WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.10
23 November 2007 
 (07-5159) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Germany .   
 
_______________ 
 G/SCM/N/155/EEC/Add.10 
Page 2  
 
  GERMANY  
 
TABLE OF CONTENTS 
 
 
 Page   
I.
 GERMAN SHIPYARDS (W ERFTHILFEN)........................................................................ 3  
II. GERMAN SHIPYARDS (W ETTBEWERBSHILFE) ......................................................... 3  
III. REGIONAL PROGRAMMES IN SUPPORT OF COMMERCE AND 
INDUSTRY (LAND BAYERN).............................................................................................. 4  
IV. REDUCTION OF RATES ON INHERITABLE LAND-USE RIGHTS (LAND BERLIN)........................................................................................................................ ........... 5
 
V. CONSOLIDATION PROGRAMME (LAND MECKLENBURG-
VORPOM MERN).................................................................................................................... 6 
VI. JOINT SCHEME ON "IMPROVING THE REGIONAL ECONOMIC 
STRUCTURE"..................................................................................................................... .... 6 
VII. REGIONAL ECONOMIC SUPPORT PROGRAMME (LAND NORDRHEIN-
WESTFALEN) ..................................................................................................................... .... 7 
VIII.  REGIONAL AID PROGRAMME (LAND RHEINLAND-PFALZ) .................................. 8  
IX. NATIONAL PROGRAMME FOR CIVI L AERONAUTICAL RESEARCH................... 9  
X. PULP MILL STENDAL (L AND SACHSEN-ANHALT) .................................................... 9  
XI. CORRUGATED BASE PAPER PL ANT (LAND BRANDENBURG) ............................. 10  
  G/SCM/N/155/EEC/Add.10 
 Page 3 
 
 
  I. GERMAN SHIPYARDS (WERFTHILFEN) 
 
1. Name of the subsidy scheme or ad hoc subsidy  
  Interest-Rate Grants to Finance Orders to German Shipyards ("Werfthilfen").   
 
2. Form of the subsidy
 
  Grant.    
3. Subsidy per unit
 
  Total amount of assistance provided in 2005:  18.3 million Euros.    Total amount of assistance provided in 2006:  13.8 million Euros.    
4. Objective and/or purpose of the subsidy
 
  The eighth shipyard assistance programme (VIII. Werfthilfeprogramm) exists to provide non-
repayable interest-rate grants under the releva nt OECD Understanding On Export Credits For 
Ships (1981).  In the frame of this Export Credit Agreement, which expired in April 2002, only legal 
obligations from previous years will be completed.   
 
 Legal basis:   Commitment authorizations in the Federal budget from previous years.   
  Guidelines from the Federal Ministry of Economics and Technology.   
  Modes of payment:   
 
  Support is given to the construction a nd reconstruction of high-technology marine 
vessels (merchant vessels), respecting the OECD Understanding On Export Credits 
For Ships:   
   8.5 year term.      20 per cent advance payment.   
   Minimum interest rate of 8 per cent p.a..   
 5. Duration of subsidy and other time-limits attached to it
 
  No new commitments.   
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N.A.     II. GERMAN SHIPYARDS (WETTBEWERBSHILFE) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Competition Aid for German Shipyards (Wettbewerbshilfe).   
 
2. Form of the subsidy
 
  Grant.   G/SCM/N/155/EEC/Add.10 
Page 4  
 
  3. Subsidy per unit
 
  Total amount of assistance provided in 2005:  58.9 million Euros.    Total amount of assistance provided in 2006:  44.8 million Euros.    
4. Objective and/or purpose of the subsidy
 
  Grant towards production costs are given, wher e they are permissible under the relevant EU 
directive on shipbuilding subsidies (COMReg. (EC) 1177/202) and COM Reg. (EC) No.502/2004.    
 Legal basis:   Commitment authorizatio ns in the Federal and Länder budgets.   
   Guidelines from the Federal Ministry of Economics and Labour.     Modes of payment:   Those receiving the gran ts are shipbuilding companies in the Federal 
Republic of Germany.   
 
