. Title of the subsidy programme  
  Investment aid 
 
2. Period covered by the notification
 
  2007-2008 (The subsidy programme has expired on 18 June 2007.) 
 
3. Policy objective and/or purpose of the subsidy
 
  Regional aid  4. Background and authority for the subsidy
 
 
 Investment aid can be granted to firms towa rd fixed assets needed for business operations and 
for making alterations or improvements to such fixed assets.   The aid is granted by the Ministry of Trade and Industry and the Business Departments of the regional Employment and Economic Developmen t Centres (Aid to Business Act 1068/2000). 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Investment aid can be granted to firms in the regional development area.  In other parts of 
Finland, investment aid can be  granted only to small businesses. 
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount granted in 2007 was MEUR 16.97   The amount granted in 2008 was 0 MEUR (T he subsidy programme has expired on 
18 June 2007). 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Until 18 June 2007.  
9. The trade effects of the subsidy
 
  No effects on international trade.   G/SCM/N/186/EEC/Add.8 
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  15. BUSINESS DEVELOPMENT AID 
1. Title of the subsidy programme  
  Business Development Aid  
2. Period covered by the notification
 
  2007-2008 (The subsidy programme en tered into force on 18 June 2007.) 
 3. Policy objective and/or purpose of the subsidy
 
 
 Regional aid.  Aid to SMEs.  4. Background and authority for the subsidy
 
 
 The legal background: 
  Act:  Laki valtionavustuksesta yritystoiminnan kehittämiseksi (1336/2006).  The Act entered 
into force on 18 June 2006. 
  Government Decree:  Valtioneuvoston aset us valtionavustuksesta yritystoiminnan 
kehittämiseksi (675/2007), including later amendments. 
  The aid is granted by the Ministry of Employment and the Economy and the regional 
Employment and Economic Centres (TE-Centres).  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Subsidies can be granted for following purposes: 
  Investments:   Subsidies can be granted to enterprises fo r carrying out investments of material and 
immaterial nature.  Subsidies can be granted to small and medium-sized enterprises in the 
whole country.  Subsidies can be granted to large enterprises in development regions only, 
and only for special reasons. 
  Other development measures:  
 Subsidies can be granted to small and medi um-sized enterprises for taking development 
measures (improving business management sk ills, development of pr oducts and production 
methods, other marked development of business activities). 
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount granted in 2007 was MEUR 43.0  The amount granted in 2008 was MEUR 80.8 G/SCM/N/186/EEC/Add.8 
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  8. Duration of the subsidy and/or any other time-limits attached to it
 
  Until 31 December 2013.  9. The trade effects of the subsidy
 
 
 No effects on international trade.  16. R
EGIONAL TRANSPORT SUBSIDY  
1. Title of the subsidy programme  
 
 Regional transport subsidy  2. Period covered by the notification
 
 
 2007-2008 
 3. Policy objective and/or purpose of the subsidy
 
  Regional aid (SMEs)  
4. Background and authority for the subsidy
 
  Transport of goods in Finland, which start from regions, which have less than 12.5 inhabitants 
per km
2:  Lapland, North Ostrobothnia, Kainuu, Nort h Karelia and South Savo, are eligible for 
subsidy.  In addition to th at the subsidy is granted in  the region of North Savo as de minimis  aid on 
basis of the Commission regulation (EC) No. 1998/2006. 
  Ministry of Employment and the Economy is responsible for the subsidy programme.  The aid 
is granted by the regional Employment  and Economic Centres (TE-Centres). 
  The legal background: 
 
 Act (954/1981) as changed by Act (1080/2003).  5. Form of the subsidy
 
 
 Grant paid semi-annually on basis of applications and evidence. 
 6. To whom and how the subsidy is provided
 
  The subsidy can be granted for transports starting from the place of processing of products, 
which have been processed by small or medium-s ized companies within Lapland, Ostrobothnia, 
Kainuu, North Karelia, South Savo and North Savo.  Transport subsidies can be granted for the 
carriage of the following products:  Food and dr inks, earths and stone, wood and wood products, 
products of the paper industry, products of the me tal industry, machinery a nd apparatus and products 
of the chemical industry.  The amount of transport subsidies is 7 to 29 per cent of the transporting 
costs. 
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  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The actual payments in 2007 were MEUR 5.4  The actual payments in 2008 were MEUR 2.6 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  The Act concerned (954/1981) has expired;  it covered transports taking place no later than 
31 December 2007.  The subsidy has been paid in accordance with Act 954/1981 semi-annually 
ex-post on the basis of actual transports.  The act ual payments of the subsidy in 2008 (MEUR 2.63) 
have in accordance with Act 954/1981 taken place ex-pos t on the basis of transports taken place in the 
second half of year 2007.   The system for transport subsidy has been extended by a Government Decree (21/2009) on 
the basis of which subsidies will be paid as from the beginning of 2009.  The Government 
Decree (21/2009) is valid until the end of year 2013.  9. The trade effects of the subsidy
 
  No effects on international trade. 
 
