WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.2 
23 December 2009 
 
 (09-6545) 
Committee on Subsidies and 
Countervailing Measures Original: French 
 
 
 
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 Belgium . 
 
_______________ 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.2 
Page 2  
 
  BELGIUM 
 
 
TABLE OF CONTENTS 
 
Page 
 
INTRODUCTION................................................................................................................... ...............4  
1. BELGIUM - FEDERAL STATE - ANNUAL REPORT 2007 AND 2008 ...........................4  
1.1 AID FOR RESEARCH AND DEVELOPMENT ...................................................................................4  
1.2 AID FOR MARITIME TRANSPORT - TONNAGE TAX......................................................................4  
1.3 TAX MEASURES TO PROMOTE THE PRODUCTION OF AUDIOVISUAL WORKS - TAX 
SHELTER REGIME ........................................................................................................................5  
1.4 TAX MEASURES FOR EXEMPTION FROM OR REDUCTION OF EXCISE DUTY ON ENERGY 
PRODUCTS AND ELECTRICITY .....................................................................................................6  
1.5 TAX MEASURES APPLYING REDUCED EXCISE RATES TO BIOFUELS ..........................................7  
1.6 MEASURES OF PARTIAL EXEMPTION FROM PROFESSIONAL WITHHOLDING TAX TO 
PROMOTE R&D...........................................................................................................................8  
2. BELGIUM - BRUSSELS-CAPITAL REGION  - ANNUAL REPORT 2007 AND 2008 ...8  
2.1 AID FOR ECONOMIC GROWTH .....................................................................................................8  
2.1.1 Order of 1 July 1993 on the promotion of economic growth in the 
Brussels-Capital Region ........................................................................................................ ...8 
2.1.2 Economic Reorientation Law of 4 Augu st 1978 and Order of 1 April 2004......................10  
2.2 AID FOR RESEARCH AND DEVELOPMENT .................................................................................13  
2.2.1 Subsidies for basic industrial research .................................................................................13  
2.2.2 Pre-competitive development (e.g. prototype advances) .....................................................14  
2.2.3 Pre-competitive development (e.g. prototype advances) .....................................................15  
2.3 AID FOR COMMERCIAL PROSPECTING ......................................................................................15  
2.3.1 Order of 13 January 1994 on the promotion of foreign trade ............................................15  
2.4 AID FOR EMPLOYMENT .............................................................................................................16  
2.4.1 Order of 18 March 2004 concerning the approval and funding of local initiatives 
to develop employment and in tegration enterprises............................................................16  
2.4.2 Decree of the Government of the Brussels-Capital Region of 11 March 2004 
amending Articles 53 to 58 of the Royal Decree of 20 December 1963 relating to employment and unemployment ...........................................................................................17
 
3. BELGIUM - WALLOON REGION - ANNUAL REPORT 2007 AND 2008....................17  
3.1 AID TO SME S............................................................................................................................17  
3.1.1 Law of 4 August 1978 on economic reorient ation, as amended by the Decree of 
25 June 1992 - Implementation  Orders of 21 May 1999......................................................17  
3.1.2 Decree of 11 March 2004 - Implementation Order of 6 May 2004.....................................18   G/SCM/N/186/EEC/Add.2 
 Page 3 
 
 
  3.2 AID TO DISADVANTAGED REGIONS ..........................................................................................19  
3.2.1 Decree of 11 March 2004 on regional incenti ves in favour of large enterprises - 
Implementation Order of 6 May 2004...................................................................................19  
3.2.2 Aid co-financed by the European Union - European Regional Development (ERDF) Programme 2007-2013 .............................................................................................20
 
3.3 RESEARCH AND TECHNOLOGY AID..........................................................................................21  
3.3.1 Decree of 5 July 1990 on aid and action by the Walloon Region to promote research and technology, and its Implementation Orders ..................................................21
 
4. BELGIUM - FLEMISH REGION - ANNUAL REPORT 2007 AND 2008.......................22  
4.1 AID FOR ECONOMIC EXPANSION - DECREE OF 31 JANUARY 2003  ON THE ECONOMIC 
SUPPORT POLICY .......................................................................................................................22  
4.1.1 Decision of the Flemish Government of 10 October 2003 regarding the granting of aid to small and medium-sized enterprises for investments in the Flemish Region (growth premium)......................................................................................................23
 
4.1.2 Decision of the Flemish Government of 12 December 2003 regarding the 
granting of aid to large enterprises fo r investments in assisted areas in the 
Flemish Region (expired - only  pending cases in 2007-2008)..............................................24  
4.1.3 Decision of the Flemish Government of 1 October 2004 regarding the granting of 
aid to enterprises for ecological investme nts in the Flemish Region (ecological 
premium) - amended by the Decision of the Flemish Government of 16 May 2007. .......................................................................................................................... ...............25
 
4.1.4 Decision of the Flemish Government of  22 February 2008 regarding strategic 
training or investment programmes for enterprises in the Flemish Region......................26  
4.2 AID TO ENTERPRISES - DECISION OF THE FLEMISH GOVERNMENT OF 16 DECEMBER 
2005  REGARDING THE GRANTING OF AID TO SMALL AND MEDIUM -SIZED 
ENTERPRISES FOR ENTREPRENEURSHIP ENCOURAGING SERVICES (BUDGET FOR 
ECONOMIC ADVICE - BEA).......................................................................................................27  
4.3 RESEARCH AND DEVELOPMENT ................................................................................................28  
4.4 AID TO THE FISHERIES AND AQUACULTURE SECTOR ...............................................................29  
4.5 AID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE - FLEMISH 
AGRICULTURAL INVESTMENT FUND.........................................................................................31  
4.6 AD HOC TRAINING AID.............................................................................................................34  
4.7 EMPLOYMENT AID....................................................................................................................35  
 
N.B.:  1 euro = 40.3399 FB (Belgian francs) G/SCM/N/186/EEC/Add.2 
Page 4  
 
  INTRODUCTION 
 
 Following recent reforms in Belgium, the greater part of investment policy is now 
constitutionally the responsibility of the Flemish,  Walloon and Brussels regions.  Consequently, the 
regions are also responsible for applying legisla tion on economic growth and aiding SMEs in their 
respective areas.  In the Belgian notification of s ubsidies, the evaluation of whether the subsidy is 
"general" or "specific" therefore relates to  the regulations in force in each region. 
 
1. BELGIUM - FEDERAL STATE - ANNUAL REPORT 2007 AND 2008 
1.1 A
ID FOR RESEARCH AND DEVELOPMENT  
(a) Form of the subsidy  
  Non-repayable subsidies.  (b) Total amount of the subsidies granted in 2007 and 2008
 
 
 Projects for which the Federal State is responsible:   2007:  Total commitments:  €3,300,000.  2008:  Total commitments:  €3,190,000.  
(c) Purpose of the subsidy
 
  Collective pre-standard research.  (d) Duration
 
 
 Subsidies cover a one-year period.  1.2 A
ID FOR MARITIME TRANSPORT - TONNAGE TAX 
Articles 115 to 127 of the Programme Law of 2 August 2002, as amended by the Programme 
Law of 27 December 2004, Articles 334 to 348. 
 
(a) Form of the subsidy  
 Flat-rate determination of profits taxable in Belgium on the basis of the tonnage of vessels. 
 
(b) Amount in 2007 and 2008
 
  2007:  €117.7 million  2008:  €117.7 million  (c) Policy objective
 
 
To enable Belgium to develop mariti me shipping under the Belgian flag. 
  G/SCM/N/186/EEC/Add.2 
 Page 5 
 
 
  (d) Duration  
  From the taxable period following that in whic h the application was made, until the end of the 
taxable period which comes to a close during the tenth calendar year following that in which the 
application was made. 
 
 At the end of the above period, the scheme is  tacitly renewed for the same length of time. 
 (e) Rules and conditions
 
 
 The Programme Law of August 2002 provides fo r a series of fiscal measures in favour of 
maritime transport in Belgium:  
(1) A presumptive tax regime based on tonnage for shipping companies; 
 
(2) a set of measures in favour of shipping companies that have not opted for 
tonnage-based presumptive taxation, comprising accelerated depreciation, capital gains exemption on the sale of vessels, exem ption subject to conditions of reuse, and 
tax deductions on the purchase of vessels; 
 
(3) abolition of the ship mortgage registration fee; 
(4) a tonnage-based presumptive tax regime for ship management companies acting on 
behalf of third parties, where the latter provide services to ship-owners. 
  The tonnage-based presumptive tax regime (1) cons ists in replacing, in the case of shipping 
companies opting for this regime, the tax base used to calculate corporation tax by a fixed amount 
determined on the basis of the tonnage of the fleet  concerned.  This regime lays down no conditions 
regarding the flag of vessels.   
A similar mechanism resu lting in the determination of an even more favourable fixed amount 
is available to vessel managers acting on behalf of a third party, subject to the condition that three 
quarters of the latter's fleet under management should be registered under the Belgian flag. 
 
