WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.21 
26 August 2005 
 (05-3606) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
  
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1
 
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
   The following addendum to the notification of  the European Community relates to subsidy 
programmes of the Slovak Republic
. 
 
_______________ 
 
 G/SCM/N/123/EEC/Add.21 
Page 2  
 
 SLOVAK REPUBLIC 
 
TABLE OF CONTENTS 
 
Page  
I. ENVIRONMENT.................................................................................................................... ..3 
II. REGIONAL DEVELOPMENT ..............................................................................................5  
III. MINING INDUSTRY...............................................................................................................6  
IV. RESEARCH AND DEVELOPMENT ....................................................................................8  
V. SMALL AND MEDIUM SIZED ENTERPRISES ................................................................9  
VI. ENERGY SAVINGS...............................................................................................................11  
VII. TAX REDUCTION.................................................................................................................1 2 
 
  G/SCM/N/123/EEC/Add.21 
 Page 3 
 
 
  
I. ENVIRONMENT 
1. Title of the subsidy  
  State Aid for Environmental Creation and Protection. 
 
2. Period covered by the notification
 
  2003, 2004  
3. Policy objective and/or purpose of the subsidy
 
  Environmental objectives of investment pr ojects of towns and villages and reduction of 
unfinished amount of ecological buildings.  
4. Background and authority of the subsidy
 
  Ministry of Environment of the Slovak Republic  5. Legislation under which it is granted
 
 
 Ministry of Environment Regulation No. 5/2003 about subsidies financial background 
covered by Environmental Measures Realisation Programme Ministry of Environment Decree No.4 /2004 on subsidies financial background 
 6. Form of the subsidy
 
 
 Subsidy  7. To whom and how the subsidy is provided
 
  Available according Priorities of public  work development programme, governmental 
decisions and State Budget for the year 2003 and 2004.  Criteria for obtaining subsidies are always 
published before the beginning of a respective calenda r year (see point 5).  Some of them are follows: 
 
(1) Subsidy can be allowed after submitting a Letter of application. 
(2) Appendix of Letter of application are following documents:  
(a) Project structure; 
(b) Document of implementing a financial guarantee except if applicant is a city or region and in 
case of private company also a Statement of business registration not older than 6 month; 
(c) Document of banking account except if applicant is a city or region; (d) Declaration of co-financing safety; 
(e) Construction compliance; 
(f) Document of property ownership etc.
 
 G/SCM/N/123/EEC/Add.21 
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 8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount 
budgeted for that subsidy  
  Annual budget for environmental projects support from the state budget – chapter of MoE is approximately 30 M€. Source of that budget are fees from using of environmental sources (e.g. 
pumping of water), fees from environmental pollution (e.g. sewerage water fees, air emission fees), 
penalties and other sources. The target area is wastewater treatment .  
Air protection . Trend to supply coal to more environmental friendly gas in 90´s was step by step 
changed to support renewable energy projects.  Waste management . After adoption of new waste management  legislation in 2000 focus is changed 
from support of new landfills building (according to  good technical standards) to sanitation and re-
cultivation of old dumping sites. Waste processing facilities and separation of the waste is supported 
by Recycling Fund, which is working since 2001.  
 State aid was provided as follows: 
 
Year 2003 2004 
  Number of supported projects M € Number of supported projects M € 
Water supplies 101 8966  113 8860 
Waste water 282 18509  211  10543
Air protection 33 869  30  902
Waste 
management 87 3985  46  1747
Nature 
conservation 17 401  13  426
Other activities 59 7851  22  1543
Env. accidents 5 28  3  7
Landscape 
planning 3 17  0  0
Village 
resumption program 278 625  63  125
Total 865 41251  501  24153
 
 9. Duration of the subsidy and/or any other time limits attached to it
 
 
 One year. 
 10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Information on the trade effect of the subsidy is not available. 
  G/SCM/N/123/EEC/Add.21 
 Page 5 
 
 
  
II. REGIONAL DEVELOPMENT 
1. Title of the subsidy  
  Support for Regional Development. 
 
2. Period covered by the notification
 
  2003, 2004  
3. Policy objective and/or purpose of the subsidy
 
  Financing of the projects oriented towards crea tion of new jobs, savings of fuel and energy, 
development of tourism and services in regions with social-economic problems.  
4. Background and authority of the subsidy
 
 
Ministry of Construction and Regional Development of the Slovak Republic  
 
5. Legislation under which it is granted  
 
 Acts No. 347/1990 and No. 74/1995. 
 6. Form of the subsidy
 
  Grant. 
 
