WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.11
23 November 2007 
 (07-5161) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Greece .   
 
_______________ 
 G/SCM/N/155/EEC/Add.11 
Page 2  
 
  GREECE  
 
TABLE OF CONTENTS 
 
   Page
 
 
I. AID REGIME TO SMES – 3RD EUROPEAN COMMUNITY FRAMEWORK 
2000-2006.  AID TO COMPETITIVENESS OF THE MANUFACTURING AND 
TOURISM SECTOR UNDER EC RE GULATION 70/2001 (STATE AID 
XS 15/2003 & XS 16/2003) ...................................................................................................... 3  
II. AID FOR INVESTMENT IN SUSTAINABLE ENERGY .................................................. 3  
III. INNOVATIVE ENERGY PROJECTS  FOR THE GREEK ISLANDS ............................. 6  
IV. DEMONSTRATION PROJECTS OF INNOVATIVE ENERGY 
TECHNOLOGIES................................................................................................................... 7 
V. SUBSIDIES TO PRIVATE INVESTMENT FOR THE ECONOMIC AND 
REGIONAL DEVELOPMENT OF THE STATE ............................................................... 8  
VI. AID REGIMES TO SMES COMMUNICAT ION UNDER REGULATION 70/2001 .... 10  
  G/SCM/N/155/EEC/Add.11 
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  I. AID REGIME TO SMES – 3RD E UROPEAN COMMUNITY FRAMEWORK 2000-
2006.  AID TO COMPETITIVENESS OF  THE MANUFACTURING AND TOURISM 
SECTOR UNDER EC REGULATION 70/2001 (STATE AID XS 15/2003 & XS 16/2003) 
 
1. Title of the subsidy program  
 
 Aid regime to SMEs – 3rd European Community Framework 2000-2006.  Aid to 
competitiveness of the manufacturing and tourism sector under EC regulation 70/2001 (State aid 
XS 15/2003 & XS 16/2003).    
2. Period covered by the notification
 
  2008 up to 2008.    3. Policy objective and/or purpose of the subsidy
 
 
 Enhancement of the competitiveness for SMEs of the manufacturing and tourism sector.    4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
 
 Hellenic Ministry of Economics and Finance.   
 This subsidy is granted unde r EC regulation 70/2001.   
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
 
 Grants.   
 6. To whom and how the subsidy is provided
 
  New and existing manufacturing and tourism SMEs of up to 50 employees.    
7. Total amount or the annual amount budgeted for that subsidy
 
  TOTAL AMOUNT for 2005:  € 78,8 millions.    TOTAL AMOUNT for 2006:  € 18,8 millions.    
8. Duration of the subsidy
 
  2005 and 2006.    9. Trade effects of the subsidy
 
 
 None.   
  
II. AID FOR INVESTMENT IN SUSTAINABLE ENERGY 
 1. Title of the subsidy programme
 
  Aid for investment in sustainable energy.   G/SCM/N/155/EEC/Add.11 
Page 4  
 
  2. Period covered by the notification
 
  2005 & 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
 
- Financial incentives for the support of private investments in the energy sector (energy 
saving, exploiting renewable energy sources, combined heat and power).  To encourage 
investments in energy conservation, combined  heat and power and renewable energy sources 
applications.   
- Security of energy supply, reduction of energy independence, diversification of energy supply 
sources.   
- Environmental protection by reducing greenhouse gasses.   
- Enhancing economic activity a nd regional development.   
 
4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
  The Hellenic Ministry of Development provides the subsidy, under the Law 2860/2000 (Official Gazette of the Hellenic Republic, First Issu e, No 251/14 November 2000:  "Administration, 
supervision and auditing of Community Support Fr amework III and other provisions, law entered into 
force for the adoption of Council Regulation (EC) 1260/1999, laying down general provisions on the 
structural funds") as well as the Presidential degr ee 98/96 (Official Gazette of the Hellenic Republic, 
First Issue, No 77/08 May 1996:  "Terms and pr ocedures concerning the allocation to intermediate 
agents of the implementation of programmes of the Ministry of Development or part thereof, which 
concern the sectors of industry, energy, research  and technology, and correspond to private sector 
projects, as well as the management of the respective funds").   
  The subsidy is granted according the Corri gendum to Guidelines on National Regional 
Aid 98/C 394/09 (Official Journal of the European Communities No C74 10 March 98), the Community Guidelines on State aid for environmental protection (Official Journal of the European Communities No C37, 3 February 2001), the Commission Regulation (EC) No 70/2001 of 
12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and 
medium-sized enterprises (Official Journal of the European Communities No L10, 13 January 2001) 
and the Community Guidelines on State aid for environmental protection (Official Journal of the European Communities No C37, 3 February 2001).    
 The subsidy programme was approved by th e European Commission on 18 February 2002 
[Commission Decision C(2002)232/18 February  2002, State aid N323/2001-Greece, Aid for 
investment in sustainable energy] and modified by the European Commission on 18 November 2004 [Commission Decision C(2004)4558/18 November 2004 , State aid N428/2004-Greece, Modification 
of scheme N323/2001 Aid for investment in sustainable energy].    
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
  Grant.    6. To whom and how the subsidy is provided
 