 Support is given namely to the construction of  container ships, product and chemical tankers 
and LNG carriers (Liquefied Natural Gas carriers).     Support of 6 per cent of contract value before aid.    
5. Duration of subsidy and other time-limits attached to it
 
  In the frame of Commission Regulation (EC) No 1177/2002 / COMReg. (EC) No. 502/2004.  Limited to contracts signed before 31 March 2005.    
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  N.A.     
III. REGIONAL PROGRAMMES IN SUPPORT OF COMMERCE AND INDUSTRY 
(LAND BAYERN) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Bavarian programmes in support of commerce and industry as promulgated by the Bavarian 
Ministry of Economics, Transport and Technol ogy on 22 February 2002 , No.3540-III/2-3540.   
 2. Form of the subsidy
 
  Investment grant.    Interest rate subsidy (to subsidize loans).    G/SCM/N/155/EEC/Add.10 
 Page 5 
 
 
  3. Subsidy per unit  
  Total support (million Euros) 
 
 2005 2006 
Investment grant 66.5 69.5 
Interest rate subsidy 10.8 10.9 
Assisted investment volume 686.6 850.1 
Number of assisted companies 393 473 
 
 
4. Objective and/or purpose of the subsidy  
  Aid to finance investments in  trade, industry and tourism to  create and secure jobs and 
training places in assisted areas.   
 
 Objective: Improving regional economic structures and tourism offers;   
   Increasing the economic strength of structurally weak areas.    5. Duration of subsidy and other time-limits attached to it
 
 
 Until 30 June 2008.   
 6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available.  Outside the assisted areas pursuant to the Joint Federal Government/Laender 
Scheme for the Improvement of Regional Economic Structures, support is restricted to small and 
medium-sized enterprises (SMEs) within the meaning of the Decree (EC) Nr.70/2001 of the 
European Commission on State Aid to SME's (EC L 10/33 dated 12 January 2001).     
IV. REDUCTION OF RATES ON INHERITABLE LAND-USE RIGHTS (LAND BERLIN) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Reduction to between 3 and 5 per cent of the rates payable on inheritable land-use rights in the case of projects worthy of special promotion of manufacturing firms depending on the degree of 
use of the buildings.   
 2. Form of the subsidy
 
  Cutting land costs by granting a reduced rate on land-use rights.   
 
3. Subsidy per unit
 
  Payments in 2005:  42,682.00 Euros.    Payments in 2006:  39,785.27 Euros.    
4. Objective and/or purpose of the subsidy
 
  Reducing land acquisition costs for the manuf acturing industry for regional promotion 
purposes.   G/SCM/N/155/EEC/Add.10 
Page 6  
 
  5. Duration of subsidy and other time-limits attached to it
 
  Until 31 December 2006.    6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 The effects of the subsidy in accordance with  WTO standards cannot be assessed due to the 
low financial resources.     V. CONSOLIDATION PROGRAMME (LAND MECKLENBURG-VORPOMMERN) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Consolidation programme of the Land Meck lenburg-Vorpommern on the granting of public 
financial aid to small and medium-sized commerc ial and industrial enterprises – special fund to 
support companies.    2. Form of the subsidy
 
  Loans of up to 2,5 million Euros at market cond itions.  Usually restricted to SMEs within the 
meaning of the Community Framework.   
 3. Subsidy per unit
 
  Approved loans in 2005:  0.740 million Euros.   
 Disbursed loans in 2005:  0.906 million Euros.   
 4. Objective and/or purpose of the subsidy
 
  Liquidity aid for enterprises that are importa nt for a region in Mecklenburg-Vorpommern in 
terms of labour-market policy and structural policy.   
 
5. Duration of subsidy and other time-limits attached to it
 
  The loans have a maximum duration of ten years.  Programme's expire date:  31 May 2005 .   
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Statistics are not available to assess the trade e ffects of the subsidy.  Most of the assisted 
enterprises operate on regional markets only.     VI. JOINT SCHEME ON "IMPROVING THE REGIONAL ECONOMIC STRUCTURE" 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Joint Scheme on "Improving the Regional Economic Structure".   
 
