WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.23 
26 August 2005 
 
 (05-3608) 
Committee on Subsidies and Countervailing Measures Original:   Spanish 
  
 
SUBSIDIES 
 
Notification Pursuant to Article XVI:1 of the GATT 1994 and Article 25
 
of the Agreement on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
  
 The following addendum to the notification of  the European Community relates to subsidy 
programmes of Spain
. G/SCM/N/123/EEC/Add.23 
Page 2  
 
 SPAIN 
 
TABLE OF CONTENTS 
 
Page  
I. FISHERIES ...................................................................................................................... ................3  
A. PROMOTION OF AQUACULTURE ...........................................................................................................4 
B. MARINE CULTIVATION PLANS .............................................................................................................5 
C. REORGANIZATION AND RENOVATION OF THE FISHING FLEET . RENOVATION AND 
MODERNIZATION OF THE FISHING FLEET .............................................................................................5 
D. REORGANIZATION AND RENOVATION OF THE FISHING FLEET .  RENOVATION  AND 
MODERNIZATION OF THE FISHING FLEET .............................................................................................6 
E. REORGANIZATION AND RENOVATION OF THE FISHING FLEET .  AID TO SHIPOWNERS 
AFFECTED BY THE STOPPAGE OF SHIPPING ..........................................................................................7 
F. CONVERSION OF THE FISHING FLEET :  JOINT -VENTURE PROJECTS .......................................................8 
G. REORGANIZATION AND RENOVATION OF THE FISHING FLEET : SOCIO ECONOMIC MEASURES ..............9 
H. PILOT PROJECTS FOR EXPERIMENTAL FISHING ..................................................................................10 
II. MINING......................................................................................................................... .................11  
A. DEVELOPMENT OF NON -ENERGY MINING ..........................................................................................11 
B. AID TO JOB CREATION PROJECTS IN MINING AREAS ...........................................................................12 
III. INDUSTRY....................................................................................................................... ..............14  
A. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME ........................................................................14 
B. SUPPORT FOR THE CAPITALIZATION OF TECHNOLOGY -BASED ENTERPRISES .....................................15 
C. TRAINING PROGRAMME IN TELECOMMUNICATIONS (FORINTEL ).......................................................16 
D. TECHNICAL RESEARCH DEVELOPMENT PROGRAMME FOR THE TEXTILE /CLOTHING SECTOR .............17 
E. FINANCING OF RESEARCH , DEVELOPMENT AND INNOVATION PROJECTS CONDUCTED BY 
ENTERPRISES ............................................................................................................................... ......19 
F. SUPPORT PROGRAMME FOR SCIENCE AND TECHNOLOGY PARKS .......................................................20 
G. SHIPBUILDING SUBSIDIES ..................................................................................................................21 
H. INTEREST SUBSIDY FOR SHIPBUILDING LOANS ..................................................................................22 
I. AID FOR TRAINING SHIPBUILDING WORKERS .....................................................................................23 
J. PAMOTOR PROGRAMME ....................................................................................................................24 
IV. SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) .......................................................26  
A. ARTE -SME PROGRAMME II .................................................................................................................26 
B. SME COMPETITIVENESS AND CONSOLIDATION PLAN .........................................................................27 
V. REGIONAL SU BSIDIES ............................................................................................................. .30 
A. REGIONAL ECONOMIC INCENTIVES SCHEME ......................................................................................30 
B. CONVERSION OF DECLINING INDUSTRIAL AREAS ..............................................................................31  G/SCM/N/123/EEC/Add.23 
 Page 3 
 
 
 I. FISHERIES 
2003 and 2004 BUDGET – CO-FINANCED PART OF NATIONAL AID 
 
 The information includes a summary of all fisheries programmes together with detailed 
information on each of them. 
 
 Pursuant to Council Regulation (EC) No . 2369/2002 of 20 December 2002, amending 
Council Regulation (EC) No. 2792/1999 of 17 Dece mber 1999, laying down the detailed rules and 
arrangements regarding Community structural assi stance in fisheries and aquaculture, and Royal 
Decree 3448/2000 of 22 December, establishing the basic re gulations for structural aid in the fisheries 
sector and aquaculture, Royal Decree 235/2002 of  1 March, amending Royal Decree 3448/2000, 
Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid; and pursuant to Council Regulation (EC) No. 2561/2 001 of  17 December, aiming to promote the 
conversion of fishing vessels and of fishermen that  were dependent, up to 1999, on the  fisheries 
agreement with Morocco, and Council Regulation (EC) No. 2325/2003 of 17 December, amending 
the above-mentioned Regulation, Royal Decree 137/2002 of 1 February, establishing measures to 
support shipowners and the crews of the fishing fleet  affected by the termination of the fisheries 
agreement between the European Union and the Kingdom of Morocco, Royal Decree 498/2004 of 1 April, amending Royal Decree 137/2002, the following aid has been granted:  
Promotion of aquaculture
 
 
 2003:  €3.19 million were transfe rred to the Autonomous Communities. 
  2004:  €3.99 million were transfe rred to the Autonomous Communities. 
 Marine cultivation plans
 
 
 2003:  €1, 377, 780 were transfe rred to the Autonomous Communities. 
  2004:  €1, 998, 520 were transfe rred to the Autonomous Communities. 
 Reorganization and renovation of the fishing fleet
 
 
 2003: 
 Definitive stoppage of fishing 
 €1.90 million were spent on a total of 150 projects. 
 Renovation and modernization of the fishing fleet 
 €4.18 million were transferred to the Autonomous Communities. 
 Aid to shipowners and fishermen affected by the stoppage of fishing 
 €11.61 million were transferred to the Autonomous Communities. 
 Socio-economic measures for reorganization of the fleet 
 €0.29 million in support were provided to 85 beneficiaries.  
 2004: 
 Definitive stoppage of fishing  
 €3.07 million were spent on 151 projects. 
 Renovation and modernization of the fishing fleet 
 €5.9 million were transferred to the Autonomous Communities. 
 Aid to shipowners and fishermen affected by the stoppage of fishing 
 €5.64 million were transferred to the Autonomous Communities.  G/SCM/N/123/EEC/Add.23 
Page 4  
 
  Socio economic measures for reorganization of the fleet 
 €0.6 million in support were provided to 88 beneficiaries. 
 
 Conversion of the fishing fleet:  joint-venture projects
 
 2003:  Average subsidy to joint ventures: €800,000   
 2004:  Average subsidy to joint ventures: €800,000   
 Pilot projects for experimental fishing
 
 2003:  Average aid to pilot projects for experimental fishing: €90,000 per month for the duration of the scheme. 
  2004:  Average aid to pilot projects for experimental fishing: €90,000 per month for the duration of the scheme.  
A. 
PROMOTION OF AQUACULTURE  
1. Title of the programme  
  Promotion of aquaculture  2. Period covered by the notification
 
 
 2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 Promotion and development of tangible inv estment in marine and inland aquaculture. 
 4. Authority
 
  Royal Decree 3448/2000 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector and aquaculture, and Ro yal Decree 235/2002 of 1 March, amending Royal 
Decree 3448/2000. 
 5. Form of the subsidy
 
  Direct aid 
 
6. Beneficiaries
 
  Enterprises in the aquaculture sector  7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  €3.19 million were transferre d to the Autonomous Communities. 
  2004:  €3.19 million were transferre d to the Autonomous Communities. 
 