7. To whom and how the subsidy is provided
 
  Available to all companies, of which the pr ojects are in accordance with requirements of the 
Commission for Assessment of Projects Promo ting Regional Development and which fulfil the 
following criteria: 
 
(1) Subsidy can be allowed after submitting a Letter of application. 
(2) The subsidy allowance should be financed for buying new investments for more than 5 years. 
(3) The subsidy should create more than 3 new jobs. (4) Appendix of Letter of application are following documents:  
(a)  Project structure, 
(b)  Document of banking account except applicant is a city or region, (c)  Declaration of co-financing safety, (d)  Construction compliance (e)  Document of property ownership etc.
 
 G/SCM/N/123/EEC/Add.21 
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 8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount 
budgeted for that subsidy  
 
The total amount of state aid for the business sector in million Sk was provided as follows: 
  
          
          Year                 2003               2004 
Tourism 26, 84 * zero
Building industry 2,16 * zero
Environment  * zero
Wood industry 12, 57 * zero
Textile and clothing industry 6,12 * zero
Engineering 29,58 * zero
Glass industry 2,43 * zero
Services 19,157 * zero
TOTAL 98, 857 * zero
     * for the year 2004 was not agreed financial budget from the State budget 
       * parity 1€=40 Sk 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  One year.  10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Information on the trade effect of the subsidy is not available.  
III. MINING INDUSTRY 
1. Title of the subsidy
 
 
 Suppression Programme of Mining. 
 2. Period covered by the notification
 
  2003, 2004 
 
3. Policy objective and/or purpose of the subsidy
 
  The subsidy from the state budget in the area of ore mining is designated to technical works related to construction of undergro und security equipment, removal of machinery, adjustment of 
mining waters and areas, technical and biological re -cultivation and operation of sewage works.  The 
subsidy in the area of coal mining was oriented main ly to cover social claims of miners linked with 
the progressive reduction of production.   G/SCM/N/123/EEC/Add.21 
 Page 7 
 
 
  
4. Background and authority of the subsidy  
  Ministry of Economy of the Slovak Republic.  
5. Legislation under which it is granted
 
  Government Ordinances No. 440/1990, 894/1 990, 246/1991, 252/1993, 723/1994 concerning 
suppression of ore mining, Act No. 44/1988 Coll. – Mining Act, Act No. 98/1997 Coll. on Reimbursement of Social Claims of Miners. 
 
6. Form of the subsidy
 
  Grant.  
7. To whom and how the subsidy is provided
 
  Available to all companies dealing with expl oitation of coal or ore and executing works 
connected with liquidation of mining works, t echnical and biological re-cultivation of the 
environment and operation of sewage works.  
8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount 
budgeted for that subsidy  
 
Year 2003 
 
• Total subsidies for ore mining were Sk 111, 37 million, of which suppression works amounted 
to Sk 26,1 million. 
• Total subsidies for coal mining were Sk 121,94 m illion, of which:  solution of problems of 
mining amounted to Sk 71,4 million, the highest admissible exposure amounted to Sk 8,8 million and the attenuation of mining on the Dolina Mine amounted to Sk 34,5 million. 
 
Year 2004 
 
• Total subsidies for ore mining were Sk 112,0 million, of which suppression works amounted 
to Sk 26,3 million. 
• Total subsidies for coal mining were Sk 76,3 million, of which:  solution of problems of 
mining amounted to Sk 33,7 million, the highest admissible exposure amounted to Sk 7,8 million and the attenuation of mining on the Dolina Mine amounted to Sk 23,5 million. 
 
