WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.10 
23 December 2009 
 (09-6553) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Germany . 
 
_______________ 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.10 
Page 2  
 
  GERMANY 
 
TABLE OF CONTENTS 
 
Page 
 
I. GERMAN SHIPYARDS (W ERFTHILFEN).........................................................................3  
II. GERMAN SHIPYARDS (W ETTBEWERBSHILFE) ..........................................................3  
III. GERMAN SHIPYARDS (INNOV ATIONSBEIHILFE).......................................................4  
IV. REGIONAL PROGRAMMES IN SUPPORT OF COMMERCE AND 
INDUSTRY (LAND BAYERN)...............................................................................................5  
V. JOINT SCHEME ON "IMPROVING THE REGIONAL ECONOMIC STRUCTURE"..................................................................................................................... .....6
 
VI. REGIONAL ECONOMIC SUPPORT PROGRAMME (LAND NORDRHEIN 
WESTFALEN) ..................................................................................................................... .....7 
VII. REGIONAL AID PROGRAMME (LAND RHEINLAND PFALZ)....................................8  
VIII.  NATIONAL PROGRAMME FOR CIVI L AERONAUTICAL RESEARCH....................9  
IX. REGIONAL DEVELOPMENT (LAND BRANDENBURG) .............................................10  
X. OPTIMIZING OF THE CONVERSION OF CELLULOSE CONTAINING 
AGRICULTURAL RESIDUAL MATERIALS FOR THE PRODUCTION OF 
BIOGAS (LAND NIEDERSACHSEN).................................................................................10  
  G/SCM/N/186/EEC/Add.10 
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  I. GERMAN SHIPYARDS (WERFTHILFEN) 
1. Name of the subsidy scheme or ad hoc subsidy  
  Interest Rate Grants to Finance Orde rs to German Shipyards ("Werfthilfen"). 
 
2. Form of the subsidy
 
  Grant  3. Subsidy per unit
 
 
 Total amount of assistance provided in 2007:  €7.9 million.  Total amount of assistance provided in 2008:  €4.6 million.  4. Objective and/or purpose of the subsidy
 
 
 The eighth shipyard assistance programme (VIII.  Werfthilfeprogramm) exists to provide 
non-repayable interest rate grants under the rele vant OECD Understanding on Export Credits for 
Ships (1981).  In the frame of this Export Credit Agreement, which expired in April 2002, only legal 
obligations from previous years will be completed.  
Legal basis: Commitment authorizations in the Federal budget from previous 
years. 
 
 Guidelines from the Federal Ministry of Economics and Technology. 
 
Modes of payment: Support is given to th e construction and r econstruction of high 
technology marine vessels (merchant vessels), respecting the OECD Understanding on Export Credits for Ships: 
 
- 8.5 year term; - 20 per cent advance payment; 
- minimum interest rate of 8 per cent p.a.. 
 5. Duration of subsidy and other time-limits attached to it
 
  No new commitments. 
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N.A.  
II. GERMAN SHIPYARDS (WETTBEWERBSHILFE) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Competition Aid for German Shipyards (Wettbewerbshilfe).  2. Form of the subsidy
 
 
 Grant  G/SCM/N/186/EEC/Add.10 
Page 4  
 
  3. Subsidy per unit
 
  Total amount of assistance provided in 2007:  €11.1 million.  Total amount of assistance provided in 2008:  €10.9 million.  
4. Objective and/or purpose of the subsidy
 
  Grant towards production costs are given, wh ere they are permissible under the relevant 
EU directive on shipbuilding subsidies (COM  Reg. (EC) 1177/202) and COM Reg. (EC) 
No. 502/2004. 
 
Legal basis: Commitment authorizatio ns in the Federal and Länder budgets. 
 Guidelines from the Federal Ministry of Economics and Labour. 
 
Modes of payment: Those receiving the grants  are shipbuilding companies in the Federal 
Republic of Germany. 
  Support is given namely to the construction of  container ships, product and chemical tankers 
and LNG carriers (Liquefied Natural Gas carriers).   Support of 6 per cent of contract value before aid. 
 
5. Duration of subsidy and other time-limits attached to it
 
  In the frame of Commission Regulation (EC)  No. 1177/2002 / COM Reg. (EC) No. 502/2004.  
Limited to contracts signed before 31 March 2005. 
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N.A.  
III. GERMAN SHIPYARDS (INNOVATIONSBEIHILFE) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Aid granted for innovation in existing shipbuild ing, ship repair or ship conversion yards, 
provided that it relates to the industrial a pplication of innovative pr oducts and processes 
("Innovationsbeihilfen"). 
 