8. Duration of the subsidy
 
  2000 -2006   G/SCM/N/123/EEC/Add.23 
 Page 5 
 
 
 9. Statistical data permitting an assessment of the trade effects of the subsidy  
  There are no negative effects on trade.  B. 
MARINE CULTIVATION PLANS  
1. Title of the programme  
  National Marine Cultivation Plans  2. Period covered by the notification
 
 
 2003 and 2004 
 
3. Policy objective and/or purpose of the subsidy  
 
 Development and implementation of Nationa l Marine Cultivation Plans as a means of 
strengthening the balanced development of aquaculture in the Autonomous Communities.   4. Authority
 
  Law 23/1984 of 25 June, on marine cultivation. 
 
5. Form of the subsidy
 
  Direct aid  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Transfer to the Autonomous Communities which participate in each of the plans approved by 
JACUMAR (Advisory Board on Marine Cultivation). 
 
7. Subsidy per unit or total amount of the subsidy
 
 
 2003:   €1, 377, 780 were transferred to the Autonomous Communities.  
 
 2004:  €1, 998, 520 were transferre d to the Autonomous Communities. 
 
8. Duration of the subsidy  
  Annual  9. Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 There are no negative effects on trade. 
 C. 
REORGANIZATION AND RENOVATI ON OF THE FISHING FLEET . RENOVATION AND 
MODERNIZATION OF THE FISHING FLEET  
1. Title of the programme  
 
 Renovation and reorganization of fishing vessels 
 G/SCM/N/123/EEC/Add.23 
Page 6  
 
 2. Period covered by the notification
 
  Financial years 2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 Promotion of investment in the renovation and m odernization of the fishing fleet with a view 
to improving safety and working conditions in the fisheries sector.  4. Authority
 
 
 Royal Decree 3448/2000 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector;  Royal Decree 235/2002 of 1 March, amending Royal Decree 3448/2000;  and 
Royal Decree 1048/2003 of 1 August, on the regulation of the fisheries sector and structural aid.  
5. Form of the subsidy
 
  Non-repayable subsidies   The subsidies are intended for capital investme nts in shipbuilding and may contribute towards 
a deduction of one or more percentage points from th e interest payable by a shipowner to a financial 
institution that has granted him a loan to build a new vessel. 
 6. Beneficiaries
 
  Owners of new fishing vessels. Shipowners in the fisheries sector. 
 
7. Subsidy per unit or total amount of the subsidy
 
  2003:  €4.18 million were transfe rred to the Autonomous Communities. 
  2004:  €5.90 million were transferred to the Autnonomous Communities. 
 
8. Duration of the subsidy
 
  The duration of the subsidy is governed by Council Regulation (EC) No. 2792/1999 of 17 December, laying down the detailed rules and arrangements regarding Community structural 
assistance in the fisheries sector, and Council Regulation (EC) No. 2369/2002 of 20 December, 
amending Council Regulation (EC) No. 2792/1999.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The subsidies for temporary and definitive stoppage exceed those granted for shipbuilding 
and modernization. They consequently represent a re duction in the gross registered tonnage (GRT) of 
the Spanish fishing fleet, and therefore have no negative effects on trade. 
 
D. 
REORGANIZATION AND RENOVATION OF THE FISHING FLEET .  RENOVATION  AND 
MODERNIZATION OF THE FISHING FLEET  
1. Title of the programme  
  Definitive stoppage of fishing   G/SCM/N/123/EEC/Add.23 
 Page 7 
 
 
 2. Period covered by the notification  
  Financial years 2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 Restructuring of the fleet to encourage a co mplete end to fishing by certain vessels. 
 4. Authority
 
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic 
regulations for structural aid in the fisheries sector.   Royal Decree 1048/2003 of 1 August, establishing the basic regulations for structural aid in 
the fisheries sector. 
 
5. Form of the subsidy
 
  Capital grants  6. Beneficiaries
 
 
 The aid is paid directly to shipowners in the fisheries sector.   The amount granted varies in accordan ce with Table 1 of Annex I to Royal 
Decree 3448/2000. 
 
 The amount granted varies in accordan ce with Table 1 of Annex I to Royal 
Decree 1048/2003.  7. Subsidy per unit or total amount of the subsidy
 
 
 In 2003, €1.90 million were paid  for a total of 150 projects. 
  In 2004, €3.07 million were paid  for a total of 151 projects. 
 8. Duration of the subsidy
 
 
 The programme covers the period from 2000 to 2006.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  There is no effect on trade since these payments  are made to compensate for the stoppage of 
fishing. 
 E. 
REORGANIZATION AND RENOVATION OF THE FISHING FLEET .  AID TO SHIPOWNERS AFFECTED 
BY THE STOPPAGE OF SHIPPING  
1. Title of the programme  
 
 Definitive stoppage of fishing by vessels dependent until 1999 on the fisheries agreement with Morocco.  G/SCM/N/123/EEC/Add.23 
Page 8  
 
 2. Period covered by the notification
 
  Financial years 2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 Pursuant to Council Regulation (EC) No . 2561/2001 of 17 December, later amended by 
Council Regulation (EC) No. 2325/2003 of 17 December , establishment of a series of requirements 
and complementary measures to promote the convers ion of fishing vessels and fishermen following 
the non-renewal of the fisheries agreement be tween the European Union and the Kingdom of 
Morocco. 
 4. Authority
 
  Royal Decree 137/2002 of 1 February, establis hing measures to support shipowners and the 
crews of the fishing fleet affected by the termina tion of the fisheries agreement between the European 
Union and the Kingdom of Morocco;  and Royal Decree 498/2004 of 1 April, amending Royal Decree 137/2002.  5. Form of the subsidy
 
 
 Non-repayable subsidies 
 6. Beneficiaries
 
  The aid is paid directly to the fishermen. 
 
 The amount granted varies pursuant to the provisions of Royal Decree 137/2002 and Royal Decree 498/2004.  7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  €11.61 million were transferred to the Autonomous Communities. 
  2004:  €5.64 million were transfe rred to the Autonomous Communities. 
 8. Duration of the subsidy
 
 
 From 1 July 2001 to 31 December 2003, in the case of shipowners,  and from 1 July 2001 to 31 December 2004, in the case of fishermen.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 There is no negative effect on trade since th ese payments are made to compensate for the 
definitive stoppage of fishing.  F. 
CONVERSION OF THE FISHING FLEET :  JOINT -VENTURE PROJECTS  
1. Title of the programme  
 
 Conversion of the fishing fleet:  joint-venture projects.   G/SCM/N/123/EEC/Add.23 
 Page 9 
 
 
 2. Period covered by the notification  
  2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 Aid to the owners of fishing vessels who set up joint ventures with third countries with a view to exploiting their fish stocks and supplying principally the EU market. 
 4. Authority
 
 
 Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic regulations for structural aid in the fisheries sector.   Royal Decree 1048/2003 of 1 August, on the regula tion of the fisheries sector and structural 
aid. 
 5. Form of the subsidy
 