 Subsidies were provided in million Slovak crowns (Sk) as follows: 
 
  Year     2003           2004  
Ore mining 111,37 112,0 
Coal mining 121,94 76,3 
TOTAL 233,31 188,3 
parity 1€=40 Sk  
 G/SCM/N/123/EEC/Add.21 
Page 8  
 
  
9. Duration of the subsidy and/or any other time-limits attached to it
 
  Individual.  
10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Information on the trade effect of the subsidy is not available.  
IV. RESEARCH AND DEVELOPMENT 
1. Title of the subsidy
 
  Support for Research and Development.  2. Period covered by the notification
 
 
 2003, 2004  3. Policy objective and/or purpose of the subsidy
 
  Promotion of research and development, aimed at restructuring of industry and new 
technologies. 
 4. Background and authority of the subsidy
 
  Respective ministries with in their competencies. 
 
5. Legislation under which it is granted
 
  Act on State Budget for the Year 2003, 2004, Public Procurement Act Nr.263/1999, State Aid Act Nr.231/1999, Budget Rules Act Nr.303/1995, Science and Engineering Act Nr.132/2002 and the Agency for Science and Engineering Aid Act Nr.263/1999. 
 
6. Form of the subsidy
 
  Subsidy.  
7. To whom and how the subsidy is provided
 
  Financial funds for R&D were granted mostly for state sector research and development organisations, universities sector, business sector and non-profit sector.  The subsidies are awarded through tender procedures in accordance with the Pu blic Procurement Act Nr.263/1999, State Aid Act 
Nr.231/1999, Budget Rules Act Nr.303/1995, Scie nce and Engineering Act Nr.132/2002 and the 
Agency for Science and Engineering Aid Act Nr.263/1999. 
  G/SCM/N/123/EEC/Add.21 
 Page 9 
 
 
  
8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount 
budgeted for that subsidy was provided by social-economic objectives   
  Subsidies were provided in million Slovak crowns (Sk) as follows: 
 
   Year               2003               2004 
Universities 860 945* 
State sector 1853 2038* 
Business sector 854 939* 
Industrial research 310 316* 
Non-profit sector zero zero* 
TOTAL 3877 4238* 
  * - estimated figures 
     p a r i t y  1€=40 Sk  
 9. Duration of the subsidy and/or any other time-limits attached to it
 
  Individual.  
10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Information of the trade effect of the subsidy is not available.  
V. SMALL AND MEDIUM SIZED ENTERPRISES 
1. Title of the subsidy
 
  Promotion of Small and Medium-Sized Enterprises (SME).  2. Period covered by the notification
 
 
 2003, 2004  3. Policy objective and/or purpose of the subsidy
 
  Assistance to SME, employing up to 250 empl oyees, performing in the area of production, 
services, handicrafts and tourism focused on develo pment of the business activities, creation of new 
jobs and solution of regional policy with high rates of unemployment.  4. Background and authority of the subsidy
 
 
 Ministry of Economy of the Slovak Republic 
 National Agency for Development of SME (NADSME)  Slovak Guarantee and Development Bank (SGDB).  G/SCM/N/123/EEC/Add.21 
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5. Legislation under which it is granted
 
 
Act No. 231/1999 Coll. on State Aid  and Government Ordinance No. 740/1994 on Support Loan Programme. 
 
6. Form of the subsidy
 
  Loans, guarantees and grants.  
7. To whom and how the subsidy is provided
 
  SME, employing up to 250 employees, havi ng residence and carrying out business in the 
Slovak Republic.  Projects are approved by NADSME or SGDB.  Priority was given to the projects 
oriented towards modernization of production capac ities, improvement of providing services, creation 
and protection of the environment and creation of new jobs. 
 8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount 
budgeted for that subsidy  
  The total amount of the state support for SME in million Sk was provided as follows: 
 
Title of the state support 
2003 Form of the subsidy Amount of the support in 
Sk Million 
Support loan programme  Lower interest rate 234,27 
Venture capital  Financial investments 32,95 
Programme of the support of SME  Financial grant  39,084 
Programme of the support of SME Paid bank guarantee zero 
Support development programme of tourism Financial grant 57,556 
 
