WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.2 
21 December 2007 
 
 (07-5750) 
Committee on Subsidies and 
Countervailing Measures Original:   English/ 
 French 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Artic le 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 Belgium . 
 
_______________ 
  G/SCM/N/155/EEC/Add.2 
Page 2  
 
  BELGIUM  
 
TABLE OF CONTENTS 
 
 
Page  
 
INTRODUCTION................................................................................................................... ...............5 
1. BELGIUM – FEDERAL STATE – ANNUAL REPORT 2005 AND 2006..........................6  
1.1 SPECIAL TAXATION SCHEMES ....................................................................................................6  
1.1.1 Restructuring companies, Law of 31 July 1984, Royal Decree of 3 October 1988, 
Law of 22 December 1989 (Article 303), Law of 28 December 1990 (Article 18)................6  
1.2 TAX MEASURES TO PROMOTE INVESTMENT ...............................................................................6  
1.3 AID FOR RESEARCH AND DEVELOPMENT ...................................................................................8  
1.4 TONNAGE TAX............................................................................................................................8  
1.5 AUDIOVISUAL TAX SHELTER ......................................................................................................9  
1.6 TAX MEASURES FOR EXEMPTION FROM OR REDUCTION OF EXCISE DUTY ON ENERGY 
PRODUCTS AND ELECTRICITY .....................................................................................................9  
1.7 TAX MEASURES APPLYING REDUCED EXCISE RATES TO BIOFUELS ........................................10  
2. BELGIUM – BRUSSELS – CAPITAL REGION – ANNUAL REPORT 2005 
AND 2006....................................................................................................................... ..........11  
2.1 AID FOR ECONOMIC GROWTH ...................................................................................................11  
2.1.1 Order of 1 July 1993 on the promotion of economic growth in the Brussels-
Capital Region................................................................................................................. ........11  
2.1.2 Economic Reorientation La w of 4 August 1978 ...................................................................13  
2.2 AID FOR RESEARCH AND DEVELOPMENT .................................................................................17  
2.2.1 Subsidies for basic industrial research .................................................................................17  
2.2.2 Pre-competitive development (e.g. prototype advances) .....................................................18  
2.2.3 Pre-competitive development (e.g. prototype advances) .....................................................18  
2.2.4 European Programmes...........................................................................................................1 9 
2.3 AID FOR COMMERCIAL PROSPECTING ......................................................................................20  
2.3.1 Order of 13 January 1994 on the promotion of foreign trade ............................................20  
2.4 AID FOR EMPLOYMENT .............................................................................................................21  
2.4.1 Royal Decree No. 123 concerning the hiring  of unemployed persons for certain 
economic expansion project s benefiting SMEs ....................................................................21  
2.4.2 Order of 18 March 2004 concerning the approval and funding of local initiatives 
to develop employment and in tegration enterprises............................................................21  
2.4.3 Decree of the Government of the Brussels – Capital Region of 11 March 2004 
amending Articles 53 to 58 of the Royal Decree of 20 December 1963 relating to employment and unemployment ...........................................................................................22
  G/SCM/N/155/EEC/Add.2 
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  Page  
2.5 AID FOR ENERGY SAVING .........................................................................................................22  
3. BELGIUM – WALLOON REGION – ANNUAL REPORT 2005 AND 2006 ..................23  
3.1 AID TO SME S............................................................................................................................23  
3.1.1 Law of 4 August 1978 on economic reorient ation, as amended by the Decree of 
25 June 1992 – Implementati on orders of 21 May 1999......................................................23  
3.1.2 Decree of 11 March 2004 – Implementation order of 6 May 2004 .....................................24  
3.2 AID TO DISADVANTAGED REGIONS ..........................................................................................25  
3.2.1 Law of 30 December 1970 on economic expansion, as amended by the Decree of 
25 June 1992 – Implementation  orders of 8 November 2000..............................................25  
3.2.2 Decree of 11 March 2004 on regional incenti ves in favour of large enterprises –
Implementation order of 6 May 2004....................................................................................26  
3.3 RESEARCH AND TECHNOLOGY AID..........................................................................................27  
3.3.1 Decree of 5 July 1990 on aid and action by the Walloon Region to promote research and technology, and it s implementation orders....................................................27
 
4. BELGIUM – FLEMISH REGION – ANNUAL REPORT 2005 AND 2006 .....................28  
4.1 AID FOR ECONOMIC EXPANSION ...............................................................................................28  
4.1.1 Law of 30 December 1970 on economic expansion (abolished – only pending 
cases) ......................................................................................................................... ...............28  
4.1.2 Law of 4 August 1978 on economic reorie ntation (abolished – only pending cases 
in 2005 and 2006) .............................................................................................................. ......30  
4.1.3 Decree of 15 December 1993 on economic ex pansion in the Flemish Region....................32  
4.1.4 Decree of 31 January 2003 on the economic support policy ...............................................33  
4.1.4.1  Decision of the Flemish Government of 10 October 2003 regarding the granting of 
aid to small and medium-sized enterprises for investments in the Flemish Region (growth premium) ............................................................................................................... ......33
 
4.1.4.2  Decision of the Flemish Government of 12 December 2003 regarding the granting of 
aid to large enterprises for investments in  assisted areas in the Flemish Region......................35  
4.1.4.3  Decision of the Flemish Government of 1 October 2004 regarding the granting of aid 
to enterprises for ecological investments in  the Flemish Region (ecological premium) ..........36  
4.2 AID TO ENTERPRISES ................................................................................................................37  
4.2.1 Aid to enterprises for consultancy and advice (replaced and amended) ...........................37  
4.2.2 Decision of the Flemish Government of 16 December 2005 regarding the 
granting of aid to small and medium-sized enterprises for entrepreneurship encouraging services (budget for economic advice – BEA).................................................38
 
4.3 RESEARCH AND DEVELOPMENT ................................................................................................38  
4.4 AID TO THE FISHERIES AND AQUACULTURE SECTOR ...............................................................40  
4.5 AID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE – FLEMISH 
AGRICULTURAL INVESTMENT FUND.........................................................................................41  G/SCM/N/155/EEC/Add.2 
Page 4  
 
  Page
 
4.6 TRAINING CHEQUES ..................................................................................................................45  
4.7 AD HOC TRAINING AID.............................................................................................................46  
 
Please note:  1 EURO = 40.3 399 BEF (BELGIAN FRANCS).  G/SCM/N/155/EEC/Add.2 
 Page 5 
 
 
  INTRODUCTION  
 
 Following recent reforms in Belgium, the greater part of investment policy is now 
constitutionally the responsibility of the Flemish,  Walloon and Brussels regions.  Consequently, the 
regions are also responsible for applying legisla tion on economic growth and aiding SMEs in their 
respective areas.  In the Belgian notification of s ubsidies, the evaluation of whether the subsidy is 
"general" or "specific" therefore relates to  the regulations in force in each region. 
 G/SCM/N/155/EEC/Add.2 
Page 6  
 
  1. BELGIUM – FEDERAL STATE – ANNUAL REPORT 2005 AND 2006 
1.1 S
PECIAL TAXATION SCHEMES  
1.1.1 Restructuring companies, Law of 31 Ju ly 1984, Royal Decree of 3 October 1988, Law of 
22 December 1989 (Article 303), Law of 28 December 1990 (Article 18) 
(a) Form of the subsidy  
 
 Restructuring companies originally benefited from the following, inter alia : 
  - Exemption from duty on capital inflow;  - exemption from corporate tax for 10 consecutiv e financial years, restricted to the part 
of the dividends that did not exceed  13 per cent of the paid-up capital. 
 (b) Total amount in 2005 and 2006
 
  Exemption from corporate tax: (NCG
1) EUR 0 million.  This scheme may therefore be 
considered ended and should not be examined in the future.  
 
(c) Policy objective  
  The tax scheme applies to firms set up specially to carry out a conversion project under a "conversion contract" and established in one of th e zones defined for this purpose in the Royal 
Decree. 
 (d) Duration
 
  This scheme has not been available since 22 July 1990;  nevertheless: 
 
 - Firms set up before 1 January 1990 are exempt from corporate tax for a maximum of 
15 years; 
 - for firms set up between 1 January and 22 July 1990, exemption from corporate tax 
ends during the 2002 fiscal year; 
 - no exemption from corporate tax is granted to firms set up after 22 July 1990. 
 
1.2 T
AX MEASURES TO PROMOTE INVESTMENT  
 Deduction for investment, Articles 68 to 77 CIR92 (and 211, 212 and 215) 
 
(a) Investments taken into consideration  
 
 Deduction for investment allows a share of th e amount of investment made during the taxable 
period to be deducted from the basi c taxable amount.  Firms or natu ral persons who declare gains or 
profits are eligible.  
General rule 
 
 The deduction for investment may apply to investment in tangible or intangible fixed assets, acquired or constituted as new during the taxable peri od and which are used in Belgium to exercise a 
professional activity. 
                                                     
 
1 Net cost for government in euros.  G/SCM/N/155/EEC/Add.2 
 Page 7 
 
 
   
 Other than the specific rules on exclusions rela ting to investments sold to third parties, the 
following are excluded from the deduction for investment:   - Fixed assets not used exclusively to exercise a professional activity; 
 - investments financed through a coordination centre; 
 - property acquired with a view to resale;  - non-redeemable assets or assets redeemable in less than three years;  - incidental charges, when they are not redeem ed at the same time as the fixed assets to 
which they are related; 
 - cars and vehicles designed for the transport of both passengers and goods. 
 
Basis for calculation 
 
 The redeemable amount determines the basis for calculation of the deduction for investment. 
 
(b) Amount
 
  2005:  EUR 240.51 million.  2006:  EUR 242.77 million.  
(c) Policy objective
 
  The current objective is to facilitate investment.  (d) Rules and conditions
 
 
Applicable rates 
 
Determination of the basic rate 
 
 The basic rate is linked to the inflation rate:  for year "t" investments, it is based on the 
difference between the average of consumer price indices for the years "t-1" and "t-2". 
  This difference is increased by one point (com panies) or 1.5 points (natural persons).  For 
companies, the rates obtained in this way may not exceed 10 per cent or be less than three per cent.   
For natural persons, the minimum and maximum are 3.5 and 10.5 per cent, respectively. 
 
