WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/EU/16 
10 April 2012 
 (12-1844) 
Committee on Subsidies and  
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the UNITED STATES1 Regarding the 
New and Full Notification of the EUROPEAN UNION2 
  
 The following communication, dated 4 April 2012, is being circulated at the request of the Delegation of the European Union. 
 
_______________ 
  
European Union 
 
Question 2 
 
European Energy Recovery Programme 
  Please explain what the eligibility criteria und er this program are.  Also, please explain 
whether there is any requirement to locally so urce inputs for the development of the energy 
related projects.  
 Reply 
 
 The Regulation n° 663/2099 established a progr amme to aid economic recovery by granting 
Union financial aid to projects in the field of en ergy so called the European Energy Programme for 
Recovery.   
 The eligibility criteria required that proposals to  be eligible to receive financial aid should 
implement projects listed in the part A of the annex of the above mentioned Re gulation.  In addition, 
proposals had to be submitted by one or several Memb er States, acting jointly or by private or public 
undertakings, or international organisations with the agreement of the Member States directly 
concerned by the project in question.   
 The EEPR assistance shall contribute to project-related expenditure for the implementation of 
the project incurred by the beneficiaries concerned and shall not exceed 50% of the eligible costs. 
                                                      
1 G/SCM/Q2/EU/10.   
2 G/SCM/N/220/EEC, G/SC M/N/220/EEC.Add.2, G/SCM/N/220/EEC/Add.3, 
G/SCM/N/220/EEC/Add.4, G/SCM/N/220/EEC/Add.5, G/SCM/N/220/EEC/Add.6, G/SCM/N/220/EEC/Add.7, 
G/SCM/N/220/EEC/Add.8, G/SCM/N/220/EEC/Add.9, G/SCM/N/220/EEC/Add.10, 
G/SCM/N/220/EEC/Add.12, G/SCM/N/220/EEC/Add.13, G/SCM/N/220/EEC/Add.14, 
G/SCM/N/220/EEC/Add.15, G/SCM/N/220/EEC/Add.16, G/SCM/N/220/EEC/Add.18, 
G/SCM/N/220/EEC/Add.19, G/SCM/N/220/EEC/Add.20, G/SCM/N/220/EEC/Add.21, 
G/SCM/N/220/EEC/Add.23, G/SCM/N/220/EEC/Add.26.   G/SCM/Q2/EU/16 
Page 2 
 
 
  Question 3 
 
Second Financial Instrument Scheme 
 
 In addition to supporting obligatory payments to RFMOS,  it is our understanding that 
this program also supports Fishery Partnersh ip Agreements (FPA) between the EU Member 
States and third countries.  Please explain whether the individual FPA's stipulate catch quotas 
which must be adhered to by the EU Member State.  
 Reply 
 
 The EU maintains a number of fisheries agre ements with third countries and entities.  Some 
of these agreements entail the exchange of fishing possibilities (e.g. with Norway).  Other agreements, 
comparable to the Multilateral Treaty on Fisheries Be tween Certain Governments of the Pacific Island 
States and the Government of the United States of America, include a government-to-government 
financial contribution to the coastal state for access for the EU fleet to surplus resources which its 
partners cannot, or do not wish to fish. In ad dition to the government-to-government transfers, 
EU vessel owners pay a financial contribution to the coastal state. 
 
 In all the agreements where a government-t o-government financial contribution exists, a 
substantial part of the EU's fi nancial contribution is earmarked specifically to support national 
fisheries policy based on the principle of sustaina bility.  The allocation and management of this 
funding is jointly agreed between the partner country and the EU.  
 All the fisheries agreements are concluded betw een the European Union and the coastal state.  
The agreements and the protocols to these agreem ents do not include provisions allocating quota to 
individual EU Member States.  Once the EU and th e coastal state have agreed the overall catch quotas 
(e.g. per species), the EU interna lly allocates, by way of a Council Re gulation, fishing opportunities in 
the EEZ of the coastal state.  Note that  this allocation can change over time. 
 
 Extensive information is published by the EU  on its fisheries agreements, including on the 
internal quota allocation to vessels flying the flag of an individual Member State.  This information 
can be found at the following web address: 
 http://ec.europa.eu/fisheries/cfp/in ternational/agreements/index_en.htm 
 
Belgium 
 Question 1 
 
Order of 12 February 2002 Concerning the En couragement and Financing of Scientific 
Research and Technological Innovation 
 
Order of 26 March 2009 on the Promotion of Research, Development and Innovation 
 
For each of the above programs, please explain whether companies in all industries are 
eligible to receive interest-free loans?  What are the principal industries that benefit from each 
of these programs?  Please explain what is meant by the interest-free loan being "repayable upon marketing".  G/SCM/Q2/EU/16 
 Page 3 
 
 
  Reply 
 
Order of 12 February 2002 Concerning the Encour agement and Financing of Scientific Research and 
Technological Innovation 
 
 This order is no longer applied since the Order of 26 March 2009 came into force and 
replaced it. 
 Order of 26 March 2009 on the Promotion of  Research, Development and Innovation 
 
For each of the above programs, please expla in whether companies in all industries are 
eligible to receive interest-free loans?   
 
Any enterprise, no matter its si ze, is eligible for a refundable advance (which is no longer 
interest free, see hereunder), provided that it:  
 develops all or some of its activities within  the territory of the Brussels-Capital Region 
 presents an innovative project likely to have a favourable impact on employment and/or the 
sustainable development of the Brussels-Capital Region  
 shows their ability to finance their share in the project 
 has fulfilled its obligations in the context of  previous support initiatives granted by the 
Region.  
  Within the evaluation process of the application, a deep control of the financial health of the 
company is performed and a risk assessment is  performed (analysis of the business plan…).  
 
What are the principal industries that benefit from each of these programs?  
 
Every sector active in scientific research is eligib le for funding, No distinction is operated 
regarding the type or sector of industry.  We therefore finance Chemistry, Medical Science, 
Biotechnologies as well as the sectors of mechanic or metal manufacture, ICT, Environment, Energy, 
Transport… 
 
However it can be noted to the ICT sector receives two thirds of the subsidies granted for 
RDI.  This can be explained by the importance of this sector in the regional economic base.  
 
Please explain what is meant by the inter est-free loan being "repayable upon marketing". 
 
The refundable advance concept comes from th e Community State Aid Rules for scientific 
research (point 2.2, h et 5.1.5).  
 
This concept of "repayable upon marketing" m eans that the reimbursement of the advance 
will be done depending on the outcome of the project (the success rate of the project and its results). 
  In our Order of 26 March 2009 and in its app lication decree of 21 January 2010, we have 
defined four reimbursement schemes de pending on the results of the project. 
  The grant agreement signed with the benefi ciary contains a reimbursement scheme and a 
description of the expected technical and commercial objectives of the project. 
 G/SCM/Q2/EU/16 
Page 4 
 
 
  1- "Normal case":  A positive outcome is reached , the RDI project succeeded to reach the 
commercial and technical objectives set within th e grant agreement, the total amount of the 
advance therefore needs to be reimbursed.  
2- "Partial success":  the RDI project reached results th at are inferior to the results planed in the 
grant agreement.  The amount to be recovered is determined as follows: 
- A fix part, amounting to 30% of the granted advance and corresponding to the fulfillment 
of the technical objectives of the RDI project 
- An adjustable part, calculated proportiona lly to the realization of the commercial 
objectives reached by the company in the framework of the RDI project. 
3- "Worst Case":  We consider that the RDI proj ect failed when none of the objectives have been 
reached. In this situation, the enterprise gi ves up the perspective of exploiting the project 
results, either during the project or within the si x months following the latter.  It explains the 
failure of the project considering the commercial and technical objectives set in the contract 
provisions and transfers to the Region or to any other entity designated by the Region, the 
intellectual property rights of the project re sults and accordingly is exempted of any 
reimbursement. 
4- "Best case": In case of full success of the project and in the situation of outcomes going 
beyond the expected objectives, the Region can  demand for payments beyond the planed 
reimbursement, including the reference interest  rates set by the European Commission. 
 Remark: Since the Order of 26 March 2009, the re fundable advances are to be reimbursed with 
interests. The interest rate is the reference rate  of the European Commission as it was at the moment 
of the aid granting. We accordingly do not grant aid interest-free refundable grants. 
 
Bulgaria 
 
Question 1 
 
Support to Regional Development 
 
Benefits under this program are described as  available to "Any taxable person who has 
fulfilled specified conditions in the art. 189 of CITA".  Please explain whether these specified 
conditions for receiving benefits under this progr am are different from those conditions listed in 
the notification on the use of the retained tax benefits (e.g., a higher-than-average rate of 
regional unemployment, a five year investment minimum, and a 25% funding requirement). 
 Reply 
  The notification summarizes the main conditions of Artcle 189 of the Corporate Income Tax 
Act (CITA). The full list of condition for receiving benefits under the programme, as specified in 
Article 189 of CITA, is as follows: 
 
1. The retained corporate tax must be invested in material and immaterial assets, which form 
part of an initial investment. 
2. The initial investment must be made within four years from the beginning of the year for 
which the tax was retained. 
3. The initial investment must be made in muni cipalities where the rate of unemployment for the 
year of retention is 35 per cent or more above the national average for the same period. Such 
municipalities are designated annually by the Minister of Finance upon proposal by the Minister of Labour and Social Policy.  The list of municipalities is promulgated in the State 
Gazette, as well as made publicly available on the Ministry of Finance website.  Where a 
municipality drops out of the list due to increased employment, the taxable person may 
preserve the right to corporate tax retention for the next five years, counted from the year  G/SCM/Q2/EU/16 
 Page 5 
 
 
  during which the region has dropped out of the list, subject to meeting the remaining 
conditions for retention. 
4. The initial investment-related activity must continue in the respective municipality for a 
period of at least five years after the year of completion of the initial investment. 
5. At least 25 per cent of the value of material and immaterial assets forming part of the initial 
investment must be self-financed or debt-financed by the taxable person. 
6. The material and immaterial assets forming part of the initial investment must have been 
acquired under market conditions not differing fro m the conditions between unrelated parties. 
The immaterial assets forming part of the in itial investment must be depreciable assets. 
7. The eligible expenditure on the immaterial assets forming part of the initial investment must 
not exceed 50 per cent of the sum total of eligib le expenditure on the material and immaterial 
assets forming part of the initial investment. 
8. The immaterial assets forming part of the initial investment must be used solely in the activity 
of the taxable person and must be included in  the assets thereof for a period of at least 
five years. 
9. The retained tax must not exceed 50 per cent of the present value of the material and 
immaterial assets forming part of the initial i nvestment, determined as at 31 December of the 
year of retention. 
10. The estimated amount of the initial investme nt and the implementation period are to be 
declared with the annual tax return for the y ear for which the corporate tax is retained. 
 