 
 Potential beneficiaries can be private enterprises in any case of size.     The Ministry of Development administer the subsidies provision to potential beneficiaries, 
since has the statutory responsibility for the implementation of the Operational Programme 
"Competitiveness" (CSF III for Greece).    G/SCM/N/155/EEC/Add.11 
 Page 5 
 
 
   The Managing Authority for the programme (H ellenic Ministry of Development) has the 
primary responsibility of ensuring compliance with  EU regulations and rules, coordinating the 
implementation of the programme -including its fi nancial aspects- and organising the Monitoring 
Committee.  Representatives of social partne rs and other involved organizations and bodies, 
appointed by common ministerial decision, constitute the Operational Programme Monitoring 
Committee.   
  The Managing Authority closely cooperates with  the Paying Authority and is subject to 
control by the later, in a continuous basis.    
 The Paying Authority monitors the payments of  final beneficiaries, manages audit results and 
monitors the whole process of community and natio nal financial contribution to final beneficiaries 
with right to intervene.  The Paying Authority cross-checks expenditures with central bank as well as 
cross-checks data regarding payments made  by the Commission with central bank.   
 
 The standard procedure for the implementa tion of the aid scheme is the following:   
 1) Announcement of the Call for proposals (tenders),  that provide potential applicants with the 
necessary programme information such as:  objectives and expected results, terms and 
conditions of participation, fi nancing information (intensity of the aid, lower and upper 
budget limits for individual proposals), eligible expenses, evaluation procedure and criteria, 
duration of the scheme, budget for the scheme, dates for the submission of tenders.  The 
eligible potential applicants invited to submit i nvestment proposals have at their disposal the 
published implementation guide for relevant projects.   
 2) Evaluation procedure 
 A technical committee appointed and supervi sed by the Ministry of Development, is 
responsible for the fully competitive evaluati on procedure.  Three successive evaluation 
stages are foreseen where the proposal complete ness is scrutinized, and the experience and 
reliability of the applicants as well as the qualit y of the proposed projects are evaluated.   
  Proposals that do not comply w ith the rules and conditions for eseen in the Call for proposals 
and the aforementioned implementation guide are rejected.   
 3) Announcement of the applicants entitled to get the grant and signing of implementation 
contracts.   
 
 After the successful conclusion of the evaluation of the investment project proposals, a 
Ministerial Decision is issued with all the app licants entitled to get the grant, by the General 
Secretary of the Ministry of Development.  The positive opinion of the Operational Programme Monitoring Committee is a prerequi site for the issuing of the Ministerial 
Decision.   
 
 Following, a contract between the competent Inte rmediate Agent and the aid recipient, for the 
implementation of the project / investment is  signed.  The definition and the role of 
Intermediate Agents have been fully descr ibed in the approved by the Commission, 
Operational Programme "Competitiveness", Comm unity Support Framework III for Greece.   
 
 The contract prescribes the terms and conditions for the implementation of the investment, in 
particular and among others the provision of grant, the technical description of the investment, the timetable of the investment, the budget allocation, the audits and payments 
procedures, deposit of foreseen guarantees by the potential recipients, as well as the penalty procedures.   
 G/SCM/N/155/EEC/Add.11 
Page 6  
 
  4) Audit and verification procedures.   
  The aid recipients are subject to audit and verification procedures before, during and after 
project implementation.   
 
 In case that the beneficiaries either fail to co mply with rules and conditions mentioned in the 
call for proposals and the implementation guide or fail to meet the contractual objectives, 
penalties' procedure will be activated, i.e. susp ension of payments, termination of the project 
and forfeiture of foreseen guarantee.   
 