2. Form of the subsidy
 
  Grant (refundable in case of continued successful application).  3. Subsidy per unit
 
 
 Total amount of assistance provided in 2007:  €10.9 million.  Total amount of assistance provided in 2008:  €7.0 million.  4. Objective and/or purpose of the subsidy
 
 
 Certain features make shipbuilding unique and distinguish it from other industries such as small production series, the size, value and complexity  of the units produced as well as the fact that 
prototypes are generally used commercially.  As a consequence, shipbuilding is the only sector  G/SCM/N/186/EEC/Add.10 
 Page 5 
 
 
  eligible for innovation aid, as an incentive to technolog ical risk taking.  (EU Framework of state aid to 
shipbuilding).  
Legal basis: Commitment authorizations in the Federal budget from previous 
years. 
 
 Guidelines from the Federal Ministry of Economics and Technology. 
 
Modes of payment: 20 per cent gross limited to expenditure on investments, design, 
engineering and testing activities dir ectly and exclusively related to 
the innovative part of the project. 
 5. Duration of subsidy and other time-limits attached to it
 
  The aid for innovation to shipbuilding applies until 31 December 2011. 
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N.A.  
IV. REGIONAL PROGRAMMES IN SUPPORT OF COMMERCE AND INDUSTRY 
(LAND BAYERN) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Directive on the promotion of the Bavarian  regional programmes for trade, commerce and 
industry, promulgated by the Bavarian Ministry of Economic Affairs, Transport and Technology on 
27 August 2008 (AllMBl S. 523). 
 2. Form of the subsidy
 
  Investment grant.  Interest rate subsidy (to subsidize loans). 
 
3. Subsidy per unit
 
  Total support (million Euros)  
 2007 2008 
Investment grant 68.6 97.3 
Interest rate subsidy 15.9 22.6 
Assisted investment volume 1,068.6 1,356.7 
Number of assisted companies 507 612 
 
4. Objective and/or purpose of the subsidy  
 
 Aid to finance investments in  trade, industry and tourism to  create and secure jobs and 
training places in assisted areas.   Objective: Improving regional economi c structures and tourism offers; 
   increasing the economic strength of structurally weak areas. 
 G/SCM/N/186/EEC/Add.10 
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  5. Duration of subsidy and other time-limits attached to it
 
  Until 31 December 2013  6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available.  Outside the assisted areas pursuant to the Joint Federal Government/Laender 
Scheme for the Improvement of Regional Economic Structures, support is restricted to small and 
medium-sized enterprises (SMEs) within the meaning of articles 1-12 and 15 of the Commission Regulation (EC) No. 800/2008 of 6 August 2008 declari ng certain categories of aid compatible with 
the common market in application of Articles 87 and 88 of the Treaty (EC L 214 dated 
9 August 2008).  
V. JOINT SCHEME ON "IMPROVING THE REGIONAL ECONOMIC STRUCTURE" 
1. Title of the subsidy programme
 
 
 Joint Scheme on "Improving the Regional Ec onomic Structure" (hereinafter:  "Joint 
Scheme").  2. Period covered by the notification
 
 
 2007, 2008 
 3. Policy objective and /or purpose of the subsidy
 
  The Joint Scheme is a regional policy device.  The primary objective of regional policy is to 
enable structurally weak regions to keep pace w ith the general economic de velopment by balancing 
locational disadvantages and by reducing regional de velopment differences.  Regional policy focuses 
on supporting regional development activities with a view to raising the levels of employment and 
income in assisted areas.  Assisted areas are rede fined in multiannual intervals on the basis of regional 
indicators (e.g. level of income, unemploym ent rate, infrastructural development). 
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
  On the basis of the federal German Constitu tion, the Federation (Bund) has, in 1969, passed 
the Federal Act on the Joint Scheme (Federal Law Ga zette 1969 part I, p. 1861).  The Federal Act on 
the Joint Scheme was last modi fied by act of 7 September 2007 (Federal Law Gazette 2007 part I, 
p. 2246).   On the basis of the Federal Act on the Jo int Scheme, Bund and Länder have, since 1969, 
commonly conceived the Joint Scheme Framework.   The Joint Scheme Framework sets out the 
preconditions under which Joint Sche me subsidies may be granted.  Currently effective is the 
36
th Joint Scheme Framework (German Bundestag Document 16/5215 of 27 April 2007). 
  The Joint Scheme Framework is executed by the Länder alone.  If a Land decides to grant a 
subsidy under the terms of the Joint Scheme, th e Bund co-finances the funding in the amount of 
50 per cent of the funding granted by the Land. 
 