  Non-repayable subsidy  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Owners of shipping vessels  7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  Average subsidy to joint ventures:  €800,000 
 2004:  Average subsidy to joint ventures: €800,000 8. Duration of the subsidy
 
 The programme covers the period from 2000 to 2004. 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
 The subsidies are intended for the creation of  joint ventures with other countries and are 
therefore considered to have a positive impact on the fisheries trade balance of third countries. 
 G. 
REORGANIZATION AND RENOVATION OF THE FISHING FLEET : SOCIO ECONOMIC MEASURES  
1. Title of the programme  
 
 Socio economic measures 
 2. Period covered by the notification
 
  2003 and 2004 
 G/SCM/N/123/EEC/Add.23 
Page 10  
 
 3. Policy objective and/or purpose of the subsidy
 
  To introduce socio economic measures for fishermen of boats subject to fisheries restructuring measures who fulfil certain criteria.  
4. Authority
 
  Royal Decree 3448/2001 of 22 December, establishi ng the basic regulations for structural aid 
in the fisheries sector;  and Royal Decree 235/ 2002 of 1 March, amendi ng Royal Decree 3448/2002. 
 
5. Form of the subsidy
 
  Non-repayable subsidy of a per centage of the amount requested. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Workers in the fisheries sector  7. Subsidy per unit or total amount of the subsidy
 
  In 2003, €0.29 million in support were provi ded to 85 beneficiaries.  Fixed amount. 
 
 In 2004, €0.26 million in support were provi ded to 88 beneficiaries.  Fixed amount. 
 8. Duration of the subsidy
 
 
 2000 to 2006. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The subsidy is not considered to have any negative trade effects since it is intended for 
measures in support of workers in the sector. 
 
H. 
PILOT PROJECTS FOR EXPERIMENTAL FISHING  
1. Title of the programme  
  Pilot projects for experimental fishing 
 
2. Period covered by the notification
 
  2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 Subsidies to the owners of Spanish fishing vessels for taking part in pilot projects for 
experimental fishing in external and internationa l waters and waters under the jurisdiction of third 
countries.  
4. Authority
 
  Royal Decree 3448/2000 of 22 December (BOE of 23.12.2000), establishing the basic regulations for structural aid in the fisheries sector.  G/SCM/N/123/EEC/Add.23 
 Page 11 
 
 
  
5. Form of the subsidy  
  Non-repayable subsidy of 80 per cent of the maximum subsidizable cost. 
 
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Owners of fishing vessels.  7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  Average aid to pilot projects for experimental fishing:  €90,000 per month for the duration of the scheme.   2004:  Average aid to pilot projects for experimental fishing:  €90,000 per month for the 
duration of the scheme. 
 8. Duration of the subsidy
 
  The programme covers the period from 2000 to 2006.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Since the subsidies are intende d for research and experimentation in the fisheries sector, they 
are not considered to have any negative effects on trade.  II. MINING 
A. 
DEVELOPMENT OF NON -ENERGY MINING  
1. Title of the programme  
  Development of non-energy mining  
 State aid N 722/2001 
 2. Period covered by the notification
 
  2003 and 2004 
 
3. Purpose of the subsidy
 
  To develop geological/mining exploration and research in the non-energy mining sector and 
to reduce the environmental impact of non-energy mining activities.  
4. Authority
 
  Ministerial Order ECO/2181/2002 of 29 Augus t (BOE 3.9.2002), partially amended by 
Order ITC/1917/2004 of 10 June (BOE 21.6.2004)  G/SCM/N/123/EEC/Add.23 
Page 12  
 
 5. Form of the subsidy
 
  Non-repayable subsidy and repayable subsidy.   Non-repayable subsidy in the case of environmen tal projects.  Repayable subsidy in the case 
of geological/mining research projects if the result of the research is positive, with a repayment period 
of five to 10 years at an interest rate of 0 per cent or the Euribor rate for one year according to the repayment period.  Non-repayable subsidy if the result of the research is negative.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Enterprises, associations of enterprises or ins titutions which implement projects that meet the 
objectives set forth in section 3 are eligible for the subsidy.   The subsidies for environmental projects are available for projects located in any region. 
 
 In the case of aid for geological/mining expl oration and research projects, the maximum 
subsidy percentage varies according to whether the region involved may avail itself of the exception 
under Article 87.3(a) or under Article 87.3(c) of the EC Treaty, or is not included in the above 
exceptions.  
 This aid is contingent on the applicants meeti ng their tax and social security obligations, and 
the recipients must produce documents showing that  the subsidized activity has been carried out. 
 7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  €5 million 
 2004:  €5.92 million   Maximum aid varies between 20 and 70 per cent of the eligible investment depending on the 
kind of project, the region where it is located and whether or not the enterprise is an SME.  
8. Duration of the subsidy
 
  The programme will end on 31 December 2007,  except for its mining exploration and 
environmental protection component, which will end on 31 December 2006. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  The programme has no trade effects because of its small scale compared with the size of the 
sector (annual turnover of between €4,000 and €4,200 million) and the hi gh number of recipients, i.e. 
78 enterprises in 2003 and 97 enterprises in 2004.  
B. 
AID TO JOB CREATION PROJECTS IN MINING AREAS  
1. Title of the programme  
  Aid scheme for job creation business projects that promote alternative development in mining areas.  State aid 476/2001. 
 
2. Period covered by the notification
 
  2003 and 2004  G/SCM/N/123/EEC/Add.23 
 Page 13 
 
 
  
3. Policy objective and/or purpose of the subsidy  
  The purpose is to promote regional development through aid for investment projects that help reduce the dependency on coal mining of the areas concerned. 
 
4. Authority
 
  Resolution of 20 December 2002, adopted by th e Institute for the Restructuring of Coal 
Mining and Alternative Development of Mining Regions, announcing aid for job creation business 
projects that promote the alternative development of mining areas. 
  Resolution of 15 December 2003, adopted by th e Institute for the Restructuring of Coal 
Mining and Alternative Development of Mining Regions, announcing aid for job creation business 
projects that promote the alternative development of mining areas. 
 
5. Form of the subsidy
 
  Non-repayable subsidies, granted for producti on investments and calculated on the investment 
approved by the administration.  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Aid is granted to enterprises, in genera l SMEs, and to independent entrepreneurs. 
  Once it is approved, the subs idy is notified individually to the those concerned in an 
individual resolution establishing the basic data for the project, including the name of the recipient 
enterprise that has applied for it.   The aid is paid once the Autonomous Comm unity, acting through the relevant body, has 
issued a report substantiating full execution of the pr oject and fulfilment, within the specified periods, 
of the conditions required in the individual r esolution accepted beforehand by the beneficiary.  
Enterprises may apply to receive the subsidy in in stalments provided that they produce evidence that 
the part of the investment for each instalment ha s been made together with adequate guarantees 
against failure to complete.  7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  €86,448,708.10  2004:  €123,204,157  8. Duration of the subsidy
 