7. Total amount of the annual amount budgeted for that subsidy
 
  Total amount of public funds (including National and Community funds) for 2005:  
48.22 million Euros.    
 Total amount of public funds (including National and Community funds) for 2006:  
57.37 million Euros.    8. Duration of the subsidy
 
  From 1 January 2001 to 31 December 2006.   
 
9. Trade effects of the subsidy
 
  No effects on international trade.    
 
III. INNOVATIVE ENERGY PROJECTS FOR THE GREEK ISLANDS 
 
1. Title of the subsidy programme
 
  Innovative energy projects for the Greek islands.    
2. Period covered by the notification
: 
  2005 & 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
 
- Enhancing economic activity, re gional development and envir onmental protection of Greek 
islands.   
- Security of electricity supply, desalination.   
 
4. Background and authority for the subsidy (including identification of the  legislation under 
which it is granted)  
  The Hellenic Ministry of Development provides the subsidy, under the Law 2860/2000 (Official Gazette of the Hellenic Republic, First I ssue, No 251/14 November 2000:  "Administration, 
supervision and auditing of Community Support Fr amework III and other provisions, law entered into 
force for the adoption of Council Regulation (EC) 1260/1999, laying down general provisions on the 
structural funds") as well as the Presidential degr ee 98/96 (Official Gazette of the Hellenic Republic, 
First Issue, No 77/08 May 1996:  "Terms and pr ocedures concerning the allocation to intermediate 
agents of the implementation of programmes of the Ministry of Development or part thereof, which  G/SCM/N/155/EEC/Add.11 
 Page 7 
 
 
  concern the sectors of industry, energy, research  and technology, and correspond to private sector 
projects, as well as the management of the respective funds").     The subsidy is granted according the Corri gendum to Guidelines on National Regional 
Aid 98/C 394/09 (Official Journal of the European Communities No C74 10 March 98), the 
Community Guidelines on State aid for environmental protection (Official Journal of the European 
Communities No C37, 3 February 2001), and th e Commission Regulation (EC) No 70/2001 of 
12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (Official Journal of the Eu ropean Communities No L10,  13 January 2001).   
 
 The subsidy programme was approved by the European Commission on 27 May 2003 
[Commission Decision C(2003)1651fin/27 May 2003, State aid N724/2002-Greece, Innovative energy projects for the Greek islands].    5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
 
 Grant.    6. To whom and how the subsidy is provided
 
  Potential beneficiaries can be private enterprises in any case of size.   
 
7. Total amount of the annual amount budgeted for that subsidy
 
  Total amount of public funds (including Nationa l and Community funds) for 2005:  0 Euros.   
 Total amount of public funds (including Nationa l and Community funds) for 2006:  0 Euros.   
 
8. Duration of the subsidy
 
  From 27 May 2003 to 31 December 2006.    9. Trade effects of the subsidy
 
 
 No effects on international trade.     
IV. DEMONSTRATION PROJECTS OF INNOVATIVE ENERGY TECHNOLOGIES 
 
1. Title of the subsidy programme
 
  Demonstration projects of innovative energy technologies.   
 
2. Period covered by the notification
 
 
 2005 & 2006.   
 
3. Policy objective and/or purpose of the subsidy  
 
- Promotion of energy saving, substitution of conventional solid and liquid fossil fuels and 
environmental protection.   
- Regional development.   
- Provision of state aid to private enterprises implementing innovative technologies of the 
energy sector (as innovative technologies are consid ered those that are technically proven but 
their market penetration is restricted due to high financial risks).   G/SCM/N/155/EEC/Add.11 
Page 8  
 