 Any taxable person is allowed to reta in up to 100 per cent of the corporat е tax in respect of 
the tax profit derived from manufacturing activities carried out, including toll manufacturing.  
Tax relief constituting regional aid does not apply in respect of taxable persons: 
 
1. whose activity is in the sectors of coal mi ning, steelmaking, shipbuilding, synthetic fibres 
manufacture, fish-farming, as well as production of  agricultural products listed in Annex I to 
the Treaty establishing the European Union, or 
2. placed in liquidation, or are subj ect to rehabilitation proceedings, or 
3. defined as enterprises in difficulty.  Question 2 
 
Support to Environmental Protection 
 
 Please clarify the original excise duty for biofuels that are covered by this program, and the amount by which these duties are reduced by this program. 
 
Reply 
 
 The scheme for tax reduction for biofuels under the Excise Duties and Tax Warehouses Act 
(EDTWA) has been applied since 24 November 2009.  The tax relief in the form of reduced excise 
duty rates for blends of conventional fuels and bi ofuels and zero excise duty rates for pure biofuels 
has been applied for a period of two years. G/SCM/Q2/EU/16 
Page 6 
 
 
  EXCISE DUTY RATES FOR BIOFUELS COVERED BY THE SCHEME DURING  
THE PERIOD COVERED IN THE NOTIFICATION  
 
Product Combined 
Nomenclature Code Reduced excise 
duty rate as per 
Art. 32 (1), items 
7 to 9, EDTWA Original excise duty 
rates a per Art. 32 
(1), items 2 and 3, 
EDTWA 
Biodiesel(1) and bio-ethanol(2) 
meeting the requirements of Art. 26 
of the Renewable and Alternative 
Energy Sources and Biofuels Act 
(RAESBA) (3) Biodiesel 
3824 90 99 
 
Bioethanol 
2207 20 00 0 BGN/1,000 l  None 
Lead-free petrol, with bio-ethanol 
content between 4 and 5 per cent 
inclusive, which meets the 
requirements of Art. 26, RAESBA 
(3) Petrol 
2710 11 31 
2710 11 41 
2710 11 45 
2710 11 49 
 
Bio-ethanol 
2207 20 00 664 BGN/1,000 l 685 BGN/1,000 l 
Gas oil, with a biodiesel content 
between 4 and 5 per cent inclusive, 
which meets the requirements of 
Art. 26, RAESBA (3) Gas oil 
2710 19 41 -
 2710 19 49 
 
Biodiesel 
3824 90 99 582 BGN /1,000 l 600 BGN/1,000 l 
 
Notes: 
(1) The zero excise duty rate on pure bio-et hanol was repealed as from 1 December 2009. 
(2) The zero excise duty rate on pure biodiesel was repealed as from 20 July 2010. 
(3)  Article 26 of the Renewable and Alternative Energy Sources and Biofuels Act refers to technical and 
quality requirements to biofuels and their blends. 
 
Cyprus 
 
Question 1 
 
Grant for Strengthening the Labora tory Infrastructure in Cyprus 
 
Grant for Strengthening the Laboratory Infr astructure in Cyprus (Selectable Areas) 
 
Grant for Strengthening the Laboratory Infrastr ucture in Cyprus in the Form of De Minimis 
 
 These programs provide grants to help laboratories cover expenses related to 
equipment, buildings and accreditation.  What  are the criteria for determining what kind of 
facility qualifies as a "laboratory"?  Please ex plain whether manufacturers with R&D facilities 
are eligible for assistance under these programs.   If manufacturers are eligible for assistance 
under these programs, are there any restrictions as to the types of manufacturers that qualify 
for this assistance? 
 Reply 
 
 Under these grant schemes an individual entity of any size, which is a registered company, 
involved only with the testing of products and/  or calibration of machinery, qualified as a 
"laboratory".  R&D companies were not eligible.  In addition all manufactures under the section  G/SCM/Q2/EU/16 
 Page 7 
 
 
  Manufacturing of the NACE code of the European Uni on were also eligible for grants providing they 
had testing facilities.  Clinical laboratories, tes ting and/or repair shops, car garages, MOT centres, 
electricians etc were not eligible.  These schemes have been terminated. 
 
Question 2 
 
Grant for Strengthening the Laboratory Infrastr ucture in Cyprus in the Form of De Minimis 
 
 According to Cyprus, this program was available until the end of 2007;  however, 
payments continued to be made in 2009 and 2010  for applications submitted before the end 
of 2007.  Why are payments continuing to be made after the end of the program, and how many 
years will they continue to be made? 
 
Reply 
 
 Applications for this scheme were allowed un til the end of 2007.  Payments were made only 
if the whole investment in the application was completed. Some of the applications involved 
machinery, building and accreditation.  This scheme ga ve the opportunity to the applicant to complete 
the accreditation of its laboratory until the end of 2 008 and the building until the end of 2009.  When 
this period elapsed, providing all the criteria of  the scheme were meet, payments were made 
accordingly, hence the payment period after the subm ission period.  Also all applications go through a 
strict procedure before their approval which is ofte n time consuming.  All payments for this scheme 
have been completed.  Question 3 
 
Export Subsidies 
  In 2009, Cyprus submitted an updating notification (G/AG/N/CYP/16) on its export 
subsidy commitments through April 2004.  Th e notification included a number of export 
subsidies that Cyprus maintained and that it committed to reduce and eliminate.  Could Cyprus 
please provide an update on those subsidies a nd confirm whether all of the listed export 
subsidies have been eliminated?  
Reply 
  As of the date of its accession to the EU, 1 May 2004, Cyprus' commitments were 
consolidated into the EU 25 export subsidies commitments. 
 
Question 4 
 
De Minimis Funding 
 
 According to publically available information3, it is our understanding that Cyprus was 
permitted to provide "de minimis" funding to its fisheries sector (up to €30,000 per company 
over a period of three fiscal years).  Please de scribe the programs under which these funds were 
provided and, if any of the programs have not been notified, please explain why. 
                                                      
3 Id.   G/SCM/Q2/EU/16 
Page 8 
 
 
  Reply 
 
 Reply to questions on the "De Minimis Funding" (q. 4 to Cyprus, question 2 to Estonia, 
question 3 to Finland,  question 3 to Ireland, question 5 to Latvia, question 5 to Lithuania, 
question 2 to the Netherlands, question 1 to Poland  and question 2 to Sweden).   As mentioned in the EU's legislation govern ing the so called "de minimis" aid (Council 
Regulation (EC) No 875/2007 of 24 July 2007, individual EU Member States can provide small 
amounts of aid to their fishing and aquaculture in dustries. This aid concerns modest amounts (a 
maximum of €30.000 per company, over a period of 3 years), it can not exceed 2.5% of the total 
production value of the fisheries sector in a give n Member State and it is subject to an overall 
EU ceiling, broken down, in turn, into in dividual ceilings per Member State.   
 
 The programmes for which individual Member States can provide aid under the "de minimis" 
regime are similar to those existing under the EU 's Common Fisheries Policy and its two notified 
funding schemes, i.e. the Europ ean Fisheries Fund (EFF) and the Common Organisation of Markets 
(see EU's notification).  Furthermore the follo wing type of aid is excluded from these small 
programmes:  
 
 aid of an amount that is fixed on the basis of price or quantity of products put on the market;  
 aid favouring export-related activities;  
 aid contingent upon the use of  domestic over imported goods;  
 aid granted to undertakings in difficulty with a view to their rescuing or their restructuring;  
 aid serving to increase fishing capacity;  
 aid for the purchase or construction of fishing vessels. 
  The modest amounts that can be provided, the similarity of objectives with the EU's notified 
programmes and the marginal, if at all, effects of  the aid on the EU's net importer position might not 
warrant an individual notification by the EU Member State concerned.   Czech Republic 
 
Question 1 
 
Investment Incentives 
 
Operational Programme Enterprise and Innovations :  Progress, Guarantee, Development, Eco 
Energy 
 
Innovation, Potential, Cooperation, Prosperity Real Estates 
 
 For both of the above-listed programs, could the Czech Republic please clarify the 
eligibility criteria that must be met for compan ies to receive incentives under these programs?   
 Reply 
 
 The investment incentives Act No. 72/2000 Coll., as amended, valid as of 2 July 2007.    
ELIGIBILITY CRITERIA 
 A: GENERAL CRITERIA: 
 Launch of new production or expa nsion of an existing plant  G/SCM/Q2/EU/16 
 Page 9 
 
 
   Minimum investment into long-term tangi ble and intangible assets (except leasing) 
CZK 50 mil. (A), CZK 60 mil. (B), CZK 100 mil. (C) 
 region A – more than 50% above average of  rate of unemployment in Czech Republic 
region B – more than 25% above average of  rate of unemployment in Czech Republic 
region C – less than 25% above average of rate of unemployment in Czech Republic 
- At least half of the above amounts must be covered by the equity of the investor 
- A minimum of 60% of the total investment must be made into machinery 
- Machinery equipment has to be new 
- Production shall be environmentally friendly 
- The above-mentioned conditions must be fulfille d within 3 years from the date incentives 
are granted 
 
B: OTHER CRITERIA: 
- The recipient of incentives may not begin work  on the project before the issuance of the 
"Confirmation of Project Registration" by CzechInvest 
- The incentives recipient shall k eep the investment for at least 5 years from the date of 
fulfilment of the general criteria 
- The recipient of job-creation grants shall keep  the number of newly created jobs for at 
least 5 years from the date the grants are first claimed 
 
Denmark 
 
Question 1 
 
 According to publically available information4, Denmark provides the following state 
aid to small and medium-sized enterprises active  in the production, processing and marketing of 
fisheries products.  Please explain why this pr ogram was not notified pursuant to Article 25 of 
the SCM Agreement?  
 