 
 The current scheme will remain in effect until the end of 2005 but is expected to continue 
once the necessary legal requirements have been met, as long as the imbalance in regional development persists.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 As to the statistical data permitting an assessm ent of trade effects, it should be noted that, 
since the subsidies take the form of capital fo r productive investment in disadvantaged regions, 
authorized by the European Commi ssion, they are not regarded as jeopardizing the principle of free 
competition. G/SCM/N/123/EEC/Add.23 
Page 14  
 
  
III. INDUSTRY 
A. 
TECHNICAL RESEARCH DEVELOPMENT PROGRAMME  
1. Title of the programme  
 
 Technical Research Development Programme (PROFIT) 
 State aid N 191/2000, N 202/2000, N 276/2000 and N 605/2003  2. Period covered by the notification
 
 
 2003 and 2004 
 3. Policy objective and/or purpose of the subsidy
 
  The PROFIT Programme is an aid scheme for research and development projects.  It is 
designed to help create favourable conditions for en terprises to increase their capacity to absorb 
technology, the consolidation of research and development in rapid-growth sectors, and the 
development of research and development in ente rprises devoted to the production of technology, 
especially cutting edge technologies.  4. Authority
 
 
 Order of 7 March 2000, published in the Offici al Journal of the State (BOE) of 9 March 2000, 
setting out the basis, support arrangements and mana gement of the Technical Research Development 
Programme (PROFIT), included in the National Sc ientific Research, Development and Technological 
Innovation Plan (2000-2003). 
 
 Order CTE/3185/2003, of 12 November 2003, pu blished in the Official Journal of the 
State (BOE) of 15 November 2003, setting out the basis, support arrangements and management of 
the National Scientific Research, Development a nd Technological Innovation Plan (2004-2007) in the 
area dedicated to Technical Research Development.  
5. Form of the subsidy
 
  Non-repayable subsidy and interest-free loans.  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Enterprises, groups or associations of enterpri ses, private non-profit making research centres, 
public research agencies and other public bodies are eligible for the subsidy.   The PROFIT Programme invites applications fo r its subsidies each year in the BOE through a 
process open to all those who wish to carry out proj ects or activities in the various technological areas 
already defined as of interest by the Programme. 
 7. Subsidy per unit or total amount of the subsidy
 
  In 2003, subsidies amounting to €42.56 milli on and loans amounting to €329.38 million were 
granted. 
  G/SCM/N/123/EEC/Add.23 
 Page 15 
 
 
  In 2004, subsidies amounting to €52.47 milli on and loans amounting to €325.69 million were 
granted.  8. Duration of the subsidy
 
 
 The PROFIT Programme will remain in effect until 2007. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme, which ma inly concerns the development of technology 
and which is open to enterprises of many indust rial sectors and services, together with the 
considerable number of beneficiaries of the speci fic projects submitted (over a thousand each year), 
the trade effects of the subsidies are minimal, si nce such aid is distributed over a wide range of 
economic activities.  
B. 
SUPPORT FOR THE CAPITALIZATION OF TECHNOLOGY -BASED ENTERPRISES  
1. Title of the programme  
  Support for the capitalization of technology-based enterprises   State aid N 46/2004 
 
2. Period covered by the notification
 
  2003 and 2004  
3. Policy objective and/or purpose of the subsidy
 
  To grant loans to certain financial entities so that they can participate temporarily in the 
capital of small non-financial tec hnology-based enterprises which are starting up or which have been 
in operation for less than two years.  
4. Authority
 
  Royal Decree 601/2002 of 28 June regulating the basis and functioning of support for the capitalization of technology-based enterprises.  
5. Form of the subsidy
 
  Loans  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Financial entities established in the European Economic Area, the corporate purpose of which 
is to participate temporarily in the capital of no n-financial enterprises, wh en providing capital to 
technology-based enterprises.  They will be able  to obtain interest-free loans with a maximum 
repayment period of seven years.  These loans may be of amounts of up to 50 per cent of the participation of the entity investing in a technolog y-based enterprise, except when the enterprise in 
question is situated in a region that meets the requi rements for regional aid under Article 87.3(a) or (c) 
of the Treaty Establishing the European Community, in which case loans may reach up to 70 per cent 
of the participation.  G/SCM/N/123/EEC/Add.23 
Page 16  
 
  Technology-based enterprises are small ( according to the Community definition) non-
financial enterprises conducting scientific resear ch and technological development projects, 
i.e. projects that set out to develop new products, processes or services or substantially improve those 
already in existence.  Such t echnology-based enterprises may not be listed on the primary market of 
the stock exchange nor may they belong to the shipbuilding, coal or iron and steel industries. 
 
 The participation of the entity investing in  the technology-based en terprise may not exceed 
€500,000.  However, in regions which meet the re quirements for receiving aid under Article 87.3(a) 
or (c) of the EC Treaty, this limit is raised to €1,000,000 and €750,000 respectively.  
7. Subsidy per unit or total amount of the subsidy
 
  In 2003, repayable loans amounting to €1.6 million were granted.   In 2004, repayable loans amounting to €0.83 million were granted. 
 
8. Duration of the subsidy
 
  The programme will remain in effect until 31 December 2007.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Given the nature of this programme, its small scale, and the numerous sectors of activity that it covers, these subsidies have no noticeable effects on trade.  C. 
TRAINING PROGRAMME IN TELECOMMUNICATIONS (FORINTEL ) 
1. Title of the programme  
  Training programme in telecommunications (FORINTEL)   State aid XT-14/03  
2. Period covered by the notification
 
  2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 These subsidies aim to ensure the constant adjustment and development of professions and 
job descriptions and the improvement of skills an d qualifications in enterprises within both the 
telecommunications/information technology sector and user sectors.   The programme provides aid for general traini ng within the meaning of Article 2(e) of 
Regulation (EC) No. 68/2001. 
  It comprises two activities:   Training for users of telecommunica tions and new information technology; 
 
 Training for telecommunications and information technology professionals. 
  G/SCM/N/123/EEC/Add.23 
 Page 17 
 
 
  The programme is co-financed by the European  Social Fund (ESF) within the framework of 
the Operational Programme for Business Initiative and On-Going Training.  4. Authority
 
 
 Order of the Ministry of Science and Technology of 1 August 2001 establishing the 
regulatory basis for and giving notice of the granting of government subsidies for the implementation of the FORINTEL programme, as amended by Order CTE/36/2004/ of 19 January, in accordance with 
Regulation (EC) No. 68/2001 on training aid.   
5. Form of the subsidy
 
  Subsidies may reach up to 70 per cent gross of the eligible expenditure (e.g. teaching staff 
costs, running costs, funding of instruments and equipm ent to the extent that they are used exclusively 
for the training project or activity, staff costs of the participants, advisory service costs, travel 
expenses of teaching staff and training beneficiaries), whatever the type of beneficiary, with the 
exception of large enterprises, in whic h case subsidies will not exceed 50 per cent. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Any non-profit making public, semi-public or  private organization with its own legal 
personality, which habitu ally provides training services to enterprises. 
  Organizations in which the majority of th e capital is State-owned and which habitually 
provide training services to enterprises, provided they  are engaged in activities which are not pursued 
for profit-making purposes. 
 