1.3 T
AX MEASURES TO PROMOTE THE PRODUCTION OF AUDIOVISUAL WORKS - TAX SHELTER 
REGIME  
Articles 128 to 129 of the Programme Law of 2 August 2002 inserting Article 194 ter into the 
Income Tax Code of 1992, replaced by Articl e 291 of the Programme Law of 22 December  2003 
and amended by Article 2 of the Law of 17 May 2004. 
 
(a) Form of the subsidy  
  Tax incentive.  
(b) Amount
 
  Estimated figures:   2007:  €14.28 million 
 2008:  € ........ million (figures not yet available) 
 G/SCM/N/186/EEC/Add.2 
Page 6  
 
  (c) Policy objective
 
  Tax incentive in the cultural field aimed at supporting the production and creation of Belgian 
audiovisual works.  
(d) Duration
 
  Entered into force in the 2004 tax year.  (e) Rules and conditions
 
 
 Exemption of the taxable profits of a company wishing to invest in an audiovisual production (up to 150 per cent of the amounts actually invested).  1.4 T
AX MEASURES FOR EXEMPTION FROM OR REDUCTION OF EXCISE DUTY ON ENERGY 
PRODUCTS AND ELECTRICITY  
Excise duty on energy products and electri city, Programme Law of 27 December 2004 
(Articles 419 and 420, paragraphs 5 and 6).  The reduced rates granted on the basis of 
environmental permits are governed by Arti cle 17, paragraph 2, of Council Directive 
2003/96/EC restructuring the Community framewor k for the taxation of energy products and 
electricity. 
 
(a) Form of the subsidy  
  The aid granted consists of a reduction of or an exemption from excise duties.  
(b) Amount in 2007 and 2008
 
  As these are reduced rates,  no information is available on the amount involved in their 
implementation.  Only the number of environmenta l permits is known, but this cannot be used to 
determine the exact amount of the total reduction in excise revenue.  
(c) Policy objective
 
  The tax measures apply to the professional c onsumption of energy-intensive enterprises 
engaged in economic activity involving production, trading or the provision of services, including 
mining and agricultural activities and liberal professions. 
 
(d) Duration
 
  The reduced excise rates provided for in  Article 419 of the Programme Law of 
27 December  2004 have been in force since 1 Janua ry 2005.  The scheme is valid for ten years from 
the date of its entry into force. 
 
(e) Rules and conditions
 
  The aid granted consists of a reduction of or  an exemption from excise duties for enterprises 
which have concluded an environmental agreement. 
 
 In this case, energy-intensive enterprises hol ding an environmental permit are granted a zero 
rate, while a reduced rate (normally 50 per cent) is applied to other ente rprises which hold such a 
permit.  G/SCM/N/186/EEC/Add.2 
 Page 7 
 
 
   
1.5 TAX MEASURES APPLYING REDUCED EXCISE RATES TO BIOFUELS  
Reduced excise rates for biofuels, Programme Law of 11 July 2005 (Chapter 1, Title V). 
 
(a) Form of the subsidy  
 
 The aid is granted in the form of a reduction in the excise rate.  (b) Amount in 2007 and 2008
 
 
 2007:   €0.00 
 2008:   €0.00  (c) Policy objective
 
 
 This aid scheme aims to protect the environment by encouraging the placing on the market of 
biofuels through the grant of a reduction in excise duty.   The reduction of excise duty allows fuels from a renewable source to compete with fuels of 
fossil origin, the cost price of which is significantly lower.  
 The purpose of the aid is to compensate fo r the difference between the production costs and 
the market price of renewable energy.  (d) Duration
 
 
 The duration of the scheme is limited to six years, from 24 October 2005 to 24 October 2011. 
 (e) Rules and conditions
 
  The aid is granted in the form of a reduction in  the excise rate when the fuel is released for 
domestic consumption. 
 
 The reduction of the excise rate for bioethanol  and biodiesel is granted in the form of a 
reduction in the excise rate applicable to mixtures of  fossils/renewable fuels in relation to the rate 
applicable to pure fossil fuels which the biofuels substitute. 
 
 The fossil fuels concerned are: 
 
• Unleaded petrol: 
 
- With an octane level of 98 or a lower sulphur and aromatics content, or - with an octane level lower than 98;  and 
 
• diesel with a sulphur content not exceeding 50 mg./kg. 
 G/SCM/N/186/EEC/Add.2 
Page 8  
 
  1.6 M
EASURES OF PARTIAL EXEMPTION FROM PROFESSIONAL WITHHOLDING TAX TO PROMOTE 
R&D 
 Law on the Solidarity Pact between Generations (Generation Pact) of 
23 December 2005, in particular Articles 106, 109, 110 and 113 (Official Journal ( Moniteur 
Belge ) of 30 December 2005) Art. 275§3-2 of CIR92 
 
(a) Form of the subsidy  
   Exemption from payment of 50 per cent of the professional withholding tax on the part of the 
employer. 
 
(b) Amount in 2007 and 2008
 
  For 2007, the budgetary cost is €171.3 million.  For 2008, the budgetary cost is €244.6 million. 
 
(c) Policy objective
 
  Promotion of R&D activities by reducing scientific staff costs.  (d) Duration
 
 
 The scheme has an initial duration of five years.   An assessment will be made after that time:  
if the results are positive, the measure w ill be renewed for a further five years. 
 (e) Rules and conditions
 
 
 The beneficiaries of the measu re are companies that meet the definition of "Young Innovative 
Company" and which pay or assign salaries to their scientific personnel, employed as salaried staff within the company.   The exemption amounts to 50 per cent of the professional withholding tax applied to salaries 
paid as from 1 July 2006. 
  N.B.:  However, the other exemptions from payment  of professional withholding tax for the 
employment of researchers assigned to research pr ojects, including partnership projects with 
universities or institutes of higher education, are classified as a general measure rather than State 
aid.  
2. BELGIUM - BRUSSELS-CAPITAL REGI ON - ANNUAL REPORT 2007 AND 2008 
2.1 A
ID FOR ECONOMIC GROWTH  
2.1.1 Order of 1 July 1993 on the promotion of economic growth in the Brussels-Capital 
Region 
(a) Form of the subsidy  
  Financial aid is granted in the form of an investment premium.   G/SCM/N/186/EEC/Add.2 
 Page 9 
 
 
  (b) Total amount of the subsidies granted in 2007  
 
Type of 
Investment  Number of 
programmes  Subsidized 
amount 
(€) Amount of 
premiums 
(€) Average 
rate of aid 
(%) 
General investment 4 1,304,585 71,751 5.50 
   
Specific investment    
- Rational energy use 16 2,107,104 421,414 20.00 
- Rational water use 2 378,141 75,628 20.00 
- Rational use of raw materials 14 3,692,107 738,419 20.00 
- Environmental protection 7 548,860 98,669 18.00 
- Adaptation to European 
standards 9 3,562,412 534,357 15.00 
 48 10,284,624 1,868,487 18.16 
TOTAL (general and specific 
investments) 52 11,593,209 1,940,238 16.74 
- Use of consultancy services 
- Use of training services - Use of mentoring services 221 
241 
11 4,533,238 
993,455 
66,000 2,196,856 
468,163 
66,000 48.50 
47.10 
100.00 
TOTAL (Consultancy, training and mentoring services) 473 5,592,693 2,731,019 48.80 
OVERALL TOTAL 525 17,185,902 4,671,257  
 
(c) Total amount of the subsidies granted in 2008  
 
Type of 
Investment  Number of 
programmes  Subsidized 
amount 
(€) Amount of 
premiums 
(€) Average 
rate of aid 
(%) 
General investment 1 76,645.10 4,215.00 5.50 
    
Specific investment     
- Rational energy use 6 364,560.37 72,908.00 20.00 
- Rational water use 1 392,896.90 78,579.00 20.00 
- Rational use of raw materials 5 5,533,065.18 1,106,611.00 20.00 
- Environmental protection 3 431,085.84 86,215.00 18.00 
- Adaptation to European 
standards 4 4,340,725.54 651,107.00 15.00 
 19 11,062,333.83 1,995,420.00 18.04 
TOTAL (general and specific 
investments) 20 11,138,978.93 1,999,635.00 17.95 
Use of consultancy services     
- Studies 62 1,375,692 630,086 45.8 
- Advice 72  3,779,600 1,842,880 48.8 
Use of training services  166 729,135 323,227 45.7 
TOTAL (Consultancy and 
training services) 300 5,885,027 2,796,193 47.5 
Mentoring services 9 - 51,000 - 
 G/SCM/N/186/EEC/Add.2 
Page 10  
 
  (d) Policy objective and/or purpose of the subsidy
 
  The policy objective of the Order of 1 July 1993 is to promote economic growth by granting financial aid to industrial or commercial enterprises that invest in the Brussels-Capital Region.  This 
legislation is an organizational order aimed at gr ouping together under a single regulation all aid for 
the promotion of economic growth. 
  Aid for general investment, which is covered in  this chapter, is granted in the form of 
investment premiums.  
 The amount of this aid depends on the enterprise's  sector of activity, its size and the type of 
investment:  
• Enterprises of any size may benefit from aid for "specific" investment for the purpose 
of: 
- Saving energy, water or raw materials; 
- protecting the environment; 
- adapting to European standards. 
 