 Lov om fiskeri og fiskeopdræt (fiskerilove n), jf. lovbekendtgørelse nr. 978 af 
26. September 2008 
 
Reply 
 
 Reply to question 1 to Denmark, question 1 to Estonia, question 1 to Finland, question 1 to 
Ireland, and question 3 to Lithuania  
  The questions asked concern aid granted by a number of EU Member States under the so 
called "block exemption" regulation
5 covering state aid to small and medium-sized enterprises 
(SMEs) active in the production, processing and marketing of fisheries products.  Under this 
regulation the EU Commission can declare, in accord ance with Article 87 of the Treaty, that under 
certain conditions, aid to small and medium-sized enterprises (SMEs) is compatible with the EU's 
common market and not subject to the notification requirement of Article 88(3) of the Treaty. 
  Aid provided by EU Member States under the aforementioned regulation must comply with 
the rules of the Common Fisheries Policy and ha ve similar mechanisms and objectives as the 
two notified EU funding schemes of this policy, i. e. the European Fisheries Fund (EFF) and the 
Common Organisation of Markets (see recitals 23 and 24 of Commission Regulation (EC) 
No 736/2008). 
                                                      
4 http://ec.europa.eu/fisheries/state_aid/bl ock_exemption_information/xf10_2009_da.pdf  
5 Commission Regulation (EC) No 736/2008 of 22 July 2008 on the application of Articles 87 and 88 
of the Treaty to State aid to small and medium-sized  enterprises active in the production, processing and 
marketing of fisheries products.   G/SCM/Q2/EU/16 
Page 10 
 
 
   The limited amounts that can be provided under this "block exemption", the similarity of 
objectives with the EU's notified programmes and the marg inal, if at all, effects of the aid on the EU's 
net importer position might not warrant an individual notification by the EU Member State concerned 
of these programmes.  Nevertheless, it should be  noted that some of the programmes for which 
questions have been asked could have been  included in previous EU notifications. 
 
 Detailed information on aid provided by EU Member States, under the so called "block 
exemption", is available on the EU Commission's "Fisheries" web pages.6  
 
 This information can also be found, in the EU's  official languages thus including in English, 
French and Spanish, in the Official J ournal of the European Union (C-Series)7 under the heading 
"Summary information communicated by Member States on State aid granted in accordance with 
Commission Regulation (EC) No 736/2008 on the application of Articles 87 and 88 of the EC Treaty 
to State aid to small and medium-sized enterpri ses active in the production, processing and marketing 
of fisheries products". 
 
 Finally, further information on these programmes can be obtained from the EU Commission's "State Aid Register".  This Register
8 contains information on all cases that have been the object of a 
European Commission decision since 1 January 20 00, including those covered under the "block 
exemption" regulation.    Estonia 
 
Question 1  
 
According to publically available information9, Estonia provided state aid to small and 
medium-sized enterprises active in the pro duction, processing and marketing of fisheries 
products.  Please explain why this program was not notified pursuant to Article 25 of the SCM Agreement. 
 
 Maaelu Edendamise Sihtasutus tagatiste abikava raames tagatise saamiseks esitatavad 
nonded ja tagatise taotlemise kord 
 Reply 
  See answer under Q1 to Denmark above.   
 
Question 2 
 
De Minimis Funding 
 
 According to publically available information10, it is our understanding that Estonia was 
permitted to provide "de minimis" funding to its fisheries sector (up to €30,000 per company 
over a period of three fiscal years).  Please de scribe the programs under which these funds were 
provided and, if any of the programs have not been notified, please explain why.  
                                                      
6 http://ec.europa.eu/fisherie s/state_aid/index_en.htm  
7 http://eur-lex.europa.eu/  
8 http://ec.europa.eu/competition/state_aid/register/  
9 http://ec.europa.eu/fisheries/state_aid/bl ock_exemption_information/xf2_2009_et.pdf  
10 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6.  G/SCM/Q2/EU/16 
 Page 11 
 
 
  Reply 
 
 See answer under Q4 to Cyprus above.  Finland 
 
Question 1  
 According to publically available information
11, Finland has granted aid to manage fish 
stocks and the aquatic environment in the Baltic coastal waters.  It appears that this program 
was to be implemented no earlier than 1 April 2011.  Please explain whether Finland maintained similar fishery programs during the repor ting period covered by your Notification.  
If so, provide a full description these programs.   
Reply 
  See answer under Q1 to Denmark above.  Question 2 
 
State Aid Funding 
 
 According to publically available information12, it is our understanding that Finland 
provided €2,000,000 in state aid to support its fishery industry for, inter alia , natural disaster, 
tax relief, labor-related costs for EU vessels fi shing for tuna or tuna-like species outside EU 
waters and for marketing of fishery products fr om EUs outermost regions.  Please describe the 
programs under which these funds were provided a nd, if any of the programs have not been 
notified, please explain why. 
 Reply 
 
 Reply to questions on "State Aid Funding" (question 2 to Finland, question 9 to France, 
question 2 to Ireland, question 8 to Italy, question 4 to Lithuania, question 1 to the Netherlands, 
question 1 to Portugal and question 1 to Sweden).   
  The questions asked relate to state aid granted by a number of EU Member States to the 
fisheries and aquaculture sector.  
 As a rule, Member States have to notify  the EU Commission on any State aid scheme they 
wish to put in place, and may not implement the sch eme before the EU Commission has declared that 
it complies with the EU Treaty.  (See Article 2 of Council Regulation (EC) No 659/1999 of 
22 March 1999 and Article 2 of Commission Regul ation (EC) No 794/2004 of 21 April 2004). 
 
 Furthermore, state aid granted by Member Stat es to fisheries and aquaculture is only justified 
if it is in accordance with the objectives of th e EU's Competition Policy and those of the Common 
Fisheries Policy. 
 
                                                      
11 Information communicated by Member States regarding State aid granted under Commission 
Regulation (EC) No 736/2008 on the application of Articles 87 and 88 of the Treaty to State aid to small and 
medium-sized enterprises active in the production, processing and marketing of fisheries products Aid 
No: SA.32621 (2011/XF). 
12 http://ec.europa.eu/competition/state_ aid/studies_reports/expenditure.html  G/SCM/Q2/EU/16 
Page 12 
 
 
   The fact that no period (year) has been indicat ed for the amounts mentioned in the questions 
to the Member States concerned makes it difficu lt to trace back the programmes to which these 
amounts would relate.  Note that, because some of the programmes run over a number of years, it can 
not be excluded that they were part of a previous notification.  
 
 Nonetheless, detailed information on the pr ogrammes that have been notified to EU 
Commission by EU Member States can be obtained from the EU Commission's "State Aid Register".  
This Register contains information on all cases th at have been the object of a European Commission 
decision since 1st January 2000.  This Register  can be consulted at the following webpage:  
 
 http://ec.europa.eu/competition/state_aid/register/  
 
Question 3 
 
De Minimis Funding 
 
 According to publically available information13, it is our understanding that Finland was 
permitted to provide "de minimis" funding to its fisheries sector (up to €30,000 per company 
over a period of three fiscal years).  Please de scribe the programs under which these funds were 
provided and, if any of the programs have not been notified, please explain why. 
 Reply 
 
 See answer under Q4 to Cyprus above.    Hungary 
 
Question 1 
 
Budgetary Scheme Earmarked for Investment Promotion 
 
 The scheme is designed to promote, among other things, the enhancement of 
international competitiveness.  Can Hungary plea se provide details of the eligibility criteria and 
guidelines for receiving incentives under this programme?  Among other details, can Hungary 
explain whether the incentives under this program a re in any way contingent upon exportation?   
 
Reply 
 
 The Budgetary Scheme Earmarked for Investment Promotion was published by 
Decree 8/2007 (I.24) of the Minister of Economy and Transport.  The scheme was designed to assist 
the realization of investments in the manufacturing industry, creation of R+D investments, logistic 
centres and projects in touristic sector.  
 
 Subsidy under the scheme is awarded on the basis of the Government decision and granted in 
accordance with the state aid ru les of the European Union. 
 
 The criteria which make a project eligible fo r the subsidy are the value of the investment 
(minimum 10 M euro) and the creation of new jobs (minimum 10) by the investment.  The different categories are as follows: 
 
                                                      
13 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6.    G/SCM/Q2/EU/16 
 Page 13 
 
 
   In case of foreign direct investments that exceed 50 M euro, the minimum requirement is 
100 new jobs, while in case of a similar i nvestment between 10 M and 50 M euro the 
minimum requirement is 50 new jobs. 
 In case of the realisation of logistic centres and development of their services as well as 
establishment of R+D investments that exceed 10 M euro, the minimum requirement is 10 
new jobs. 
 In case of creation of regional service centres which exceed the 10 M euro the minimum 
requirement is 100 new jobs. 
 
 If the investment takes place in a lesser de veloped region of Hungary the number of the 
required new jobs is half of that stipulated in the general rules, except the logistic centres and the R+D 
investments where the minimum requi rement is always 10 new jobs. 
  None of the incentives available under th e above mentioned program are in any way 
contingent upon exportation. 
 
