WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.10 
26 August 2005 
 (05-3595) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
 
 The following addendum to the notification of the European Community relates to subsidy 
programmes of Greece . 
 
_______________ 
  G/SCM/N/123/EEC/Add.10 
Page 2  
 
 GREECE 
 
TABLE OF CONTENTS 
Page  
I. SUBSIDIES TO PRIVATE INVESTMENT FOR THE ECONOMIC AND REGIONAL 
DEVELOPMENT OF THE STATE.................................................................................................... 3  
II. AID REGIME TO SMES COMMUNICATION UNDER REGULATION 70/2001. (STATE AID 
XS 48/2001). ................................................................................................................... ........................ 4  
III. EFFECTIVE CO-OPERATION IN R & D ACTIVITIES  (STATE AID N 547/2001) .................. 5  
  G/SCM/N/123/EEC/Add.10 
 Page 3 
 
 
 I. SUBSIDIES TO PRIVATE INVEST MENT FOR THE ECONOMIC AND 
REGIONAL DEVELOPMENT OF THE STATE. 
1. Period covered by the notification  
 
2003 and 2004 
2. Policy objective and/or purpose of the subsidy  
 
Article 1 of Law 2601/98 sets out the objective of the law as follows: 
– To contribute to regional development 
– To contribute to job creation 
– To increase competitiveness of business 
– To contribute to the restructuring of production sectors 
– To contribute to the exploitation of business opportunities in Greece and abroad 
– To contribute to the protection of the environment and the savings of energy 
3. Background and authority for the subsidy  
 
 Law 2601/98  on subsidies to private investme nt for the economic and regional 
development of the state  (published in the Official Gazette of the Hellenic Republic of 15 April 
1998).  Law 2601/98 replaces Law 1892/90 as am ended and supplemented by Law 2234/94. 
  As a general rule the authority responsible for administering the Law is the Central Service of 
the Ministry of National Economy.  However, applications for aid investments up to € 2,100 millions are administered locally by the Private Investment Services of the Ministry's Regional 
Directorates.  In specific cases the Ministry of  Development or other services may be involved. 
 4. Form of the subsidy:
 
  Aid is granted in the following forms: 
 (i) grants 
 (ii) interest contributions  (iii) leasing payment contributions  
5. To whom and how the subsidy is provided:
 
 
 Companies from all economic sectors can av ail of aid under Law 2601/98 (including physical 
persons engaged in business activities) .  With regard to the type of aid available, however, Law 
2601/98 distinguishes between two types of beneficiar ies (new and old) depending on the time of 
their establishment.  Old beneficiaries (i.e. those est ablished at least five years before the application 
for aid is made) can avail only of aid in the form of interest contributions and tax exemptions.  New 
beneficiaries (i.e. those established within five years of the application for aid) can avail of all of the 
above mentioned forms of aid (for the types of aid see answer to previous question). 
 The aid intensity varies depending on the region of the investment.  For the purposes of Law 
2601/98, Greece is divided into four regions on the basis of their level of 
development/unemployment/geographical position. Re gion 'A' covers the departments of Attica and 
Thessaloniki; investments in these areas are not nor mally eligible for aid under Law 2601/98 (with 
certain exceptions).  In the other region aid intensity varies as follows: 
– Region B: 15% (40 per cent for tax exemption) G/SCM/N/123/EEC/Add.10 
Page 4  
 
 – Region C: 30% (70 per cent for tax exemption) 
– Region D: 40% (100 per cent for tax exemption) 
 Aid is granted in instalments in proportion to the degree of realisation of the investment in 
three distinct phases.  Firstly, 60 per cent of the aid is granted during realisation of the investment in 
two separate instalments.  Secondly, 20 per cent of  the aid is granted after the conclusion of the 
investment, and thirdly, the last 20 per cent is granted after the investment had been put into 
operation.  (1) Amount of subsidy granted:
  The total amount of  € 169,1 millions for 2003  and of 
€ 103,1 millions for 2004  is broken down according to sector of economic activity, as 
follows: 
         in € millions 
SECTOR TOTAL AMOUNT OF SUBSIDIES 
(grants, leasing payment contributions, interest 
contributions) 
 2003 2004 
Primary 9,7 4,3 
Secondary 60,8 54,5 
Tourism 78,7 33,1 
Services 19,9 11,2 
TOTAL 169,1 103,1 
 
6. Duration of the subsidy  
 
 The Law 2601/98 is not into force since 23  December 2004 (has been replaced by the law 
3299/2004 entered into force in 2005).  7. Trade effects of the subsidy
 
 
 No effects on international trade 
 
II. AID REGIME TO SMES COMMUNICAT ION UNDER REGULATION 70/2001. 
(STATE AID XS 48/2001). 
 (Régime d’aides aux PME communicati on en vertu du règlement 70/2001) 
 
1. Period covered by the notification  
  2003 & 2004  
2. Policy objective and/or purpose of the subsidy.
 
  Improvement and modernization of the competit iveness for small & very small enterprises.  G/SCM/N/123/EEC/Add.10 
 Page 5 
 
 
 3. Background and authority for the subsidy (incl uding identification of th e legislation under which 
it is granted)  
  The Department of Research & Technology of the Hellenic Mini stry of Development provides 
the subsidy. 
 This subsidy is granted under regulation 70/2001. 
 4. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
  Grants 
 
5. To whom and how the subsidy is provided 
 
  Existing (since 3 years minimum) small and ve ry small manufacturing enterprises of up to 
50 employees. 
 
6. Total amount or the annual amount budgeted for that subsidy
 
  TOTAL AMOUNT for 2003: € 3,33 millions  TOTAL AMOUNT for 2004: € 7,15 millions  
7. Duration of the subsidy
 
  1 January 2001 to 31 December 2006  8. Trade effects of the subsidy
 
 
 none  
III. EFFECTIVE CO-OPERATION IN R & D ACTIVITIES  (STATE AID N 547/2001) 
1. Period covered by the notification
 
 
 2003 & 2004 
 2. Policy objective and/or purpose of the subsidy
 
  Promotion of the cooperation between productive a nd research operators for research and 
technological development projects aiming at the production of  innovative products or services.  
The measure will be developed thr ough the implementation of  a series of interventions to sectors of 
specific interest.  3. Background and authority for the subsidy
 
 
 The Department of Research & Technology of the Hellenic Mini stry of Development provides 
the subsidy, under presidential decrees 274/2000 and 17/2001.   The subsidy programme was approved by the European Commission on 21 January 2002 [Commission Decision E(2002)140/21.01.2002]. 
 
4. Form of the subsidy
 
  Grants G/SCM/N/123/EEC/Add.10 
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5. To whom and how the subsidy is provided
 
  Joint ventures, Research Centres, Autonomous Institutes, Universities , Technological Education 
Institutes. 
 
6. Total amount or the annual amount budgeted for that subsidy
 
  TOTAL AMOUNT for 2003: € 3,20 millions  TOTAL AMOUNT for 2004: € 4,30 millions 
 
7. Duration of the subsidy and/or any other tim e limits attached to it, including date of 
inception/commencement  
  1 January 2001 to 31 December 2006 
 
8. Trade effects of the subsidy
 
  none  
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