Investments benefiting from the deduction at the basic rate 
 
 Since the "deactivation" of the deduction for i nvestment, the deduction at the basic rate has 
only applied to:  
 - Investments by natural persons and small and medium-sized enterprises.  Such 
enterprises are those in which the majority of voting rights are held by natural persons 
and which are not part of a group with a coordination centre; 
 - investments in the production and recycling of reusable containers.  Increased rates 
 
 Increased rates are always calculated in relati on to the applicable ra te for natural persons, 
even if the investments are made by companies.  G/SCM/N/155/EEC/Add.2 
Page 8  
 
   Such rates are applicable to the following: 
  - Patents (+10 points);  - investments aimed at promoting research and development in respect of new products 
and advanced technologies which do not a ffect the environment or which minimize 
negative effects on the environment (+10 points); 
 - energy-saving investments (+10 points);  - investments in security systems for busin ess premises, when the installation thereof 
has been recommended and approved by th e area-based official responsible for 
providing technical prevention advice (+17 points). 
 
 In the case of staggered deduction (see below), the basic rate is increased:   - By 17 points for investments in envi ronmentally-friendly research and development; 
 - by 7 points for other investments. 
 
1.3 A
ID FOR RESEARCH AND DEVELOPMENT  
 2005:  Special Law of 8 August 1980, amended on 16 July 1993; 
 2006:  Royal Decree of 10 November 2005 delegatin g functions in respect of joint centres to 
the Office of Standardization.  
(a) Form of the subsidy
 
  Non-repayable subsidy.  (b) Total amount of the subsidies granted in 2005
 
 
 Projects for which the Federal State is responsible:   2005:  Total commitments: EUR 3,090,205.  2006:  Total commitments: EUR 3,286,000.  
(c) Purpose of the subsidy
 
  Collective pre-standard research.  (d) Duration
 
 
 Subsidies cover a one-year period.  1.4 T
ONNAGE TAX 
 Article 115 to 127 of the Programme Law of 2 August 2002, amended by the 
Programme Law of 27 Decembe r 2004, Articles 344 to 348. 
 
(a) Form of the subsidy  
  Flat-rate determination of profits taxable in Belgium on the basis of the tonnage of vessels. 
 
(b) Amount in 2005 and 2006
 
  No figures are yet available for this measure.  G/SCM/N/155/EEC/Add.2 
 Page 9 
 
 
   
(c) Policy objective  
  To enable Belgium to develop mariti me shipping under the Belgian flag. 
 
(d) Duration
 
  From the taxable period following that in whic h the application was made, until the end of the 
taxable period which comes to a close during the tenth calendar year following that in which the 
application was made. 
 
 At the end of the above period, the scheme is  tacitly renewed for the same length of time. 
 1.5 A
UDIOVISUAL TAX SHELTER  
 Article 128 to 129 of the Programme Law of 2 August 2002 inserting Article 194 ter into 
the Income Tax Code of 1992, replaced by Article 291 of the Programme Law of 22 December 
2003 and amended by Article 2 of the Law of 17 May 2004. 
 
(a) Form of the subsidy  
  Tax incentive. 
 
(b) Amount
 
  Estimated figures: 
 
 2005:  EUR 6.12 million 
 2006:  EUR 6.80 million  (c) Policy objective
 
  Tax incentive aimed at supporting the production and creation of Belgian audiovisual works. 
 
(d) Duration
 
  Entered into force in the 2004 tax year. 
 
(e) Rules and conditions
 
  Exemption of the taxable profits of a company wishing to invest in an audiovisual production (up to 150 per cent of the amounts actually invested).  1.6 T
AX MEASURES FOR EXEMPTION FROM OR REDUCTION OF EXCISE DUTY ON ENERGY 
PRODUCTS AND ELECTRICITY  
 Excise duty on energy products and elect ricity, Programme Law of 27 December 2004 
(Articles 419 and 420, paragraphs 5 and 6). 
 
(a) Form of the subsidy  
 
 The aid granted consists of a reduction of or  an exemption from excise duties for enterprises 
which have concluded an environmental agreement. G/SCM/N/155/EEC/Add.2 
Page 10  
 
   
 In this case, energy-intensive enterprises hol ding an environmental permit are granted a zero 
rate, while a reduced rate (normally 50 per cent) is applied to other ente rprises which hold such a 
permit.  
(b) Amount in 2005 and 2006
 
  Budgetary estimate of EUR 40 million per year.  Real cost figures are not yet available.  (c) Policy objective
 
 
 The tax measures apply to the professional c onsumption of energy-intensive enterprises 
engaged in economic activity involving production, trading or the provision of services, including 
mining and agricultural activities and liberal professions.  
(d) Duration
 
  The reduced excise rates provided for in Article 419 of the Programme Law of 
27 December 2004 have been in force since 1 January 2005.  1.7 T
AX MEASURES APPLYING REDUCED EXCISE RATES TO BIOFUELS  
 Reduced excise rates for biofuels, Programme Law of 11 July 2005 (Chapter 1, Title V) 
 
(a) Form of the subsidy  
  The aid is granted in the form of a reduction in  the excise rate when the fuel is released for 
domestic consumption. 
  The reduction of the excise rate for bioethanol  and biodiesel is granted in the form of a 
reduction in the excise rate applicable to mixtures of fossil/renewable fuels in relation to the rate 
applicable to pure fossil fuels which the biofuels substitute. 
 
 The fossil fuels concerned are: 
 
• Unleaded petrol: 
 - with an octane level of 98 or a lo wer sulphur and aromatics content, or; 
 - with an octane leve l lower than 98, and; 
• diesel with a sulphur content not exceeding 50 mg/kg. 
 
(b) Amount in 2005 and 2006
 
  This scheme did not enter into force in 2005;  This scheme entered into force in mid-2006 an d therefore no figures are currently available. 
 
(c) Policy objective
 
  This aid scheme aims to protect the environment by encouraging the placing on the market of biofuels through the granting of a reduction in excise duty.   The reduction of excise duty allows fuels from a renewable source to compete with fuels of 
fossil origin, the cost price of which is significantly lower.  G/SCM/N/155/EEC/Add.2 
 Page 11 
 
 
   
 The purpose of the aid is to compensate fo r the difference between the production costs and 
the market price of renewable energy.  (d) Duration
 
 
 The duration of the scheme is limited to six years. 
 
2. BELGIUM – BRUSSELS – CAPITAL REGION – ANNUAL REPORT 2005 AND 2006 
2.1 A ID FOR ECONOMIC GROWTH  
2.1.1 Order of 1 July 1993 on the promotion of economic growth in the Brussels-Capital 
Region 
(a) Form of the subsidy  
  Financial aid is granted in the form of an investment premium. 
 
(b) Total amount of the subsidies granted in 2005
 
 
Type of 
Investment  Number of 
programmes  Subsidized 
amount 
(EUR)  Amount of 
premiums 
(EUR)  Average rate of 
aid 
(%) 
General investment 34 13,556,846.20 672,501.00 4.96% 
    
Specific investment     
    
- Rational energy use 24 4,609,319.80 921,814.00 20.00 
- Rational water use 2 241,445.32 48,289.00 20.00 
- Rational use of raw material s 14 6,940,145.33 1,388,224.00 20.00 
- Environmental protection 13 4,018,043.30 803,605.00 20.00 
- Adaptation to European 
 standards 12 1,967,398.23 295,105.00 15.00 
 51 14,287,103.98 2,532,498.00 19.45 
TOTAL (general and specific 
investments) 99 31,333,198.18 4,129,538.00 13.18 
- Use of consultancy services 
- Use of training services - Use of mentoring services 173 
145 
1 4,188,674.63
689,076.07
-1,933,449.31 
316,031.96 
- 46.16 
45.87 
- 
TOTAL (Consultancy, training and mentoring services) 319 4,877,750.70 2,249,481.27 46.12 
OVERALL TOTAL 418 36,210,948.88 6,379,019.27  
 G/SCM/N/155/EEC/Add.2 
Page 12  
 
  (c) Total amount of the subsidies granted in 2006
 
 
Type of 
Investment  Number of 
programmes  Subsidized 
amount 
(EUR)  Amount of 
premiums 
(EUR)  Average rate of 
aid 
(%) 
General investment 19 5,933,191.31 205,931.00 3.47 
    
Specific investment     
    
- Rational energy use 16 1,611,771.61 322,448.00 20.00 
- Rational water use 3 592,280.96 118,455.00 20.00 
- Rational use of raw materi als 16 11,650,877.68 2,330,172.00 20.00 
- Environmental protection 32 12,316,347.54 2,455,095.00 19.93 
- Adaptation to European 
 standards 21 2,279,300.94 341,917.00 15.00 
 88 28,450,578.73 5,568,087.00 19.57 
TOTAL (general and specific 
investments) 107 34,383,770.04 5,774,018.00 16.79 
- Use of consultancy services 
- Use of training services - Use of mentoring services 163 
191 
- 3,372,869.23
796,561.98
-1,647,188.13 
391,921.37 
- 49.00 
49.00 
- 
TOTAL (Consultancy, training and mentoring services) 354 4,167,392.21 2,039,109.50 49.00 
OVERALL TOTAL 461 38,551,162.25 7,813,127.50  
 
(d) Policy objective and/or purpose of the subsidy  
  The policy objective of the Order of 1 July 1993 is to promote economic growth by granting 
financial aid to industrial enterprises in Brussels if they invest in the Brussels – Capital region. 
  The amount of this aid depends on the enterprise's  sector of activity, its size and the type of 
investment:  
• Enterprises of any size may benefit from aid for "specific" investment for the purpose 
of: 
 
∗ saving energy, water or raw materials; 
∗ protecting the environment; 
∗ adapting to European standards; 
 
• Medium-sized enterprises (maximum 250 employees and turnover of 
EUR 40 million) may benefit from aid for "general" investment; 
 
• Micro, small and medium-sized enterprises (SMEs) may benefit from aid for 
consultancy, training and mentoring services. 
  G/SCM/N/155/EEC/Add.2 
 Page 13 
 
 
  (e) Duration of the subsidy and/or an y other time-limits attached to it  
  Depending on the amount of the premium and the duration of the investment programme, the premium is paid in one, two or three annual tranches.  
(f) Statistical data permitting an assessment of the trade effects of the subsidy
 