Ireland 
 Question 1 
 
 According to publically available information
14, Ireland provides state aid to small and 
medium-sized enterprises active in the pro duction, processing and marketing of fisheries 
products.  Please explain why this program was not notified pursuant to Article 25 of the 
SCM Agreement?  
 Special Assistance for Young Fishermen Scheme 
 
Reply 
 
 See answer under Q1 to Denmark above.   
 
Question 2 
 
State Aid Funding 
 
 According to publically available information15, it is our understanding that Ireland 
provided €6 million in state aid to support its fishery industry for, inter alia , natural disaster, 
tax relief, labor-related costs for EU vessels fi shing for tuna or tuna-like species outside EU 
waters and for marketing of fishery products fr om EUs outermost regions.  Please describe the 
programs under which these funds were provided a nd, if any of the programs have not been 
notified, please explain why. 
                                                      
14 http://ec.europa.eu/fisheries/state_aid/block_exemption_information/sa_33012_2011_xf_en.pdf  
15 http://ec.europa.eu/competition/state_ aid/studies_reports/expenditure.html  G/SCM/Q2/EU/16 
Page 14 
 
 
  Reply  
 
 See answer under Q2 to Finland above.   
Question 3 
 
De Minimis Funding 
 
 According to publically available information16, it is our understanding that Ireland was 
permitted to provide "de minimis" funding to its fisheries sector (up to €30,000 per company 
over a period of three fiscal years).  Please de scribe the programs under which these funds were 
provided and, if any of the programs have not been notified, please explain why. 
 Reply  
 
 See answer under Q4 to Cyprus above.    Italy 
 
Question 1 
 Production Aid to Shipyards 
 Measures for Investments to Enhance Shipyard Production 
 
Special Fund for Applied Research 
 Extraordinary Intervention in the South of Italy 
 
Contribution to the Realization of National En ergy Plan Aimed at Rationalizing the Use of 
Energy and Renewable Energy Sources 
 
Please confirm whether these programs that were previously notified17 have been either 
been terminated or replaced by another program? 
 
Reply 
  On the above subject we confirm that t hose programmes, previously notified in the 
document G/SCM/N/186/EEC/Add.14, are fully comple ted and have not been replaced by any new 
ones. 
 
Production to shipyards 
  The first programme: " Production Aids to Shipyards ", refers in particular to Law n. 350 
dated 24 December 2003, art. 14 co.153 (2004 Financial Law). 
  That Law allocated 10 mln euros for year 2004 in order to apply EEC Regulation 
n. 1177/2002 of 27 June 2002 concerning temporar y protection of European Shipyards industries 
against dumping of Asian countries.  
                                                      
16 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6. 
17 G/SCM/N/186/EEC/Add.14.  G/SCM/Q2/EU/16 
 Page 15 
 
 
  The ministerial decree of 2 February 2004 defined the aids eligible criteria for contracts up to 
31 March 2005.   
 Measures for Investments to enhance Shipyard Production 
  The second programme " Measures for Investments to Enhance Shipyards Production " is 
about Law n. 522 of 28 December 1999, art. 4 that had granted 7 billion lira, tied to a fifteen-year 
plan, and to be locked up by 31 December 2003.  
 By Decree Law n. 194 of 6 September 2002, having such funds not been used before 
investment plans completion deadline, they became no more usable.  
 Following the request of this Administration fo r adequate financial resources to complete 
the aforesaid plans, 2008 Financial Law granted funds that permitted completion of measures under 
Law 522/99, art. 4. 
 
Special fund for applied research 
 
FIRST (Fondo Investimenti in Ricerca Scientifica e Tecnologica) and FAR (Fondo 
Agevolazioni alla Ricerca), the latter going to be merged into the former, is the fund for applied 
research, regulated by D.Lgs. 297/199 State Aid regime to R&D activities, approved by the 
European Commission . 
 
Extraordinary intervention in the South of Italy 
 
 Law n.488/92, provides aid to entrepreneurial ac tivities in the disadvantaged areas in form of 
grants. The last re-financing of this law dat es back to 2006, whose terms were closed on 
15 September 2006;  currently there are no new interventions.  
 
 Law 488/92 is directed to industry, commerce and tourism sector.    In particular, the subsidies are paid to fina nce investments ensured by:  new firms or the 
setting-up of a new establishment;  the extension of  an existing establishment;  the re-engineering or 
the re-conversion or the diversifica tion of the output of an establishm ent into new additional products;  
a fundamental change in the overall production process  of an existing establishment; the transfer of 
local unit.    Eligibility criteria are the e xpenditures in capital goods like:  land acquisition, building works 
(housing), infrastructure, machinery-plants and equipment, computer software and patents. 
 
 Beneficiaries are enterprises (including individual ones) which invest in some sectors (or sub-sectors or activities), provided that, by observing the existing planning and law constraints, they have 
full availability of buildings where the investment  program is implemented at the expiry date for 
submitting the application. 
 
 Investment programs can be financed whether they involve a total eligible expenditure not 
exceeding EUR 50 million.  These programs cannot be less than EUR 1 million, subject to the capacity of local governments (regions) to modify th e previous amount within the following limits: 
 
 from 150.000 to 1.000.000 EUR for service activities; 
 from 400.000 to 1.500.000 EUR for industry. 
 G/SCM/Q2/EU/16 
Page 16 
 
 
   The subsidies granted will be in the form of capital subsidy and aid in  form of subsidised 
interest rate.   
  The intensity of subsidy is in relation to th e size of the firm and to the geographic area. 
  Subsidies are subjected to a call procedure.  It  means that, on the basis of available financial 
resources, subsidies are ensured to the enterprises wh ich presenting an application at the Ministry of 
Economic Development want to realize investment pr ograms.  The Ministry will define, in conformity 
with some national regulations, criteria to classify th e enterprises to have a ranking list.  On that basis 
subsidies are paid.   Payments will be made in 2-3 stages in relation to the progress of the investment program. 
 
Within 4 Regions of Italy (Calabria, Campania, Puglia and Sicilia), also are to be mentioned 
PON funds (EU-backed special financ ing for structural convergence).  
 
Contribution to the realization of National Energy Plan Aimed at rationalizing the use of Energy and 
Renewable Energy Sources 
 
 No legally binding "National Energy Pl an" is currently in force in Italy. 
 Question 2  
Revolving Credit Facility for the Internationalization of Companies 
 
 Please explain what is meant by "Intern ationalization" of companies?  How is 
"commercial establishment" defined under this program?  Does a company need to have a 
facility located in a Non-EU country or a certain level of exports to a Non-EU country to be 
considered as having a "commercial establishment"?  Are any of the benefits under this 
program contingent upon exportation?   
Reply 
  "Internationalization of companies" means "the companies' expansion outside of its domestic 
market".  Under this program "commercial establis hment" means "a facility opened by the company 
to allow perspective stable presence in key markets".  It is enough for the company to have a facility 
(such as an office and/or a showroom) located in a c ountry outside the EU.  The criteria to be eligible 
for the credit facility do not include the level of expor ts;  rather, the company has to comply with the 
requirements of the program such as the refere nce country (non-EU), the type of facility, the 
management of the program and the promotion of the goods and services produced in Italy or of the 
Italian brand. 
 
Question 3 
 
Technological Innovation Fund (FIT) 
 
What sectors are included in the "main sectors requirements mentioned in the legal 
framework " for "big firms "?  How is it decided whether an eligible company will receive a grant 
or a soft loan?  Do the eligibility crit eria differ between the different benefits?  G/SCM/Q2/EU/16 
 Page 17 
 
 
  Reply 
 
Technological Innovation Fund (FIT) 
  The Law no. 46 of 17 February 1982 and subse quent amendments and additions by Directive 
10 July 2008 (published in the Official Gazette of  the Italian Republic n. 212, 10 September 2008), 
Article 3, indicates the beneficiaries of financia l loans or capital grant of FIT (Technology Innovation 
Fund), as long as they possess a permanent establishm ent in Italy, may be the following subjects: 
 
a) undertakings engaged in the activities referred to  in Article 2195 of the Civil Code, numbers 1 
and 3; 
b) agro-industrial companies mainly active in industry; 
c) the artisan enterprises that produce goods under the law August 8, 1985, n. 443; 
d) research centers with inde pendent legal personality; 
e) other subjects identified with the notices re ferred to in Article 6, paragraph 2. 
 
 Be eligible for assistance groupings and join t venture companies established by the entities 
referred to in paragraph 1 provi ded that the participation of such persons exceeds 30% of the 
consortium fund or share capital.  
a) What sectors are included in the "main sectors requirements mentioned in the legal 
framework" for "big firms"? 
 
 There is no sector closed to large companies.  Here is attached the list of eligible sectors and 
divisions.  b) How is it decided whether an eligible company will receive a grant or a soft loan? 
 
 The law establishing the Fund for Technologi cal Innovation (Law 17 February 1982 No 46) 
and two implementing decrees (Decree 16 January 2 001 and Decree 10 July 2008) include a process 
evaluation of programs.  Experts assess the validity  and novelty characterist ic of the program, in 
addition to the technical capability of the prog ram to be completed, while the banks assess the 
economic capacity of the company to meet its financial commitments. 
 
c) Do the eligibility criteria differ between the different benefits? 
 
 The legislation indicates the procedures for granting concessions, among other things, based 
on program cost thresholds (cf. art. 4 new Decree 10 July 2008).   
 