  4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted  
  The Hellenic Ministry of Development provides the subsidy, under the Law 2860/2000 (Official Gazette of the Hellenic Republic, First Issu e, No 251/14 November 2000:  "Administration, 
supervision and auditing of Community Support Fr amework III and other provisions, law entered into 
force for the adoption of Council Regulation (EC) 1260/1999, laying down general provisions on the 
structural funds") as well as the Presidential degr ee 98/96 (Official Gazette of the Hellenic Republic, 
First Issue, No 77/08 May 1996:  "Terms and pr ocedures concerning the allocation to intermediate 
agents of the implementation of programmes of the Ministry of Development or part thereof, which 
concern the sectors of industry, energy, research  and technology, and correspond to private sector 
projects, as well as the management of the respective funds").     The subsidy is granted according the Corri gendum to Guidelines on National Regional 
Aid 98/C 394/09 (Official Journal of the European Communities No C74 10 March 98), the 
Community Guidelines on State aid for environmental protection (Official Journal of the European 
Communities No C37, 3 February 2001), and th e Commission Regulation (EC) No 70/2001 of 
12 January 2001 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises (Official Journal of the Eu ropean Communities No L10,  13 January 2001).   
  The subsidy programme was approved by the European Commission on 11 August 2004 
[Commission Decision C(2004)3186/11 August 2004,  State aid N92/2004-Greece, Demonstration 
projects of innovative energy technologies].    5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
 
 Grant.   
 6. To whom and how the subsidy is provided
 
  Potential beneficiaries can be private enterprises in any case of size.    
7. Total amount of the annual amount budgeted for that subsidy
 
  Total amount of public funds (including Nationa l and Community funds) for 2005:  0 Euros.   
 Total amount of public funds (including Nationa l and Community funds) for 2006:  0 Euros.   
 
8. Duration of the subsidy
 
  From 27 May 2003 to 31 December 2006.    9. Trade effects of the subsidy
 
 
 No effects on international trade.   
  
V. SUBSIDIES TO PRIVATE INVESTMENT FOR THE ECONOMIC AND REGIONAL 
DEVELOPMENT OF THE STATE 
 
1. Title of the subsidy programme
 
 
Subsidies to private investment for the economic an regional development of state.    G/SCM/N/155/EEC/Add.11 
 Page 9 
 
 
  2. Period covered by the notification  
 
2005 and 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
Law 3299/2004 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 
 
4. Background and authority for the subsidy  
 
Law 3299/2004 on subsidies to private investment for the economic and regional 
development of the state (published in the O fficial Gazette of the Hellenic Republic of 
23 December 2004).  Law 3299/04 as amended a nd supplemented by Law 3522/2006, replaced the 
previous Law 2601/1998.   
 
As a general rule the authority responsible for administering the Law is the Central Service of 
the Ministry of National Economy.  However, applica tions for aid investments to the industrial sector 
up to € 3 millions are administered locally by the Ministry of Development/ General Secretariat of Industry.  The General Secretariat of Industry also  provided subsidies for the enhancement of SMEs 
competitiveness to sectors such as environment protection.   
 5. Form of the subsidy
 
 
Aid is granted in the following forms:   
 
(i) Grants or/ and leasing payment contributions.   
(ii) Tax exemptions.   
 6. To whom and how the subsidy is provided
 
 
 Industries of all sectors could avail of ai d under Law 3299/2004 regardi ng the aid intensities, 
as they are identified under the European Charte r for Small and Medium sized Enterprises.   
 7. Amount of the subsidies:
 
  2005:  316,7 million euros.   
 2006:  415,4 million euros.   
 8. Duration of the subsidies:
 
 
The 3299/2004 entered into force in early 2005.   
 
9. Trade effects of the subsidy  
 
No effects on international trade.   
 G/SCM/N/155/EEC/Add.11 
Page 10  
 
  VI. AID REGIMES TO SMES COMMUNI CATION UNDER REGULATION 70/2001 
 
1. Title of the subsidy programme
 
 
Aid regimes to SMEs communication under regulation 70/2001.   
 
2. Period covered by the notification  
 
2005 and 2006.   
 
3. Policy objective and/or purpose of the subsidy  
 
Improvement and modernization of the competitiveness for small & very small enterprises.   
 4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
 
The subsidy is provided by the General Secretar iat of Industry of the Hellenic Ministry of 
Development.    
This subsidy is granted un der regulations 70/2001.   
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
 
Grants.   
 
6. To whom and how the subsidy is provided  
 
Existing SMEs for the enhancing of thei r competitiveness (support of start-ups, youth 
entrepreneurship, women's entrepreneurship etc).    7. Total amount or the annual amount budgeted for that subsidy
 
 
Amount for 2005:  € 113,8 millions.   Amount for 2006:  € 298,2 millions.   
 8. Duration of the subsidy
 
 
1 January 2005 to 31 December 2006.   
 9. Trade effects of the subsidy
 
 
No effects on international trade.   
 
  
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