  2005:  With regard to the role played by the financial incentives provided for in the legislation 
on economic growth, it should be noted that the EU R 31,333,198.18 of subsidized investment under 
the Order of 1 July 1993 and the EUR 91,626,590 .00 of subsidized investment under the Law of 
4 August 1978 only represent around 10 per cent of the investment made by enterprises situated in the 
Brussels-Capital region and working in the manuf acturing, building, trade and horeca sectors.* 
(*Source:  VAT declarations for 2004 = EUR 1,145.98 million)   2006:  With regard to the role played by the financial incentives provided for in the legislation 
on economic growth, it should be noted that the EU R 34,383,770.40 of subsidized investment under 
the Order of 1 July 1993 and the EUR 40,126,788 .00 of subsidized investment under the Law of 
4 August 1978, as well as the EUR 61,424,276 for the Order of 1 April 2004, only represent around 13 per cent of the investment made by enterprises si tuated in the Brussels-Capital region and working 
in the manufacturing, building, trade and horeca sectors.* (*Source:  VAT declarations for 2005 = EUR 1,030.59 million) 
 
2.1.2 Economic Reorientation Law of 4 August 1978 
(a) Form of the subsidy
 
  The financial aid is granted in the form of an  interest subsidy or a capital premium depending 
on the method of financing of the investment programme. 
 (b) Total amount of aid granted in 2005
 
  Interest subsidy
 (in EUR) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
293 52,786,039.00 3,410,488.00 6.5% 
  Investment premium
 (in EUR) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
293 38,840,551.00 3,189,338.00 8.2% 
 G/SCM/N/155/EEC/Add.2 
Page 14  
 
  (c) Total amount of aid granted in 2006
 
  Interest subsidy
 (in EUR) 
 
Legislation Number of 
decisions 
taken Subsidized 
amount of 
investment Amount 
decided Average rate 
of aid 
Law of 
4 August 1978 114 21,689,761 1,496,938 6.9% 
Order of 
1 April 2004 129 26,282,468 3,805,744 14.5% 
 
 Investment premium  (in EUR) 
 
Legislation Number of 
decisions 
taken Subsidized 
amount of 
investment Amount 
decided Average rate 
of aid 
Law of 
4 August 1978 149 18,437,027 1,487,068 8.1% 
Order of 
1 April 2004 168 35,141,808 5,498,826 15.6% 
 
(d) Policy objective and/or purpose of the subsidy (2005 ) 
 
 The aim of the Law of 4 August 1978 is to promote investment by small enterprises.  The 
amount of the aid depends on the enterprise's field of activity and how long it has existed. 
  According to the Law of 4 August 1978, a sma ll enterprise is one which comprises less than 
50 people and the turnover of wh ich does not exceed EUR 7 million. 
 
 Fields of activity are divided into two groups: 
  - Group A: Industrial and non-industrial enterprises or enterprises in the building or 
finishing sector; 
 - Group B: trade and services enterprises. 
 
 Pursuant to Directive B7, two types of investment are envisaged:   - Type 1 ( START-UP ): Investment by an enterprise that has existed for less than 
12 months; 
 - Type 2 ( NORMAL ): investment by an enterprise that has existed for over 
12 months. 
  Aid is given in the form of:   - An interest subsidy where the investment is financed by a fixed-term credit; 
 - an investment premium where investment is self-financed. 
  G/SCM/N/155/EEC/Add.2 
 Page 15 
 
 
   Two types of tax concession may also be granted: 
  - Accelerated (double straight-line) depreciation during three successive financial 
years; 
 - exemption from tax on income from immovable assets. 
 
(e) Policy objective and/or purpose of the subsidy (2006)
 
 
 Law of 4 August 1978 
  The aim of the Law of 4 August 1978 is to promote investment by small enterprises.  The 
amount of the aid depends on the enterprise's field of activity and how long it has existed. 
  According to the Law of 4 August 1978, a sma ll enterprise is one which comprises less than 
50 people and the turnover of wh ich does not exceed EUR 7 million. 
 
 Fields of activity are divided into two groups:   - Group A: Industrial and non-industrial enterprises or enterprises in the building or 
finishing sector; 
 - Group B: trade and services enterprises. 
 
 Pursuant to Directive B7, two types of investment are envisaged:   - Type 1 ( START-UP ): Investment by an enterprise that has existed for less than 
12 months; 
 - Type 2 ( NORMAL ): investment by an enterprise that has existed for over 
12 months. 
  Aid is given in the form of:   - An interest subsidy where the investment is financed by a fixed-term credit; 
 - an investment premium where investment is self-financed. 
  Two types of tax concession may also be granted:   - Accelerated (double straight-line) depreciation during three successive financial 
years; 
 - exemption from tax on income from immovable assets.  
 Order of 1 April 2004 
 
 The aim of the Order is to promote investment by micro, small and medium-sized enterprises 
in accordance with the European Commissi on recommendation of 6 May 2003 concerning the 
definition of enterprises.   Aid is granted in the form of:  
 - An interest subsidy where the investment is financed by a fixed-term credit; 
 - an investment premium where investment is self-financed.  G/SCM/N/155/EEC/Add.2 
Page 16  
 
   Two types of tax concession may also be granted: 
  - Accelerated (double straight-line) depreciation during three successive financial 
years; 
 - exemption from tax on income from immovable assets. 
 
 The intensity of the aid depends on various criteria and ranges from 5 to 25 per cent.  
 Micro enterprises Small enterprises Medium-sized 
enterprises 
Basic aid    
 Outside development zone 5% 5% 2.5% 
 In development zone 10% 10% 10% 
    
Supplementary aid    
    
 Employment objectives    
- Start-up + 2.5% - - 
- Low-skilled staff + 7.5%  + 5% + 3.5%  
- Employment of 
workers benefiting from a reduction in social security contributions + 7.5%  + 5%  + 3.5%  
 "Economy policy" objectives    
- Start-up  + 7.5% - - 
- Growing enterprise + 7.5% + 5% + 3.5% 
- Strategic sector + 7.5% + 5% +3.5% 
- New enterprise 
outside 
development zone + 7.5% + 5% +3.5% 
- New enterprise or 
substantial renovation in development zone + 12.5% +12.5% +12.5% 
 Exemption from tax on income 
from immovable assets    
 Accelerated depreciation    
Maximum    
- Outside development zone 15% 15% 7.5% 
- In development zone 25% 25% 25% 
 
(f) Duration of interest subsidy and capital premium  
 
 2005  
 
 In accordance with the criteria set out in subhead ing (c), the interest subsidy may be given for 
a period ranging from three to five years and the investment premium is paid in a lump sum. 
 
 The duration of the accelerated depreciation is fixed at three years.   G/SCM/N/155/EEC/Add.2 
 Page 17 
 
 
   The duration of the exemption from tax on income from immovable assets is exactly the same 
as that for the interest subsidy.  
 2006
 
  In accordance with the criteria set out in subh eading (c), the interest subsidy is given for a 
period not exceeding the duration of the loan and e nding at the moment when the amount of interest 
reimbursed by the enterprise corresponds to the financial implications of the subsidy. 
  The capital premium is paid in a lump sum. 
 
 The duration of the accelerated depreciation is fixed at three years.   The duration of exemption from tax on income from immovable assets is exactly the same as 
that for the interest subsidy. 
 
(g) Statistical data permitting an assessment of the trade effects of the subsidy
 
  - In terms of budgetary implications, 60 pe r cent of investment su bsidies was allocated 
to dossiers submitted by industrial and non-industrial enterprises; 
 - 40 per cent was allocated to dossiers s ubmitted by business or services enterprises. 
 
2.2 A
ID FOR RESEARCH AND DEVELOPMENT  
2.2.1 Subsidies for basic industrial research 
(a) Form of the subsidy  
 
 Non-repayable subsidy. 
 (b) Total amount of aid granted
 
 
 Commitments: 
 2005:   EUR 5,275,429.00 
 or 15 new projects run by 15 enterprises, in cluding 5 new beneficiaries (no university or 
research centre projects).  
 
 2006:   EUR 6,840,515.00 
 or 15 new projects run by 15 enterprises, in cluding 5 new beneficiaries (no university or 
research centre projects).  
 
 Disbursements: 
 2005:   EUR 6,068,427.00 
 2006:   EUR 5,061,134.00 
 
(c) Policy objective and/or purpose of the subsidy  
  To strengthen basic industrial research by regional enterprises.  (d) Duration of the subsidy
 
 
 Two years per subsidy.  G/SCM/N/155/EEC/Add.2 
Page 18  
 
  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Basic industrial research and, as such, not quantifiable in the medium or short term.  
2.2.2 Pre-competitive development (e.g. prototype advances) 
(a) Form of the subsidy
 
  Interest-free loans repayable upon marketing.  (b) Total amount of aid granted
 
 
 Commitments: 
 2005:  EUR 0  
 no projects in 2005 (no university or research centre projects).  
  2006:   EUR 267,788.00 
 or one new project in 2006  (no university or research centre projects).  
 
 Disbursements: 
 2005:   EUR 1,925,639.00 (former projects) 
 2006:  EUR 1,261,092.00 (former projects) 
 
(c) Policy objective and/or purpose of the subsidy
 
  To promote regional development through the creation of new products, processes or 
services. 
 
(d) Duration of the subsidy
 
  One to five years.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term.  
2.2.3 Pre-competitive development (e.g. prototype advances) 
(a) Form of the subsidy
 
  Non-repayable subsidy.  (b) Total amount of aid granted
 
  Commitments:  
 2005:   EUR 2,415,169.00 
 or 12 new projects run by 10 enterprises, in cluding 6 new beneficiaries (no university or 
research centre projects). 
 
 2006:  EUR 4,257,653.00 
 or 12 new projects run by 10 enterprises, in cluding 6 new beneficiaries (no university or 
research centre projects).   G/SCM/N/155/EEC/Add.2 
 Page 19 
 
 
   
 Disbursements:  
 2005:   EUR 2,305,008.00 
 2006:   EUR 2,879,442.00  
 
(c) Policy objective and/or purpose of the subsidy  
  To promote regional development through the creation of new products, processes or 
services.  
(d) Duration of the subsidy
 
  One to five years.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term.  
2.2.4 European Programmes 
(a) Form of the subsidy
 
 
 Optional non-repayable subsidy.  (b) Total amount of aid granted in 2005
 
  Commitments:  
 2005:  EUR 250,000.00  
 or one new project run by one  university (no new beneficiary).  
 2006:   EUR 198,915.00 
 or one new project run by one  university (no new beneficiary).  
 