5. Form of the subsidy
 
  Investment grants.  G/SCM/N/186/EEC/Add.10 
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6. To whom and how the subsidy is provided  
  A Joint Scheme subsidy consists of a non-recu rring payment in the form of an investment 
grant.  The payment may be granted by the respec tive "Land" to eligible projects in assisted areas. 
 
 Projects in commerce and industry are eligible for subsidies under the Joint Scheme if they 
take place in an assisted area and if they generate a dditional income in the region so that, in the long 
run, the region's total level of income is rais ed in a non-insignificant manner (so called "primary 
effect"). 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  Generally speaking, budget allocations for the Joint Scheme have been decreased.  The 
federal budgets for 2007 and 2008, respectively, pr ovided the Joint Scheme with €644 million in 
federal funds.  The Länder contribut e the same amount in own funds. 
  In 2007, a total amount of €996.92 million was granted by the Länder under the Joint Scheme 
in order to promote commercial and industrial inv estments in assisted areas.  84 per cent of this 
amount (€836.82 million) were granted by the Eastern Länder including Berlin.  The amounts 
indicated include federal co-financing contributions (cf. above, question 4). 
  In 2008, a total amount of €811.38 million was granted by the Länder under the Joint Scheme 
in order to promote commercial and industrial inv estments in assisted areas.  82 per cent of this 
amount (€663.07 million) were granted by the Eastern Länder including Berlin.  The amounts 
indicated include federal co-financing contributions (cf. above, question 4). 
 8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement  
  Regional assistance under the Joint Scheme c onsists of a non-recurring subsidy payment 
granted to eligible projects in assisted areas.  The European Commission h as authorized the Joint 
Scheme assisted areas map until 2013.  This author ization notwithstanding, th e Joint Scheme is under 
no time-limit.  9. Statistical data permitting an assessment of th e trade effects of the subsidy.  The specific 
nature and scope of such statis tics is left to the judgement of the notifying Member.  To the 
extent possible, relevant and/or determinable, however, it is desirable that such information 
include statistics of production, consumption,  imports and exports of the subsidized 
product(s) or sector(s ): 
  Regional assistance under the Joint Scheme is  aimed at balancing domestic investment 
disadvantages in structurally weak regions (assisted  areas).  The Joint Scheme contributes to raising 
income and employment levels in these regions.  In terms of competition, regional assistance under 
the Joint Scheme is therefore neutral.  It h as no effect on competition in international trade. 
 
VI. REGIONAL ECONOMIC SUPPORT PROGRAMME (LAND NORDRHEIN 
WESTFALEN) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Regional Economic Support Programme. G/SCM/N/186/EEC/Add.10 
Page 8  
 
  2. Form of the subsidy
 
  Grants towards investment projects of trade and industry and local infrastructure.  3. Subsidy per unit
 
 
 The total amount budgeted for 2007: €44.8 million  Total number of recipients:  144   The total amount budgeted for 2008: €51.8 million 
 Total number of recipients:  126 
 4. Objective and/or purpose of the subsidy
 
  Improving the regional economic structur e and supporting small and medium-sized 
businesses. 
 5. Duration of subsidy and other time-limits attached to it
 
  Not limited.  
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Given the objectives of the programme, trade effects cannot be assessed.  
VII. REGIONAL AID PROGRAMME (LAND RHEINLAND-PFALZ) 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Regional aid programme of the Land Rheinland-Pfalz.  2. Form of the subsidy
 
 
 Investment grant 
 3. Subsidy per unit
 
  Up to 10 per cent for medium-sized industries, 20 per cent for small-sized industries. 
 
 Total budget:  €17 million.  Disbursement in 2007: €7.359 million.  Disbursement in 2008: €8.608 million.  4. Objective and/or purpose of the subsidy
 
 
 Promotion of investment in sma ll  and medium-sized industries. 
 5. Duration of subsidy and other time-limits attached to it
 
 
 Unlimited 
  G/SCM/N/186/EEC/Add.10 
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  6. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  In 2007: creation of 269 jobs by providi ng financial assistance to 84 individual 
promotional cases. 
 