• Medium-sized enterprises (maximum 250 em ployees and turnover of €40 million) 
may benefit from aid for "general" investment. 
 
• Micro, small and medium-sized enterprises (SMEs) may benefit from aid for 
consultancy, training and mentoring services. 
 (e) Duration of the subsidy and/or an y other time-limits attached to it
 
  Depending on the amount of the premium and the duration of the investment programme, the premium is paid in one, two or three annual tranches. 
 
(f) Statistical data permitting an assessment of the trade effects of the subsidy
 
  2007:  With regard to the role played by the financial incentives provided for in the legislation 
on economic growth, it should be noted that th e €114,675,581 of subsidized investment under the 
different legislative instruments on economic grow th represent only around 7 per cent of the fixed 
capital investment made by enterprises based in the Brussels-Capital Region and operating in the 
manufacturing, building, trade and horeca sectors.*  * Source :  SPF Economie  (Federal Public Service Economy) - DGSIE  (Directorate-General of 
Statistics and Economic Information) - Invest ment, excluding VAT, for 2007 = €1,666,590,000. 
 
 2008:  Not available.  
2.1.2 Economic Reorientation Law of 4 Au gust 1978 and Order of 1 April 2004 
(a) Form of the subsidy
 
 
 The financial aid is granted in the form of an  interest subsidy or a capital premium depending 
on the method of financing of the investment programme.   G/SCM/N/186/EEC/Add.2 
 Page 11 
 
 
  (b) Total amount of aid granted in 2007  
  Interest subsidy (in €
) 
 
Legislation Number of 
decisions 
taken Subsidized 
amount of 
investment Amount 
decided Average 
rate of aid 
Law of 4 August 1978 6 5,137,183 331,288 6.45% 
Order of 1 April 2004 281 60,297,746 9,110,662 15.11% 
 
 Investment premium (in € ) 
 
Legislation Number of 
decisions 
taken Subsidized 
amount of 
investment Amount 
decided Average 
rate of aid 
Law of 4 August 1978 3 546,824 474,419 8.67% 
Order of 1 April 2004 324 48,693,828 7,022,743 14.42% 
 
(c) Total amount of aid granted in 2008  
 
 Interest subsidy (in € ) 
 
Legislation Number of 
decisions taken Subsidized 
amount of 
investment Amount 
decided Average 
rate of aid 
Order of 1 April 2004 219 65,572,540 7,676,535 11.71% 
 
 Investment premium (in € ) 
 
Legislation Number of 
decisions taken Subsidized 
amount of 
investment Amount 
decided Average 
rate of aid 
Order of 1 April 2004 362 94,429,671 14,258,624 15.10% 
 
(d) Policy objective and/or purpose of the subsidy (2007 ) 
 
 Law of 4 August 1978  
 
 The aim of the Law of 4 August 1978 is to promote investment by small enterprises.  The amount of the aid depends on the enterprise's field of activity and how long it has existed. 
 
 According to the Law of 4 August 1978, a small enterprise is one which comprises fewer than 
50 people and the turnover of which does not exceed €7 million. 
  Aid is given in the form of:  
 - An interest subsidy where the investment is financed by a fixed-term credit; 
  - an investment premium where the investment is self-financed.  G/SCM/N/186/EEC/Add.2 
Page 12  
 
   Two types of tax concession may also be granted: 
  - Accelerated (double straight-line) depreciation during three successive financial 
years; 
 
 - exemption from the advance levy on income from immovable assets. 
 
 Order of 1 April 2004  
 
 The aim of the Order is to promote investment by micro, small and medium-sized enterprises 
in accordance with the European Commissi on recommendation of 6 May 2003 concerning the 
definition of enterprises.   Aid is granted in the form of:  
 - An interest subsidy where the investment is financed by a fixed-term credit; 
  - an investment premium where the investment is self-financed.   Two types of tax concession may also be granted:  
 - Accelerated (double straight-line) depreciation during three successive financial 
years; 
  - exemption from the advance levy on income from immovable assets.  
 The scale of the aid depends on various criteria and ranges from 5 to 25 per cent. 
 (e) Policy objective and/or purpose of the subsidy (2008
) 
  The aim of the Order of 1 April 2004 is to promote investment by micro, small and medium-sized enterprises in accordance with the European Commission recommendation of 
6 May 2003 concerning the definition of enterprises,  and it replaces the Law of 4 August 1978, which 
was repealed on 14 November 2005.   Aid is granted in the form of:  
 - An interest subsidy where the investment is financed by a fixed-term credit; 
  - an investment premium where the investment is self-financed.   Two types of tax concession may also be granted:  
 - Accelerated (double straight-line) depreciation during three successive financial 
years; 
  - exemption from the advance levy on income from immovable assets.  
 The scale of the aid depends on various criteria and ranges from 5 to 25 per cent. 
  G/SCM/N/186/EEC/Add.2 
 Page 13 
 
 
  (f) Duration of aid  
 
2007  
 
 In accordance with the criteria set out in point (d ), the interest subsidy is granted for a period 
not exceeding the duration of the loan and ending  at the moment when the amount of interest 
reimbursed by the enterprise corresponds to the financial implications of the subsidy. 
  In accordance with the criteria set out in point (d ), the interest subsidy represents a percentage 
of the admissible investment.  It may be limited to  the amount of the interest actually paid by the 
beneficiary. 
  The capital premium is paid in a single payment.   The duration of the accelerated depreciation is fixed at three years. 
 
 The duration of exemption from the advance levy on income from immovable assets is 
exactly the same as that for the interest subsidy under the La w of 4 August 1978 and may be as long 
as five years under the Order of 1 April 2004.  
2008
 
 
 The interest subsidy granted represents a percenta ge of the admissible investment.  It may be 
limited to the amount of the interest actually paid by  the beneficiary.  It is paid in three tranches 
representing 50 per cent, 30 per cent and 20 per cen t of the aid, respectively, and spread over 
three financial years. 
 
 Up to 13 March 2008, the capital premium was pa id in one payment.  After that date, it was 
paid in two equal tranches divide d between two financial years. 
  The duration of the accelerated depreciation is fixed at three years.  
 The duration of the exemption from the advan ce levy on income from immovable assets may 
be as long as five years maximum.  (g) Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 - In terms of budgetary implications, 60 pe r cent of investment su bsidies was allocated 
to dossiers submitted by industrial and handicraft enterprises; 
  - 40 per cent was allocated to dossiers subm itted by commercial or service enterprises. 
 2.2 A
ID FOR RESEARCH AND DEVELOPMENT  
2.2.1 Subsidies for basic industrial research 
(a) Form of the subsidy  
  Non-repayable subsidy.  G/SCM/N/186/EEC/Add.2 
Page 14  
 
  (b) Total amount of aid granted
 
  Commitments : 
  2007 :  €6,429,300.00 
 Or 18 new projects run by 18 enterprises.  
 
 2008 :  €4,921,141.00 
 Or 16 new projects run by 16 enterprises.  
 (c) Policy objective and/or purpose of the subsidy
 
  To strengthen basic industrial research by regional enterprises.  (d) Duration of the subsidy
 
 
 Two years per subsidy.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Basic industrial research and, as such, not quantifiable in the medium or short term. 
 
2.2.2 Pre-competitive development (e.g. prototype advances) 
(a) Form of the subsidy
 
  Interest-free loans repayable upon marketing. 
 
(b) Total amount of aid granted
 
  Commitments : 
  2007 :  €0.00 
 2008 :  €3,420,747.00 
 
 Or nine new projects in 2008 run by nine enterprises.  
 