 Enterprises, the main activity of which is th e provision of training services for the market, 
which have a proven capacity in telecommunica tions and information technology training. 
 7. Subsidy per unit or total amount of the subsidy
 
 
 In 2003, subsidies amounting to  €12.87 million were granted. 
  In 2004, subsidies amounting to  €23.27 million were granted. 
 8. Duration of the subsidy
 
 
 Applications for subsidies ma y be submitted until 30 June 2006. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme and the numerous sectors of activity that it covers, the 
subsidies have no noticeable effects on trade. 
 D. 
TECHNICAL RESEARCH DEVELOPMEN T PROGRAMME FOR THE TEXTILE /CLOTHING SECTOR  
1. Title of the programme  
 
 Technical research development progr amme for the textile/clothing sector 
  State aid N 789/99  G/SCM/N/123/EEC/Add.23 
Page 18  
 
 2. Period covered by the notification
 
  2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 This programme is mainly aimed at promoti ng technological research and development in the 
textile and clothing sector, with a view to in creasing the sector's competitiveness and promoting its 
integration in the world market.  
4. Authority
 
  Order CTE/3365/2002 of 27 December establishing the regulatory basis for the granting of aid within the framework of the technical resear ch development programme for the textile/clothing 
sector, and the call for subsid y applications for 2003. 
 
 Order CTE/3261/2003 of 21 November establishing the regulatory basis for the granting of subsidies within the framework of the tec hnical research development programme for the 
textile/clothing sector, and the call fo r subsidy applicat ions for 2004. 
 5. Form of the subsidy
 
 
 Subsidies and repayable interest-free loans  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Private enterprises and groups or associations of enterprises in the textile/clothing sector, 
private non-profit making research centres and other private non-profit making entities are eligible for the subsidy.   This programme invites applications for its s ubsidies each year in the BOE.  The competitive 
application process is open to anyo ne who wishes to conduct a project. 
 
 The granting of subsidies is contingent on the a pplicants meeting their tax and social security 
obligations.  7. Subsidy per unit or total amount of the subsidy
 
 
 In 2003, subsidies amounting to €3.8 milli on and loans amounting to €28.9 million were 
granted.   In 2004, subsidies amounting to €4.8 milli on and loans amounting to €18.1 million were 
granted. 
 
8. Duration of the subsidy
 
  The programme ended in 2004.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme, which ma inly concerns the promotion of technological 
research and development and which is open to en terprises of many of the textile and clothing 
subsectors, together with the considerable numbe r of beneficiaries (more than 250 each year), the  G/SCM/N/123/EEC/Add.23 
 Page 19 
 
 
 trade effects of the subsidies are minimal, since su ch aid is distributed over a wide range of economic 
activities.  E. 
FINANCING OF RESEARCH , DEVELOPMENT AND INNOVATION PROJECTS CONDUCTED BY 
ENTERPRISES  
1. Title of the programme  
  CDTI (Centre for Industrial Technological Development) loans  2. Period covered by the notification
 
 
 2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the subsidy is to help Spanish enterprises increase their technological capacity 
through the financing of business projects in th e areas of technological research, development, 
innovation and promotion.  4. Authority
 
 
 Royal Decree 2/1984 of 4 January establishing the government body known as the "Centre for 
Industrial Technological Development" a nd approving that body's regulations. 
 5. Form of the subsidy
 
 
 Interest-free loans 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  The CDTI provides funding for research, development and innovation projects that are 
developed by enterprises and submitted through a permanently open application process.  
Beneficiaries must be enterprises formed as trading companies. 
  The amount granted for each project is variab le and is determined according to the total 
budget of the project and the type of project involved.  It may not, however, exceed 40-60 per cent of the budget.  Payment of the loan is continge nt upon the presentation of documents certifying the 
targets met, as established in th e contract with the enterprise. 
 7. Subsidy per unit or total amount of the subsidy
 
  In 2003, interest-free loans amounting to €236.47 million were granted. 
 
 In 2004, interest-free loans amounting to €368.01 million were granted. 
  In 2004, the average loan granted for each pr oject was €472.42 thousand and the total average 
investment was €909.27 thousand.  
8. Duration of the subsidy
 
  Loans granted by the CDTI fund projects spanning a number of years.  In 2004, the average duration of a project was 22 months with a repayment period of 7-9 years. G/SCM/N/123/EEC/Add.23 
Page 20  
 
  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme, which ma inly concerns the development of technology 
and which is open to enterprises of many indust rial and services sectors, together with the 
considerable number of beneficiaries of the specifi c projects submitted (over 500 each year), the trade 
effects of these subsidies are minimal, since the loans are distributed over a wide range of economic 
activities.  F. 
SUPPORT PROGRAMME FOR SCIENCE AND TECHNOLOGY PARKS  
1. Title of the programme  
  Support programme for science and technology parks  2. Period covered by the notification
 
 
 2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
  2003 
 
 Science and technology parks are physical sp aces, generally linked to universities, research 
bodies and enterprises, which set out to promote knowle dge in different fields through the integration 
of scientific, technological and industrial interests and the transfer of technology they provide.  
 2004 
  To increase the level of Spanish science and t echnology in terms of both quantity and quality.  
The aim of the National Research, Development and Innovation Plan is to improve Spain's current 
position in the European Union and the OECD in terms of resource and results indicators at the 
scientific and technological levels. 
 
4. Authority
 
  2003  
 Order 1895 of 3 July 2003 (BOE of 8 July 2003)  of the Ministry of Science and Technology. 
  Order 1896 of 3 July 2003 (BOE of 8 July 2003)  of the Ministry of Science and Technology. 
  2004  
 Order 350 of 10 February 2004 (BOE of 17 Febr uary 2004) of the Ministry of Science and 
Technology.  5. Form of the subsidy
 
 
 Repayable loans 
  G/SCM/N/123/EEC/Add.23 
 Page 21 
 
 
 6. Beneficiaries:  to whom and how the subsidy is provided  
  Entities under public law and public or private enterprises with legal personality and which 
promote the development of a science or technology park.  
7. Subsidy per unit or total amount of the subsidy
 
  In 2003, loans amounting to €32,189,564.50 were granted.   In 2004, loans amounting to €9,828,489.05 were granted. 
 
8. Duration of the subsidy
 
  The National Plans will remain in effect for four years, until 2007.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this programme for the promotion of science and technology parks, the 
trade effects of the subsidies depend on the exte nt of applied research involved in the activities 
conducted.  Such effects are, however, minimal.  
G. 
SHIPBUILDING SUBSIDIES  
1. Title of the programme  
  Shipbuilding subsidies  
 State aid N 757/2000 
 2. Period covered by the notification
 
  2003 and 2004  
3. Policy objective and/or purpose of the subsidy
 
  The fundamental aim of Community and national policy is to ensure that the shipbuilding sector remains competitive, in view of the difficult market situation and the need to encourage yards 
to make the necessary changes to improve competitiveness. 
 
4. Authority
 
  Article 9 of Royal Decree 442/1994 of 11 Marc h on subsidies and financing for shipbuilding, 
as subsequently amended by Royal Decrees 1395/ 1995, 1562/1997, 2600/ 1998 and 3452/2000. 
 