17. A
CCELERATED REGIONAL DEPRECIATION  
1. Title of the subsidy programme  
  Depreciation allowance in development areas for SMEs. 
 
2. Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Regional aid for SMEs  4. Background and authority for the subsidy
 
 
 Legal basis:  Act 1262/1993 as amended by acts 1736/1995, 32/1998, 1215/1998, 964/2000, 
901/2001, 914/2003 and 979/2006.  The responsible  authority is the Ministry of Finance. 
 5. Form of the subsidy
 
  Tax benefit (accelerated depreciation). 
 
6. To whom and how the subsidy is provided
 
  The subsidy is granted in the national developm ent areas I and II.  Eligible sectors for this aid 
are manufacturing, hotel and lodging services for their investments in buildings and machinery.  From 
1998 onwards this aid has been granted only to small and medium-sized enterprises, and sensitive 
sectors of agriculture, synthetic fibres, the automobi le industry, steel and shipbuilding have not been 
included.  The maximum depreciation rate is increased by 50 per cent (for machinery from 25 per cent to 37.5 per cent and for industrial buildings from 7 per cent to 10.5 per cent). G/SCM/N/186/EEC/Add.8 
Page 20  
 
   
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount granted in 2007 was MEUR 1.0 
 The amount granted in 2008 was MEUR 1.0 
  Maximum possible aid intensity that, accordi ng to the rules and conditions on which the 
subsidy is granted, can be obtained in favour of any one project is 1 per cent. 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate  9. The trade effects of the subsidy
 
 
 No effects on international trade.  18. G
RANT FOR INVESTMENTS (ÅLAND ) 
1. Title of the subsidy programme  
 
 Grant for investments (Åland) 
 2. Period covered by the notification
 
  2007-2008 
 
3. Policy objective and/or purpose of the subsidy
 
  Regional aid (investments in equipment and buildings).  4. Background and authority for the subsidy
 
 
 Company aid act of Åland (ÅFS 46/89)  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  The aid is provided to SMEs.  The subsid y is granted by the Government of Åland. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year ) 
  The annual amount of grants in 2007 was MEUR 0.1  The annual amount of grants in 2008 was MEUR 1.6 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate  G/SCM/N/186/EEC/Add.8 
 Page 21 
 
 
   
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  No effects on international trade.  IV. AID IN THE FIELD OF ENERGY 
19. E
NERGY GRANTS  
1. Title of the subsidy programme  
  Energy grants 
 
2. Period covered by the notification
 
  2007-2008  
3. Policy objective and/or purpose of the subsidy
 
  Promotion of energy conservation, energy efficiency and the use of renewable energy;  reduction of negative environmental impacts asso ciated with energy production and usage and 
contribution to energy security and diversity of energy supply.  
4. Background and authority for the subsidy
 
  Legal basis:  Decision of the Council of Stat e on the general conditions for awarding energy 
grants (29/1999) and since year 2007 Decree of th e Council of State on the general conditions for 
awarding energy grants (1313/2007). 
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Subsidies can be granted to enterprises a nd communities on a case-by-case consideration.  
Subsidies are granted by the Ministry of Employ ment and the Economy (Energy Department) and The 
Employment and Economic Development Centres (T&E  Centres) on application and they are paid 
according to the progress of the project. 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  2007 - MEUR 30.2  2008 - MEUR 28.3 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  The duration of the subsidy programme is five  years (valid to the end of year 2012).  The 
programme commenced in its present form in 1999. 
 G/SCM/N/186/EEC/Add.8 
Page 22  
 
  9. The trade effects of the subsidy
 
  No effects on international trade.  20. A
ID MEASURES CONNECTED TO ENERGY TAXATION  
1. Title of the subsidy programme  
  Aid measures connected to energy taxation  2. Period covered by the notification
 
 
 2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 The general aim of the programme is environm ental.  The purpose is to promote the use of 
renewable energy.  4. Background and authority for the subsidy
 