 In 2008: creation of 82 jobs by provi ding financial assistan ce to 18 individual 
promotional cases. 
 
VIII.  NATIONAL PROGRAMME FOR CIVIL AERONAUTICAL RESEARCH 
1. Title of the subsidy programme
 
 
 National programme for civil aerona utical research and technology 
 2. Period covered by the notification
 
 
 2007, 2008 
 3. Policy objective and/or purpose of the subsidy
 
  The programme's intention is to contribute to strengthening innovative medium and long-term 
research and technology in one of the most important  key technologies with spin-off effects to other 
sectors.  The programme aim is part of the Fe deral government's research and technology policy. 
  The priorities of the programme are encourag ing sustainable research in the fields:  
low-pollutant and safe aircrafts of the next genera tion, low noise all-weather helicopters, efficient and 
ecologically friendly engines. 
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted ) 
  The subsidies are granted by the Federal govern ment and the Federal st ates.  The legal basis 
are the Federal government's and the Federal states' budget acts. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc
.) 
  Non-repayable grants.  
6. To whom and how the subsidy is provided
 
  Subsidies are provided to producing enterp rises, universities and research institutes for 
research and development expenditures.  Grants for b asic research cover up to 100 per cent, grants for 
industrial research up to 75 per cent of research and development expenditures. 
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation  
 
 Total annual amount budgeted for the subsidy: 
  2007:  €61.12 million.  2008:  €81.18 million. G/SCM/N/186/EEC/Add.10 
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8. Duration of the subsidy and/or any other tim e-limits attached to it, including date of 
inception/commencement . 
  2007-2013 
 
IX. REGIONAL DEVELOPMENT (LAND BRANDENBURG) 
1. Title of the subsidy programme
 
  Regional Development 
 
2. Period covered by the notification
 
  11 December 2006 - 31 March 2010  
3. Policy objective and/or purpose of the subsidy
 
  Regional Development  4. Background and authority for the subsidy
 
 
 Ministry of Economics of the Land of Brandenburg, Potsdam 
 5. Form of the subsidy
 
  Grant 
 
6. Address of the subsidy
 
  HighSi GmbH in Frankfurt/Oder (production of solar modules)  7. Subsidy per unit, or the total amount or  the annual amount budgeted for that subsidy
 
 
 Є3.09 million. 
 8. Duration of the subsidy
 
 
 2007 
 
X. OPTIMIZING OF THE CONVERSION OF CELLULOSE CONTAINING 
AGRICULTURAL RESIDUAL MATERIALS FOR THE PRODUCTION OF BIOGAS (LAND NIEDERSACHSEN) 
1. Title of the subsidy
 
 
 The procedural and microbiological optimiza tion of the conversion of cellulose containing 
agricultural residual materials for the production of biogas.  2. Covered period/duration of the subsidy
 
 
 15 November 2008 to 15 November 2011   G/SCM/N/186/EEC/Add.10 
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  3. Purpose of the subsidy  
  The project shall improve the RUMEN-technology in  regard to process engineering.  A lot of 
agricultural residual materials and by-products could be utilized by this technology for the production 
of biogas.  Within this supported project the technology shall be tested in a pilot scheme as a 
prerequisite for a later use in a bigger scale. 
 4. Type of subsidy
 
  Research and development aid;  industrial research 
 
5. Background for the subsidy
 
  Subsidy X 124/2008 in accordance to regulati on (EC) No. 800/2008 (GBER);  administrative 
regulation to § 44 Landeshaushaltsor dnung (Nds. MBl. 1996, S. 1868) 
 
 Authority: Ministry of Food, Agricu lture, Consumer Protection and Regional 
Development of Lower Saxony 
 6. Form of the subsidy
 
 
 Grant 
 7. Beneficiary
 
  ARES Consultant GbR, 30169 Hannover 
 
8. Subsidy mechanism
 
  Fixed amount  9. Aid intensity
 
 
 80 per cent  10. Total subsidy amount (2008-2011
) 
 
 €370,040; 
 expenditure in 2008:  €28,320;  individual aid.  11. Statistical data
 
  Are not available for this individual subsidy. 
 
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