(c) Policy objective and/or purpose of the subsidy
 
 
 To promote regional development through the creation of new products, processes or 
services.  (d) Duration of the subsidy
 
 
 One to five years. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term. 
  G/SCM/N/186/EEC/Add.2 
 Page 15 
 
 
  2.2.3 Pre-competitive development (e.g. prototype advances) 
(a) Form of the subsidy  
  Non-repayable subsidy.  
(b) Total amount of aid granted
 
  Commitments : 
  2007 :  €4,931,461.00 
 Or 19 new projects run by 19 enterprises 
 
 2008 :  €2,999,034.00 
 Or 16 new projects run by 16 enterprises 
 (c) Policy objective and/or purpose of the subsidy
 
  To promote regional development through the creation of new products, processes or 
services.  (d) Duration of the subsidy
 
 
 One to five years.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term.  2.3 A
ID FOR COMMERCIAL PROSPECTING  
2.3.1 Order of 13 January 1994 on the promotion of foreign trade 
(a) Form of the subsidy  
 
 Subsidies for : 
 
• The first participation in trade fairs abroad; 
• collaboration of foreign trade experts. 
 (b) Total amount of commitments in 2007 (in €
) 
 
 Number of dossiers Total amount of commitments 
Trade fair subsidies 35 71,081.98 
Subsidies for collaboration of experts 3 16,444.60 
TOTAL 38 87,526.58 
 G/SCM/N/186/EEC/Add.2 
Page 16  
 
   Total amount of commitments in 2008 (in €
) 
 
  Number of dossiers Total amount of commitments 
Trade fair subsidies 79 138,014.67 
Subsidies for collaboration of experts 3 16,600.00 
TOTAL 82 154,614.67 
 
(c) Policy objective and/or purpose of the subsidy  
  Support for commercial prospecting efforts by  small and medium-sized enterprises in the 
Region. 
 (d) Duration of the subsidy
 
  Ad hoc aid. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.  2.4 A
ID FOR EMPLOYMENT  
2.4.1 Order of 18 March 2004 concerning the approval and funding of local initiatives to 
develop employment and integration enterprises  
(a) Form of the subsidy  
 
Non-repayable subsidy. 
 
(b) Total amount of aid granted in 2007  
 
Commitments: €3,354,686.46 
 Disbursements: €1,450,503.16  
 Total amount of aid granted in 2008
 
  Commitments: €4,500,000.00  Disbursements: €1,887,316.78  
(c) Policy objective and/or purpose of the subsidy
 
  To permit the funding of social integration enterprises and local employment development initiatives.  The subsides aim to cover operational e xpenses and the salary expenses of managerial and 
non-managerial staff.  
(d) Duration of the subsidy
 
  Subsidies are granted for four years.   G/SCM/N/186/EEC/Add.2 
 Page 17 
 
 
  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy  
  In 2007, 1,164 people benefited from this legislation.  In 2008, 948 people benef ited from this legislation. 
 2.4.2 Decree of the Government of the Brussels-Ca pital Region of 11 March 2004 amending 
Articles 53 to 58 of the Royal Decree of  20 December 1963 relating to employment and 
unemployment 
(a) Form of the subsidy
 
 
 Employment premium. 
 (b) Total amount of aid granted
 
  In 2007:  Commitments = Disbursements:  €155,875.00 
 In 2008:  Commitments = Disbursements:  €109,000.00. 
 (c) Policy objective and/or purpose of the subsidy
 
  To enable disadvantaged jobseekers to be empl oyed on the basis of contracts of indefinite 
duration (or fixed-term contracts in the case of a certain category of beneficiaries), while providing 
them with vocational on-the-job training in order to increase their employability. 
 (d) Duration of the subsidy
 
  12 months per subsidy. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  In 2007, 47 jobseekers gained employment under this measure.  In 2008, 49 jobseekers gained employment under this measure.  3. BELGIUM - WALLOON REGION - ANNUAL REPORT 2007 AND 2008 
3.1 A
ID TO SME S 
3.1.1 Law of 4 August 1978 on economic reorientation, as amended by the Decree of 
25 June 1992 - Implementation Orders of 21 May 1999 
(a) Form of the subsidy  
 
 Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
  Exemption from the advance levy on income from immovable assets (maximum five years) for investment in immovable assets, including investment in real property and fixtures. 
 
 Accelerated depreciation over a maximum of three successive taxable periods for investment in tangible fixed assets.  Exemption from the graduated registration duty on capital inflow. 
 G/SCM/N/186/EEC/Add.2 
Page 18  
 
  (b) 2007 budget
 
  The budget amounted to €0.15 million.  The premiums are awarded on the basis of a review of previous requests.  
 2008 budget
 
  The budget amounted to €0.29 million.  The premiums are awarded on the basis of a review of previous requests.  
(c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between the Walloon Region a nd any natural or legal person that undertakes 
to carry out one of more operations aimed at ach ieving sustainable development and promoting job 
creation.  The incentives are only awarded if they make a decisive contribution to achieving these 
aims.   In practical terms, the premiums are awarded in order to encourage investment by small and 
medium-sized enterprises (SMEs).  An SME is an  enterprise with a payroll not exceeding 250 people 
and a turnover not exceeding €40 million or an an nual balance sheet total not exceeding €27 million. 
 
 The premiums are awarded to SMEs in the indus trial, handicraft, tourism, trade and services 
sectors.   The scheme applies throughout the territory of  the Walloon Region for all enterprises meeting 
the SME criteria. 
  The scheme is therefore not specific, except that it only applies to SMEs. 
 (d) Duration
 
 
 No time-limit was set for the implementation of the scheme and its budget was adopted 
annually.  It ended, however, on 30 June 2004 following the adoption of the Decree of 11 March 2004 
(see 3.1.2).  Given the delay in processing applicatio ns, the last decisions were taken during the first 
six months of 2006.  In 2007 and 2008, some dossiers remained to be reviewed on the basis of these 
regulations. 
 
3.1.2 Decree of 11 March 2004 - Implementation Order of 6 May 2004 
(a) Form of the subsidy  
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
 
 Exemption from the advance levy on income from immovable assets (maximum five years, although this may be increased to seven years for e quipment in the case of the creation of SMEs) for 
investment in immovable assets, including in vestment in real property and fixtures. 
 
(b) 2007 budget
 
  The 2007 budget amounted to €137.441 million.  The premiums are awarded for a wide ra nge of projects and sectors of activity.  G/SCM/N/186/EEC/Add.2 
 Page 19 
 
 
   
 2008 budget  
  The 2008 budget amounted to €139.775 million.  The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 
(c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between the Walloon Region a nd any natural or legal person that undertakes 
to carry out one or more operations aimed at ach ieving sustainable development and promoting job 
creation.  The incentives are only awarded if they make a decisive contribution to achieving these 
aims. 
 
 In practical terms, the premiums are awarded in order to encourage investment by small and 
medium-sized enterprises (SMEs).  An SME is an  enterprise with a payroll not exceeding 250 people 
and a turnover not exceeding €50 million or an an nual balance sheet total not exceeding €43 million. 
  The premiums are awarded to SMEs in the indus trial, handicraft, tourism, trade and services 
sectors.  
 The scheme applies throughout the territory of  the Walloon Region for all enterprises meeting 
the SME criteria.   The scheme is therefore not specific, except that it applies only to SMEs. 
 
(d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  3.2 A
ID TO DISADVANTAGED REGIONS  
3.2.1 Decree of 11 March 2004 on regional incenti ves in favour of large enterprises - 
Implementation Order of 6 May 2004 
 This scheme replaces the law of 30 Dece mber 1970, as amended by the Decree of 
25 June 1992.  It entered into force fo r any request submitted after 1 July 2004. 
 
(a) Form of the subsidy  
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
 
 Exemption from the advance levy on income  from immovable assets (maximum seven years) 
for investment in immovable assets, including investment in real property and fixtures. 
 
(b) 2007 budget
 
  The budget amounted to €24.44 million. 
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 G/SCM/N/186/EEC/Add.2 
Page 20  
 
   2008 budget
 
 
 The budget amounted to €26.81 million.  The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 
(c) Policy objective
 
  In order to assist the sustainable developm ent of the Region, the Government, within the 
specific budgetary limits set annually, may gran t incentives to large enterprises which have 
operational headquarters situated in a development zone in the Walloon Region and which have an 
investment programme significantly contributing to su stainable development.  Such investments must 
not compromise the balance between the econom ic, social and environmental components of 
sustainable development.  The incentives must be necessary for the implementation of the investment 
programme.  
 In order to assess the importance of an inv estment programme in relation to sustainable 
development, the Government takes into particul ar consideration the nature of the investment 
programme, its stage of development, the field of activity in which it operates and the economic 
environment in which it is implemented.   The arrangements for granting the incentive ar e the subject of an agreement concluded 
between the parties. 
  The incentives are granted in accordance with European Community regulations and, in 
particular, the Multisectoral Community Framework on regional aid for large investment projects, the 
guidelines concerning State aid in the agricultural sector, those concerning regional State aid in 
conformity with the ceilings set by the European  Commission decision approving the eligible areas 
map for Belgium and other Community rules adopted under the provisions set forth in Articles 87 and 
89 of the Treaty establishing the European Community.   The incentives provided for by the present Decree may be combined with aid from European 
structural funds. 
 