  Legal basis:  Act 1260/1996. 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  The aid is granted for power plants producing electricity from wood forest chips, for small 
hydro power plants max 1 MVA, for wind power, for bi o gas as well as for recycled fuels.  The aid is 
(€0.0069 per kWh for wind power and forest chip s, €0.0042 per kWh for bio gas and hydro power 
plants and €0.0025 for recycled fuels). 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount of aid in 2007 was MEUR 15.64 
 The amount of aid in 2008 was MEUR 10.59 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate  
9. The trade effects of the subsidy
 
  No effects on international trade.   G/SCM/N/186/EEC/Add.8 
 Page 23 
 
 
  21. DIFFERENTIATED TAX RATE FOR ELECTRICITY CONSUMED BY INDUSTRY  
1. Title of the subsidy programme  
  Differentiated tax rate for el ectricity consumed by industry 
 
2. Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Subsidy to industry:  to improve competitiven ess of the industry when tax on electricity is 
levied in order to reach environmental and energy policy coals.  4. Background and authority for the subsidy
 
 
 The aid is granted by the district customs offices.  5. Form of the subsidy
 
  Differentiated tax rate 
 
6. To whom and how the subsidy is provided
 
  Electricity is taxed on the basis of category II (i ndustry) if it is used in  the mining of minerals, 
industrial manufacturing and processing of goods or  professional glasshouse cultivation.  All other 
cases fall under category I. 
 
Electricity tax rate: cent/kWh 2007 2008 
 - category I 0.743 0.883 
 - category II 0.233 0.263 
 
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount granted in 2007 was MEUR 194.3  The amount granted in 2008 was MEUR 264.4 
 
8. Duration of the subsidy and/or any other time-limits attached to it
 
  2001-2011  9. The trade effects of the subsidy
 
 
 No effects on international trade.  G/SCM/N/186/EEC/Add.8 
Page 24  
 
  22. W
ASTE OIL MANAGEMENT FINANCED BY WASTE OIL CHARGES  
1. Title of the subsidy programme  
  Waste oil management financed by waste oil charges  
2. Period covered by the notification
 
  2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Environmental protection  4. Background and authority for the subsidy
 
 
 The Ministry of the Environment is the responsible authority. 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  The subsidy can be provided to enterprises,  which have made a contract on waste oil 
management with The Ministry of Environment.  
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount of aid in 2007 was MEUR 2.4  The amount of aid in 2008 was MEUR 0.8  
8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indeterminate  9. The trade effects of the subsidy
 
 
 No effects on international trade.  23. A
ID FOR CHIPPING OF ENERGY WOOD 
1. Title of the subsidy programme  
 
 Aid for chipping of energy wood 
 2. Period covered by the notification
 
  2007-2008 
  G/SCM/N/186/EEC/Add.8 
 Page 25 
 
 
  3. Policy objective and/or purpose of the subsidy  
  Environmental protection.  By using wood for energy production we can decrease CO
2 
emission.  If we use one solid cubic metre of wood for energy, it means 0.6 tons of CO2 reduction in 
CO2 emissions, assuming that wood replaces oil. 
 
4. Background and authority for the subsidy  
  The aid for chipping of energy wood is one part of the aid scheme on the financing of sustainable forestry in Finland.  The finance is provided for private forest owners.  The wood which 
has been harvested while tending young stands or  in connection of non-commercial thinnings is 
collected and chipped for energy production.  The a pplications on finance must be submitted to the 
regional forest centres and these centres approve the applications.  5. Form of the subsidy
 
 
 The subsidy is a grant €1.7 per loose cubic metre.  6. To whom and how the subsidy is provided
 
  The subsidy can be provided for the private fo rest owners, the entrepreneurs or the forest 
owners' association if they do the chipping. 
 7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
 
 The total amount of grants in 2007 was MEUR 1.4 
 The total amount of grants in 2008 was MEUR 1.0  8. Duration of the subsidy and/or any other time-limits attached to it
 
  The scheme will expire 31 December 2012. 
 