 Disbursements:  
 2005:   EUR 116,000.00 
 2006:   EUR 244,000.00  
 (c) Policy objective and/or purpose of the subsidy
 
 
 Joint financing of EC subsidies for Eu ropean research programmes in universities. 
  Research centres with no commercial activities.  (d) Duration of the subsidy
 
 
 Two to three years per dossier.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Pre-competitive or socio-economic research a nd, as such, not quantifiable in the medium or 
short term.  G/SCM/N/155/EEC/Add.2 
Page 20  
 
  2.3 A
ID FOR COMMERCIAL PROSPECTING  
2.3.1 Order of 13 January 1994 on the promotion of foreign trade  
(a) Form of the subsidy  
 
 (A) Subsidies for: 
 
• Participation in trade fairs abroad and in Belgium; 
• elaboration of information doc uments to promote exports; 
• participation in training programmes; 
• collaboration of foreign trade experts. 
 
 (B) Subsidies and interest-free loans for: 
 
• Prospecting and market presence outside the European Union; 
• participation in tenders for markets outside the European Union. 
 (b) Total amount of commitments in 2005 (in EUR
) 
 
 Number of 
dossiers Total amount of 
commitments 
Trade fair subsidies  254  (*)550,000.00 
Subsidies for collaboration of experts  8  (*) 
Training subsidies  0  (*) 
Documentation subsidies  121  492,434.71 
Prospecting subsidies/loans  57  182,185.33 
Subsidies/loans for tenders  3  17,182.15 
TOTAL   443  1,241,802.19 
 (*) Collective commitment (non- differentiated appropriation) 
 
 Total amount of commitments in 2006 (in EUR ) 
 
 Number of 
dossiers Total amount of 
commitments 
Trade fair subsidies  301  600,000.00(*) 
Subsidies for collaboration of experts  5  (*) 
Training subsidies  0  (*) 
Documentation subsidies  119  417,697.33 
Prospecting subsidies/loans  133  373,245.80 
Subsidies/loans for tenders  2  5,139.24 
TOTAL   560  1,396,082.37 
 (*) Collective commitment (non-differentiated appropriation) 
 
(c) Policy objective and/or purpose of the subsidy  
  Support for commercial prospecting efforts by  small and medium-sized enterprises in the 
Region. 
 
(d) Duration of the subsidy
 
  Ad hoc aid.  G/SCM/N/155/EEC/Add.2 
 Page 21 
 
 
   
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Not available.  
2.4 A
ID FOR EMPLOYMENT  
2.4.1 Royal Decree No. 123 concerning the hiring  of unemployed persons for certain economic 
expansion projects benefiting SMEs 
(a) Form of the subsidy  
 
 Non-repayable subsidy. 
 (b) Total amount of aid granted in 2005
 
  Commitments:  EUR 1,124,731.00 
 Disbursements:  EUR 1,124,731.00 
  Total amount of aid granted in 2006
 
  Commitments:  EUR 1,083,144.00  Disbursements:  EUR 1,083,144.00  
 
(c) Policy objective and/or purpose of the subsidy
 
  To facilitate the implementation of speci fic economic expansion projects (Innovation – 
Exportation outside the EU – Energy saving and raw mate rials) so as to ensure the growth of SMEs in 
the Brussels area. 
 (d) Duration of the subsidy
 
  24 months per subsidy.  
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  In 2005, 68 people benefited from this legislation.  In 2006, 52 people benefited from this legislation.  2.4.2 Order of 18 March 2004 concerning the appr oval and funding of local initiatives to 
develop employment and integration enterprises 
(a) Form of the subsidy
 
  Non-repayable subsidy.  
(b) Total amount of aid granted in 2005
 
  Commitments:  EUR 619,874.00 
 Disbursements:  EUR 47,046.74 (as at 17 May 2006)  G/SCM/N/155/EEC/Add.2 
Page 22  
 
   Total amount of aid granted in 2006
 
  Commitments:  EUR 1,483,997.00  Disbursements:  EUR 164,335.39  
 
(c) Policy objective and/or purpose of the subsidy
 
  To permit the funding of social integration enterprises and local employment development initiatives.  The subsidies aim to cover operationa l expenses and the salary expenses of managerial 
and non-managerial staff. 
 
(d) Duration of the subsidy
 
  Subsidies are granted for four years.  
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  In 2005, 469 people benef ited from this legislation. 
 In 2006, 812 people benef ited from this legislation. 
 
2.4.3 Decree of the Government of the Brussels – Capital Region of 11 March 2004 amending 
Articles 53 to 58 of the Royal Decree of  20 December 1963 relating to employment and 
unemployment 
(a) Form of the subsidy
 
  Employment premium. 
 
(b) Total amount of aid granted in 2006
 
  Commitments = Disbursements: EUR 181,500.00 
 
(c) Policy objective and/or purpose of the subsidy
 
 
 To enable disadvantaged job-seekers to be employed on the basis of contracts of indefinite duration (or fixed-term contracts in the case of a certain category of beneficiaries), while providing 
them with vocational on-the-job training in order to increase their employability. 
 
(d) Duration of the subsidy
 
  12 months per subsidy.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 In 2006, 54 job-seekers gained employment under this measure. 
 2.5 A
ID FOR ENERGY SAVING  
(a) Form of the aid  
 
 Investment premiums and study premiums aimed at improving the energy efficiency of 
buildings.   G/SCM/N/155/EEC/Add.2 
 Page 23 
 
 
  (b) Total amount of aid granted in 2006 (EUR)  
 
Type of investment Number of 
premiums Subsidized 
amount Amount of 
premium Average rate of 
aid 
 A. Studies  2  9,510.80  4,755.40  50 % 
 B. Investments  12  1,119,916.55  223,983.31  20 % 
 (c) Policy objective and/or purpose of the subsidy
 
 
 To improve the energy efficiency of buildings. 
 (d) Duration of the subsidy and/or an y other time-limits attached to it
 
  The subsidy covers the duration of th e work to improve energy efficiency. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.  
3. BELGIUM – WALLOON REGION  – ANNUAL REPORT 2005 AND 2006 
3.1 A
ID TO SME S 
3.1.1 Law of 4 August 1978 on economic reorientation, as amended by the Decree of 
25 June 1992 – Implementa tion orders of 21 May 1999 
(a) Form of the subsidy  
 
 Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
  Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.  
 Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets.  Exemption from the graduated registration duty on capital inflow. 
 (b) 2005 budget
 
 
 The budget amounted to EUR 136.830 million. 
  The premiums are awarded for a wide ra nge of projects and sectors of activity. 
  2006 budget
 
 
 The budget amounted to EUR 100.58 million. 
  The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 G/SCM/N/155/EEC/Add.2 
Page 24  
 
  (c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive 
contribution to achieving these aims.   In practical terms, the premiums are awarded in order to encourage investment by small and 
medium-sized enterprises (SMEs).  An SME is an enterprise with a payroll not exceeding 250 people 
and an annual turnover not exceeding EUR 40 million or an annual balance sheet total not exceeding 
EUR 27 million.   The premiums are awarded to SMEs in the industrial, non-industrial, tourism, trade and 
services sectors. 
 
 The scheme applies in the whole of the Wall oon Region for all enterprises meeting the SME 
criteria.   The scheme is therefore not specific, except that it only applies to SMEs. 
 
(d) Duration
 
  No time-limit was set for the implementati on of the scheme and its budget was adopted 
annually.  It ended, however, on 30 June 2004 following the adopti on of the Decree of 11 March 2004 
(see 3.1.2).  Given the delay in processing applicatio ns, the last decisions were taken during the first 
six months of 2006. 
 
3.1.2 Decree of 11 March 2004 – Implementation order of 6 May 2004 
(a) Form of the subsidy
 
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
  Exemption from tax on income from immovable assets (maximum five years, although this may be increased to seven years fo r equipment in the case of the crea tion of SMEs) for investment in 
immovable assets, including investment in real property and fixtures. 
 
(b) 2005 budget
 
  The 2005 budget amounted to EUR 15.013 million.   The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 
 2006 budget
 
  The 2006 budget amounted to EUR 80.460 million.  
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
  G/SCM/N/155/EEC/Add.2 
 Page 25 
 
 
  (c) Policy objective  
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive 
contribution to achieving these aims.   In practical terms, the premiums are awarded in order to encourage investment by small and 
medium-sized enterprises (SMEs).  An SME is an  enterprise with a payroll not exceeding 250 people 
and a turnover not exceeding EUR 50 million or an annual balance sheet total not exceeding 
EUR 43 million.   The premiums are awarded to SMEs in the industrial, non-industrial, tourism, trade and 
services sectors. 
 
 The scheme applies in the whole of the Wall oon Region for all enterprises meeting the SME 
criteria.   The scheme is therefore not specific, except that it only applies to SMEs. 
 
(d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  
3.2 A
ID TO DISADVANTAGED REGIONS  
3.2.1 Law of 30 December 1970 on economic ex pansion, as amended by the Decree of 
25 June 1992 – Implementation orders of 8 November 2000 
(a) Form of the subsidy  
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
  Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.  
 Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets.  (b) 2005 budget
 
  The budget amounted to EUR 29.72 million. 
 
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
  2006 budget
 
 
 The budget amounted to EUR 6.97 million. 
  The premiums are awarded for a wide ra nge of projects and sectors of activity. G/SCM/N/155/EEC/Add.2 
Page 26  
 
   
(c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive contribution to achieving these aims.   In practical terms, the premiums are awarded in order to encourage investment by large 
enterprises situated in disadvantaged  zones, called development zones. 
  Development zones are determined by the Co mmission of the European Union following a 
proposal by a Member State.  In defining the sc ope of such zones, the European Commission uses a 
method defined in 1988 in the "C oordination principles for regional aid".  This method is essentially 
based on an analysis of objective criteria, in cluding per capita GDP and the unemployment rate. 
  The scheme is therefore not specific, except th at it applies only to enterprises located in 
disadvantaged areas which, as explained above, ar e defined on the basis of easily identifiable and 
quantifiable objective criteria.  
(d) Duration
 
  The scheme is closed for all applications file d after 1 July 2004, which is the date on which 
the new scheme entered into force (Decree of 11 March 2004).  
 In practice, the last decisions within the framework of the Law of 30 December 1970 were 
taken in 2006.  
3.2.2 Decree of 11 March 2004 on regional in centives in favour of large enterprises –
Implementation order of 6 May 2004 
(a) Form of the subsidy
 
 
 Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
  Exemption from tax on income from immova ble assets (maximum seven years) for 
investment in immovable assets, including in vestment in real property and fixtures. 
 (b) 2005 budget
 
  The budget amounted to EUR 14.55 million.  
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
  2006 budget
 
  The budget amounted to EUR 63.41 million. 
 