2. Form of the subsidy
 
  Regional assistance in the form of investment grants and, exceptionally, loan guarantees.    G/SCM/N/155/EEC/Add.10 
 Page 7 
 
 
  3. Subsidy per unit  
  Generally speaking budget allocations fo r the Scheme have been decreased.   
  In 2005, a total amount of 1.0 million Euros was disbursed by the "Länder" under the Scheme 
in order to promote business (commercial and industria l) investments.  85.4 per cent of this amount 
(0.855 million Euros) was paid out by the Easter n Länder and Berlin.  The amounts indicated federal 
co-financial contributions.     In 2006, also a total of 1.0 million Euros as di sbursed by the Länder under the Joint Scheme 
in order to promote business (commercial and industria l) investments.  82.7 per cent of this amount 
(0.843 million Euros) was paid out by the Eastern Länder and Berlin.  The amounts indicated include 
federal co-financial contributions.    4. Objective and/or purpose of the subsidy
 
 
 The primary regional policy objective is to enable  structurally weak regions to keep pace with 
general economic development by offsetting locational disadva ntages and reducing regional 
development differentials.  Regional structural policy focuses on supporting regional development 
activity with a view to raising the levels of empl oyment and income in problem areas in this way.  
Eligible for subsidies under this scheme are commercial and industrial firms.   
 
 Investments in commerce and industry are eligib le for promotion if they generate additional 
income to the region so that the region's total level of  income is raised to a not insignificant extent in 
the long run (primary effect).  This is deemed to  be the case if the company applying for subsidy 
payment sells the better part of its products or services on a supraregional basis.  The investment 
projects concerned must create new jobs in the assisted areas or secure existing ones.   
  Assisted areas are redefined at multiannual inte rvals on the basis of regional indicators (level 
of income, unemployment, infrastructure).  Assisted  areas in the original Länder including Berlin 
cover now 11 per cent of the German population in  the period from 2007 to 2013 (reduction to former 
period of one third).  The new Länder represent assi sted areas in their entity till 2013.  Moreover, 
these areas have been recognized as objective-1 areas within the fra mework of the EC Structural 
Funds until the end of 2013.    5. Duration of subsidy and other time-limits attached to it
 
 
 Regional assistance consists of a non-recurring pa yment and is granted to investment projects 
in assisted areas.  The programme is under no time-limit.    6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Regional promotion is aimed at offsetting domestic investment disadvantages of certain 
regions and contributes to raising the levels of inco me and employment in structurally weak areas.  
Promotion under the Joint Scheme therefore is neut ral in terms of competition and has no effect on 
competition in international trade.     VII. REGIONAL ECONOMIC SUPPORT PROGRAMME (LAND NORDRHEIN-
WESTFALEN) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
 
 Regional Economic Support Programme.   G/SCM/N/155/EEC/Add.10 
Page 8  
 
  2. Form of the subsidy
 
  Grants towards investment projects of trade and industry and local infrastructure.    3. Subsidy per unit
 
 
 The total amount budgeted for 2005: 58.2 million Euros  Total number of recipients:   55   The total amount budgeted for 2006: 40.9 million Euros 
 Total number of recipients:  115 
 4. Objective and/or purpose of the subsidy
 
  Improving the regional economic structur e and supporting small and medium-sized 
businesses.   
 5. Duration of subsidy and other time-limits attached to it
 
  Not limited.    
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Given the objectives of the programme, trade effects cannot be assessed.     VIII.  REGIONAL AID PROGRAMME (LAND RHEINLAND-PFALZ) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
  Regional aid programme of the Land Rheinland-Pfalz.    
2. Form of the subsidy
 
  Investment grant.    3. Subsidy per unit
 
 
 Up to 7.5 per cent for medium-sized industries, 15 per cent for small-sized industries.     Total budget:  17 million Euros.    disbursement in 2005: 0.9 million Euros.    disbursement in 2006: 2.5 million Euros.   
 
4. Objective and/or purpose of the subsidy
 
  Promotion of investment in small-  and medium-sized industries.   
 