Question 4  
Urgent Measures for the Economy-Automatic Incentives 
 
Please explain what is meant by "fiscal bonus in tax payment"?  What types of activities 
are eligible to receive tax concessions under this  program?  Do all companies in all industries 
investing in machinery automatically receive tax concessions under this program?  What are the 
principal industries that benefit from th is program?  According to Law 112/98, the 
administration of this program is now performe d by the regions.  Do the regional governments 
have control over the eligibility and funding for this program? G/SCM/Q2/EU/16 
Page 18 
 
 
  Reply 
 
 The facility under Law 266/97 consists of a tax bonus voucher gran ted for new productive 
investments (mainly machineries) made by sma ll and medium sized-enterprises under the European 
definition.  
 In order to receive the facility, enterprises must participate to a tender (no tender where 
organized during the years 2009-2010).  Enterprises' applications (including a description of the 
planned investment) must fulfil a set of specific criteria established by the tender and are assessed (the "preliminary evaluation") by a specialized financial intermediary.  Once the list of beneficiaries is 
approved by the Ministry and published, selected en terprises are allowed to realise the investment and 
to present a request for a tax bonus voucher.  Then a new assessment (the "definitive evaluation") of 
the investments realised is made (based on bills, declarations from experts).  In case the definitive 
evaluation is successful, the voucher is issued and can be used by enterprises in order to pay taxes and 
welfare contributions.   
 Principal industries that benefit from this program are from the manufacturing, construction 
and services sectors.    Currently, the facility exists only in the Regi on Sicily and Valle d'Aosta, where the last 
tender was organised in 2011.  In the rest of Ital y, the facility has not been promoted since the 
year 2005 and the State Aid authorisation from the European Commission has expired. 
 Question 5  
Fiscal Measures in Favour of Innovation of Industrial Enterprises 
 
Please provide more information regarding the eligibility criteria for this program. 
Specifically, what types of activities are eligible  to receive tax concessions under this program?  
Do all companies in all industries investing in  machinery automatically receive tax concessions 
under this program?  What are the principal i ndustries that benefit from this program?  
According to Law 112/98, the administration of th is program is now performed by the regions.  
Do the regional governments have control over the eligibility and funding for this program? 
 Reply 
  The automatic tax reductions for pre-comp etition research and development falling under 
Law 140/97 consists of a tax bonus granted to indus trial enterprises that have made R&D investments 
in the fiscal year prior to the one in which the application is presented.    In order to receive the facility, enterprises must participate to a tender (no tender where 
organized during the years 2009-2010).  Enterprises' applications (including a description of the 
planned investment) must fulfil to a set of specific criteria established by the tender and 
are assessed (the "preliminary evaluation") by a speci alized financial intermediary.  Once the list of 
beneficiaries is approved by the Ministry and publis hed, selected enterprises are allowed to realise the 
investment and to present a request for a tax bonus voucher.  Then, a new assessment (the "definitive 
evaluation") of the investments realised is made (b ased on bills, declarations from experts).  In case 
the definitive evaluation is successful, the voucher is i ssued and can be used by enterprises in order to 
pay taxes and welfare contributions.    Principal industries that benefit from this program are from the manufacturing sector.    G/SCM/Q2/EU/16 
 Page 19 
 
 
   The facility has not been promoted by the Regions since the year 2007 and the State Aid 
authorisation from the Europ ean Commission has expired. 
 
Question 6 
 
Excise Duty Reduction on Some Products for Environmental Protection-Bioethanol 
 
Excise Duty Reduction on Some Products  for Environmental Protection-Biodiesel 
 
Please confirm whether the above programs have been either been terminated or 
replaced by another program? 
 
Reply 
 
 Concerning tax reduction/exemption programs relating to bioethanol and biodiesel for 
environmental protection purposes. 
 
 In the case of biodiesel, paragraph 1 of Article 22-bis of Legislative Decree No 504 of 
26 October 1995, entitled 'Consolidated Text of Legislative Provisions relating to duties on 
production and consumption and rela ted criminal and administrative penalties' ('Testo unico delle 
disposizioni legislative concernenti le imposte sulla produzione e sui consumi e relative sanzioni 
penali e amministrative'), provides for the applicati on of an excise duty rate equal to 20 % of that 
applied to diesel used as motor fuel under a multi-a nnual program and for a quota of  250,000 tons per 
year.  The same paragraph of Article 22-bis stipulat es that the requirements needed by operators and 
the relevant production plants, both domestic and EU, to participate to the multi-annual program shall 
be established by decree of the Minister of Economy  and Finance, in accord with the Ministers of 
Economic Development, Minister for the Environm ent, Land and Sea and Minister of Agricultural 
and Forest Policies.  The same decree establishe s the fiscal requirements of the product with the 
relevant testing methods, as well as the criteria fo r assigning the tax-reduced quotas to the operators 
on a multi-annual basis, preferring to that purpos e products deriving from sector agreements and 
framework agreements.  
 
 Furthermore, the program in question was in  actual fact regulated by Ministerial decree 
No 156 of 3rd September 2008, and, as specified in  the abovementioned article of the consolidated 
text, was started up on 1st January 200 7 and ended on 31st December 2010.  
 
 Likewise, it is noted that paragraph 5 et seq. of the aforesaid art. 22-bis provides for the 
application, under a three-year program starting fro m 1st January 2008, of reduced excise duty rates 
on some products, obtained from ethyl alcohol of agricultural origin, used as a motor fuel either pure or blended with energy products.  
 
 In this respect, we would like to stress that such program ende d on 31 December 2010. 
  Lastly, it should be specified that such  programs were not replaced by any others. 
 
Question 7 
 
 According to publically available information
18, Italy provides the following state aid to 
small and medium-sized enterprises active in  the production, processing and marketing of 
fisheries products.  Please explain why each of these programs were not notified pursuant to 
Article 25 of the SCM Agreement? 
                                                      
18 http://ec.europa.eu/fisheries/state_aid/block_exemption_information/xf11_2010_en.pdf , 
http://ec.europa.eu/fisheries/state_aid/bl ock_exemption_information/xf12_2009_en.pdf  and 
http://ec.europa.eu/fisheries/state_aid/bl ock_exemption_information/xf1_2010_en.pdf .   G/SCM/Q2/EU/16 
Page 20 
 
 
   Regolamento recante criteri e modalità per la concessione di contributi alle associazioni 
del settore pesca professionale e dell 'acquacoltura operanti in Regione, in attuazione 
dell 'articolo 5, comma 1, della legge regionale 28 dicembre 2007, n. 30 (Legge 
strumentale alla manovra di bilancio 2008); 
 Regolamento recante criteri e modalità per l'a ttuazione degli interventi creditizi in 
materia di pesca e acquacoltura erogabili ai sensi dell'articolo 5, lettera n) della legge 
regionale 20 novembre 1982 n. 80;  and  
 Arresto temporaneo della pesca marittima nelle acque prospicienti il territorio della 
Sardegna anno 2009 – sistemi di  pesca a strascico e/o volante. 
 
Reply 
 
 The question asked concern aid granted by a number of EU Member States under the so 
called "block exemption" regulation19 covering state aid to small and medium-sized enterprises 
(SMEs) active in the production, processing and marketing of fisheries products.  Under this 
regulation the EU Commission can declare, in accord ance with Article 87 of the Treaty, that under 
certain conditions, aid to small and medium-sized enterprises (SMEs) is compatible with the EU's 
common market and not subject to the notification requirement of Article 88(3) of the Treaty. 
 
 Aid provided by EU Member States under the aforementioned regulation must comply with 
the rules of the Common Fisheries Policy and ha ve similar mechanisms and objectives as the 
two notified EU funding schemes of this policy, i. e. the European Fisheries Fund (EFF) and the 
Common Organisation of Markets (see recitals 23 and 24 of Commission Regulation (EC) No736/2008). 
 
 The limited amounts that can be provided under this "block exemption", the similarity of 
objectives with the EU's notified programmes and the marg inal, if at all, effects of the aid on the EU's 
net importer position might not warrant an individual notification by the EU Member State concerned 
of these programmes.  Nevertheless, it should be  noted that some of the programmes for which 
questions have been asked could have been  included in previous EU notifications. 
  Detailed information on aid provided by EU Memb er States, under the so called "block exemption", 
is available on the EU Commission's "Fisheries" web pages.
20 
  This information can also be found, in the EU's  official languages thus including in English, 
French and Spanish, in the Official Jo urnal of the European Union (C-Series)
21 under the heading 
"Summary information communicated by Member States on State aid granted in accordance with 
Commission Regulation (EC) No 736/2008 on the application of Articles 87 and 88 of the EC Treaty 
to State aid to small and medium-sized enterpri ses active in the production, processing and marketing 
of fisheries products".  
 Finally, further information on these programmes can be obtained from the EU Commission's 
"State Aid Register".  This Register
22 contains information on all cases that have been the object of a 
European Commission decision since 1 January 20 00, including those covered under the "block 
exemption" regulation.   
 
                                                      
19 Commission Regulation (EC) No 736/2008 of 22 July 2008 on the application of Articles 87 and 88 
of the Treaty to State aid to small and medium-sized  enterprises active in the production, processing and 
marketing of fisheries products. 
20 http://ec.europa.eu/fisherie s/state_aid/index_en.htm  
21 http://eur-lex.europa.eu/  
22 http://ec.europa.eu/competition/state_aid/register/   G/SCM/Q2/EU/16 
 Page 21 
 
 
  Question 8 
 
State Aid Funding  
 
 According to publically available information23, it is our understanding that Italy 
provided €3,000,000 in state aid to support its fishery industry for, inter alia , natural disaster, 
tax relief, labor-related costs for EU vessels fi shing for tuna or tuna-like species outside EU 
waters and for marketing of fishery products fr om EUs outermost regions.  Please describe the 
programs under which these funds are provided a nd, if any of the programs have not been 
notified, please explain why.  
Reply 
  The question asked relates to state aid granted by a number of EU Member States to the fisheries and aquaculture sector. 
 
 As a rule, Member States have to notify  the EU Commission on any State aid scheme they 
wish to put in place, and may not implement the sch eme before the EU Commission has declared that 
it complies with the EU Treaty.  (See Article 2 of Council Regulation (EC) No 659/1999 of 
22 March 1999 and Article 2 of Commission Regula tion (EC) No 794/2004 of 21 April 2004).  
 
 Furthermore, state aid granted by Member Stat es to fisheries and aquaculture is only justified 
if it is in accordance with the objectives of th e EU's Competition Policy and those of the Common 
Fisheries Policy. 
 