(d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  Pursuant to the existing European rules on regional aid, however, it has a limited period of 
validity expiring on 31 December 2013. 
 
3.2.2 Aid co-financed by the European Union - European Regional Development (ERDF) 
Programme 2007-2013 
 Decree of 11 March 2004 on regional incentives in favour of large enterprises. 
 
 Implementation Order of 6 May 2004, as amended by the Order of 17 January 2008 . 
  Decree of 11 March 2004 on regional incen tives in favour of small and medium-sized 
enterprises.  
 Implementation Order of 6 May 2004, as amended by the Order of 17 January 2008. 
  These Orders of 17 January 2008 introduced a scheme of assistance relating to the "Convergence" and "Competitiveness and Employment " programmes for large enterprises and SMEs.  G/SCM/N/186/EEC/Add.2 
 Page 21 
 
 
   
(a) Form of the subsidy  
  Regional aid is co-financed by the European Union (ERDF).  The aid takes the form of an 
investment premium as described in point 3.1.1(a). 
 
(b) 2007 budget
 
  There was no budget for 2007.  The order of 17 January 2008 was published in the Official Journal ( Moniteur Belge ) on 8 February 2008. 
 
 2008 budget (regional component
) 
  The budget amounted to €42.84 million.  The pr emiums are awarded for a wide range of 
projects and sectors of activity (divided among 16 eligible fields of activity). 
 
(c) Policy objective
 
  The same as under point 3.1.1(c), except that there are specific sectoral requirements and a 
minimum number of jobs to be created (5 or 10 units depending on the size of the enterprise). 
 
(d) Duration
 
  The scheme is set to cover the period 2007-2013. 
 
3.3 R
ESEARCH AND TECHNOLOGY AID 
3.3.1 Decree of 5 July 1990 on aid and action by the Walloon Region to promote research and 
technology, and its Implementation Orders 
- Walloon Government Decree of 29 Se ptember 1994 defining a "small or 
medium-sized enterprise" with a view to granting aid and taking action to promote research and technology.  
 
- Walloon Government Decree of 29 September 1994 on aid and action to promote 
research and technology.  
 
(a) Form of the aid
 
 
A. Subsidies granted to enterprises for basic industrial research work. 
 
B. Repayable advances to enterprises for work related to applied research and 
development. 
 
C. Subsidies granted to small and medium-sized enterprises for preparatory or 
supporting studies for research or development projects. 
 (b) 2007 and 2008 budget
 
  The amount of aid per unit consists of a per centage of the admissible expenditure for the 
accepted project. 
 G/SCM/N/186/EEC/Add.2 
Page 22  
 
   The annual budget totals for 2007 for the types of aid set out in point (a) are €15,124,721, 
€57,153,272 and €5,157,441, respectively.  The total budget for 2007 is €77,435,434.   The annual budget totals for 2008 for the types of aid set out in point (a) are €23,992,276, €51,512,424 and €7,691,806, respectively.  The total budget for 2008 is €83,196,506. 
 
(c) Policy objective
 
  This horizontal aid is designed to promote research and development and to encourage 
technological innovation.  It is availa ble to all sectors of economic activity. 
 
 The types of aid defined under A and B of point  (a) above are available to enterprises of any 
size.  The aid mentioned under C is restricted to small and medium-sized enterprises.   The aid is not granted automatically, but depends on an assessment of the quality of the 
project by the administrative services. 
  Where the aid consists of a repayable advance,  the beneficiary enterprise pays it back in the 
form of regular payments if it has decided to e xploit the results of the research industrially or 
commercially.  
(d) Duration
 
  The Decree of 5 July 1990 and its im plementation orders were repealed on 
26 November 2008, the date of entry into force of a new scheme based on the Decree of 3 July 2008 
on support for research, development and innova tion in the Walloon Region and its implementation 
order of 18 September 2008.  However, no aid under this new scheme was granted in 2008. 
  The budget for R&D aid is adopted annually by the Walloon Parliament.   The duration of aid granted corresponds to th e duration of the research work or the study 
financed. 
 
(e) Statistical data
 
  The aid has an impact on trade because it may lead to the marketing of innovative products, 
processes or services.  The criteria for estimating this  impact are so numerous and complex that it is 
extremely difficult to apply statistical tools to them. 
 
4. BELGIUM - FLEMISH REGION - ANNUAL REPORT 2007 AND 2008 
4.1 A
ID FOR ECONOMIC EXPANSION - DECREE OF 31 JANUARY 2003  ON THE ECONOMIC SUPPORT 
POLICY  
 The Decree of 31 January 2003 is the new Flemish legal basis for most aid schemes and 
replaces the old economic expansion laws of 30 December 1970 and 4 August 1978 and the Decree of 
15 December 1993, which have all expired.   New aid schemes are implemented on the basis of this Decree.   G/SCM/N/186/EEC/Add.2 
 Page 23 
 
 
  4.1.1 Decision of the Flemish Government of 10 October 2003 regarding the granting of aid to 
small and medium-sized enterprises for in vestments in the Flemish Region (growth 
premium) 
(a) Form of aid  
 
 This scheme is aimed at investment aid, as defined by the EU Commission in its SME 
Regulation No. 70/2001 of 12 Janua ry 2001, and was notified to the Commission in accordance with 
the provisions of that Regulation.  (b) Amount of aid in 2007
 
 
 In 2007, the total budgeted am ount of aid was €47.36 million. 
  Amount of aid in 2008
 
 
 In 2008, the total budgeted am ount of aid was €47.53 million. 
 (c) Objectives of the aid
 
  The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The promotion of investments by SMEs is one of the 
best ways of ensuring that.  The aid sch eme aims at promoting entrepreneurship. 
 (d) Time-frame
 
  The decision of the Flemish Government of  10 October 2003 was principally unlimited in 
time.  The scheme was based upon EU Regulation No . 70/2001, which has been replaced by the new 
EU general block exemption regulation No. 800/2008 .  The Flemish Government decided to suspend 
the aid scheme on 31 December 2008.  Starting from 2009 this scheme will thus (temporarily?) be expired.  (e) Statistics
 
 
 As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade.  (f) Legal basis
 
 
 The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government  (e.g. Decision of 10 October 2003). 
 (g) Rules and conditions
 
 
 The scheme has been developed to provide aid to SMEs and will have an effect on the whole 
of the territory of the Flemish Region.  In the assi sted areas, the maximum percentage of possible aid 
to be granted to enterprises will be higher.   The Flemish Government adopted a double sta ndard for investment aid to SMEs, depending 
on the amount of the investments envisaged by the enterprises. 
  If the eligible investments are below €8 million,  a so-called "call" system is used.  All 
companies that wish to receive aid can participat e in a concourse and file a dossier, which will be G/SCM/N/186/EEC/Add.2 
Page 24  
 
  assessed on the basis of pre-established criteria.  This  system is rather easy going, as the best ranked 
projects are granted the aid, as far as the budget a llows it.  Such calls can be organized every 
three months.   Investment programmes above €8 million (so- called "strategic programs") will be decided 
upon by decision of the Flemish Government.  This work method is necessary to allow the Minister of 
Economic Affairs some space to negotiate with the companies interested in investing in Flanders. 
  The enterprises qualifying for aid will receive a per centage of their eligible investment costs. 
 4.1.2 Decision of the Flemish Government of 12 December 2003 regarding the granting of aid 
to large enterprises for invest ments in assisted areas in the Flemish Region (expired - 
only pending cases in 2007-2008) 
(a) Form of aid
 
 
 This scheme is aimed at investments made by large enterprises in assisted areas, and is based 
on the EU guidelines on regional aid (OJ, 10/3/1998, C74).  The scheme was notified to, and approved by, the European Commission.  The new scheme came into force on 1 January 2004, and 
replaces the "old" system based on the law of 30 December 1970.  As the regional aid map expired on 31 December 2006, so did the aid scheme.  
(b) Amount of aid in 2007 and 2008
 
  As the scheme expired end-2006, no new budget is foreseen.  In 2007 and 2008, there were 
only payments in earlier decided cases.  
 In 2007, a total of €25.81 million was attributed to this type of aid. 
  In 2008, a total of €24.52 million was attributed to this type of aid. 
 (c) Objectives of the aid
 
 
 Regional aid is aimed at the development of  the lowest scoring areas within the Flemish 
Region and provides the Flemish Government with  a strong tool for attracting (new) investors 
towards the assisted areas where the economic situati on is less favourable than in the rest of the 
country and the European Union.  
(d) Time-frame
 
  The Decision of the Flemish Government of 12 December 2003 came into force on 1 January 2004 and had to end on 31 December 2006, the final valid date of the regional aid maps 
approved by the European Commission for the pe riod 2000-2006.  On 20 July 2006, the Flemish 
Government decided to suspend this regional ai d scheme, as the run-through time of a case is 
approximately six months, and the EU rules require that all decisions in regional aid cases are 
ultimately taken on 31 December 2006.   A new Flemish Government decision was taken in 2008, following the entry into force of the new regional aid map 2007-2013 (see point 4.1.4). 
  G/SCM/N/186/EEC/Add.2 
 Page 25 
 
 
  (e) Statistics  
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade.  
(f) Legal basis
 
  The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government (e.g. Decision of 12 December 2003).  
(g) Rules and conditions
 
  The scheme has been developed to provide aid to  large enterprises within assisted areas.  The 
maximum percentage of possible aid to be grante d is fixed by the European Commission.  The 
enterprises qualifying for aid will receive a percen tage of their eligible investment costs. 
 