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
  G/SCM/N/155/EEC/Add.2 
 Page 27 
 
 
  (c) Policy objective  
  In order to assist the sustainable developmen t of the Region, the Government, within the 
specific budgetary limits set annually, may gran t incentives to large enterprises which have 
operational headquarters situated in a development zone in the Walloon Region and which have an 
investment programme significantly contributing to su stainable development.  Such investments must 
not compromise the balance between the econom ic, social and environmental components of 
sustainable development.  The incentives must be necessary for the implementation of the investment 
programme.  
 In order to assess the importance of an inv estment programme in relation to sustainable 
development, the Government takes into particul ar consideration the nature of the investment 
programme, its stage of development, the field of activity in which it operates and the economic 
environment in which it is implemented.  
 The arrangements for granting the incentive ar e the subject of an agreement concluded 
between the parties.   The incentives are granted in accordance with European Community regulations and, in 
particular, the Multisectoral Community Framework on Regional Aid for Large Investment Projects, the guidelines concerning State aid in the agricultu ral sector, those concerning regional State aid in 
conformity with the ceilings set by the European  Commission decision approving the eligible areas 
map for Belgium and other Community rules adopted under the provisions set forth in Articles 87 and 
89 of the treaty establishing the European Community.   The incentives provided for by the present Decree may be combined with aid from European 
structural funds. 
 (d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually. 
 
3.3 R
ESEARCH AND TECHNOLOGY AID 
3.3.1 Decree of 5 July 1990 on aid and action by the Walloon Region to promote research and 
technology, and its implementation orders 
 - Walloon Government Decree of 29 September 1994 defining a "small or medium-
sized enterprise" with a view to granti ng aid and taking action to promote research 
and technology;  
 
 - Walloon Government Decree of 29 Septem ber 1994 on aid and action to promote 
research and technology. 
 (a) Form of the aid
 
  A. Subsidies granted to enterprises for basic industrial research work.   B. Repayable advances to enterprises for work related to applied research and 
development. 
 G/SCM/N/155/EEC/Add.2 
Page 28  
 
   C. Subsidies granted to small and medium-sized enterprises for preparatory or 
supporting studies for research or development projects. 
 (b) 2005 budget
 
 
 The amount of aid per unit consists of a per centage of the admissible expenditure for the 
accepted project.   The annual budget totals for 2005 for the types of aid set out in point (a) are EUR 4,904,347.40, EUR 53,475,536.35 and EUR 5,326,715.74 respectively. 
 
 The annual budget totals for 2006 for the types of aid set out in point (a) are EUR 11,544,101.53, EUR 52,938,646.55 and EUR 7,243,771.43 respectively.  (c) Policy objective
 
 
 This horizontal aid is designed to promot e research and development activities and to 
encourage technological innovation.  It is available to all sectors of economic activity.   The types of aid defined under A and B above are available to enterprises of any size.  The 
aid mentioned under C is restricted to small and medium-sized enterprises. 
 
 The aid is not awarded automatically, but is dependent upon an assessment by the administrative services of the quality of the project.   Where aid consists of a repayable advance, the beneficiary enterprise pays it back in the form 
of regular payments if it has decided to exploit th e results of the research industrially or commercially. 
 (d) Duration
 
  The aid scheme may be applied indefinitely.  The budget is adopted annually by the Walloon 
Parliament. 
 
 The duration of aid granted corresponds to th e duration of the research work or the study 
financed.  (e) Statistical data
 
 
 The aid has an impact on trade because it may lead to the marketing of innovative products, 
processes or services.  The criteria for estimating this  impact are so numerous and complex that it is 
extremely difficult to apply statistical tools to them.  
4. BELGIUM – FLEMISH REGION – ANNUAL REPORT 2005 AND 2006 
4.1 A
ID FOR ECONOMIC EXPANSION  
4.1.1 Law of 30 December 1970 on economic expansion (abolished – only pending cases) 
(a) Form of aid  
  - Interest premium (for investments financed through credit or leasing). 
 - Capital premium (for investments financed through own resources of the enterprise). 
 - Fiscal advantages.  G/SCM/N/155/EEC/Add.2 
 Page 29 
 
 
   - Guarantees by the Flemish Region. 
 - Credits refundable without interest (abolished).  (b) Amount of aid in 2005
 
 
 - Interest and capital premiums:  EUR 4.62 million. 
 - Fiscal advantages:  
• Exemption from the immovable a dvance tax payment (précompte 
immobilier):  percentage of a total amount of EUR 0 investments; 
• accelerated amortization:  EUR 0 (amount of investments); 
• exemption from the graduated duty on capital inflow:  EUR 0 (abolished). 
 
 - Guarantees: EUR 0 (amount of investments). 
    EUR 0 (amount of net losses).  - Credit refundable without in terest:  EUR 0 (abolished). 
  Amount of aid in 2006
 
 
 - Interest and capital premiums:  EUR 0.08 million.  - Fiscal advantages:  
• Exemption from the immovable a dvance tax payment (précompte 
immobilier):  percentage of a total amount of EUR 0 investments; 
• accelerated amortization:  EUR 0 (amount of investments); 
• exemption from the graduated duty on capital inflow:  EUR 0 (abolished). 
  - Guarantees: EUR 0 (amount of investments).     EUR 0 (amount of net losses).  - Credit refundable without in terest:  EUR 0 (abolished). 
 
(c) Objectives of the aid
 
  The aid is granted to promote the economic e xpansion of large and medium-sized enterprises 
in regional aid areas within the Flemish region for investments that lead to the creation of extra 
employment.  
 The scheme has certain limitations regarding the applicable sectors, investments and methods 
of financing.  (d) Time-frame
 
 
 The application of the law of 30 December 1970 expired on 31 December 2003 .  Only 
pending cases are still treated according to the conditions of this law.  (e) Statistics
 
  There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on WTO commerce and trade. 
 G/SCM/N/155/EEC/Add.2 
Page 30  
 
  (f) Legal basis
 
  Law of 30 December 1970 on economic expansion. 
 (g) Rules and conditions
 
 
 The scheme applies to large and medium-sized en terprises, with an activity in the industrial, 
commercial or artisan field, as well as in services and the tourist sector.   Only investments that lead to the creation of  extra employment in assisted areas within the 
Flemish region are envisaged. 
  The Flemish authorities use the SME de finition as recommended by the European 
Commission.  
 Enterprises can receive the following aid: 
  Interest and capital premiums are granted for investments which create extra employment, have a strategic effect on the region or a favourable effect on the environment. 
  Fiscal advantages: 
 
• Exemption from the immovable advance tax payment during a maximum of 
five years aimed at investments in immovabl e goods by nature or by destination, and 
which are included in the land register; 
• accelerated amortization is available for enterp rises situated in the assisted areas in 
Limburg.  All the eligible investments wh ich are amortized linearly are admissible.  
The advantage implies the possibility of us ing an annual amortization, which equals 
twice the amount of a normal linear amortization during three subsequent years; 
• exemption from the graduated duty on capital inflow was granted to large or medium-
sized enterprises with a corporate existence,  for investments in regional aid zones.  
This type of aid was abolished by a decision of the Flemish Government of 17 July 2000. 
 
 The guarantees of the Flemish authorities ar e intended to facilitate the granting of 
professional credits to enterprises which invest in  economic expansion.  The guarantee must be 
considered next to the securities, financed by the en terprise itself, but cannot support the totality of the 
risks.  A part of the risk has to be supported by  the credit institution and the enterprise itself, which 
both pay a contribution depending on the amount and time-frame of the guarantee. 
 
 Soft aid consists of a refundable credit without interest for training projects, advice to 
enterprises or studies regarding (possible future) inve stments.  This kind of aid was also abolished. 
 
4.1.2 Law of 4 August 1978 on economic reorie ntation (abolished – only pending cases in 2005 
and 2006) 
(a) Form of the aid
 
 
- Interest premium (for investments financed through credit or leasing). - Capital premium (for investments financed  through the enterprise's own resources). 
- Fiscal advantages, exemption from the immovable advance tax payment. 
  G/SCM/N/155/EEC/Add.2 
 Page 31 
 
 
  (b) Amount of aid in 2005  
  - Interest and capital premiums:  EUR 17.29 million.  - Exemption from the immovable advance ta x payment:  percentage of a total amount 
of EUR 75.33 million investments. 
 
 Amount of aid in 2006
 
  - Interest and capital premiums:  EUR 0 million.  - Exemption from the immovable advance ta x payment:  percentage of a total amount 
of EUR 0 million investments. 
 (c) Objectives of the aid
 
  The aid is granted to promote the economic expansion of small, independent enterprises 
within the Flemish region. 
  The scheme has certain limitations regarding the applicable sectors, investments and methods 
of financing.  (d) Time-frame
 
 
 The application of the Law of 4 August 1978 expired on 31 December 2003 .  Only pending 
cases are still being treated according to the conditions of this law.  (e) Statistics
 
 
 There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on WTO commerce and trade.  (f) Legal basis
 
 
 Law of 4 August 1978 on economic reorientation. 
 (g) Rules and conditions
 
  The scheme applies to small enterprises, with an activity in the industrial, commercial or 
artisan field, as well as in services, the tourist sector  and the liberal or independent professions which 
have a clear link with the economic ac tivities of the small enterprises. 
  The Flemish authorities use the SME de finition as recommended by the European 
Commission.  
 The amount of the interest and capital premiums is calculated according to the activity of the 
enterprise, the first establishment of the enterprise in Flanders, the creation of extra employment, the 
strategic effect on the region or the fa vourable effect on the environment. 
  Enterprises which benefit from an interest or  capital premium may receive an exemption from 
the immovable advance tax payment during a maximu m of five years for investments in immovable 
goods by nature or by destination, and which are included in the land register. 
 G/SCM/N/155/EEC/Add.2 
Page 32  
 
  4.1.3 Decree of 15 December 1993 on economic expansion in the Flemish Region 
(a) Form of aid
 
  - Interest premium (for investments financed through credit or leasing).  - Fiscal advantages, exemption from the immovable advance tax payment. 
 - Guarantees by the Flemish region. 
 - Credits refundable without interest (abolished).  (b) Amount of aid in 2005
 
 
 - Interest premium:  EUR 32.52 million. 
 - Exemption from the immovable advance ta x payment:  percentage of a total amount 
of EUR 338.25 million investments. 
 - Guarantees: EUR 0 (amount of investments).     EUR 1 million (amount of net losses). 
 - Credit refundable without interest: EUR 0 (abolished).  
  Amount of aid in 2006
 
  - Interest premium:  EUR 0.9 million.  - Exemption from the immovable advance tax payment: percentage of a total amount 
of EUR 8.53 million investments. 
 - Guarantees: EUR 0 (amount of investments).     EUR 0 (amount of net losses).  - Credit refundable without in terest:  EUR 0 (abolished).  
 