5. Duration of subsidy and other time-limits attached to it
 
  Unlimited.    G/SCM/N/155/EEC/Add.10 
 Page 9 
 
 
  6. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  In 2005: creation of 39 jobs by providing financial assistance to 
13 individual promotional cases.   
 In 2006: creation of 274 jobs by  providing financial assistance to 
35 individual promotional cases.   
  
IX. NATIONAL PROGRAMME FOR CIVIL AERONAUTICAL RESEARCH 
 1. Name of the subsidy scheme or ad hoc subsidy
 
  National programme for civil aeronautical research and technology for the period 2003 
to 2007.  Federal Government and aid for research and technology.   
 
2. Form of subsidy
 
  Non repayable grants (industry:  40 per cent;  universities:  100 per cent of the expenses) are 
awarded towards R&T expenditure.    3. Amount of grant per unit
 
 
 2005:  36.60 million Euros.    2006:  48.51 million Euros.    4. Purpose of aid
 
 
 This programme intends to contribute to strengthening innovative medium and long term 
research and technology, one of the most important  key technologies with spin-off effects to other 
sectors.  The programme aim forms part of the Federa l Governments' research and technology policy.   
  The priorities of the programme are encourag ing sustainable research in the fields:   
 
 Low pollutant and safe Aircraft of the next generation.    Low noise all-weather helicopter.    Efficient and ecologically friendly engine.    
6. Duration of aid
 
  2003 – 2007.    7. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
  
X. PULP MILL STENDAL (LAND SACHSEN-ANHALT) 
 1. Name of the subsidy scheme or ad hoc subsidy
 
  Zellstoffwerk (Pulp Mill) Stendal based on following aid schemes:   
 
 A: Improvement of the regional economic  structure (Gemeinschaftsaufgabe).   
 B: Investitionszulagengesetz 1999.   G/SCM/N/155/EEC/Add.10 
Page 10  
 
   C: Scheme for direct guarantees of the Fed.  Rep. of Germany and the Federal Länder.   
 2. Form of the subsidy
 
  A: Grant.   
 B: Grant.   
 C: Guarantee.    3. Subsidy per unit
 
 
 A: 90.588 million Euros.   
 B: 187.077 million Euros.    C: 80 per cent guarantee for a loan of 464,55 million Euros.    4. Objective and/or purpose of the subsidy
 
 
 The primary regional policy objective is to enable  structurally weak regions to keep pace with 
general economic development by  offsetting disadvantages of location and reducing regional 
development differentials.     It focuses on supporting regional de velopment activities with a view  to raising the Levels of 
employment and income in problem areas.   
 5. Duration of subsidy and other time-limits attached to it
 
  2 April 2002 - 31 December 2005 
 
 The project was finished on 30 September 2005.   
 
6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available.   
 
 
XI. CORRUGATED BASE PAPER PLANT (LAND BRANDENBURG) 
 
1. Name of the subsidy scheme or ad hoc subsidy
 
 
 Grant investment aid under the multisectoral framework on regional aid for large Investment 
projects to the Hamburger AG for the constructi on of a new plant to produce white and brown 
corrugated base paper.    2. Form of the subsidy
 
 
 Grant.    3. Subsidy per unit
 
 
 Germany notified is intention to grant aid pursuant to the multisectoral framework on regional 
aid for large investment projects by the Eur opean Commission.  On April 9th 2002, the 
European Commission decided that the initially planned aid of the Government of Brandenburg 
of 53,685,648 Euros (at an aid intensity of 35 per cent of the investment costs) is compatible with the 
Common Market only in so far as it does not exceed an intensity of 26,25 per cent maximum.   
  G/SCM/N/155/EEC/Add.10 
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   To the project of the Hamburger AG.  The notification process is finished.   
 4. Objective and/or purpose of the subsidy
 
  Purpose:  partly financing a project of Ham burger AG aiming at constructing a new plant for 
the production of corrugated base paper.   
 Objective:  improving the regional economic structure in structurally weak areas.    Under Art 87 EC Treaty, creation of 299 permanent and 267 indirect jobs.    5. Duration of subsidy and other time-limits attached to it
 
 
 There is no legal time limit, but the investment is completed.    6. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available.   
   
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