9. The trade effects of the subsidy
 
  No effects on international trade.  
24. I
NVESTMENT AID FOR BIOFUEL PLANT (ÅLAND ) 
1. Title of the subsidy programme  
  Investment aid for biofuel plant (Åland)  2. Period covered by the notification
 
 
 2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Environmental protection 
 G/SCM/N/186/EEC/Add.8 
Page 26  
 
  4. Background and authority for the subsidy
 
  Annual budget for the Åland islands (ÅFS 2006:1)  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 The aid is provided to a small enterprise.  The subsidy is granted by the Government of 
Åland.  7.  The total amount or the annual amount budgete d for the subsidy (indicating if possibly, the 
average subsidy per unit in the previous year ) 
 
 The total amount of the grant is €2,630,162;  approved 24 October 2006.   The grant will be paid in three parts:  €1, 200,000 in August 2007, €1,200,000 in January 2008 
and €230.162 in June 2008.  
8. Duration of the subsidy and/or any other time-limits attached to it
 
  31 December 2008  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 No effects on international trade.  
V. OTHER SUBSIDIES 
25. S
UBSIDY TO PASSENGER VESSELS  
1. Title of the subsidy programme  
 
 Subsidy to passenger vessels  2. Period covered by the notification
 
 
 2007-2008 
 3. Policy objective and/or purpose of the subsidy
 
  To safeguard the competitiveness of Finnish  passenger vessels in international trade. 
 
4. Background and authority for the subsidy
 
  Ministry of Transport and Communications Finland/Finnish Maritime Administration.  National Board of Taxes.  
5. Form of the subsidy
 
  Grant  G/SCM/N/186/EEC/Add.8 
 Page 27 
 
 
   
6. To whom and how the subsidy is provided  
  The Finnish ship-owner shall be supported by the State by 97 per cent to the tax on the marine work income of Finnish seafarers work ing on board Finnish passenger vessels. 
 
 Law (1707/1991)  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
 
 The amount granted in 2007 was MEUR 34.4  The amount granted in 2008 was MEUR 36.1  8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 Indefinite  9. The trade effects of the subsidy
 
  No effects on international trade. 
 
26. S
UBSIDY TO CARGO VESSELS  
1. Title of the subsidy programme  
  Act on the List of Merchant Vessels in International Trade. 
 
 Law (1707/1991)  2. Period covered by the notification
 
  2007-2008 
 
3. Policy objective and/or purpose of the subsidy
 
  To safeguard the competitiveness of Finni sh Cargo vessels in international trade. 
 
4. Background and authority for the subsidy
 
  Ministry of Transport and Communications Finland/Finnish Maritime Administration.  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  The Finnish ship-owner shall be supported by the State by an amount corresponding to the tax 
withheld, the social security and other mandatory in surance contribution paid by the employer on the 
seaman's income.   Law (1707/1991) G/SCM/N/186/EEC/Add.8 
Page 28  
 
   
7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  The amount granted in 2007 was MEUR 50,513. 
 The amount granted in 2008 was MEUR 52,098. 
 8. Duration of the subsidy and/or any other time-limits attached to it
 
  Indefinite 
 
9. The trade effects of the subsidy
 
  No effects on international trade.  
27. I
NNOVATION AID SCHEME FOR THE FINNISH SHIPBUILDING INDUSTRY  
1. Title of the subsidy programme  
  Innovation aid scheme for the Finnish shipbuilding industry  2. Period covered by the notification
 
 
 2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 Aid for innovation 
 4. Background and authority for the subsidy
 
  The authorization to grant this aid is decided by the Finnish legislation.  Innovation aid scheme has been notified in the EU.  The total amount of aid is decided in the State budget annually. 
 
5. Form of the subsidy
 
  Direct grant  
6. To whom and how the subsidy is provided
 
  The aid is granted to the Finnish shipbuilding industry by the Ministry of Employment and the Economy.  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
  In 2008 the amount of aid was MEUR 18.  8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 The subsidy period is from 10 September 2008 to 31 December 2011.  The subsidy can be 
used for project which will complete until at the end of 2015.   G/SCM/N/186/EEC/Add.8 
 Page 29 
 
 
  9. The trade effects of the subsidy  
  No effects on international trade.  28. T
RAINING AID IN ÅLAND  
1. Title of the subsidy programme  
  Training aid in Åland  2. Period covered by the notification
 
 
 2007-2008  3. Policy objective and/or purpose of the subsidy
 
 
 The main objective is to increase the training of employees. 
 4. Background and authority for the subsidy
 
  The annual budget of the Government of Åland.  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Granted to specific companies applying for a grant.  7. The total amount or the annual amount budgeted for the subsidy (indicating, if possible, the 
average subsidy per unit in the previous year ) 
 
 The amount granted in 2007 was MEUR 0.3 
 The amount granted in 2008 was MEUR 0  8. Duration of the subsidy and/or any other time-limits attached to it
 
 
 2007 
 9. The trade effects of the subsidy
 
  No effects on international trade.  
__________