 The fact that no period (year) has been indicat ed for the amounts mentioned in the questions 
to the Member States concerned makes it difficu lt to trace back the programmes to which these 
amounts would relate. Note that, because some of the programmes run over a number of years, it can not be excluded that they were part of a previous notification.  
 
 Nonetheless, detailed information on the pr ogrammes that have been notified to EU 
Commission by EU Member States can be obtained from the EU Commission's "State Aid Register".  
This Register contains information on all cases th at have been the object of a European Commission 
decision since 1 January 2000.  This Register  can be consulted at the following webpage:  
http://ec.europa.eu/competition/state_aid/register/  
 
Question 9 
 
De Minimis Funding 
  According to publically available information
24, it is our understanding that Italy was 
permitted to provide "de minimis" funding to its fisheries sector (up to €30,000 per company 
over a period of three fiscal years).  Please describe the programs under which funds are 
provided and, if any of the programs have not been notified, please explain why. 
                                                      
23 http://ec.europa.eu/competition/state_ aid/studies_reports/expenditure.html  
24 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6. G/SCM/Q2/EU/16 
Page 22 
 
 
  Reply 
 
 As mentioned in the EU's legislation govern ing the so called "de minimis" aid (Council 
Regulation (EC) No 875/2007 of 24 July 2007, individual EU Member States can provide small 
amounts of aid to their fishing and aquaculture i ndustries.  This aid concerns modest amounts (a 
maximum of €30.000 per company, over a period of 3 years), it can not exceed 2.5 % of the total 
production value of the fisheries sector in a given Member State and it is subject to an overall EU 
ceiling, broken down, in turn, into individual ceilings per Member State.    
 The programmes for which individual Member States can provide aid under the "de minimis" 
regime are similar to those existing under the EU 's Common Fisheries Policy and its two notified 
funding schemes, i.e. the Europ ean Fisheries Fund (EFF) and the Common Organisation of Markets 
(see EU's notification). Furthermore the follo wing type of aid is excluded from these small 
programmes:   
 aid of an amount that is fixed on the basis of price or quantity of products put on the 
market;  
 aid favouring export-related activities;  
 aid contingent upon the use of  domestic over imported goods;  
 aid granted to undertakings in difficulty with a view to their rescuing or their 
restructuring;  
 aid serving to increase fishing capacity;  
 aid for the purchase or construction of fishing vessels. 
 
 The modest amounts that can be provided, the similarity of objectives with the EU's notified 
programmes and the marginal, if at all, effects of  the aid on the EU's net importer position might not 
warrant an individual notification by the EU Member State concerned.  
 
Latvia 
 
Question 1  
On Application of Taxes in Free Ports and Special Economic Zones 
 
According to Latvia, tax rebates under this  program are only available to those 
enterprises that have signed an agreement with the Board of Special Economic Zones and Free 
Ports.  Could Latvia please provide more details  about the terms of these agreements, including 
the requirements for companies to be eligible for the tax rebate under this program?  What are 
the principal industries that benefit from this program?  
Reply 
 
Procedures for application of tax relief in free ports and special economic zones (SEZ) are 
prescribed by the Law on the Application of Taxes in Free Ports and Special Economic Zones.  
According to this Law, free port and SEZ capital co mpanies with permission granted by the free port 
or SEZ have the right to apply direct tax relief and the special procedure for making state social insurance payments. 
 
Permission to apply direct tax relief shall be  granted by the SEZ authority or free port 
authority and it may be granted to a SEZ capital co mpany or a licensed capital company, which is 
located in the territory of a SEZ or free port and performs commercial activities only in the territory of 
a SEZ or free port.  G/SCM/Q2/EU/16 
 Page 23 
 
 
  Permission to apply direct tax relief shall no longer be in force if at least one of the following 
conditions exists: 
 
 the term of operation of the SEZ has expire d or the free port has been abolished; 
 the term of validity of such permission has expired; 
 the authority and the capital company agree to terminate the agreement regarding the 
performance of commercial activities in the territory of the SEZ or free port; 
 a court has terminated the agreement regarding the performance of commercial 
activities and cancelled the permission to receive direct tax relief; 
 the capital company is liquidated or reorganized, as well as commercial activity is 
terminated. 
 
The authority shall not grant permission to apply direct tax relief to capital companies 
operating in the transport, steel, synthetic fiber manuf acturing, agriculture, fishery, coal industry, and 
ship building sectors.  
 
Capital company, which have been granted th e above permission, are entitled to apply an 
immovable property tax rebate in the amount of 80 per cent of the tax amount calculated (not applying 
other rebates) to the immovable property, located in the territory of the SEZ or free port, of which 
they have ownership, legal possession, or which they  have been granted the right to use.  A capital 
company, when paying dividends, and remunera tion for management and consultancy services and 
payment for intellectual property to a non-resident, shall withhold enterprise income tax from such 
payments with an 80 per cent rebate of the tax am ount calculated, as well as reduce income subject to 
enterprise income tax by the investments in such in frastructure or social sphere sites as belong to the 
state or local government and are lo cated in the territory of a SEZ or  free port, if such investments 
have been made in accordance w ith an agreement which has been concluded with the SEZ authority 
or free port authority. 
 
In view of the fact that support within the fra mework of the Law on the Application of Taxes 
in Free Ports and Special Economic Zones is provided in accordance with Commission Regulation 
(EC) No 1628/2006 of 24 October 2006 on the application of Articles 87 and 88 of the Treaty to national regional investment aid, direct tax rebates are limited. 
 
Capital companies are entitled to apply immova ble property tax rebate and enterprise income 
tax rebate if the accumulated amount of direct ta x rebates does not exceed the percentage of the 
accumulated amount of investments to be a pplied to the relevant capital company: 
 
 large companies – 50 per cent of the accumulated amount of investments; 
 medium-sized companies (not more than 250 employees, annual turnover not more 
than 50 mln EUR) – 60% of the accumulated amount of investments; 
 small companies (not more than 50 employees, annual turnover not more than 10 mln 
EUR) – 70% of the accumulated amount of investments. 
 
For large investment projects by a zone capital company or a licensed capital company within 
the scope of which the planned costs of the invest ments to be made exceed 50 million equivalent in 
lats capital companies do not apply the above ment ioned percentage (for smal l, medium-sized, large 
companies – 50%, 60%, 70% of the accumulated am ount of investments), but the Cabinet of 
Ministers shall decide regarding the maximu m allowable percentage, which the amount of 
accumulated direct tax rebate may be allowed to  reach in relation to the accumulated amount of 
investment of the capital company, which does not exceed: 
 G/SCM/Q2/EU/16 
Page 24 
 
 
   50 per cent of the accumulated amount of investment in investment projects up to 50 
million euro; 
 25 per cent of the accumulated amount of investment in the project part from 50 to 
100 million euro, and 
 17 per cent of the accumulated amount of investment in the project part, which 
exceed 100 million euro. 
 
Supported sectors: 
 
 The main sectors in the Free Port of Ventspils:  port terminals and manufacturing 
companies; 
 The main sectors in R ēzekne SEZ:  metal processing and wood processing firms; 
 The main sectors in Liep āja SEZ:  metal processing, wood processing firms; 
 The main sectors in the Free Port of R īga:  port terminals and manufacturing 
companies. 
 Regarding contractual provisions applicab le to free ports and SEZ, please find 
attached as an example the draft agre ement of the Free Port of Ventspils on 
investments in the Free Port of Ventspils (see Annex).  
 
Question 2 
 
Development of New Products and Technologies – Aid for Implementation of New Products and 
Technologies in Production 
 
Development of New Products and Technologies – Aid for Implementation of New Products and 
Technologies in Production 2nd ROUND 
 
These programs support the development of  new products or technologies in 
manufacturing by providing grants to cover e quipment and intangible assets costs.  Is this 
program available to enterprises involved in manufacturing of any kind of product or 
technology?  What are the criteria for determining what kinds of products and technologies are 
funded under this program? 
 
Reply 
  The aim of stages 1 and 2 of the aid pr ogram "Development of New Products and 
Technologies – Aid for Implementation of New Pr oducts and Technologies in Production" is to 
support implementation of successfully developed new products (including goods or services) or 
technologies (including technological processes) in production.  Therefore for a firm to be able to 
receive aid within both stages of this program it shall: 
 
 implement in production a new product or technology. 
 
 New product includes products and services that are completely new or with substantially 
improved functional features and a type of an application envisag ed (e.g. significantly changed 
technical parameters, components and materials, added software, user-friendly features or other 
functional features).  New technology includes esse ntial changes in the technology, equipment and 
software in order to improve a production process or production methods and their implementation in 
the project applicant ensures production of new products. 
 implement a project in a supported sector.  
  G/SCM/Q2/EU/16 
 Page 25 
 
 
   According to Cabinet of Ministers Regulati on No 658 of August 12, 2008 "Regulation on 
Operational Program 2 "Entrepreneurship an d Innovation", Complement, Activity 2.1.2.2 
"Development of New products and Technologies", Sub-activity 2.1.2.2.2 "Development of New 
products and Technologies – Aid for Implemen tation of New Products and Technologies in 
Production"" within stage 1 and According to Cabi net of Ministers Regula tion No 888 of September 
21, 2010 "Regulation on the Second and Followi ng Stages of Project Application Selection for 
Operational Program 2 "Entrepreneurship an d Innovation", Complement, Activity 2.1.2.2 
"Development of New products and Technologies", Sub-activity 2.1.2.2.2 "Development of New 
products and Technologies – Aid for Implemen tation of New Products and Technologies in 
Production"" (hereinafter – CoM Regulation No 888) within stage 2 the following sectors shall not be 
supported: 
1.  Trading; 
2.  Financial brokerage; 
3.  Commercial services; 
4.  Gambling and betting; 
5.  Manufacturing of beer and alcoholic beverages; 
6.  Manufacturing of tobacco products; 
7.  Fish farming and aquaculture; 
8.  Shipbuilding; 
9.  Mining; 
10.  Steel manufacturing; 
11.  Manufacturing of synthetic fibres. 
 