 
Title of the state support 
January – June 2004 Form of the subsidy Amount of the support in 
Sk Million 
Support loan programme  Lower interest rate 111,558 
Venture capital  Financial investments 16,3 
Programme of the support of SME  Financial grant  1,024 
Programme of the support of SME Paid bank guarantee zero 
Support development programme of tourism Financial grant 106,2  
(Jan. – Dec.2004) 
parity 1€=40 Sk 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
  Individual.  
10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Information on the trade effect of the subsidy is not available.   G/SCM/N/123/EEC/Add.21 
 Page 11 
 
 
  
VI. ENERGY SAVINGS 
1. Title of the subsidy  
  Energy Savings Scheme and Implementation of Recovered Energy Sources. 
 
2. Period covered by the notification
 
  2003, 2004  
3. Policy objective and/or purpose of the subsidy
 
  Financing of the projects started at 2003 oriented Energy Savings Scheme and 
Implementation of Recovered Energy Sources is a transformation of Programme of Supporting 
Energy Savings and Implementation of Alternativ e Energy Sources. Duration of the Programme is 
until 31.12.2006. 
 4. Background and authority of the subsidy
 
 
Ministry of Economy of the Slovak Republic   
5. Legislation under which it is granted
 
  Ministry of Foreign Affairs Communication No. 186/2002 and Association Council Regulation No.6/2001  
6. Form of the subsidy
 
  Grant.  7. To whom and how the subsidy is provided
 
 
 Available to all companies, of which the pr ojects are in accordance with requirements of the 
Association Council Regulation creating projects for en ergy savings in flat and family houses, on the 
field of energy savings in the industry and services sector.  8. Subsidy per unit or, in cases where this is not possible, total amount or the annual amount 
budgeted for that subsidy  
  The total amount of state aid in million SK for the energy savings sector was provided as follows: 
             
      Year                                2003             2004 
Projects for energy savings 26,606 5,579 
TOTAL 26,606 5,579 
  parity 1€=40 Sk  
  G/SCM/N/123/EEC/Add.21 
Page 12  
 
 9. Duration of the subsidy and/or any other time-limits attached to it
 
  One year.  10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Information on the trade effect of the subsidy is not available.  
VII. TAX REDUCTION 
1. Title of the subsidy
 
 
 Tax reduction - state aid arising from the reduction of taxes   2. Period covered by the notification
 
 
 2003, 2004 
 3. Policy objective and/or purpose of the subsidy
 
  Support to development programmes approve d by the Government directed to the 
infrastructure and restructuring of some areas of industrial production.   
 
4. Background and authority for the subsidy
 
  Taxing Authority of the Slovak Republic, Eximbank (Export-Import Bank)  
5. Legislation under which it is granted
 
  Act No.  231 /1999 Coll. on State aid.  6. Form of the subsidy
 (i.e. grant, loan, tax concessions, etc.) 
 
 Tax reductions, tax credit, interest rate support 
 7. To whom and how the subsidy is provided
 
  The subsidy is paid to the U.S. STEEL a nd to the VOLKSWAGEN SLOVAKIA according to 
conditions agreed in EU Treaty of Accession; to the SES Tlma če and VUB Bank due EXIMBANK - 
interest rate support.   G/SCM/N/123/EEC/Add.21 
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8. Subsidy per unit, or in cases where it is not possible, the total amount or  the annual budgeted 
for that subsidy  
  The total amount of the state support for tax reduction in million Sk was provided as follows: 
  
Company\Year 2003 2004 
Volkswagen Slovakia 1 919,251 2 461,506
US Steel 1 760,964 2 958,706
SES Tlma če 142, 861 42,910
VUB Bank zero 0,270
Total 3 823,076 5 463,392
 
9. Duration of a subsidy and/or any other time limits attached to it  
 
 Specified in each case, accordi ng to the terms of maturity. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Information on the trade effect of the subsidy is not available. 
 
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