(c) Objectives of the aid
 
  The aid is granted to promote the economic e xpansion of large and medium-sized enterprises 
within the Flemish region.   The scheme has certain limitations regarding the applicable sectors, investments and methods 
of financing. 
 (d) Time-frame
 
  The application of the decree of 15 December 1993 expired on 31 December 2003
 for all aid 
to medium-sized enterprises. 
  Aid to large enterprises for environmental i nvestments on the basis of the decree of 1993 
expired in October 2004
.  Only pending cases will still be treated  according to the conditions of this 
law.  
(e) Statistics
 
  There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on WTO commerce and trade.  
(f) Legal basis
 
  Decree of 15 December 1993 on economi c expansion in the Flemish Region. 
  G/SCM/N/155/EEC/Add.2 
 Page 33 
 
 
  (g) Rules and conditions  
  The scheme applies to large and medium-sized en terprises, with an activity in the industrial, 
commercial or artisan field, as well as in services and the tourist sector.  
 It applies only to investments outside the assist ed areas within the Flemish Region, or in the 
assisted areas provided that the investments do no t lead to the creation of extra employment. 
  The Flemish authorities use the SME de finition as recommended by the European 
Commission. 
 
 Interest premiums for medium-sized enterprises
 are accorded for investments which create 
extra employment, have a strategic effect on the re gion or a favourable effect on the environment. 
  The exemption from the immovable advance tax payment during a maximum of five years is 
aimed at investments in immovable goods by nature or  by destination, which are included in the land 
register.   The guarantees of the Flemish authorities ar e intended to facilitate the granting of 
professional credits to enterprises which invest in  economic expansion.  The guarantee must be 
considered next to the securities, financed by the en terprise itself, but cannot support the totality of the 
risks.  A part of the risk has to be supported by  the credit institution and the enterprise itself, which 
both pay a contribution depending on the amount and time-frame of the guarantee. 
  Soft aid consists of a refundable credit without interest for training projects, advice to enterprises or studies regarding (possible future) investments. 
 
 Aid for large enterprises
 is limited to ecological investme nts and is implemented through an 
investment premium, soft aid, an exemption from the immovable advance tax payment or a guarantee 
by the Flemish Region.  
4.1.4 Decree of 31 January 2003 on the economic support policy 
 The Decree of 31 January 2003 is the new Flemish legal basis for most aid schemes and 
replaces the old economic expansion laws of 30 December 1970 and 4 August 1978 and the Decree of 
15 December 1993.   New aid schemes will be implemented on the basis of this Decree. 
 
4.1.4.1 Decision of the Flemish Government of 10 October 2003 regarding the granting of aid to 
small and medium-sized enterprises for investments in the Flemish Region (growth premium) 
(a) Form of aid
 
  This scheme is aimed at investment aid, as defined by the EU Commission in its 
SME Regulation No. 70/2001 of 12 January 2001, and was notified to the Commission in accordance 
with the provisions of that Regulation.  (b) Amount of aid in 2005
 
 
 In 2005, the total budgeted amount of aid w as EUR 49.66 million.  The budget included, on 
the one hand, the 100 per cent controllable "ca ll system" which works with a "closed envelope" G/SCM/N/155/EEC/Add.2 
Page 34  
 
  (EUR 47.57 million), and, on the othe r hand, a budget of EUR 2.09 million outside the call system for 
strategic projects.   Amount of aid in 2006
 
 
 In 2006, the total budgeted amount of aid w as EUR 70.54 million.  The budget included, on 
the one hand, the 100 per cent controllable "ca ll system" which works with a "closed envelope" 
(EUR 47.57 million), and, on the other hand, a bu dget of EUR 22.97 million outside the call system 
for strategic projects.  
(c) Objectives of the aid
 
  The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The promotion of investments by SMEs is one of the 
best ways of ensuring that.  The aid sch eme aims at promoting entrepreneurship. 
 
(d) Time-frame
 
  The decision of the Flemish Government of 10 October 2003 is principally unlimited in time.  
However, as the scheme is based upon EU Regulati on No. 70/2001, which has recently been extended 
until 30 June 2008, the scheme will have to be reinforced in 2008, when a new or revised 
EU regulation comes into force. 
 (e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade.   
 (f) Legal basis
 
  The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government  (e.g. decision of 10 October 2003). 
 
(g) Rules and conditions
 
  The scheme has been developed to provide aid to SMEs and will have an effect on the whole 
of the territory of the Flemish Region.  In the assi sted areas, the maximum percentage of possible aid 
to be granted to enterprises will be higher. 
  The Flemish Government adopted a double sta ndard for investment aid to SMEs, depending 
on the amount of the investments envisaged by the enterprises.   If the eligible investments are below EUR 8 milli on, a so-called "call" system is used.  All 
companies that wish to receive aid can participat e in a concourse and file a dossier, which will be 
assessed on the basis of pre-established criteria.  This  system is rather easy going, as the best ranked 
projects are granted the aid, as far as the budget a llows it.  Such calls can be organized every 
3 months.  
 Investment programmes above EUR 8 million (so-called "strategic programmes") will be 
decided upon by decision of the Flemish Government .  This work method is necessary to allow the 
Minister of Economic Affairs some space to negotiate  with the companies interested in investing in 
Flanders.   G/SCM/N/155/EEC/Add.2 
 Page 35 
 
 
   The enterprises qualifying for aid will receive a per centage of their eligible investment costs. 
 4.1.4.2 Decision of the Flemish Government of 12 December 2003 regarding the granting of aid to 
large enterprises for investments in assisted areas in the Flemish Region 
(a) Form of aid
 
 
 This scheme is aimed at investments made by large enterprises in assisted areas, and is based 
on the EU guidelines on regional aid (OJ, 10/3/1998, C74).  The scheme was notified to, and approved by, the European Commission.  The new scheme came into force on 1 January 2004, and 
replaces the "old" system based on the law of 30 December 1970. 
 
(b) Amount of aid in 2005 and 2006
 
  For large enterprises located in  assisted areas, the Flemish Government decided not to launch 
a "call" for investments under EUR 8 million. 
 
 In 2005, only strategic projects (investments a bove EUR 8 million) were accepted.  In 2005, a 
total of EUR 8.45 million was attributed to this type of aid.   In 2006, only strategic projects (investments a bove EUR 8 million) were accepted.  In 2006, a 
total of EUR 55.83 million was attributed to this type of aid. 
 
(c) Objectives of the aid
 
  Regional aid is aimed at the development of  the lowest scoring areas within the Flemish 
Region and provides the Flemish Government with  a strong tool for attracting (new) investors 
towards the assisted areas where the economic situati on is less favourable than in the rest of the 
country and the European Union.  (d) Time-frame
 
  The decision of the Flemish Government of  12 December 2003 came into force on 
1 January 2004 and had to end on 31 December 2006, the final valid date of the regional aid maps 
approved by the European Commission for the pe riod 2000-2006.  On 20 July 2006, the Flemish 
Government decided to suspend this regional ai d scheme, as the run-through time of a case is 
approximately 6 months, and the EU rules require  that all decisions in regional aid cases are 
ultimately taken on 31 December 2006.  A new Flem ish Government decision will be taken in 2007, 
following the entry into force of the new regional aid map 2007-2013. 
 (e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade. 
 
(f) Legal basis
 
  The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government (e.g. decision of 12 December 2003). 
 G/SCM/N/155/EEC/Add.2 
Page 36  
 
  (g) Rules and conditions
 
  The scheme has been developed to provide aid to  large enterprises within assisted areas.  The 
maximum percentage of possible aid to be grante d is fixed by the European Commission.  The 
enterprises qualifying for aid will receive a percen tage of their eligible investment costs. 
 
 Theoretically, a double standard exists for inv estment aid for large enterprises in assisted 
areas, depending on the amount of the investment s envisaged by the enterprises.  However, the 
Flemish Government decided not to launch a call procedure for investments below EUR 8 million.  
Only aid for strategic projects (investment pr ogrammes above EUR 8 million), decided upon by 
decision of the Flemish government, was accepted. 
 4.1.4.3 Decision of the Flemish Government of 1 October 2004 regarding the granting of aid to 
enterprises for ecological investments in the Flemish Region (ecological premium) 
(a) Form of aid
 
 
 This scheme is aimed at investment aid, but exclusively for ecological investments, as defined 
by the EU Commission in its framework for State ai d in favour of the environment (OJ, 3/2/2001, 
C 37), and was notified to, and approved by, the European Commission.  (b) Amount of aid in 2005 and 2006
 
 
 In 2005, the Flemish Government granted aid for ecological investments based on this new 
scheme for a total budget of EUR 44.83 million.   In 2006, the Flemish Government granted aid for a total budget of EUR 102.34 million. 
 
(c) Objectives of the aid
 
  The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of ecological investments is a valuable 
tool in achieving that goal. 
 
(d) Time-frame
 
  The decision of the Flemish Government of 1 October 2004 came into force on 29 October 2004 and replaces
 the "old" system based upon the Decree of 15 December 1993  and the 
Law of 30 December 1970.  The scheme has been approved for a period of 10 years. 
 (e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade. 
 
(f) Legal base
 
  The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government  (e.g. Decision of 1 October 2004). 
  G/SCM/N/155/EEC/Add.2 
 Page 37 
 
 
  (g) Rules and conditions  
  The scheme has been developed to provide aid to  all enterprises, regardless of their size, for 
ecological investments.  The enterp rises qualifying for aid will receive a percentage of their eligible 
investment costs. 
 
 Depending on the type of investment (ecological, energy, … ), various aid intensities are possible, within the maximum limits of the EU framework.  The Flemish Government established a 
limited list of accepted technologies which qualify fo r aid.  If an enterprise invests in an accepted 
technology, it automatically receives a subsidy.  If the technology is not already accepted, another 
procedure is followed in order to investigate the merits of the new technology.  If accepted by the 
engineers of the Ministry of the Flemish Community, the new technology is placed upon the list, thus ensuring easier acceptance for future cases.  4.2 A
ID TO ENTERPRISES  
4.2.1 Aid to enterprises for consultanc y and advice (replaced and amended) 
 Decision of the Flemish Government of 14 Fe bruary 2003 regarding advisory cheques, which 
entered into force on 5 March 2003.  Various implem enting ministerial decisions were issued.  The 
decision was amended by decision of the Flemish G overnment of 30 April 2004 regarding advisory 
cheques.  
(a) Form of aid
 
  This scheme is aimed at enterprises which seek external advice and consultation, as defined 
by the EU Commission in its SME Regulation No. 70/2001 of 12 January 2001, and was notified to 
the Commission in accordance with the provisions of that Regulation. 
 