 In addition to the above mentioned non-suppor table sectors in stage 2 of the aid program 
"Development of New Products and Technologies – Aid for Implementation of New Products and 
Technologies in Production" two more non-supportable sectors were specified: 
 
1. Electricity, gas supply, heat supply and air conditioning; 2. Manufacturing of weapons and munitions. 
 
 Restrictions have been listed in Annex 4 to CoM Regulation No 888. 
 
Question 3  
Support to R&D Projects Financed Within the Framework of Eureka Programme Market-
Oriented Research Programme 
 
Latvia's notification states that these program s co-finance or provide grants for projects 
that promote investments in R&D activities,  such as industrial research, experimental 
development and technical feasibility studies.  What are the criteria by which decisions are 
made to fund projects?  What sectors or i ndustries benefit most from this program? 
 Reply 
 
In case of EUREKA program projects criteria by  which decisions are made to fund projects 
are provided in "Regulation Considering Granting State Aid for Implementation of Projects in the 
Field of Research, Technology Development and In novation within the Framework of the EUREKA 
Program", No 678, issued by the Cabinet 9 Oc tober 2007 (hereinafter – CoM Regulation No 678). 
This regulation envisages that projects which meet the following criteria may apply for the financing: 
 
 ensure development of new, competitive products, technologies or services; G/SCM/Q2/EU/16 
Page 26 
 
 
   participants from two different EUREKA program member states participate in the 
implementation of the project; 
 the result is a product, service or technology which is demanded on the market. 
 
Each project shall be evaluated by two science and two economic experts according to the 
following criteria: 
 
1. Eligibility of the applicant: 
1.1. Company registered with the Commercial Re gister of the Register of Enterprises of 
the Republic of Latvia; 
1.2. Company meets the definition of a small or medium-sized company; 
1.3. Company is not recognized insolvent with a court ruling, inter alia it does not 
participate in a recovery process or according to  the information available from the Commercial 
Register it does not participate in liquidation process or its economic activity has not been suspended; 
1.4. Company has paid in full taxes and othe r mandatory national or municipal payments. 
2. Compliance of the project application: 
2.1. Project application is prepared acco rding to EUREKA program project application 
form; 
2.2. The sector, where the project will be im plemented, is supported in accordance with 
CoM Regulation No 678; 
2.3. Activities to be implemented within the project are clearly defined; 2.4. Project justification is defined; 
2.5. Results of project activities to be achieved are verifiable; 
2.6. Project costs comply with the costs provided in CoM Regulation No 678; 2.7. Necessary co-financing will be provided within the project; 
2.8. Participants from two different EUREKA member stat es are involved in 
implementation of the project. 
3. Specific criteria: 
3.1. Justification for selection of employee for participation in project implementation 
(role and responsibility of each cooperation pa rtner in relevant activities are defined); 
3.2. Involvement of public research institutions  (public research institutes and universities 
of the Republic of Latvia and other EUREKA member states) in project implementation; 
3.3. The most cost-effective options / solutions  (costs and results) have been chosen to 
achieve goals; 
3.4. Project management capacity of the applicant, competence, and experience in project 
financial and organizational manage ment of the project manager;  
3.5. Possibilities to commercialize project r esults and the potential contribution to the 
Latvian economy; 
3.6. Novice of the service / product / technology; 
3.7. Assessment of technical risks of th e service / product / technology implementation, 
which may hinder implementation of  the new product or technology; 
3.8. Equipment, technical and material support necessary for project implementation; 
3.9. Previous experience of professionals i nvolved in project implementation and their 
relevance to project activities; 
3.10. Evaluation of other options to achieve pr oject goals and justification for the choice of 
optimal solution. 
After assessment of experts the EUREKA program  project application evaluation commission 
shall decide on supporting or rej ecting the project application. 
Within the EUREKA program there are not par ticular sectors with overwhelming amount of 
applications. Within the last five years one pr oject per each of the following science and economic 
sectors were supported:  
Medicine  G/SCM/Q2/EU/16 
 Page 27 
 
 
  Recycling (manufacturing of  construction materials) 
Agriculture, fruit-growing, food   
Material science (intelligent materials and struct ures, waste recycling, preparing and spinning 
of textile fibre) 
Chemistry, organic chemistry, producing of  chemical substances and chemical products. 
 
CoM Regulation No 678 was valid until December 31, 2011, and now the Latvia competent 
institution is developing a new regulation.  Question 4 
 
Support to Production of Biofuels 
 
The notification states that reduced excise tax benefits are available under this program 
under the condition that "all criteria are made a ccordingly to the circulation of this product 
which are necessary to ensure the payment of import duties".  Please clarify what criteria must 
be met in order to receive the tax benefits under the program. 
 Reply 
 
 Reduced excise tax rates on biofuels and biofuels  mixings with fossil fuel are applied, and the 
tax is calculated and paid by the taxpayer according to provisions of circulation and control of excise 
goods prescribed by the Law on Excise Duties and le gislation regarding circ ulation of bio products 
containing fuel.  Direct and indirect aid to biofuels  is provided within the framework of a national aid 
program approved by the European Commission.  
 Question 5 
 
De Minimis Funding 
 
 According to publically available information25, it is our understanding that Latvia is 
permitted to provide "de minimis" funding to its fisheries sector (up to €30,000 per company 
over a period of three fiscal years).  Please de scribe the programs under which these funds were 
provided and, if any of the programs have not been notified, please explain why. 
 Reply 
 
 See Answer under Question 4 to Cyprus.   
 
Lithuania 
 
Question 2 
 
Support to Klaipeda Free Economic Zone 
 
 Please explain the criteria used by zone ma nagement companies when deciding whether 
or not to license an entity to operate in the free economic zone. 
                                                      
25 Id. G/SCM/Q2/EU/16 
Page 28 
 
 
  Replies to question 1 & 2 
 
 Article 7(2) of the Law on the Fundamentals  of Free Economic Zones stipulates that an 
operating undertaking situated within the zone acquires the status of the zone enterprise after the zone 
administration company grants an authorization to ope rate in the zone and afte r the Registrar of Legal 
Entities registers the amendments to the articles of association of the undertaking, which relate to 
acquiring of the zone enterprise status.  Article 7(6) stipulates that the decision concerning the 
authorization for an economic entity to operate in th e zone shall be made by the zone administration 
company.  The authorization for an economic entity shall be issued for activities established under the 
Law of the zone and the Statute of the zone in conf ormity to the procedure and time limits set by the 
Statute of the Zone.   
 An authorization to operate in the zone fo r an economic entity shall not be granted when: 
 The activities indicated in the application by the economic entity are different than those 
provided in the Law on the Fundamentals of Free Economic Zones and the Law on the Zone, and different than the zone activities determined in the Statute of the zone; 
 The economic entity has no license granted in conf ormity to the procedure established by the 
Government of the Republic of Lithuania for th e activities which require this authorization or 
when the validity of the license has b een suspended or withdrawn;    
 The entire zone territory has been distributed and there are no technical possibilities to offer 
any surface area. 
 
 The zone management company shall motivate in  writing its refusal to grant an authorization 
to operate in the zone for the economic entity.   
 The Statute of the Klaip ėda FEZ  approved by the Government of the Republic of Lithuania 
Resolution (9 June 1999, No. 753) stipulates that seek ing for an authorization to operate in the zone 
the founder shall submit the following documenta tion to the zone management company:  
 
 A standard application form (indicating the requi red land plot or other immoveable property; 
the activities planned); 
 A commitment to comply with the Statute of  the Zone and the set internal procedures; 
 A commitment to sign a contract with the zone management company concerning the 
operation conditions in the zone within three months after the registration of the zone 
enterprise; 
 Other documentation required in conformity to the internal procedures of the zone (draft 
documents of incorporation of the zone enterprise, etc.). 
  Upon presentation of the above said document s, the zone management company, having 
regard to the zone objectives and in compliance with  its investment business project, the Statute of the 
Zone, the articles of incorporation of the zone ma nagement company and the draft detailed map shall 
take a decision within the period of 15 working days  on whether or not to grant the authorization to 
operate in the zone, and shall notify this decision to the founder in writing in the period of five 
working days.  A similar provision has been stipulated in the Statute of the Kaunas FEZ 
(9 October 2000, No. 1207). 
 
 The state aid schemes have been made available to all the enterprises which are registered and 
operate in the Klaip ėda or Kaunas FEZs and which apply for assistance and the activities of which are 
not classified as prohibited according to Article 8 of the Law on the Fundamentals of Free Economic Zones, and the investment projects of which are in conformity to the requirements of Commission 
Regulation (EC) No 1628/2006. 
  G/SCM/Q2/EU/16 
 Page 29 
 
 
  Question 4  
 
State Aid Funding 
 
According to publically available information26, it is our understanding that Lithuania 
provided €1,000,000 in state aid to support its fishery industry for, inter alia , natural disaster, 
tax relief, labor-related costs for EU vessels fi shing for tuna or tuna-like species outside EU 
waters and for marketing of fishery products fr om EUs outermost regions.  Please describe the 
programs under which these funds were provided a nd, if any of the programs have not been 
notified, please explain why.  
Reply 
  See Answer to Q2 to Finland above.    Question 5 
 
De Minimis Funding 
 
According to publically available information27, it is our understanding that Lithuania 
was permitted to provide "de minimis" funding  to its fisheries sector (up to €30,000 per 
company over a period of three fiscal years).  Please describe the programs under which these 
funds were provided and, if any of the program s have not been notified, please explain why. 
 Reply 
  See Answer to Q 4 to Cyprus above.   
 
Malta 
 
Question 1 
 
Reduced Rates of Tax on Reinvested Profits  
 
According to the notification, this program provides reduced tax rates on the re-
investment of profits in "qualifying project s".  These projects include both manufacturing 
companies and hotels.  Please describe the crite ria a project must meet to be determined a 
"qualifying project" and therefore eligible for th e program benefits.  Is eligibility dependent on 
certain types of manufacturing? 
 