5. Form of the subsidy
 
  Non-repayable subsidy  6. Beneficiaries: to whom and how the subsidy is provided
 
 
 The subsidy is paid to shipyards building metal hull vessels of over 100 gross registered 
tonnes on a building contract dated before 31 D ecember 2000 and which deliver the vessel no later G/SCM/N/123/EEC/Add.23 
Page 22  
 
 than three years after signing the contract, with the exception of fishing vessels since 
19 October 1997.   The subsidy is provided once the construction or  conversion contract ha s come into effect.  
Payments are made as the ship is built or convert ed, subject to provision being made in the annual 
budget, which means that payments are considerably delayed. 
 7. Amount of the subsidy
 
  2003:  €82.49 thousand 
 
 2004:  €6,186.34 thousand  8. Duration of the subsidy
 
 
 The period of application of the programme is  the same as that provided for in Council 
Regulation (EC) 1540/1998 of 29 June 1998 (OJEC, 18 July 1998).  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  These subsidies are granted under Council Re gulation (EC) 1540/1998 of 29 June 1998 on aid 
to shipbuilding applicable in all countries of the European Union. 
  The EU's share of the world shipbuilding mark et fell from 23.7 per cent in 1998 to 8 per cent 
in 2003, whilst Korea and Japan went from having 25.2 per cent and 33.5 per cent respectively in 
1998 to 55.4 per cent and 35 per cent respectively in  2003.  Consequently, th ese subsidies have not 
increased the European Union's share of the global market. 
 H. 
INTEREST SUBSIDY FOR SHIPBUILDING LOANS  
1. Title of the programme  
  Interest subsidy for shipbuilding loans 
 
 State aid N 811/A/1002  2. Period covered by the notification
 
 
 2003 and 2004 
 3. Policy objective and/or purpose of the subsidy
 
  To allow shipowners contracting vessels from Spanish shipyards to obtain funding under the 
conditions set forth in the OECD Arrangement on Guidelines for Officially Supported Export Credits 
and the Sector Understanding in Annex I thereto. 
 4. Authority
 
  Articles 11-14 of Royal Decree 442/1 994 of 11 March, as amended by Royal 
Decree 1274/2003 of 10 October. 
  G/SCM/N/123/EEC/Add.23 
 Page 23 
 
 
 5. Form of the subsidy  
  Interest subsidy.  For contracts signed befo re 31 December 2000, the subsidy has a ceiling of 
300 basic points.  For later contracts, the ceiling is 100 basic points.  
6. Beneficiaries:  to whom and how the subsidy is provided
 
  The interest subsidy is paid to financial en tities which grant loans to shipowners or third 
parties to finance the construction or conversion of vessels.  
 The subsidy is paid throughout the term of the loan (maximum 12 years), on the same date as 
that on which interest accrues and subject to provision being made in the annual budget. 
 7. Subsidy per unit or total amount of the subsidy
 
 
 In 2003, interest subsidies for shipbuilding loans amounted to €395,253.84 thousand. 
  In 2004, the same subsidies amounted to €4,949.86 thousand.  8. Duration of the subsidy
 
 
 The period of application of the programme  ends on 31 December 2006, in accordance with 
the Community framework on State aid to shipbuilding (2003/C 317/06).  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
: 
 
 The EU's share of the world shipbuilding mark et fell from 23.7 per cent in 1998 to 8 per cent 
in 2003, and although we have no specific data on the global or European shipbuilding market in 
2004, the available data indicate that the trend obser ved in recent years will continue and that Korea 
and Japan will increase their share.  Consequently , these subsidies will not increase the EU's share of 
the global market.  
I. 
AID FOR TRAINING SHIPBUILDING WORKERS  
1. Title of the programme  
  Aid for training shipbuilding workers  
 State aid XT-7/03 
 2. Period covered by the notification
 
  2003 and 2004  
3. Policy objective and/or purpose of the subsidy
 
  These subsidies are aimed at upgrading, thro ugh on-going training, the qualifications of 
shipbuilding workers.  The objective is to enhan ce the skills and personal development of workers 
employed in enterprises in this sector, the majority of which are SMEs. 
 G/SCM/N/123/EEC/Add.23 
Page 24  
 
 4. Authority
 
  Resolution CN.4.02 F.S.E. of 8 May 2001 of th e General Directorate of Technology Policy of 
the Ministry of Science and Tecnology (now the Ministry of Industry, Tourism and Trade), and the Shipbuilding Sector Management Circular of 30 May 2001. 
 
 Commission Regulation (EC) No. 68/2001 on State aid for training.  5. Form of the subsidy
 
 
 Non-repayable subsidy 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  The following are eligible for aid under this programme: 
 
 Enterprises or groups of enterprises in the shipbu ilding and auxiliary industrial sectors, with 
the exception of undertakings engaged in production in the coal and steel industries, within the meaning of Articles 80 and 81 of the Treaty establis hing the European Coal and Steel Community; 
  Public, semi-public or private organizations w ith their own legal personality, which habitually 
provide training services to enterprises. 
  The final recipients of the aid provided by this programme are workers employed by 
enterprises in the Spanish shipbuilding industry, wh ich encompasses both shipyards and the auxiliary 
enterprises that contribute to the sh ip design and construction process. 
 
7. Subsidy per unit or total amount of the subsidy
 
  In 2003, subsidies amounting to  €12.8 million were granted. 
  In 2004, subsidies amounting to  €11.8 million were granted. 
 
8. Duration of the subsidy
 
  The programme will remain in effect until 2006.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given the nature of this aid programme to tr ain shipbuilding workers,  the subsidies are not 
considered to have any effects on trade.  J. 
PAMOTOR PROGRAMME  
1. Title of the programme  
  Aid programme to promote industrial partic ipation in research and development projects 
concerning the main components of engines selected  to be fitted in the AIRBUS A-380 (PAMOTOR 
programme). 
 
 State aid N 417/2002   G/SCM/N/123/EEC/Add.23 
 Page 25 
 
 
 2. Period covered by the notification  
  2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the aid programme is to help EU  enterprises established in Spain participate as 
risk-sharing partners in interna tional cooperation projects involving the development of the Airbus 
A380 aircraft engine.  Enterprises are encouraged to conduct research and deve lopment projects that 
will provide the technology necessary for such participation. 
 
4. Authority  
  Community framework for State aid for research and development (96/C 45/06).  
 Order CTE/1828/2002 of 8 July establishing the regulatory basis for the granting of aid for 
business participation in the programmes to develop engines for the Airbus A380 group of aircraft. 
 5. Form of the subsidy
 
  Repayable interest-free loans 
 
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Subsidies are granted through a competitive app lication process to enterprises which meet the 
requirements set forth in Order CTE/1828/2002 and which submit projects that are approved by the 
Monitoring and Control Committee provided for in the aforementioned Ministerial Order. 
  Once a project is approved, a cooperation agreement is signed in order to put the authorized subsidies into effect.  7. Subsidy per unit or total amount of the subsidy
 
 
 In 2003, no subsidies were granted under this programme.    In 2004, subsidies were authorized in the form of repayable loans amounting to €18,469,199. 
 