 Advisory cheques for the consultation of exte rnal consultants can be obtained by SMEs.  
Enterprises can obtain an annual maximum of 820 advi sory cheques.  Each cheque has a value of 
EUR 30, 50 per cent paid by the enterprise, 50 per cent paid by the Government.  (b) Amount of aid in 2005 and 2006
 
 
 The total budget for this scheme in 2005 was EUR 15.00 million.  The total budget for this scheme in 2006 was EUR 0.  (c) Objectives of the aid
 
 
 The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The promotion of aid to SMEs in order to encourage them to obtain specialized external advice is a positiv e element for the sustainability and results of the 
enterprises.  
 Various studies have indicated that Flemish enterprises did not invest enough in external 
advice.  As specialized external advice could gu arantee enterprises a greater opportunity of success, 
the Flemish Government created the advisory ch eques instrument, and recognized and screened 
advice providers.  G/SCM/N/155/EEC/Add.2 
Page 38  
 
  (d) Time-frame
 
  The system was initially set up for a period of 3 years.  In 2006, the system was replaced by a 
new system "Budget for Economic Advice (BEA)".  The decision of the Flemish Government of 
16 December 2005 entered into force on 22 May 2006. 
 
4.2.2 Decision of the Flemish Government of  16 December 2005 regarding the granting of aid 
to small and medium-sized enterprises fo r entrepreneurship encouraging services 
(budget for economic advice – BEA) 
 Decision of the Flemish Government of 16 December 2005 regarding the granting of aid to 
SMEs for entrepreneurship encouraging service s (also called BEA or budget for economic advice), 
which entered into force on 22 May 2006.  Various implementing ministerial decisions were issued.  
The decision was amended by decision of the Flemish Government of 16 February 2007. 
  This scheme replaces and integrates both the former regimes of advisory cheques and training 
cheques.  The new scheme is based on the EU "d e minimis" regulation (Regulation 68/2001, replaced 
by Regulation 1998/2006 of 15 December 2006).  (a) Form of aid
 
  This scheme is aimed at SMEs.  The Flemish Government gives 35 per cent aid to enterprises 
willing to invest in training, external advice/consu ltation, knowledge and mentorship.  There are thus 
four pillars of eligible costs.   An enterprise can obtain a maximum of EUR 5,000 of aid in a period of three years.  The maximum amount in each pillar is EUR 2,500.  The system is fully web-based and paperless. 
 
(b) Amount of aid in 2005 and 2006
 
  The total budget for this scheme in 2005 was EUR 0.  The total budget for this scheme in 2006 was EUR 7.50 million.  
(c) Objectives of the aid
 
  The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of aid to SMEs in order to stimulate 
them to obtain specialized external advice, traini ng, knowledge or mentorship is a positive element for 
the sustainability and results of the enterprises. 
 (d) Time-frame
 
  The system has no time limit (taking into acc ount the duration of the new "de minimis" 
regulation until 2013). 
 
4.3 R
ESEARCH AND DEVELOPMENT  
 Decree of the Flemish Government regarding aid to technological research and development 
of industry in Flanders of 5 October 2001.  
(a) Form of the aid
 
  Grants for basic research and for prototyping and development.  G/SCM/N/155/EEC/Add.2 
 Page 39 
 
 
   
(b) Amount of aid in 2005 and 2006  
  2005:  EUR 80.250 million for 342 projects.  These amounts are the reserved budgets in each calendar year. 
 
 2006:  EUR 82.986 million for 334 projects.  These amounts are the reserved budgets in each calendar year.  (c) Objectives of the aid
 
 
 The primary objective is aid for research a nd development in companies in Flanders. 
 (d) Time-frame
 
 
 Continuous programme. 
 (e) Statistics
 
  Statistics are currently being collected.  
(f) Legal basis
 
  See above.  (g) Rules and conditions
 
 
 Any industrial enterprise in Flanders can appl y for financial aid for research and development 
projects.   At any time, companies can submit an appli cation to the IWT-Vlaanderen (Institute for the 
Promotion of Innovation by Science and Technology in Flanders) which processes the files.  Flemish 
universities and research institutes may also participat e in the industrial projects and obtain financial 
aid.   The support is as follows:  
a. Projects for industrial basic research activ ities:  a subsidy of 50 per cent of the overall 
project costs (with an additional 10 per cent for SMEs); 
b. Projects for industrial development activ ities or prototype support:  a subsidy of 
25 per cent (with an additional 10 per cent for SMEs); 
c. Projects for mixed research:  a subsidy of 38 per cent (with an additional 10 per cent 
for SMEs). 
 
• For SMEs, there are a number of additional measures: 
 
- every SME is eligible for 10 per cent additional support for each of 
the different types of projects (as is indicated above under a, b, and c); 
- in addition to this extra 10 pe r cent, an SME can get additional 
support if it is located within an EFRD-area (5 per cent or 15 per cent extra).  However, total extra support for SMEs can never exceed G/SCM/N/155/EEC/Add.2 
Page 40  
 
  25 per cent.  Note:  as of 1 October 2006, this additional EFRD-
percentage is no longer granted; 
- young SMEs (officially registered for less than 3 years) can, in 
addition to the granted subsidy, a pply for a subordinated loan for the 
same amount as the subsidy; 
- any other innovative SME can, in addition to the granted subsidy, 
apply for a subordinated loan.  The sum of this subordinated loan and the subsidy can amount to a maximum of 80 per cent of total project costs. 
 
• Flemish participants in EUREKA-projec ts can, at any time, apply for support 
for industrial basic research activities,  prototype research, or a combination 
of both, and receive an add itional incentive of 10 per cent; 
• An additional support of 10 per cent fo r projects is granted for RTD-projects 
aimed at sustainable technological development.  Moreover, companies can also apply, within a research program me, for a subsidy for a feasibility study 
at a rate of 50 per cent (DTO-studie), aimed at one or more of seven defined 
innovative targets (energy reduction, emission reduction etc.); 
• An additional support of 10 per cent ex ists for Airbus or ESA-programmes, 
namely for Aeronautics and Space trails; 
• As a result of the discussions in the Taskforce Automobiel, an additional 
10 per cent support is granted (applications filed since mid-2005). 
  Eligible for aid are personnel costs, direct costs (e.g. material and supplies to research and 
development, instruments and equipment, depreciation of assets) and indirect (general) costs. 
  The IWT applies the SME definition as r ecommended by the European Commission. 
 4.4 A
ID TO THE FISHERIES AND AQUACULTURE SECTOR  
 Following the abolition of the scheme to aid shipyards on 1 January 1996 and a transitional 
scheme in 1996 (Flemish Government Order of 2 Ap ril 1996), a completely new set of regulations on 
aid for investment and new enterprise in the mar itime fisheries and aquaculture sector was approved 
in 1998.  The aid is given in the context of the " Financieringsinstrument voor de Vlaamse visserij – 
en aquacultuursector  – FIVA" (Financing instrument for th e Flemish fisheries and aquaculture 
sector). 
 
 - Decree of 13 May 1997 establishing a fina ncing instrument for the Flemish fisheries 
and aquaculture sector; 
 - Flemish Government Order of 7 July 1998 on aid for investment and start-up in the 
fisheries and aquaculture sector; 
 - Ministerial Order of 14 July 1998 on aid for investment and start-up in the fisheries 
and aquaculture sector. 
 (a) Form of the aid
 
  - Interest rate subsidy:  subsidized inte rest rates on loans granted to shipowners and 
fish farmers and their cooperatives; 
 - capital subsidy when investment is financed by equity;  - loan guarantees for shipowners and fish farmers.   G/SCM/N/155/EEC/Add.2 
 Page 41 
 
 
  (b) Total amount of aid in 2005 (in terms of commitments ) 
  - Interest rate subsidies EUR 762,601.21  - capital premiums EUR 346,144.63  - loan guarantees EUR 2,617,870.00 
 
 Total amount of aid in 2006 (in terms of commitments
) 
  - Interest rate subsidies EUR 111,328.27  - capital premiums EUR 96,770.07 
 - loan guarantees EUR 0 
 (c) Purpose of the aid
 
  The aid is granted to shipowners and fish fa rmers and their organizations and cooperatives in 
order to promote all operations increasing the producti vity of shipping and fish-farming companies, to 
ensure their profitability and reduce costs.  (d) Duration of the programme
 
  Indefinite. 
 
(e) Statistical data
 
  The purpose of the aid is structural and in tended to promote fishing and aquaculture by 
improving the efficiency of the structures;  no sta tistical data permitting an assessment of its effects 
on global trade are therefore available. 
  Given that the capacity of the fishing fleet and the aquaculture sector is very limited, the 
effect on global trade is negligible.  (f) Rules and conditions
 
 
 The beneficiaries of this aid are family sea-fi shing enterprises and fish farms.  The aid is 
granted to beneficiaries after an individual examinat ion of the dossiers.  The subsidization limits set 
out in Council Regulation (EC) No. 2792/99 apply.  
4.5 A
ID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE – FLEMISH AGRICULTURAL 
INVESTMENT FUND 
 In order to ensure continuity of aid for ag ricultural investment and new enterprise following 
the regionalization of the Agricultural Investment Fund in Belgium as from 1 January 1993, a Flemish Agricultural Investment Fund ( Vlaams Landbouwinvesteringsfonds, VLIF) was created. 
 