Reply 
 
 As stated on page 9 of the document delin eating the Subsidy Programmes for Malta, the 
scheme terminated on 31 December 2008.  This means that Malta Enterprise Corporation has neither 
evaluated nor accepted new applications for assist ance under this scheme since 31 December 2008. 
                                                      
26 http://ec.europa.eu/competition/state_ aid/studies_reports/expenditure.html  
27 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6. G/SCM/Q2/EU/16 
Page 30 
 
 
   All manufacturing companies in Malta could apply for assistance under the Reduced Rates of 
Tax on Reinvested Profits when the scheme was still operative.  In order to qualify for assistance 
under this scheme the project had to consist in an  investment in tangible assets relating to plant, 
machinery and equipment.  There was no discreti onary evaluation process and all companies engaged 
in manufacturing could benef it from this fiscal provision. 
 Question 2  Reduced Rates of Income Tax  
 
Malta provides reduced income tax rates for " qualifying companies engaged in activities 
as specified under Regulation 4(3) of the Bu siness promotion regulations".  Eligibility is 
dependent on the company undertaking any of the lis ted activities in the regulation, as well as 
not carrying out any disqualifying activities listed in the regulation.  Please clarify and describe 
the "qualifying activities", as well as the disqualifying activities, that determine a company's 
eligibility under this program. 
 
Reply 
  As stated on page 9 of the document delin eating the Subsidy Programmes for Malta, the 
scheme terminated on 31 December 2008.  This means that Malta Enterprise Corporation has neither 
evaluated nor accepted new applications for assist ance under this scheme since 31 December 2008. 
  At the time the scheme, Reduced Rates of In come Tax, was still operative, applications for 
assistance were assessed in terms of  the qualifying activities listed under Article 4 (3) of the Business 
Promotion Regulations (SL325.06) to the Business Promotion Act (Cap. 325).  If the activity carried 
out by the company fell under Article 4 (4) then it was considered as ineligib le.  The qualifying and 
disqualifying activities may be accessed on the following link: 
 
http://www.mjha.gov.mt/DownloadDoc ument.aspx?app=lom&itemid=9791&l=1 
 
Question 3 
 
ERDF International Competitiveness Grant Scheme 
 
According to the notification, this program supports companies that establish new 
markets and/or introduce a new service or pro duct in an existing market.  Assistance is 
provided to all undertakings involved in manufacturing "and those involved in internationally 
tradable services related to Information a nd Communications Technology, health care, 
education and training".  To the extent the de cisions for program funding take into account 
export potential, please discuss this program in the context of Article 3 of the Subsidies 
Agreement. 
 
Reply 
 
 Assistance under this scheme is provided to co mpanies with a view to build the necessary 
capabilities to expand into new markets.  The f unding covers trade fair participation and the 
development of market entry strategies.  The aid is neither linked to the export performance of the 
beneficiary nor linked to the export activity itself.  Hence the beneficiaries' products and services are 
in no ways subsidised.  G/SCM/Q2/EU/16 
 Page 31 
 
 
  Question 4 
 
Innovative Start-Up Scheme 
 
This program provides assistance for start-up companies.  Out of three levels of 
assistance under the program: 
 
- The first level requires "a low innovation pr ofile or a low potential for international 
trading."  
- The second level requires a company to be "significantly innovative or … have a 
potential to trade their products  or services internationally".  
- The third level requires that the company be highly innovative, "has a good 
potential of being traded internationally", or has a potential of collaborating with 
larger companies.  
 
 To the extent this program takes into cons ideration a company's export performance or 
export potential as a criterion for eligibility,  please discuss this program in the context of 
Article 3 of the Subsidies Agreement. 
 
Reply 
 
 The scheme supports start-up companies by  part-financing tangible investments and 
consultancy.  The value of support is linked to th e sector's potential to achieve international growth 
and not to the individual company's potential of exporting its products and services.   
 Question 5 
 
Eureka Programme 
 
The EUREKA program provides grants to all sectors of the industry related to 
advanced technology development, particularly innovative undertakings.  Eligible innovative 
undertakings "must demonstrate that the research  project would lead to the development of 
innovative products, processes and services based on such advan ced technologies with a world-
wide market potential".  To the extent this  program takes into consideration a company's 
export performance or export potential as a cri terion for eligibility, please discuss this program 
in the context of Article 3 of the Subsidies Agreement. 
 
Reply 
 
 The scheme supports companies in carrying out collaborative research and development 
(R&D) projects.  One of the conditions set out by the scheme is that the in tended technology should 
have a potential market application.  Therefore, the evaluation examines the potential of the project 
partners to eventually commercialise the project r esults.  Assistance provided under this scheme is not 
linked to the export performance of the compan y but on the projects partners' potential to 
commercialise (directly or indirectly) the resu lts.  The company's export performance or export 
potential is not included in the schemes evaluation parameters. G/SCM/Q2/EU/16 
Page 32 
 
 
  Netherlands 
 
Question 1 
 
State Aid Funding 
  According to publically available information
28, it is our understanding that the 
Netherlands provided €5,000,000 in state aid to support its fishery industry for, inter alia , 
natural disaster, tax relief, labor- related cost s for EU vessels fishing for tuna or tuna-like 
species outside EU waters and for marketing of fishery products from EUs outermost regions.  
Please describe the programs under which these funds are provided and, if any of the programs have not been notified, please explain why. 
 
Reply 
 
 See Answer to Q 2 to Finland above.   
 
Question 2 
 
De Minimis Funding 
 
 According to publically available information29, it is our understanding that the 
Netherlands was permitted provide "de minimis" funding to its fisheries sector (up to €30,000 
per company over a period of three fiscal yea rs).  Please describe the programs under which 
these funds were provided and, if any of the programs have not been notified, please explain 
why. 
 
Reply 
 
 See Answer to Q 4 to Cyprus above.   
 
Poland 
 Question 1 
 
De Minimis Funding 
  According to publically available information
30, Poland was permitted to provide "de 
minimis" funding to its fisheries sector (up to  €30,000 per company over a period of three fiscal 
years). Please describe the programs under which these funds were provided and, if any of the 
programs have not been notified, please explain why. 
 
Reply 
  See Answer to Q 4 to Cyprus above.   
                                                      
28 http://ec.europa.eu/competition/state_ aid/studies_reports/expenditure.html  
29 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6.   
30 Id.  G/SCM/Q2/EU/16 
 Page 33 
 
 
  Slovak Republic 
 
Question 1 
 
Energy Savings 
  Please explain the eligibility requirements to  receive benefits under this program.  Are 
companies in all industries eligible for grants under this program?  What specific industries are 
the principal beneficiaries under this program? 
Reply 
 
 Activity has to be realised outside of the Bra tislava region.  Eligible  are small and medium 
sized businesses or large businesses with up to 1000 em ployees or turnover up to 50 mil. € in group 
per fiscal year.  
 All sectors are eligible except as follows: 
  Unsupported activities and produc ts under de minimis scheme  for maximal non refundable 
state aid up to 200 000 €: 
 
undertakings active in the fishery and aquaculture sectors  
undertakings active in the coal sector, as defined in Regulation (EC) No 1407/2002  
undertakings active in the transport sector  
undertakings active in the manufacture of man-made fibres  
undertakings active in the steel sector  
undertakings active in the primary production of agricultural products as listed in Annex I to the Treaty 
establishing the European Community  
 
 Unsupported activities and produc ts under de minimis scheme  for maximal non refundable 
state aid up to 200 000 € and over: 
 
activities in the fishery and aquaculture sectors, as co vered by Council Regulation (EC) No 104/2000 (1), 
except for training aid, aid in the form of risk capital, aid for research and development and innovation and aid 
for disadvantaged and disabled workers.   
regional aid favouring activities in the shipbuilding sector  
aid favouring activities in the coal sector with the exce ption of training aid, research and development and 
innovation aid and environmental aid  
regional aid favouring activities in the steel sector  
regional aid favouring activities in the synthetic fibres sector  
aid favouring activities in the primary production of agricultural products[1], except for training aid, aid in the 
form of risk capital, aid for research and development, environmental aid, and aid for disadvantaged and 
disabled workers to the extent that these categories of aid are not covered by Commission Regulation (EC) No 
1857/2006  
 
 Support does not apply to undertakings coveri ng more than 30% of agricultural activities 
specified in SK NACE A01, A02, A03. 
 
 No specific industries are the principal benefi ciaries.  Beneficiari es are natural or legal 
persons authorised to conduct business activities under §2(2) of the Slovak Commercial Code and 
registered in the Slovak Republic, which plan to car ry out particular types of eligible projects. G/SCM/Q2/EU/16 
Page 34 
 
 
  Sweden 
 
Question 1 
 
State Aid Funding 
 
 According to publically available information31, Sweden provided €2,000,000 in state aid 
to support its fishery industry for, inter alia , natural disaster, tax relief, labor-related costs for 
EU vessels fishing for tuna or tuna-like species outside EU waters and for marketing of fishery 
products from EUs outermost regions.  Please describe the programs under which these funds 
were provided and, if any of the programs have not been notified, please explain why. 
 Reply 
 
 See Answer to Q 2 to Finland above.   
 
Question 2 
 
De Minimis Funding 
  According to publically available information
32, Sweden was permitted to provide "de 
minimis" funding to its fisheries sector (up to  €30,000 per company over a period of three fiscal 
years).  Please describe the programs under which these funds were provided and, if any of the 
programs have not been notified, please explain why.   
 
Reply 
  See Answer to Q 4 to Cyprus above.     
 
 
__________  
 
                                                      
31 http://ec.europa.eu/competition/state_ aid/studies_reports/expenditure.html  
32 Commission Regulation (EC) 875/2007 on the application of Articles 87 and 88 of the EC Treaty to 
de minimis aid in the fisheries sector and amending Regulation (EC) 1860/2004, Official Journal, L 193/6.