 Theoretically, a double standard exists for inv estment aid for large enterprises in assisted 
areas, depending on the amount of the investment s envisaged by the enterprises.  However, the 
Flemish Government decided not to launch a call procedure for investments below €8 million.  Only aid for strategic projects (investment programmes a bove €8 million), decided upon by decision of the 
Flemish Government, was accepted. 
 
4.1.3 Decision of the Flemish Government of 1 Oc tober 2004 regarding the granting of aid to 
enterprises for ecological investments in th e Flemish Region (ecological premium) - 
amended by the Decision of the Flemish Government of 16 May 2007. 
(a) Form of aid
 
 
 This scheme is aimed at investment aid, but exclusively for ecological investments, as defined 
by the EU Commission in its framework for State ai d in favour of the environment (OJ, 3/2/2001, 
C 37), and was notified to, and approved by, the European Commission.  (b) Amount of aid in 2007 and 2008
 
 
 In 2007, the Flemish Government granted aid for ecological investments based on this new 
scheme for a total budget of €166.07 million.   In 2008, the Flemish Government gran ted aid for a total budget of €76.23 million. 
 
(c) Objectives of the aid
 
  The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of ecological investments is a valuable 
tool in achieving that goal. 
 
(d) Time-frame
 
  The decision of the Flemish Government of 1 October 2004 came into force on 29 October 2004 and replaces the "old" system ba sed upon the Decree of 15 December 1993 and the 
Law of 30 December 1970.  The scheme has been a pproved for a period of ten years.  The scheme 
was amended by the decision of the Flemish Government of 16 May 2007.  G/SCM/N/186/EEC/Add.2 
Page 26  
 
  (e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade.  
(f) Legal base
 
  The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government (e.g. D ecision of 1 October 2004 and the Decision of 
16 May 2007). 
 
(g) Rules and conditions
 
  The scheme has been developed to provide aid to  all enterprises, regardless of their size, for 
ecological investments.  The enterp rises qualifying for aid will receive a percentage of their eligible 
investment costs. 
  Depending on the type of investment (ecological, energy, … ), various aid intensities are possible, within the maximum limits of the EU framework.  The Flemish Government established a 
limited list of accepted technologies which qualify fo r aid.  If an enterprise invests in an accepted 
technology, it automatically receives a subsidy.  If the technology is not already accepted, another 
procedure is followed in order to investigate the merits of the new technology.  If accepted by the 
engineers of the Ministry of the Flemish Community, the new technology is placed upon the list, thus ensuring easier acceptance for future cases.   The Decision of the Flemish Government of  16 May 2007 amended this system from an open 
ended system to a closes envelope system with a ca ll system in order to have a better control over the 
budget.  This amendment was notified to, and approved by, the European Commission.  
4.1.4 Decision of the Flemish Government of 22 Fe bruary 2008 regarding strategic training or 
investment programmes for enterprises in the Flemish Region  
(a) Form of aid
 
 
 This scheme contains three types of aid.  It is on the one hand aimed at investment aid, both 
by SMEs in the whole Flemish  territory as for la rge enterprises in assisted areas, and on the other 
hand aimed at training aid for SMEs and large enterp rises in the whole of the Flemish territory.  The 
regime was based upon the European Regulation Nos.  70/2001, 1628/2006 and 68/2001.  From august 
2008, these regulations have been replaced by one single general block exemption Regulation 
No. 800/2008.  The new scheme came into force on 18 April 2004, and replaces the "old" regional aid 
scheme.  It also created a new type of aid schem e for strategic (large) investment programmes for 
SMEs and for strategic (large) training projects.  (b) Amount of aid in 2007 and 2008
 
 
 As the scheme started on 18 April 2008, there are no figures for 2007.   In 2008, a total of €18.32 million was attributed to this type of aid. 
 
(c) Objectives of the aid
 
  The regional aid part is aimed at the development of the lowest scoring areas within the Flemish Region and provides the Flemish Governme nt with a strong tool for attracting (new)  G/SCM/N/186/EEC/Add.2 
 Page 27 
 
 
  investors towards the assisted areas where the economic situation is less favourable than in the rest of 
the country and the European Union.   The investment aid for SMEs is in line with the overall aim of reduction and reorientation of 
aid measures towards more horizontal objectives.  Th e promotion of investments by SMEs is one of 
the best ways of ensuring that.  The aid scheme aims at promoting entrepreneurship. 
  The training aid part is also in line with th e overall aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The promotion of training is a very good way of ensuring that.  The aid benefits not only the beneficiaries but also the employees as they acquire more 
skills and competences which increase their value on the labour market. 
 (d) Time-frame
 
  The decision of the Flemish Government of 22 February 2008 came into force on 
18 April 2008 and has in principle no defined expi ry date.  However, as the European Regulation on 
which the regime is based, expires on 31 December  2013, the regime will thus be reviewed in due 
time.  (e) Statistics
 
 
 As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade.  (f) Legal basis
 
 
 The Decree of 31 January 2003 on the ec onomic support policy and its implementing 
decisions of the Flemish Government.  (g) Rules and conditions
 
  The investment aid scheme has been developed to provide aid to SMEs in the whole Flemish 
territory and large enterprises within  assisted areas.  Only "strategic " or large investment programmes 
qualify for aid.  A beneficiary has to invest mini mally €8 million.  The maximum aid amount is 10 per 
cent of the eligible investment costs.  The schem e foresees in economic, social en ecological criteria 
on which the beneficiary can score points.  The mi nimal score is 50/100.  Between 50 and 100 points, 
the beneficiary receives from 5 per cent up to 10 per cent aid.  There is an overall maximum threshold 
of maximum €1 million aid for a beneficiary in a three-year period. 
  The training aid scheme has been developed to  provide aid to SMEs and large enterprises in 
the whole Flemish territory for "strategic" or large training programmes.  A beneficiary has to invest 
minimally €450,000 in training.  The maximum training aid amount is 25 per cent of the eligible investment costs.  The scheme foresees in econo mic, social en ecological criteria on which the 
beneficiary can score points.  The minimal sco re is 50/100.  Between 50 and 100 points, the 
beneficiary receives from 20 per cent up to 25 per cen t aid.  There is an overall maximum threshold of 
maximum €1 million aid for a beneficiary in a three-year period  4.2 A
ID TO ENTERPRISES - DECISION OF THE FLEMISH GOVERNMENT OF 16 DECEMBER 2005  
REGARDING THE GRANTING OF AID TO SMALL AND MEDIUM -SIZED ENTERPRISES FOR 
ENTREPRENEURSHIP ENCOURAGING SERVICES (BUDGET FOR ECONOMIC ADVICE - BEA) 
 Decision of the Flemish Government of 16 December 2005 regarding the granting of aid to 
SMEs for entrepreneurship encouraging service s (also called BEA or budget for economic advice), G/SCM/N/186/EEC/Add.2 
Page 28  
 
  which entered into force on 22 May 2006.  Various implementing ministerial decisions were issued.  
The decision was amended by decision of the Flemish Government of 16 February 2007. 
  This scheme replaces and integrates both the former regimes of advisory cheques and training cheques.  The new scheme is based on the EU " de minimis " regulation (Regulation 68/2001, replaced 
by Regulation 1998/2006 of 15 December 2006). 
 (a) Form of aid
 
  This scheme is aimed at SMEs.  The Flemish Government gives 35 per cent aid to enterprises 
willing to invest in training, external advice/consu ltation, knowledge and mentorship.  There are thus 
four pillars of eligible costs.   An enterprise can obtain a maximum of €5,000  of aid in a period of three years.  The 
maximum amount in each pillar is €2,500.  The system is fully web-based and paperless. 
 