(a) Form of the aid
 
  This chapter covers aid for agri cultural and horticultural producers: 
  - Interest subsidies:  interest rate s ubsidies on loans granted for agriculture and 
horticulture; 
 - investment premiums;  - start-up grants;  - loan guarantees. G/SCM/N/155/EEC/Add.2 
Page 42  
 
   
 Aid granted within the VLIF framework sin ce 2005 in favour of agri-food enterprises and 
supervisory bodies (testing facilities) is covered in another chapter. 
 (b) Amount of aid in 2005 (granted:  in terms of total commitments)
 
 
 Since 2005, the VLIF has been responsible for only the Flemish part of the aid granted.  The 
volumes of total aid (Flemish part + European part) ar e listed below;  in this way, the figures for this 
year can be compared with those of the previous years.  - Interest rate subsidies:  EUR 33,709,471.34 
 
* New dossiers
: 
 
• Investment: EUR 25,240,083.60 with 25 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
 
• Start-up: EUR 3,258,931.30 with 50 per cent co-financing by the EAGGF 
(Council Regulations (EC) No. 1257/99); 
 
• Regional aid without EAGGF co-financing:  EUR 4,019,788.27: 
farmers:  EUR 1,564,694.06 cooperative societies:  EUR 2,455,094.21 
 
* Reviews of existing dossiers
:  EUR 1,190,668.17 
 
• EUR 595,661.73 with 25 per cent co-fina ncing by the EAGGF (Council Regulation 
(EC) No. 1257/99); 
• EUR 145,516.66 with 50 per cent co-fina ncing by the EAGGF (Council Regulation 
(EC) No. 1257/99); 
• EUR 449,489.78 without EAGGF co-financ ing (of which EUR 384,869.35 to 
cooperative societies). 
 - Investment premiums:  EUR 18,970,440.96 
 * New dossiers
: 
 
• Farmers:  EUR 17,851,648.93 with 25 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99); 
• cooperative societies:  EUR 246,008.86 (without EAGGF co-financing). 
 * Reviews of existing dossiers
: 
 
• Farmers:  EUR 659,600.64 with 25 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99); 
• cooperative societies: EUR 213,182. 53 without EAGGF co-financing. 
 - Start-up grants:  EUR 4,924,226.08 (with 50 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99) 
 * New dossiers
:  EUR 4,783,970.58 
* Reviews of existing dossiers :  EUR 140,255.50  G/SCM/N/155/EEC/Add.2 
 Page 43 
 
 
   
- Loan guarantees:  EUR 19,344,418.98 of guarantees granted (EUR 1,064,980.82 of 
guarantees committed for actual payment) – without EAGGF co-financing. 
 
 Amount of aid in 2006 (granted:  in terms of total commitments) 
 
 Since 2005, the VLIF has been responsible for only the Flemish part of the aid granted.  The volumes of total aid (Flemish part + European part) ar e listed below; in this way, the figures for this 
year can be compared with those of the previous years.  
- Interest rate subsidies:  EUR 38,288,071.98 
 * New dossiers
: 
 
• Investment: EUR 30,956,563.49 with 25 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
 
• Start-up: EUR 3,426,809.20 with 50 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
 
• Regional aid without EAGGF co-financing:  EUR 3,376,700.69: 
Farmers:  EUR 1,699,660.80 to cooperative societies:  EUR 1,677,039.89 
 
* Reviews of existing dossiers
:  EUR 527,998.60: 
 
• EUR 314,006.07 with 25 per cent co-fina ncing by the EAGGF (Council Regulation 
(EC) No. 1257/99); 
• EUR 43,198.42 with 50 per cent co-financ ing by the EAGGF (Council Regulation 
(EC) No. 1257/99); 
• EUR 170,794.11 without EAGGF co-financ ing (of which EUR 141,407.96 to 
cooperative societies). 
 
- Investment premiums:  EUR 23,532,058.10 
 
* New dossiers : 
 
• Farmers:  EUR 22,303,602.52 with 25 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99); 
• cooperative societies:  EUR 921,652.52 (without EAGGF co-financing). 
 * Reviews of existing dossiers
: 
 
• Farmers:  EUR 295,412.89 with 25 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99); 
• cooperative societies:  EUR 11,390.17 without EAGGF co-financing. 
 - Start-up grants:  EUR 5,116,661.26 (with 50 per cent co-financing by the EAGGF (Council 
Regulation (EC) No. 1257/99) 
 * New dossiers
:  EUR 5,059,994.76 
* Reviews of existing dossiers :  EUR 56,666.50 G/SCM/N/155/EEC/Add.2 
Page 44  
 
   
- Loan guarantees:  EUR 10,680,851.17 of guarantees granted (EUR 1,258,018.90 of 
guarantees committed for actual payment) – without EAGGF co-financing. 
 
(c) Purpose of the aid
 
 
 This aid is awarded to farmers and horticultu ralists and their organi zations and cooperatives 
to encourage all operations which increase th e productivity of agricultural and horticultural 
enterprises, maintain and improve their profitability and reduce costs, such as: 
 
 (a) Investment operations, i.e., operations whereby natural or legal persons acquire, 
extend or improve capital assets such as la nd, buildings and c onstructions, including 
housing for the operator and his family, indu strial plant, facilities, machines, tools 
and materials.  This decree is only appli cable to the acquisition of land and buildings 
when this is economically necessary to main tain the profitability of the existing 
enterprise; 
  (b) restructuring of enterprises fo llowing changes in economic conditions; 
  (c) agricultural and horticultural start-ups;  
 (d) processing and marketing of agricultural and horticultural products, mainly through 
cooperatives. 
 (d) Duration of the programme
 
 
 Indefinite. 
 (e) Statistical data
 
  The aid has a structural objective of furtheri ng agriculture through enhanced efficiency of 
agricultural enterprises;  no statistical data are th erefore available to assess the effects of the aid on 
world trade. 
 (f) Legal basis
 
  - Council Regulation (EC) No. 1257/99 of 17 May 1999 on support for rural 
development from the European Agri cultural Guidance and Guarantee Fund 
(EAGGF) and amending and repealing certain regulations, for dossiers submitted as of 1 January 2000. 
  - Article 12 of the Decree of 22 December 1993 containing various measures in 
application of the 1994 budget (establishmen t of a Flemish Agricultural Investment 
Fund). 
  - Flemish Government Order and Ministerial Order of 24 November 2000 on aid for 
agricultural investment and new enterprise. 
 
 - Flemish Government Order of 16 July 1996 regulating the operation and management 
of the " Vlaams Landbouwinvesteringsfonds " (Flemish Agricultural Investment Fund). 
  G/SCM/N/155/EEC/Add.2 
 Page 45 
 
 
  (g) Rules and conditions  
  The beneficiaries of this aid are family farms and market gardens (natural or legal persons engaged in agriculture and horticulture), as well as  their organizations and cooperatives.  They must 
be adequately qualified and the business must re present at least one man work unit (MWU) and a 
maximum of 10 man work units per family work unit (FWU). 
  The aid is granted for three major categories of operation:   - Investment in an existing business leading to long-term improvement in the structure 
of the business.  There are several sectoral restrictions.  Co-financing by the EAGGF 
exists up to a certain ceiling (Council Regulation (EC) No. 1257/99). 
  - A young farmer setting up in business for the first time, including movable assets 
(machines and material, livestock, etc.).  Co-financing by the EAGGF exists up to a 
certain ceiling (Council Regulation (EC) No. 1257/99), beyond which the aid is 
wholly charged to the Flemish Region with an absolute ceiling. 
  - Other operations without EAGGF co-financi ng, such as investment aid to cooperative 
societies engaged in marketing, processing and the provision of services. 
 
4.6 T
RAINING CHEQUES  
 Decision of the Flemish Government of 14 December 2001 regarding training cheques.  
Ministerial Decree of 21 December 2001 regarding the implementation of the decision of the Flemish 
Government of 14 December 2001 regarding trai ning cheques.  The decision was amended by 
decision of the Flemish Government of 2 April 2004 regarding training cheques. 
 
(a) Form of the aid  
  Annual maximum of 200 training cheques for each enterprise.   Value of the cheques:  EUR 30, 50 per cent paid  by the enterprise, 50 per cent aid paid by the 
Government. 
 (b) Amount of the aid in 2005 and 2006
 
  The total budget for this scheme in 2005 was EUR 22.50 million. 
 The total budget for this scheme in 2006 was EUR 0. 
 (c) Objectives of the aid
 
  Various studies have indicated that Flemish enterprises did not invest enough in training for 
their employees.  The Flemish Government created the training cheques instrument in order to 
encourage enterprises to pay for training courses fro m recognized and screened providers of training. 
 (d) Time-frame
 
  The system was initially set up for a period of 3 years. In 2006 the system was replaced by a 
new system "Budget for Economic Advice (BEA)" .  The Flemish Government decision of 
16 December 2005 entered into force on 22 May 2006.  G/SCM/N/155/EEC/Add.2 
Page 46  
 
  4.7 A
D HOC TRAINING AID 
 The Flemish Government decided to grant some enterprises an ad hoc training aid, based 
upon EU Regulation No. 68/2001 of 12 January 2001 (OJ of 13/1/2001, L 10).  As provided in 
Article 5 of that regulation, individual cases have to be notified to the EU Commission if the amount 
of aid would be more than EUR 1 million.  Besid es those big ad hoc training programmes, there were 
also a number of smaller ad hoc training cases, which did not pass the threshold of EUR 1 million. 
 
 2005  
 
A. OPEL Antwerpen  
 
 Ad Hoc training aid programme, notified to, and approved by the EU Commission.  EUR 5.86 million was granted to Opel in 2005.  
B. FORD Genk
 
 
 Ad Hoc training aid programme, notified to, and approved by the EU Commission (2001).  EUR 2.55 million was paid in 2005.  
C. Number of ad hoc cases below the EUR 1 million threshold (paid in 2005)
 
 
• Continental Teves  EUR 0.25 million 
• Inalfa    EUR 0.15 million 
• VDL Jonckheere Bus  EUR 0 
• CNH Belgium   EUR 0 
• New Holland Tractor  EUR 0.13 million 
• Corus Aluminium  EUR 0.06 million 
• Hansen    EUR 0 
• LVD Company   EUR 0 
• Interbrew   EUR 0 
• Pauwels Trafo   EUR 0.74 million 
• Bombardier Transports  EUR 0.80 million 
• Texaline Sports   EUR 0.02 million 
• Johnson Controls Automotive EUR 0.32 million 
 
 2006  
 
A. VOLVO CARS  
 
 Aid notified to the Commission in 2003:  an  amount of EUR 2.6 million was paid in 2006. 
 
B. Number of ad hoc cases below the EUR 1 million threshold (paid in 2006)  
 
• Continental Teves  EUR 0.25 million 
• Inalfa    EUR 0 
• VDL Jonckheere Bus  EUR 0 
• CNH Belgium   EUR 0.29 million 
• New Holland Tractor  EUR 0.17 million 
• Corus Aluminium  EUR 0 
• Hansen    EUR 0.40 million  G/SCM/N/155/EEC/Add.2 
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  • LVD Company   EUR 0 
• Interbrew   EUR 0.33 
• Pauwels Trafo   EUR 0.20 million 
• Bombardier Transports  EUR 0.37 million 
• Johnson Controls Automotive EUR 0.21 million 
• Van Hool   EUR 0.57 million 
• P&O Ports Antwerp  EUR 0.29 million 
 
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