8. Duration of the subsidy
 
  The programme will remain in effect until 31 December 2006.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Activities which are eligible for aid fall into the research and development categories defined 
in the Community framework for State aid for res earch and development and are not closer to the 
market than pre-competitive development.  The European Commission itself has concluded that such 
subsidies do not affect trade and that they are compatible with the Eu ropean single market. 
 G/SCM/N/123/EEC/Add.23 
Page 26  
 
 IV. SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) 
A. 
ARTE -SME PROGRAMME II  
1. Title of the programme  
  ARTE/SME programme II (part of the "Information Society" operational programme) 
 
2. Period covered by the notification
 
  2003 and 2004  
3. Policy objective and/or purpose of the subsidy
 
  The purpose of the programme is to help f und advanced telecommunication services projects 
of common interest to small and medium-sized enterprises, through the use of the internet and 
electronic commerce. 
 
4. Authority
 
  Order of the Ministry of Science and Technology of 8 February 2001 (BOE of 
22 February 2001).  
 Commission Regulation (EC) No. 69/2001 of 12 January on the application of Articles 87 and 
88 of the EC Treaty on de minimis  aid. 
 5. Form of the subsidy
 
 
 Non-repayable subsidy 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Only legally established non-profit making pub lic or private entities whose purpose is to 
provide support services to small and medium-siz ed enterprises are eligible for the subsidy. 
 
 Zones classified as Objective 1 under the Eu ropean Regional Development Fund (ERDF) are 
priority zones for action.   The aid is contingent on applicants meeti ng their tax and social security obligations.  
Recipients must also produce documents showing that  the subsidized activity has been carried out and 
that the relevant costs have been paid.  7. Subsidy per unit or total amount of the subsidy
 
  Subsidies paid in 2003:  €10.28 million. 
 
 Subsidies paid in 2004:  €7.78 millon.   Around 70 per cent of this amount was used to acquire computer equipment (hardware and software), to develop customized software and to purchase telecommunications terminals (modems, 
PCs) for use by small and medium-sized enterpri ses.  The remainder was used for communications 
costs and costs relating to feasibility studies,  as well as to promote the use of advanced 
telecommunications services and to provide technical assistance.  G/SCM/N/123/EEC/Add.23 
 Page 27 
 
 
  
8. Duration of the subsidy  
  This is a five-year programme which will remain in effect until 30 June 2006 for the 
submission of new projects.  Nevertheless, subsidized projects may finance costs relating to the 
programme until 31 December 2008, in accordance with the Commission Decision of 
13 December 2001, concerning support from the Eu ropean Regional Development Fund (ERDF) for 
an operational programme for Spain under the "Inf ormation Society" Operational Programme.  This 
states in Article 5 that the deadline for expenditure is set at 31 December 2008. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  This aid regime has no trade effects owing to its small scale in comparison with the scale of trade and the large number of small and medium-siz ed enterprises that have indirectly benefited from 
it, given that the programme is multi-sectoral.  In a number of SME sectors the Programme has 
nevertheless had the effect of increasing technol ogical development in telecommunications and the 
use of electronic commerce.  B. 
SME COMPETITIVENESS AND CONSOLIDATION PLAN  
1. Title of the programme  
 
 SME competitiveness and consolidation plan 
 2. Period covered by the notification
 
  2003 and 2004 
 
3. Policy objective and/or purpose of the subsidy
 
  The SME competitiveness and consolidation pl an provides for a series of support measures 
and development activities for small and medium -sized enterprises (SMEs), with a view to 
strengthening entrepreneurship a nd enhancing competitiveness.  Such measures include the following: 
 
3.1. Information society
 
  Objective:  The subsidies provided for in this  regard are intended to support projects designed 
to ensure that SMEs are fully integrat ed into the information society through: 
 
 The improvement of production, marketing, information and management processes in SMEs, incorporating information and communications technologies.   Support for the installation and use of data transmission services (electronic commerce, telecommuting, portals, etc.) 
 
3.2. Innovation in business methods
 
  Objective:  This measure is designed to promote and support projects that seek the incorporation of a culture of innovation through design, the introduction of quality systems, 
cooperation between enterprises, innovation in manage ment and organizational processes in SMEs, by 
means of the following categories of support:  G/SCM/N/123/EEC/Add.23 
Page 28  
 
 3.2.1 Design
 
  Objective:  Projects to be used to incorporate, include or apply design technology in SMEs are eligible to receive support.  
 Support is to be used to finance projects designed to: 
  Improve new or existing products and/or servi ces.  The design of products with a short life-
cycle (of less than one year) is excluded, with th e exception of products which involve a new line of 
activity for the enterprise. 
 
 Improve the marketing, promotion and comm unication of products and services, design of 
corporate identity, development of trademarks, p acking and packaging, electronic design, spatial 
design and aspects of communication.  
 Improve design management in SMEs, situ ation analysis, design seminars and the 
incorporation of more effec tive design management methods. 
 3.2.2 Cooperation networks between enterprises
 
  Objective:  The aim is to promote and strengthen networks between enterprises with a view to 
assisting SMEs to acquire the means to adapt to  the level of competition required in the global 
marketplace.   Support is to be used to finance projects designed to:  
 Identify possible groups of related enterprises and their collective needs. 
  Carry out feasibility studies of possible measures, together with their possible implementation, with a view to improving the competitive position of certain groups.   Implement joint measures to secure cooperation agreements between enterprises, with a view 
to improving their competitive position. 
 3.2.3 Quality systems
 
  Objective:  The support is to be used to fi nance projects designed to introduce environmental 
quality and regeneration systems in SMEs. Such projects should: 
  Develop standardization processes for th e various non-industrial business sectors; 
  Design and introduce quality control systems fo r SMEs in the commercial, construction and 
services sectors, through situation analysis and advi ce on the installation of such systems, which will 
enable them, in the short term, to acquire a qua lity certificate issued by an approved certification 
authority.   SMEs will be entitled to this support either  on an individual basis or through projects 
submitted by intermediate bodies for a group of ente rprises.  For individual enterprises, the project 
will be considered complete when the enterprise pr ovides proof that it has initiated the certification 
process.   G/SCM/N/123/EEC/Add.23 
 Page 29 
 
 
 3.2.4 Process innovation:  management and organization in SMEs  
  Objective:  The support is to be used to finance projects designed to:   Provide technical support to help enterpri ses carry out situation analyses, incorporate 
innovatory processes and introduce innovative management and organizational methods. 
  Provide advice on the introduction of new technologies.  4. Authority
 
 
 Royal Decree 582/2001 of 1 June 2001 (BOE of  2 June 2001).  Pursuant to Article 153 of 
Royal Legislative Decree 1091/1998 approving the Revi sed Text of the General Budget Law, credits 
released in any given budget year may be grante d until 31 December of the following budget year. 
 
5. Form of the subsidy  
  Non-repayable subsidies  6. Beneficiaries:  to whom and how the subsidy is provided
 
 
 Small and medium-sized enterprises and inte rmediate bodies are eligible for this aid. 
  Intermediate bodies are deemed to be:   Any non-profit making public, semi-public or  private organization with its own legal 
personality, which habitu ally provides business support services to SMEs. 
  Bodies in which the majority of the capital is State-owned and whic h habitually provide 
business support services to SMEs, provided that they  are engaged in projects consistent with the 
measures in the Annex and that they do not pursue these projects for profit-making purposes. 
 