(b) Amount of aid in 2007 and 2008
 
  The total budget for this scheme in 2007 was €8.81   The total budget for this scheme in 2008 was €7.92 
 
(c) Objectives of the aid
 
  The Flemish Government agrees with the overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of aid to SMEs in order to stimulate 
them to obtain specialized external advice, traini ng, knowledge or mentorship is a positive element for 
the sustainability and results of the enterprises.  (d) Time-frame
 
  The system has no time limit (taking into account the duration of the new " de minimis " 
regulation until 2013).  The scheme was amended in December 2008, which will come into force in 
2009 (commented in future scoreboard).  4.3 R
ESEARCH AND DEVELOPMENT  
 Decision of the Flemish Government of 5 October 2001 for the granting of aid to 
technological research and development projects from the industry in Flanders, replaced by the 
Decision of the Flemish Government of 12 Decemb er 2008 regarding the gran ting of aid to research 
and development projects from the industry in Flanders.  (a) Form of aid
 
 
 Subsidy to research and development. 
  The Decision of the Flemish Government of 5 October 2001 for the granting of aid to technological research and development projects from the industry in Flanders was notified and accepted by the Commission as N298/2000. 
 
 The Decision of the Flemish Government of 12 December 2008 regarding the granting of aid 
to research and development projects from the indus try in Flanders replaces the Decision from 
5 October 2001 from 10 March 2009 onwards.  The modi fications in the new Decision make use of  G/SCM/N/186/EEC/Add.2 
 Page 29 
 
 
  the general block exemption regulation of th e European Commission 800/2008 and were 
communicated to the commission through the State Ai d Notifications Interactive (SANI) tool with 
reference CP138/2008.  (b) Amount of aid in 2007 and 2008
 
 
 2007:  €106.91 million  2008:  €115.69 million  (c) Objectives of the aid
 
 
 Support of research and development within the restrictions defined in the Community 
Framework for State Aid for Research and Development and Innovation.  (d) Time-frame
 
 
 The notification N298/2000 is valid for the period 5 October 2001 - 4 October 2011. 
 (e) Statistics
 
  
(f) Legal base
 
  Decree of 23 January 1991 regarding the foundation of an Institute for the Promotion of Innovation through Science and Technology in Fla nders, replaced by the Decree of 18 May 1999 
regarding a policy for stimulation of technolog ical innovation, in particular Article 5. 
 
 Decision of the Flemish Government of 5 October 2001 for the granting of aid to 
technological research and development projects from the industry in Flanders.   Decision of the Flemish Government of 12 December 2008 regarding the granting of aid to 
research and development projects from the industry in Flanders. 
 
(g) Rules and conditions
 
  The scheme has been developed to provide ai d for Research and Development.  The aid 
intensity is 50 per cent for industrial research a nd 25 per cent for experimental development.  These 
ceilings can be increased with bonuses as indicated in the Community Framework for State Aid for 
Research and Development and Innovation (point 5.1.3).  4.4 A
ID TO THE FISHERIES AND AQUACULTURE SECTOR  
 FIVA (Instrument for the Financing for  th e Flemish Fisheries and Aquiculture Sector) 
 
(a) Form of aid  
 
- Interest rate subsidy:  subsidized intere st rates on loans granted to ship-owners and 
fish-farmers and their cooperatives; 
 
- capital subsidy when investment is financed by equity; 
 
- loan guarantees for ship-owners and fish-farmers. 
 G/SCM/N/186/EEC/Add.2 
Page 30  
 
  (b) Amount of aid in 2008
 
 
- Interest rate subsidy:  €553,727.45 
 
- capital subsidy:  €920.535,68 with 
 
○ €314,283.07 for modernization 
○ €163,424.38 for harbour equipment 
○ €121,414.69 for aquiculture investments 
○ €321,413.54 for investments in fish processing companies 
 
- loan guarantees:  / 
 (c) Objectives of the aid
 
 
 The aid is granted to ship-owners, fish-farm ers and their organizations and cooperatives and 
fish processing companies in order to help shippi ng, fish-farming and fish processing companies to 
become more modern, sustainable, profitable and ma rket competitive, to ensure their profitability and 
to reduce their costs.   (d) Time-frame
 
 
 2007-2013  (e) Statistics
 
 
 No statistical data permitting an assessment of its effects on global trade are therefore 
available.  Given that the capacity of the fishing fleet and the aquaculture sector is very limited, the 
effect on global trade is negligible.  (f)  Legal base
 
 
 Following the abolition of the scheme to aid shipyards on 1 January 1996 and a transitional 
scheme in 1996 (Flemish Government Order of 2 Ap ril 1996), a completely new set of regulations on 
aid for investment and new enterprise in the mar itime fisheries and aquaculture sector was approved 
in 1998.  
 The aid is given in the context of the " Financieringsinstrument voor de Vlaamse visserij - en 
aquicultuursector - FIVA " (Financing instrument for the Flemish fisheries and aquiculture sector). 
 
- Council Regulation (EC) No. 1198/2006 of 27 July 2006 on the European Fisheries 
Fund; 
 
- Decree of 13 May 1997 establishing a financ ing instrument for the Flemish fisheries 
and aquaculture sector; 
 
- Flemish Government Order of 7 July 1998 on aid for investment and start-up in the 
fisheries and aquaculture sector; 
 
- Ministerial Order of 14 July 1998 on aid for investment and start-up in the fisheries 
and aquaculture sector. 
  G/SCM/N/186/EEC/Add.2 
 Page 31 
 
 
   The purpose of the aid is structural and in tended to promote fishing and aquaculture by 
improving the efficiency of the structures.  4.5 A
ID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE - FLEMISH AGRICULTURAL 
INVESTMENT FUND 
(a) Form of aid  
  This section covers aid for agricultural and horticultural producers:  
- Interest subsidies (interest rate subs idies on loans granted for agriculture and 
horticulture):  for investments, differentiation an start-ups; 
- investment premiums; - differentiation premiums; - start-up grants; - loan guarantees. 
 
 The aid measures are aimed at all types of en terprises that are situated in the agricultural 
production sector.   Since 2005, the VLIF has been responsible for only the Flemish part of the aid granted.  The volumes of total aid (Flemish part + European part) ar e listed below; in this way, the figures for this 
year can be compared with those of the previous years. 
 (b) Amount of aid in 2008
 
  Figures mentioned under this title cover the 2008 fiscal year. 
 
Interest rate subsidi es:  € 51,618,758.15 
  * New dossiers
:  €50,569,542.02 
 
• Investment:  €38,052,225.50 with 30 per cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005); 
 
• Differentiation:  €2,109,517.26 with 30 per cent co-financing by the EAFRD 
(Council Regulation (EC) No. 1698/2005) 
 
• Start-up:  €3,339,226.86 with 30 per cent co-financing by the EAFRD (Council 
Regulations (EC) No. 1698/2005); 
 
• Regional aid without EAFRD co-financing:  €7,068,572.40:  farmers:  €1,932,776.59 
 
• Cooperative societies:  €5,135,795.81 
 
* Reviews of existing dossiers :  €1,049,216.13 
 
• Investment:  €707,948.24 with 30 per cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005); 
 G/SCM/N/186/EEC/Add.2 
Page 32  
 
  • Differentiation:  €219,189.51 with 30 pe r cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005); 
 
• Start-up :  €80,434.77 with 30 per cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005); 
 
• €41,643.61 without EAFRD co-financing (of which €384,869.35 to cooperative 
societies). 
 Investment premiums:  €18,970,440.96   * New dossiers
:  €20,896,942.08 
 
• Farmers:  €20,388,830.39 with 30 pe r cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005); 
 
• cooperative societies:  €508,111.69 (without EAFRD co-financing). 
  * Reviews of existing dossiers
: €987,673.99 
 
• Farmers:  €972,426.40 with 30 per cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005); 
 
• cooperative societies: €15,247.59 without EAFRD co-financing. 
 Differentiation premiums: €2,023,693.17  (with 30 per cent co-financing by the EAFRD (Council 
Regulation (EC) No. 1698/2005)); 
 
 * New dossiers
: 
 
• Farmers:  €1,911,093.97  
  * Reviews of existing dossiers
: 
 
• Farmers:  €112,599.20  
 Start-up grants:  €4,784,407.85  (with 30 per cent co-financing by the EAFRD (Council Regulation 
(EC) No. 1698/2005))  
 * New dossiers
:  €4,707,842.24 
 * Reviews of existing dossiers :  €76,565.61 
 
Loan guarantees:  €6,631,502.39 of guarantees granted (€2,328,986.94 of guarantees committed 
for actual payment) - without EAFRD co-financing . 
  G/SCM/N/186/EEC/Add.2 
 Page 33 
 