 A small or medium-sized enterprise (SME) is de emed to be an economic unit with natural or 
legal personality which, at the time of the a pplication, meets the following requirements: 
  Employs not more than 250 workers.  
 Has either an annual turnover of not more th an €40 million or an overall balance of not more 
than €27 million.   25 per cent or more of its capital or shares do not belong to another enterprise, or have not 
been jointly acquired by other enterprises whic h do not conform to the definition of an SME. 
 
 Before receiving this subsidy, beneficiaries mu st show that they have complied with their tax 
and social security obligations.   They must also show that the subsidi zed activity has actually been carried out. 
 
7. Subsidy per unit or total amount of the subsidy
 
  €60,101,210.00 million were budgeted for 2003, an d exactly the same amount for 2004.  The 
funds are allocated according to the territorial scope  laid down in Article 153 of Royal Legislative 
Decree 1091/1998 approving the Revised Text of th e General Budget Law, and commitments for G/SCM/N/123/EEC/Add.23 
Page 30  
 
 expenditure may be acquired up to 31 December of the budget year following the year in which the 
funds were released.  Subsidies are granted on the basis of the technical and economic-financial 
viability of the projects, with maximum aid limits of up to 100 per cent of s ubsizable expenditure for 
intermediate bodies and up to 50 per cent of the cost of external collaboration for enterprises, with the 
application of the aid intensities set by the EU for material and immaterial i nvestments with a subsidy 
limit of €10,000.  The 50 per cent limit for exte rnal collaboration may be exceeded under the de 
minimis  regime and for a subsidy amount not exceeding €13,000. 
 8. Duration of the subsidy
 
 
 The programme will remain in effect until 2006. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  In view of the nature of this subsidy progr amme and its focus on intangible activities, there 
are no trade effects. 
 
V. REGIONAL SUBSIDIES 
A. 
REGIONAL ECONOMIC INCENTIVES SCHEME  
1. Title of the programme  
 
 Regional economic incentives scheme 
 2. Period covered by the notification
 
  2003 and 2004 
 
3. Policy objective and/or purpose of the subsidy
 
  The purpose is to promote economic development in the most disadvantaged areas.  The objective of regional incentives is to foster bus iness activity and to encourage firms to locate 
themselves in previously determined areas, so as to reduce economic disparities on Spanish territory, 
secure a more equitable spread of economic activ ity and strengthen the potential for internally 
generated development in different regions. 
 4. Authority
 
 
 A mandate under Article 40.1 of the Spanish C onstitution, which lays down the obligation for 
authorities to foster favourable conditions for a more equitable distribution of regional income.  Similarly, Article 138 provides that the State sh all establish a suitable and fair economic balance 
between different parts of Spanish territory.   The legislative basis is: 
 
 Law 50/85 of 27 December on regional econom ic incentives to remedy inter-regional 
economic imbalances.   Regulation adopted by Royal Decree 1535/1987 of 11 December, as amended by Royal 
Decree 897/1991 of 14 July, Royal Decree 302/1993 of 26 February, Royal Decree 2315/1993 of 
29 December and Royal Decree 78/1997 of 24 January.   G/SCM/N/123/EEC/Add.23 
 Page 31 
 
 
  The regional incentives scheme was approved by a European Commission Decision 
communicated to the Spanish Government in a letter dated 1 June 1987.   Pursuant to this authorization, 13 Royal Decrees delimiting the economic promotion areas 
were promulgated with successive amendments so as to adapt them to the successive authorizations of 
the European Commission with regard to the dist ribution of regional subsidies within Spain. 
 5. Form of the subsidy
 
  Non-repayable subsidies granted for production in vestments and calculated on the basis of the 
investment approved by the administration. 
 6. Beneficiaries:  to whom and how the subsidy is provided
 
  Once it is approved, the subsidy is notified individually to the party concerned in an 
individual resolution establishing the basic data for the project, including the name of the recipient 
enterprise that has applied for it.   The aid is paid once the Autonomous Commun ity has issued a report substantiating full 
execution of the project and fulfilment, within the specified periods, of the conditions required in the 
individual resolution, accepted beforehand by the be neficiary.  Enterprises may apply to receive the 
subsidy in instalments provided that  they produce evidence that the part of the investment for each 
instalment has been made together with ad equate guarantees against failure to complete. 
 7. Subsidy per unit or total amount of the subsidy
 
 
 2003:  €268,514,180 
  2004:  €273,282,470  8. Duration of the subsidy
 
 
 The scheme will continue as long as the reason fo r introducing it, namely the imbalance in 
regional development, persists.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 As to the statistical data permitting an assessm ent of trade effects, it should be noted that, 
since the subsidies take the form of capital for pro ductive investment in disadvantaged regions and are 
authorized by the European Commi ssion, they are not regarded as jeopardizing the principle of free 
competition.  B. 
CONVERSION OF DECLINING INDUSTRIAL AREAS  
1. Title of the programme  
  Regional investment aid scheme to promote conve rsion of declining industrial areas in certain 
assisted regions (reindustrialization measures)  
 State aid N 182/2001 
 G/SCM/N/123/EEC/Add.23 
Page 32  
 
 2. Period covered by the notification
 
  2003 and 2004  3. Policy objective and/or purpose of the subsidy
 
 
 The aim of the scheme is to promote re gional development through the conversion of 
declining industrial areas in certain assisted regi ons which have been seriously affected by a large 
number of job losses in public sector enterprises.  In or der to remedy this situation, aid is provided to 
fund investments that create alternative employment in other enterprises and sectors. 
 
4. Authority  
  Spanish regional aid map for the period 2000-2006, establishing the regions where regional 
development aid may be considered compatible with the common market in accordance with the 
derogation provided for in Article 87.3(a) of the EC Treaty, as approved by the European 
Commission.    Orders CTE/329/2003 and CTE/352/2004 es tablishing the regulatory basis for 
reindustrialization aid and the application pro cedure for obtaining such aid in 2003 and 2004, 
respectively. 
 
5. Form of the subsidy
 
  Aid is granted in the form of interest-free loans.  Such loans span a maximum period of 
15 years and may not exceed 70 per cent.  The maximum repayment period is five years. 
 
6. Beneficiaries:  to whom and how the subsidy is provided
 
  Industrial enterprises investing in assisted re gions, although exceptions apply in sectors with 
specific regulations.  In order to apply for aid under this scheme, the beneficiary must fulfil certain 
requirements, one of which is that at least 25 per ce nt of the total of the investment project must be 
financed by the beneficiary using its own equivalent non-subsidized resources. 
 7. Subsidy per unit or total amount of the subsidy
 
  In the financial year 2003, interest-free loans amounting to €108,584 thousand were granted. 
 
 In the financial year 2004, interest-free loans amounting to €108,584 thousand were granted.  8. Duration of the subsidy
 
  The programme remained in effect until 31 December 2004. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Given that the supported activities are aimed at financing investments that create alternative 
employment in other enterprises or in depressed sectors, the subsidies are generally granted to newly 
established enterprises or activities which are ther efore small in size and widely dispersed.  
Consequently, such subsidies have virtually no trade effects.  
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