 
  (c) Objectives of the aid  
  The aid under this heading is awarded to farm ers and horticulturalists and their organizations 
and cooperatives to encourage all operations whic h increase the productivity of agricultural and 
horticultural enterprises, maintain and improve their profitability and reduce costs, such as: 
 
- Investment operations, i.e. operations wh ereby natural or legal persons acquire, 
extend or improve capital assets such as land,  buildings and constructions, including 
housing for the operator and his family, industr ial plant, facilities, machines, tools and 
materials.  This decree is only applicab le to the acquisition of land and buildings 
when this is economically necessary to main tain the profitability of the existing 
enterprise; 
 
- restructuring of enterprises follo wing changes in economic conditions; 
 
- agricultural and horticultural start-ups; 
 
- processing and marketing of agricultural a nd horticultural products, mainly through 
cooperatives. 
 (d) Time-frame
 
 
 The duration of interest rate subsidies depe nds on the duration of the loan, but the maximum 
duration (= paying period) ranges from five years to 15 years depending on the type of investment.   Premiums are paid in two parts within a pe riod of maximum two years after notification of 
the aid.  The permanent conditions to keep the to tal aid must be fulfilled during five years (mobile 
investments) or ten years (immobile investments).  (e) Statistics
 
  The aid has a structural objective of furtheri ng agriculture through enhanced efficiency of 
agricultural enterprises.  No statistical data are th erefore available to assess the effects of the aid on 
world trade.  (f) Legal base
 
 
- Council Regulation (EC) No. 1698/2005 of  20 September 2005 on support for rural 
development from the European Agricultura l Fund for Rural Development (EAFRD); 
 
- Article 12 of the Decree of 22 Decemb er 1993 containing various measures in 
application of the 1994 budget (establishmen t of a Flemish Agricultural Investment 
Fund); 
 
- Flemish Government Order and Ministeria l Order of 24 November 2000 on aid for 
agricultural investment and new enterprises; 
 
- Flemish Government Order of 16 July 1 996 regulating the operation and management 
of the " Vlaams Landbouwinvesteringsfonds " (Flemish Agricultural Investment Fund). 
 G/SCM/N/186/EEC/Add.2 
Page 34  
 
  4.6 A
D HOC TRAINING AID 
 The Flemish Government decided to grant some enterprises an ad hoc training aid, based 
upon EU Regulation No. 68/2001 of 12 January 2001 (OJ of 13/1/2001, L 10).  As provided in 
Article 5 of that regulation, individual cases have to be notified to the EU Commission if the amount 
of aid would be more than €1 million.  Besides some big ad hoc training programmes, there were also 
a number of smaller ad hoc training cases, which did not pass the threshold of €1 million.  In 2007 
and 2008, there were a lot of those ad hoc cases, as the general training aid scheme of 22 February 
2008, only came into force on 18 April 2008.  From that date on, all new training aid cases will fall 
under the new regime and will no longer be ad hoc cases.   2007
 
 
A. GM Antwerpen  
 
 Ad hoc training aid programme, notified to, an d approved by the EU Commission.  None of 
the aid was paid in 2007. 
 
B. VOLVO CARS Gent  
 
 Ad hoc training aid programme, notified to, an d approved by the EU Commission.  None of 
the aid was paid in 2007. 
 
C. Number of ad hoc cases below the €1 millio n threshold (paid in 2007 - in million €)  
 
• Van Hool   €0 
• P&O Ports Antwerp  €0 
• LVD Company   €0.26 
• PSA Hesse Noord Natie  €0.27 
• HJ Heinz Belgium  €0 
• Katoen Natie   €0 
• Sedac Mecobel   €0.21 
• Atlas Copco Airpower  €0.3  
• Volvo Europa Trucks  €0 
• GE Security EMEA  €0.28 
• Tupperware Belgium  €0.17 
  2008
 
 
A. GM Antwerpen  
 
 Ad hoc training aid programme, notified to , and approved by the EU Commission.  
€2.18 million was paid in 2008. 
 
B. VOLVO CARS Gent  
 
 Ad hoc training aid programme, notified to , and approved by the EU Commission.  
€2.12 million was paid in 2008. 
  G/SCM/N/186/EEC/Add.2 
 Page 35 
 
 
  C. Number of ad hoc cases below the €1 million threshold (paid in 2008 - in € million ) 
 
• Van Hool   €0 
• P&O Ports Antwerp  €0 
• LVD Company   €0 
• PSA Hesse Noord Natie  €0.27 
• HJ Heinz Belgium  €0 
• Katoen Natie   €0.29 
• Sedac Mecobel   €0.21 
• Atlas Copco Airpower  €0.3 
• Volvo Europa Trucks  €0.29 
• GE Security EMEA  €0 
• Tupperware Belgium  €0 
• Ikea Belgium   €0.28 
• Alcatel Lucent Bell  €0.29 
• Ford-Werke GMBH  €0.94 
• Alpro    €0.29 
• PBI Fruit Juice   €0 
• Recticel   €0.29 
• Veurne Snack Foods  €0.60 
• Vlaamse Media Maatschappij €0.30 
• Ineos Manufacturing Belgium €0.26 
• Inbev    €0.58 
• Media Markt Saturn Belgium €0.29 
• Proctor and Gamble Eurocor €0.29 
• TNT Express Belux  €0.12 
• Thermote & Verhalst  €0.27 
• Acromet Service  €0.59 
• Asco Industries   €0.29 
• Bekaert    €0 
• Indaver    €0.26 
• Ineos    €0.28 
• Janssen Pharmaceutica  €0 
• Betafence   €0.52 
• JST Belgium   €0.26 
• Kinepolis Group  €0.19 
• Kuehne & Nagel Logistics €0 
• Philips Innovative Applications €0.59 
 4.7 E
MPLOYMENT AID 
- Decision of the Flemish Government of 28 April 2006 regarding the granting of an 
employment premium 50+ - amended by the D ecision of the Flemish Government of 
12 December 2008  
 
(a) Form of aid  
  This scheme is aimed at employment aid, as defined by the EU Commission in its Regulation 
No. 2204/2002 and Regulation No. 800/2008.  This  scheme is notified to, and approved by, the 
European Commission (X67/2009). G/SCM/N/186/EEC/Add.2 
Page 36  
 
   
(b) Amount of aid in 2007 and 2008
 
  In 2007:  €9.32 million  In 2008:  €11.54 million 
 
(c) Objectives of the aid
 
  To stimulate the demand of older workers, the Flemish employment premium 50+ has been 
installed.  Employers who hire older jobseekers, can obtain an important financial incentive.  Since 
1 January 2009 the premium increased and amounts ac tually between 400 to €1500 per month (during 
one year) for each unemployed 50+ that is offered a contract for an indeterminate period.  (d) Time-frame
 
 
 The Decision of the Flemish Government of 12 December 2008 came into force on 
1 January 2009.  The scheme follows the ti me-frame of the EU Regulation No. 800/2008. 
 (e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade. 
 (f) Legal base
 
  Decision of the Flemish Government of 28 April 2006 regarding the granting of an 
employment premium 50+ - amended by the Decision of the Flemish Government of 
12 December 2008.  
- Decision of the Flemish Government of 18 July 2008 regarding the professional 
integration of people with a disability  
 (a) Form of aid
 
  This scheme is aimed at employment aid, as defined by the EU Commission in its Regulation 
No. 800/2008.  This scheme is notified to, and approved by, the European Commission (X29/2008).  
(b) Amount of aid in 2008
 
  In 2008:  €0.27 million  (c) Objectives of the aid
 
 
 This grant gives employers the certainty that they will be reimbursed with 40 per cent of the 
salary in the first year, then with 30 per cent, and with 20 per cent as from the fifth year.  The grant is 
also based on the actual wage.  The reason for this gradual approach is the costs that an employer 
must mainly make in the beginning of the employm ent.  The integration of an employee with a 
disability often takes longer and adaptations to work schemes are necessary and tasks have to be 
distributed, etc.  A higher grant than these basic am ounts can possibly be paid, but then the employer 
must demonstrate his real additional costs.  The regulation also provides a simplified application for contributions for adaptations of the job equipmen t, adapted tools, interpreters and moving or 
accommodation costs.   G/SCM/N/186/EEC/Add.2 
 Page 37 
 
 
  (d) Time-frame  
  The Decision of the Flemish Government of 18 July 2008 came into force on 1 October 2008.  The scheme follows the time-frame of  the EU Regulation No. 800/2008. 
 
(e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on WTO commerce and trade.  
(f) Legal base
 
  Decision of the Flemish Government of 18 July  2008 regarding the pr ofessional integration of 
people with a disability.  
__________